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Tuesday 16 May 2023
Two Charged with Federal Drug Trafficking and Firearms OffensesRead the Press Release
NEW ORLEANS – GREGORY SMITH, age 41, of Slidell, and DARREN HULBERT, SR., age 52, of New Orleans, were indicted on May 12, 2023 for violations of the Federal Controlled Substances and Federal Gun Control Acts, announced U.S. Attorney Duane A. Evans. SMITH and HULBERT were charged with one count of conspiracy to distribute and possess with the intent to distribute one kilogram or more of heroin, in violation of 21 U.S.C. §§ 841(a)(1), 841(b)(1)(A), and 846. SMITH was charged with possession with intent to distribute heroin and cocaine base, in violation of 21 U.S.C. §§ 841(a)(1), 841(b)(1)(A), and 841(b)(1)(C). HULBERT was charged with possession with intent to distribute cocaine and cocaine base, in violation of 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(C). SMITH and HULBERT were also each charged with possession of a firearm during and in relation to a drug trafficking crime, in violation of 18 U.S.C. § 924(c)(1)(A)(ii) and with being a felon in possession of a firearm, in violation of 18 U.S.C. §§ 922(g)(1) and 924(a)(8).
According to the indictment, SMITH and HULBERT conspired to distribute heroin in the Eastern District of Louisiana and elsewhere. SMITH possessed with intent to distribute heroin and cocaine base and HULBERT possessed with intent to distribute cocaine and cocaine base. On or about May 4, 2023, SMITH possessed a Masterpiece Arms Model MPA Defender, nine-millimeter semi-automatic submachine gun and HULBERT possessed a Smith and Wesson Model 6906, nine-millimeter pistol, a Springfield handgun, and a Century Arms AK Style Rifle.
If convicted of the drug conspiracy, SMITH and HULBERT each face a mandatory minimum sentence of 10 years, up to life imprisonment, a fine of up to $10,000,000, and at least 5 years of supervised release. SMITH also faces a mandatory minimum sentence of 10 years, up to life imprisonment, a fine of up to $10,000,000, and at least 5 years of supervised release if convicted of possession with intent to distribute heroin and up to 20 years imprisonment, up to a $1,000,000 fine, and at least 3 years of supervised release if convicted of possession with intent to distribute cocaine base. HULBERT faces up to 20 years imprisonment, up to a $1,000,000 fine, and at least 3 years of supervised release if convicted of possession with intent to distribute cocaine and cocaine base.
For possessing a firearm in furtherance of a drug trafficking crime, SMITH and HULBERT each face a mandatory minimum sentence of 5 years, up to life imprisonment, which must be served consecutive to any other sentence, a fine of up to $250,000, and up to 5 years of supervised release. For being felons in possession of firearms, SMITH and HULBERT face a maximum sentence of 15 years of imprisonment, up to a $250,000 fine, and up to 3 years of supervised release. SMITH and HULBERT each face payment of a $100 mandatory special assessment fee for each count.
U.S. Attorney Evans reiterated that the indictment is merely an allegation and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is being investigated by the Drug Enforcement Administration and the Louisiana State Police. Assistant United States Attorneys Rachal Cassagne and André Jones of the Narcotics Unit are in charge of the prosecution.
Tucson Man Sentenced to 30 Months for Alien SmugglingRead the Press Release
TUCSON, Ariz. – Michael Lopez-Loreto, 22, of Tucson, Arizona, was sentenced last week by United States District Judge Rosemary Márquez to 30 months in prison, followed by three years of supervised release. On February 9, 2023, Lopez-Loreto pleaded guilty to Conspiracy to Transport Illegal Aliens for Profit Placing in Jeopardy the Life of Any Person.
On January 17, 2023, Lopez-Loreto was encountered by United States Border Patrol agents after a property owner reported a vehicle on their property. Agents subsequently observed individuals run from the desert and enter that vehicle that was being driven by Lopez-Loreto. Lopez-Loreto then drove toward an area where the roadway was blocked by agents. Lopez-Loreto was forced to slow to a near stop due to the obstruction. At that time, an agent activated his emergency equipment; however, Lopez-Loreto sped up and maneuvered around agents and their patrol vehicles to evade apprehension. As he sped away, Lopez-Loreto narrowly missed striking agents who were standing outside their vehicles. Agents pursued Lopez-Loreto and deployed spike strips to stop his vehicle. Lopez-Loreto swerved around one set of spike strips, attempted to avoid a second set by driving into an oncoming lane, and then crashed into water barriers, rolling the vehicle. The two passengers in Lopez-Loreto’s vehicle suffered injuries in the crash and were transported to the hospital for treatment. Both were determined to be undocumented non-citizens who Lopez-Loreto was smuggling further into the country at the time of this incident.
Customs and Border Protection’s United States Border Patrol conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: 23-CR-00164-TUC-RM (JR)
RELEASE NUMBER: 2023-071_Lopez-Loreto# # #
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.Topeka Man Indicted for Child Sexual ExploitationRead the Press Release
KANSAS CITY, Mo. – A Topeka, Kansas, man was indicted by a federal grand jury today after traveling to Missouri to meet a 14-year-old girl, who was actually an undercover FBI employee, for illicit sex.
William H. Reichart, 60, was charged in a three-count indictment returned by a federal grand jury. Today’s indictment replaces a criminal complaint that was filed against Reichart on April 28, 2013, and includes additional charges.
According to an affidavit filed in support of the original federal criminal complaint, members of the FBI Child Exploitation Task Force were engaged in covert chat sessions on platforms known to be frequented by adults with sexual fetishes, including adults attempting to lure children into sexual acts. An online covert law enforcement officer, posing as a 14-year-old girl, communicated with Reichart through a social media application.
Reichart engaged in sexually explicit conversations with the undercover law enforcement officer, the affidavit says, and sent pornographic images and video of himself. The affidavit says they made arrangements to meet in person for sexual contact. Law enforcement officers conducted surveillance of Reichart as he left his residence on April 27, 2023, and drove to the agreed-upon meeting location. When Reichart arrived for the meeting, he was arrested without incident.
Today’s indictment charges Reichart with one count of attempting to travel with the intent to engage in illicit sexual conduct, one count of attempting to entice a minor to engage in sexual activity, and one count of attempting to transfer obscene material to minor.
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. Attorney Maureen A. Brackett. It was investigated by the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Three Lincoln Gang Members Sentenced for RICO ConspiracyRead the Press Release
United States Attorney Steven Russell announced that Edward Dean Williams, Antonio Corell Shannon, and Emmanuel Charles Kuot were all sentenced this morning in federal court in Lincoln, Nebraska, following their guilty pleas to a Racketeer Influenced and Corrupt Organizations (RICO) conspiracy. Williams was sentenced to a term of 180 months’ imprisonment, Shannon was sentenced to 150 months’ imprisonment, and Kuot was sentenced to 120 months’ imprisonment. All three defendants were sentenced to serve a three-year term of supervised release after they complete their prison sentences. There is no parole in the federal system. Senior United States District Court Judge John M. Gerrard presided over the case. Williams, 21, of Lincoln, pleaded guilty to the offense on December 16, 2022. Shannon, 21, of Lincoln, pleaded guilty on December 15, 2022, and Kuot, 21, of Lincoln, pleaded guilty on January 11, 2023.
The charge to which they pleaded guilty alleges that the three defendants conspired to violate the racketeering laws of the United States. Each defendant was either a member or an associate of the Day One Brothers (or “D1B”) gang in Lincoln. The D1B gang was an enterprise which engaged in a pattern of racketeering activity, including acts involving murder or attempted murder, robbery, and the distribution of controlled substances, including marijuana. The gang became the focus of an intensive investigation following an incident on March 26, 2018, when a group of D1B members and associates feuded with a rival gang. The confrontation ended with a D1B member shooting and killing a rival. As the investigation continued, the Lincoln Police Department and the Federal Bureau of Investigation uncovered the extent of the gang’s criminal activities.
The defendants in this case were each charged with committing acts in furtherance of the conspiracy. Among those acts, all three defendants were alleged to have participated in a shooting on October 26, 2019, which targeted a rival gang member. On that day, the three defendants were at a residence in the 3400 block of Portia Street in Lincoln, a location which the D1B gang viewed as being under their control. They learned that a rival gang member, who was referred to in the indictment as “Victim 7,” was in a nearby apartment building. Using social media contacts, they attempted to lure him out of the apartment. Williams and Shannon were carrying firearms. As they approached on foot, the three defendants spotted a person near the apartment. Williams and Shannon each fired several shots in the direction of the apartment unit where they suspected Victim 7 was located. Some of the shots penetrated the apartment. People were inside the apartment, but thankfully nobody was hit.
As part of his guilty plea, Williams further admitted to having assaulted people on a couple of occasions who Williams suspected had cooperated with law enforcement and who Williams believed had provided information about D1B members and associates. The gang would use such threats, intimidation, and violence to keep others in fear of the gang. Shannon admitted to having used Snapchat and Facebook to advertise the sale of illegal drugs, mainly marijuana. The sales would often take place within a neighborhood which D1B viewed as under their control. And as part of Kuot’s guilty plea, he admitted to having also participated in an attempted robbery of a UNL fraternity member who was collecting an entry fee to a party in Lincoln.
FBI Omaha Special Agent in Charge Eugene Kowel said, “The three gang members sentenced today used violence to terrorize and exert control over Lincoln neighborhoods. The FBI is dedicated to disrupting and dismantling the most violent gangs in our community. The FBI’s Safe Streets Gang Task Force in Lincoln will continue to work tirelessly with our law enforcement partners to investigate, arrest, and apprehend gang members to make our neighborhoods safer.”
This case was primarily investigated by the Lincoln Police Department and the Federal Bureau of Investigation. The United States Marshals also assisted during the investigation of this case.
This case was part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see https://www.justice.gov/projectguardian.
Suspended Kentucky Attorney and Wife Plead Guilty to Wire Fraud and Willful Failure to Pay TaxRead the Press Release
Louisville, KY – A suspended Kentucky attorney and his wife pled guilty in federal court yesterday to wire fraud and willful failure to pay tax.
United States Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge Robert Holman of the United States Secret Service Louisville Field Office, and Special Agent in Charge Bryant Jackson of the Cincinnati Field Office of the Internal Revenue Service, Criminal Investigation, made the announcement.
Andrew Nicholas Clooney, 55, and Christel Marie Clooney, 50, both of Louisville, pled guilty to one count of wire fraud and one count of willful failure to pay tax. According to court documents, Andrew Clooney practiced as a personal injury attorney through the Clooney Law Office. Christel Marie Clooney served as the office manager for the Clooney Law Office. From August 2016 through October 2018, the Clooneys used funds that belonged to clients of the Clooney Law Office on personal expenses. Further, the Clooneys made approximately $426,098 in income in 2016, on which they owed approximately $107,140 in federal income taxes. The Clooneys neither filed a tax return for tax year 2016 nor paid any of their outstanding tax liability for that year.
Andrew Clooney and Christel Marie Clooney are both scheduled to be sentenced on September 14, 2023. They each face a maximum sentence of 21 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. There is no parole in the federal system.
The United States Secret Service and the Internal Revenue Service, Criminal Investigation, are investigating the case.
Assistant U.S. Attorney Amanda Gregory is prosecuting the case.
If former Clooney Law Office clients believe they are victims of the Clooneys, and they have not received notice with respect to this case, they should contact the United States Secret Service at (502) 582-5171 and ask to speak to Special Agent Joseph Ward.
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St. Petersburg Man Sentenced to 25 Years in Federal Prison for Dry Cleaner Armed Robbery and Murder Relating to Exotic Nightclub Drug ConspiracyRead the Press Release
Tampa, Florida – U.S. District Judge Thomas P. Barber today sentenced Corey Small (44, St. Petersburg) to 25 years in federal prison for to interfering with commerce by robbery, using and brandishing a firearm in furtherance of a crime of violence, conspiring to distribute cocaine and cocaine base, possessing a firearm as a convicted felon, and possessing, brandishing, and discharging a firearm in furtherance of a drug trafficking crime, causing death by murder. Small had pleaded guilty on October 14, 2021.
According to court documents, in 2014, Small robbed a St. Petersburg dry cleaning business of $51.41 after pointing a gun at the clerk. Four years later, in 2018, he conspired to distribute cocaine with an exotic night club employee. Small argued with an individual who attempted to persuade the nightclub employee to leave the club and stop selling drugs for Small. During the argument, Small shot the individual four times, killing him.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pinellas Park Police Department, the St. Petersburg Police Department, and the Pinellas 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.
St. Louis Man Sentenced to 28+ Years in Prison for Carjacking, Crime SpreeRead the Press Release
ST. LOUIS –U.S. District Judge Stephen R. Clark on Tuesday sentenced a St. Louis, Missouri man to 28 years and three months in prison for a “rampage” that involved carjackings, burglaries and a home invasion in May of 2021.
Drew Clark, 37, started his spree by stealing a man’s Jeep Cherokee at Union Station in St. Louis on May 22, 2021 as the victim was unloading the vehicle. Inside was the man’s 9mm handgun and a Gibson guitar.
Four days later, Clark committed a series of crimes in less than four hours, often discarding items he’d stolen earlier and stealing new clothing, vehicles and other items.
Just before noon on May 26, 2021, Clark left the stolen Jeep near a commercial business in the 3700 block of South First Street and stole a worker’s truck before quickly abandoning it. He then stole a white Dodge Ram belonging to the business. One worker tried to block Clark in with his own truck, until Clark forced him to move out of the way by pointing the stolen handgun at the worker.
About 30 minutes later, Clark burglarized a home in the 2700 block of South 13th Street, taking a wallet and debit card, running shoes and a set of keys and leaving behind the Dodge Ram and work boots. He unsuccessfully tried to use the debit card, then tossed it in a dumpster behind a nearby deli.
Shortly thereafter, in the same block, he entered the home of a woman and demanded money at gunpoint. He forced the terrified woman into her bathroom and zip-tied her on the floor before stealing her keys, her husband’s work safety vest and helmet and her Jeep Cherokee.
At roughly 1:30 p.m., he left the Jeep in the 1100 block of South 7th Street, along with a blue jacket he had been wearing. He put on the vest and helmet and walked towards the Purina facility just south of downtown. After wandering around the grounds and buildings, stealing items and changing into clothing he stole from an employee’s locker, he carjacked a Subaru Impreza from a different employee who was on his way to happy hour.
He left the Subaru in the 1600 block of South 9th Street, leaving behind a Purina vest, temporary contractor badge and radio in the Subaru.
St. Louis Metropolitan Police Department officers spotted him nearby. Clark fled on foot, running through another victim’s home before officers were able to catch and subdue him. He had a backpack containing an unused zip tie, keys from Purina and items from the Jeep stolen at Union Station: a business card, gift card envelopes and a charging plug.
He hid the stolen firearm after his arrest, but it was spotted by a detective and wrestled away from him.
Assistant U.S. Attorney Ryan Finlen summed up the crimes for jurors at Clark’s January trial by calling it an “absolute rampage.” Clark, of the 4000 block of Pennsylvania Avenue, was convicted of all charges: three counts of carjacking, three counts of brandishing a firearm in furtherance of a crime of violence and one count of possession of a stolen firearm.
The case was investigated by the St. Louis Metropolitan Police and the FBI. Assistant U.S. Attorneys Ryan Finlen and Jennifer Szczucinski are prosecuting the case.
Springfield Rapper Pleads Guilty to Illegal FirearmsRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Mo., man who was part of a local rap group pleaded guilty in federal court today to illegally possessing firearms, one of which has been linked to several recent shootings.
Jardell Carlin Williams, 19, pleaded guilty before U.S. Chief Magistrate Judge David P. Rush to two counts of being an unlawful user of a controlled substance in possession of a firearm.
By pleading guilty today, Williams admitted he was in possession of a Glock .40-caliber semi-automatic pistol when a vehicle, in which he was a passenger, was stopped by Springfield, Mo., Police Department detectives on Feb. 15, 2022.
Williams also admitted that he was in possession of a C3 Defense 5.56-caliber semi-automatic pistol when a vehicle, in which he was a passenger, was stopped by detectives with the Greene County, Mo., Sheriff’s Department on Oct. 23, 2022. According to the plea agreement, the AR-style pistol was tentatively identified as having been used in three shooting incidents in the Kansas City, Mo., and Kansas City, Kansas, areas.
Williams admitted to regularly smoking marijuana, which remains a controlled substance under federal law, since he was in high school. He estimated that he smoked about a gram of marijuana each day.
Under federal statutes, Williams is subject to a sentence of up to 25 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Stephanie L. Wan. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Greene County, Mo., Sheriff’s Department and the Springfield, Mo., Police Department.
Sioux Falls Man Charged with Failure to Register as a Sex OffenderRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced that a federal grand jury has indicted a Sioux Falls, South Dakota, man for Failure to Register as a Sex Offender.
Robert Walter White, age 35, was indicted in May of 2023. He appeared before U.S. Magistrate Judge Veronica L. Duffy on May 10, 2023, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that White, who had previously been convicted of a sex crime and required to register under the Sex Offender Registration and Notification Act, failed to do so between February 23, 2023, and May 2, 2023.
The charge is merely an accusation and White is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
White was remanded to the custody of the U.S. Marshals Service pending trial, which has been set for July 18, 2023.
Sioux City Man Pleads Guilty to Meth Possession with Intent to DistributeRead the Press Release
A man who possessed with intent to distribute methamphetamine pled guilty May 15, 2023, in federal court in Sioux City.
Thomas Powell, 36, from Sioux City, Iowa, was convicted of possession with intent to distribute methamphetamine after having been previously convicted of a federal felony drug offense in 2010.
At the plea hearing, Powell admitted that on November 13, 2022, while in Sac County, Iowa, he was found with over 90 grams of pure methamphetamine and that he planned to distribute some or all of it to other persons.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Powell remains in custody of the United States Marshal pending sentencing. Powell faces a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of life imprisonment, a $20,000,000 fine, and at least 10 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Patrick T. Greenwood and was investigated by the Sac County Sheriff’s Office, Iowa DCI Laboratory, and Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-4002. Follow us on Twitter @USAO_NDIA.
Security Subcontractor Pleads Guilty to Bomb Threat of Local Democratic Campaign OfficeRead the Press Release
MACON, Ga. – A former security subcontractor working at the Athens-Clarke County Democratic Party coordinated campaign office pleaded guilty to threatening to bomb their local headquarters while the U.S. Senators from Georgia were in town for campaign events.
Jessica Diane Higginbotham aka Jessica Harriod aka Jessica Jones, 35, of Elberton, Georgia, pleaded guilty to one count of communicating a bomb today before U.S. District Judge Tilman E. “Tripp” Self III. Higginbotham faces a maximum sentence of ten years imprisonment and a $250,000 fine. Sentencing is scheduled for Sept. 7.
“The bomb threat was leveled by an employee working for a political organization days before a federal election in Georgia; this incident was a targeted effort to disturb the peace and disrupt the democratic process,” said U.S. Attorney Peter D. Leary. “The immediate response and seamless collaboration by all levels of law enforcement safeguarded the community and helped bring the defendant to justice.”
“The FBI takes all threat-to-life matters very seriously,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “This guilty plea demonstrates the FBI’s commitment to hold accountable anyone who tries to intimidate public officials and undermine the foundation of our democracy. It also shows that threatening others with violence and physical harm will have serious repercussions.”
"The Athens-Clarke County Police Department is deeply committed to ensuring the safety and security of all individuals in our community. This incident was a grave and concerning matter; however, thanks to the swift response and collaborative efforts, the threat was successfully investigated, and the individual responsible was apprehended,” said ACCPD Police Chief Jerry Saulters. “We will continue to work diligently to safeguard our community and uphold the values that bind us together. Acts of violence and threats have no place in our society, and we stand united against those who seek to harm others or disrupt our democratic processes.”
According to court documents, on Dec. 3, 2022, at 6:01 p.m., an employee of the DSCC in Athens received a text message: “Hello, I am writing this message to you to let you know that I am coming by either tonight or in the morning to set a bomb up. So I can blow all the Democrats up. I have other people going to other offices also. If I can’t stop you by breaking in and destroying the property then I will blow every one up. So be ready to be blown up. This is going to either happen tonight or in the morning. Hope you like being on the wrong team.”
The FBI began investigating the threat immediately, and officers with the Athens-Clarke County Police Department (ACCPD) responded to the area of the threat. The U.S. Senate runoff election was scheduled to take place on Dec. 6, and elected officials were in Athens participating in campaign events, including both U.S. Senators from Georgia on Dec. 4. Using a series of emergency disclosure requests (EDRs), FBI agents discovered the cell phone belonged to the defendant, who was also working as a contract security officer for a firm employed by the local Democratic coordinated campaign. The U.S. Capitol Police were also investigating the bomb threat, and independently determined that the bomb threat was sent from Higginbotham’s cell phone.
On Dec. 4, FBI task force officers located Higginbotham at a coffee shop in Athens with the cell phone in her hands. When she saw the agents approach her, she vomited. At first, she denied sending the bomb threat. A federal search warrant was executed on her cell phone, which linked the email account used in the bomb threat to her. While investigating the bomb threat, agents learned that there had been a break-in at the local Democratic campaign building in Athens on Nov. 27, and a laptop belonging to the campaign was stolen. At the time of the burglary, investigators noted that it appeared to be staged as tables were turned over, but the building was locked with no evidence of a forced entry. Investigators later recovered the stolen laptop with Higginbotham’s personal items. Higginbotham now admits that she used a cell phone to willfully threaten to kill or injure people and unlawfully destroy a building with an explosive.
The case was investigated by the FBI, the U.S. Capitol Police, the Athens-Clarke County Police Department and the Elbert County Sheriff’s Office.
Deputy Criminal Chief Will R. Keyes is prosecuting the case.
Seattle man sentenced to ten years in prison for possession of drugs and a “ghost” machinegunRead the Press Release
Seattle –A 32-year-old Seattle man was sentenced today to ten years in prison for his possession of a so-called “ghost gun” and drugs in a stolen vehicle, announced U.S. Attorney Nick Brown. Jade B. Irey was arrested at an auto parts store in Kent, Washington on March 24, 2022. On December 5, 2022, Irey pleaded guilty to unlawful possession of a machinegun, possession of controlled substances with intent to distribute, and possession of a firearm in furtherance of a drug trafficking crime. At the sentencing hearing U.S. District Judge James L. Robart said, Irey had been “a one-person crime wave.” Judge Robart noted that Irey had 700 fentanyl pills and the machinegun, making the case “one of the most serious I’ve seen in recent history.”
“Unregistered, fully automatic, and with an extended magazine, this weapon and others like it are designed for one thing: to kill,” said U.S. Attorney Nick Brown. “We are intent on using all the tools Congress has given us to combat possession of such illegal weapons and the damage they do in our communities.”
According to records in the case, Irey was under investigation for a December 2021 burglary in Bellevue, where he apparently dropped his cell phone while leaving the scene. The resident turned the cell phone over to police. Bellevue Police put Irey under surveillance, following him and an associate from his residence in the Magnolia neighborhood of Seattle to stops throughout the area. When a records check indicated the vehicle Irey was driving was stolen, police arrested Irey inside the auto parts store in Kent. A search of the car turned up the ghost gun and a pouch containing methamphetamine, black tar heroin, and 700 suspected fentanyl pills. Using court authorized search
warrants, investigators reviewed information on Irey’s electronic devices detailing his drug sales and ownership of the firearm.
Irey is also charged in state court for a number of crimes including burglary, identity theft, car theft and hit and run. The plea and sentencing in this case is part of a global resolution and the state sentences are expected to run concurrent with the ten year federal sentence.
The case was investigated by the Bellevue Police Department Special Operations Unit with assistance from Homeland Security Investigations (HSI).
The case was prosecuted by Assistant United States Attorney Todd Greenberg.
Savage Man Pleads Guilty to Illegal Possession of a Machine GunRead the Press Release
MINNEAPOLIS – A Savage man has pleaded guilty to illegally possessing a machine gun, announced U.S. Attorney Andrew M. Luger.
According to court documents, in September of 2022, the FBI received tips from concerned citizens reporting disturbing behavior of a man at a firearm range, later identified as River William Smith, 21. In November and December 2022, Smith began communicating via a social media platform with an FBI confidential human source (the “CHS”). The FBI’s investigation revealed evidence that Smith was preparing for a violent exchange with police. Smith stated he is “pro mass shooting,” sympathized with the Parkland school shooter, and expressed admiration for the individual charged with the recent shooting at a Colorado Springs LGBTQ nightclub. The FBI also discovered Smith had access to an AR-style rifle, handguns, body armor, and a Kevlar helmet. In online messages, Smith discussed learning about his “enemy” by watching police bodycam shootings online.
According to court documents, on November 17, 2022, Smith asked a second CHS for auto sears to convert his AR-15 style rifle and his Glock handgun into fully automatic machine guns. The CHS told Smith that he could obtain the auto sears for him, and Smith provided the CHS with a down payment of $60. On November 28, 2022, Smith asked whether the CHS knew about M67 fragmentary grenades, which are hand grenades used by the U.S. military in close combat. Smith told the CHS that he wanted three hand grenades to outfit his tactical vest and discussed a plan to purchase the grenades. On December 5, 2022, Smith provided the CHS with a $200 down payment for three hand grenades, priced at $250 per hand grenade.
According to court documents, on December 14, 2022, under supervision of law enforcement, a meeting between Smith and the second CHS was arranged. At the meeting, Smith took possession of three auto sears and three inert hand grenades in exchange for $690 in cash. Smith was then placed under arrest by law enforcement.
Smith pleaded guilty today in U.S. District Court before Senior Judge David S. Doty to one count of possession of a machine gun. A sentencing hearing will be scheduled at a later date.
This case is the result of an investigation conducted by the FBI and the Savage Police Department.
This case is being prosecuted by Assistant U.S. Attorneys Manda Sertich and Andrew Winter, and Department of Justice Trial Attorney Justin Sher.
San Jose Man Sentenced to Seven Years for Trafficking MethamphetamineRead the Press Release
OAKLAND – Ramiro Velasco Jr. was sentenced to 84 months in federal prison for distribution of more than 50 grams of methamphetamine, announced United States Attorney Ismail J. Ramsey and Federal Bureau of Investigation Special Agent in Charge Robert K. Tripp. The sentence was handed down by United States District Judge Yvonne Gonzalez Rogers.
Velasco, 33, a resident of San Jose, pleaded guilty on January 12, 2023. According to his plea agreement, Velasco attended a meeting in October 2020 of the San Jose Grande (SJG). SJG is a Norteño street gang formed in San Jose in the 1990s and comprised of dozens of members operating in San Jose and within custodial facilities, according to the government’s sentencing memorandum.
Velasco described in his plea agreement that he discussed the sale of crystal methamphetamine with a potential buyer who also attended the SJG meeting. Velasco quoted a sales price of approximately $3,000 for a pound, which the buyer found acceptable. Over the next several days, Velasco made phone calls and sent text messages to broker the sale of methamphetamine to the buyer. Once he arranged the deal with a source of supply of the methamphetamine, Velasco advised the buyer, “Don’t trip he is good people, he is my peoples.” The sale that Velasco brokered occurred October 30, 2020, when the source of supply sold almost two pounds of nearly pure methamphetamine to the buyer for $3,200, according to the government’s sentencing memorandum.In addition to the 84 months imprisonment, U.S. District Judge Gonzalez Rogers ordered Velasco to serve four years of supervision following his release from prison. Velasco was in custody at the sentencing hearing and began serving his sentence immediately.
This case is being prosecuted by Assistant U.S. Attorneys Daniel N. Kassabian and Christoffer Lee, with the assistance of Nina Burney and Veronica Hernandez. The prosecution is the result of an investigation by the FBI and the Santa Clara County Violent Gang Task Force, with the assistance of the Santa Clara County District Attorney’s Office, the Santa Clara County Sheriff’s Office, and the San Jose Police Department.
Sacramento Couple Sentenced for Mail Fraud and Identity TheftRead the Press Release
SACRAMENTO, Calif. — Roderick Rigmaiden, 37, and his wife Onjale Nettles, 33, both of Sacramento, were sentenced Tuesday to six years and nine months in prison and five years and 11 months in prison, respectively, for mail fraud and aggravated identity theft, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Rigmaiden and Nettles stole mail, obtained the personal identifying information of others, and then assumed these victims’ identities to fraudulently purchase and finance almost $250,000 worth of cars from various auto dealerships in the Sacramento area, in the Bay Area, and in Orange County. Rigmaiden was a prolific mail thief and is tied to numerous postal burglaries—of postal boxes, of apartment complex mailboxes, and of mail trucks. During a search of their home, investigators found tens of thousands of pieces of stolen mail, as well as postal keys, key making equipment, and a credit card imprinter.
Rigmaiden and Nettles used stolen identities to fraudulently purchase and finance at least seven cars (and attempt an eighth) from auto dealerships. The vehicle purchases were typically accomplished by providing a down payment in the form of cash, check, or other monetary instrument, with the remainder of the purchase price secured by an auto loan. The monetary instruments presented for the down payment typically turned out to be fraudulent, and no payments were ever made towards the auto loans.
This case was the product of an investigation by the U.S. Postal Inspection Service and the California Highway Patrol. Assistant U.S. Attorney Elliot C. Wong prosecuted the case.
Russian National Charged with Ransomware Attacks Against Critical InfrastructureRead the Press Release
The Justice Department today unsealed two indictments charging a Russian national and resident with using three different ransomware variants to attack numerous victims throughout the United States, including law enforcement agencies in Washington, D.C. and New Jersey, as well as victims in healthcare and other sectors nationwide.
According to the indictment obtained in the District of New Jersey, from at least as early as 2020, Mikhail Pavlovich Matveev, aka Wazawaka, aka m1x, aka Boriselcin, aka Uhodiransomwar, allegedly participated in conspiracies to deploy three ransomware variants. These variants are known as LockBit, Babuk, and Hive, and Matveev transmitted ransom demands in connection with each. The perpetrators behind each of these variants, including Matveev, have allegedly used these types of ransomware to attack thousands of victims in the United States and around the world. These victims include law enforcement and other government agencies, hospitals, and schools. Total ransom demands allegedly made by the members of these three global ransomware campaigns to their victims amount to as much as $400 million, while total victim ransom payments amount to as much as $200 million.
“From his home base in Russia, Matveev allegedly used multiple ransomware variants to attack critical infrastructure around the world, including hospitals, government agencies, and victims in other sectors,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “These international crimes demand a coordinated response. We will not relent in imposing consequences on the most egregious actors in the cybercrime ecosystem.”
On or about June 25, 2020, Matveev and his LockBit coconspirators allegedly deployed LockBit ransomware against a law enforcement agency in Passaic County, New Jersey. Additionally, on or about May 27, 2022, Matveev and his Hive coconspirators allegedly deployed Hive against a nonprofit behavioral healthcare organization headquartered in Mercer County, New Jersey. On April 26, 2021, Matveev and his Babuk coconspirators allegedly deployed Babuk against the Metropolitan Police Department in Washington, D.C.
“From Russia and hiding behind multiple aliases, Matveev is alleged to have used these ransomware strains to encrypt and hold hostage for ransom the data of numerous victims, including hospitals, schools, nonprofits, and law enforcement agencies, like the Metropolitan Police Department in Washington, D.C.,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “Thanks to the extraordinary investigative work of prosecutors from my office and our FBI partners, Matveev no longer hides in the shadows – we have publicly identified his criminal acts and charged him with multiple federal crimes. Let today’s charges be a reminder to cybercriminals everywhere – my office is devoted to combatting cybercrime and will spare no resources in bringing to justice those who use ransomware attacks to target victims.”
According to the indictment obtained in the District of Columbia, between April 21, 2021, and May 9, 2021, Matveev allegedly participated in conspiracies to deploy Babuk and to transmit a ransom demand. Specifically, on April 26, 2021, Matveev and his Babuk co-conspirators allegedly deployed Babuk ransomware against the Metropolitan Police Department in Washington, D.C., and then threatened to disclose sensitive information to the public unless a payment was made.
“Data theft and extortion attempts by ransomware groups are corrosive, cynical attacks on key institutions and the good people behind them as they go about their business and serve the public,” said U.S. Attorney Matthew M. Graves for the District of Columbia. “Whether these criminals target law enforcement, other government agencies, or private companies like health care providers, we will use every tool at our disposal to prosecute and punish such offenses. Thanks to exceptional work by our partners here, we identified and charged this culprit.”
“The FBI is steadfast in our commitment to disrupting cybercriminals like Matveev,” said Assistant Director Bryan Vorndran of the FBI’s Cyber Division. “The FBI will continue to impose costs on cyber adversaries through our joint collaboration with our private sector and international partners, and we will not tolerate these criminal acts against American citizens.”
The LockBit ransomware variant first appeared around January 2020. LockBit actors have executed over 1,400 attacks against victims in the United States and around the world, issuing over $100 million in ransom demands and receiving over $75 million in ransom payments.
The Babuk ransomware variant first appeared around December 2020. Babuk actors executed over 65 attacks against victims in the United States and around the world, issuing over $49 million in ransom demands and receiving as much as $13 million in ransom payments.
Since June 2021, the Hive ransomware group has targeted more than 1,400 victims around the world and received as much as $120 million in ransom payments.
The LockBit, Babuk, and Hive ransomware variants operated in the same general manner: first, the ransomware actors would identify and unlawfully access vulnerable computer systems, sometimes through their own hacking, or by purchasing stolen access credentials from others. Second, the actors would deploy the ransomware variant within the victim computer system, allowing the actors to encrypt and steal data thereon. Next, the actors would send a ransom note to the victim demanding a payment in exchange for decrypting the victim’s data or refraining from sharing it publicly. Finally, the ransomware actors would negotiate a ransom amount with each victim willing to pay. If a victim did not pay, ransomware actors would often post that victim’s data on a public website, often called a data leak site.
Matveev is charged with conspiring to transmit ransom demands, conspiring to damage protected computers, and intentionally damaging protected computers. If convicted, he faces over 20 years in prison.
The FBI Newark Field Office’s Cyber Crimes Task Force is investigating the case with valuable assistance from the Jersey City Police Department, New Jersey State Police, Newark IRS Criminal Investigation, and international partners from European Cyber Crime Centre of Europol, National Police Agency of Japan, Gendarmerie Nationale Cyberspace Command of France, National Crime Agency and South West Regional Organized Crime Unit of the United Kingdom, Kantonspolizei Zürich of Switzerland, High-Tech Crime Unit of the Dutch Police Services Agency of the Netherlands, Bundeskriminalamt and Landeskriminalamt of Germany, Mossos d'Esquadra Police Department of Spain, Norwegian Police Service of Norway, and Swedish Police Authority of Sweden.
Trial Attorneys Jessica C. Peck, Benjamin Proctor, and Jorge Gonzalez of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS); Assistant U.S. Attorneys Andrew M. Trombly and David E. Malagold for the District of New Jersey’s Cybercrime Unit in Newark; and Assistant U.S. Attorney Elizabeth Aloi for the District of Columbia’s Fraud, Public Corruption, and Civil Rights Section are prosecuting the case.
The FBI Tampa Field Office and Orlando Resident Agency, along with Assistant U.S. Attorney Chauncey Bratt for the Middle District of Florida and CCIPS Trial Attorneys Christen Gallagher and Alison Zitron, made critical contributions to the case. The FBI Washington Field Office and Metropolitan Police Department also provided valuable assistance.
The Justice Department’s Office of International Affairs and National Security Division also provided significant assistance.
Victims of LockBit, Babuk, or Hive ransomware should contact their local FBI field office for further information. For additional information on ransomware, including the LockBit, Babuk, and Hive variants, please visit StopRansomware.gov.
Additionally, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) today announced that it is designating the defendant for his role in launching ransomware attacks against U.S. law enforcement, businesses, and critical infrastructure.
Finally, the Department of State has also announced an award of up to $10 million for information that leads to the arrest and/or conviction of this defendant. Information that may be eligible for this award can be submitted at tips.fbi.gov. Congress established the Transnational Organized Crime Rewards Program in 2013 to support law enforcement efforts to dismantle transnational criminal organizations and bring their leaders and members to justice. The Department of State’s Bureau of International Narcotics and Law Enforcement Affairs manages the program in coordination with other U.S. federal agencies.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Russian National Charged with Ransomware Attacks Against Critical InfrastructureRead the Press Release
NEWARK, N.J. – The Justice Department today unsealed two indictments charging a Russian national and resident with using three different ransomware variants to attack numerous victims throughout the United States, including law enforcement agencies in New Jersey and Washington, D.C., as well as victims in healthcare and other sectors nationwide.
“From Russia and hiding behind multiple aliases, Matveev is alleged to have used these ransomware strains to encrypt and hold hostage for ransom the data of numerous victims, including hospitals, schools, nonprofits, and law enforcement agencies, like the Metropolitan Police Department in Washington, D.C.,” Philip R. Sellinger, U.S. Attorney for the District of New Jersey, said. “Thanks to the extraordinary investigative work of prosecutors from my office and our FBI partners, Matveev no longer hides in the shadows – we have publicly identified his criminal acts and charged him with multiple federal crimes. Let today’s charges be a reminder to cybercriminals everywhere – my office is devoted to combatting cybercrime and will spare no resources in bringing to justice those who use ransomware attacks to target victims.”
“From his home base in Russia, Matveev allegedly used multiple ransomware variants to attack critical infrastructure around the world, including hospitals, government agencies, and victims in other sectors,” Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division said. “These international crimes demand a coordinated response. We will not relent in imposing consequences on the most egregious actors in the cybercrime ecosystem.”
“We want the indictment, sanctions and reward for Mikhail Matveev to sound an alarm in the ranks of cyber criminals all over the world,” James E. Dennehy, FBI-Newark special agent in charge, said. “The FBI and our law enforcement partners, as well as our international partners, are coming after you. These malicious actors believe they can operate with impunity – and don’t fear getting caught because they sit in a country where they feel safe and protected. That may be the case now, but the safe harbor may not exist forever. When we have an opportunity, we will do everything in our power to bring Matveev and his ilk to justice.”
According to the indictment obtained in the District of New Jersey:
From at least 2020, Mikhail Pavlovich Matveev, aka Wazawaka, aka m1x, aka Boriselcin, aka Uhodiransomwar, allegedly participated in conspiracies to deploy three ransomware variants. These variants are known as LockBit, Babuk, and Hive, and Matveev transmitted ransom demands in connection with each. The perpetrators behind each of these variants, including Matveev, have allegedly used these types of ransomware to attack thousands of victims in the United States and around the world. These victims include law enforcement and other government agencies, hospitals, and schools. Total ransom demands allegedly made by the members of these three global ransomware campaigns to their victims amount to as much as $400 million, while total victim ransom payments amount to as much as $200 million.
On June 25, 2020, Matveev and his LockBit conspirators allegedly deployed LockBit ransomware against a law enforcement agency in Passaic County, New Jersey. On May 27, 2022, Matveev and his Hive coconspirators allegedly deployed Hive against a nonprofit behavioral healthcare organization headquartered in Mercer County, New Jersey. On April 26, 2021, Matveev and his Babuk conspirators allegedly deployed Babuk against the Metropolitan Police Department in Washington, D.C.
“Data theft and extortion attempts by ransomware groups are corrosive, cynical attacks on key institutions and the good people behind them as they go about their business and serve the public,” U.S. Attorney Matthew M. Graves for the District of Columbia said. “Whether these criminals target law enforcement, other government agencies, or private companies like health care providers, we will use every tool at our disposal to prosecute and punish such offenses. Thanks to exceptional work by our partners here, we identified and charged this culprit.”
“The FBI is steadfast in our commitment to disrupting cybercriminals like Matveev,” Assistant Director Bryan Vorndran of the FBI's Cyber Division said. “The FBI will continue to impose costs on cyber adversaries through our joint collaboration with our private sector and international partners, and we will not tolerate these criminal acts against American citizens.”
The LockBit ransomware variant first appeared around January 2020. LockBit actors have executed over 1,400 attacks against victims in the United States and around the world, issuing over $100 million in ransom demands and receiving over $75 million in ransom payments.
The Babuk ransomware variant first appeared around December 2020. Babuk actors executed over 65 attacks against victims in the United States and around the world, issuing over $49 million in ransom demands and receiving as much as $13 million in ransom payments.
Since June 2021, the Hive ransomware group has targeted more than 1,400 victims around the world and received as much as $120 million in ransom payments.
The LockBit, Babuk, and Hive ransomware variants operated in the same general manner: first, the ransomware actors would identify and unlawfully access vulnerable computer systems, sometimes through their own hacking, or by purchasing stolen access credentials from others. Second, the actors would deploy the ransomware variant within the victim computer system, allowing the actors to encrypt and steal data thereon. Next, the actors would send a ransom note to the victim demanding a payment in exchange for decrypting the victim’s data or refraining from sharing it publicly. Finally, the ransomware actors would negotiate a ransom amount with each victim willing to pay. If a victim did not pay, ransomware actors would often post that victim’s data on a public website, often called a data leak site.
Matveev is charged with conspiring to transmit ransom demands, conspiring to damage protected computers, and intentionally damaging protected computers. If convicted, he faces over 20 years in prison.
The FBI Newark Field Office’s Cyber Crimes Task Force is investigating the case with valuable assistance from the Jersey City Police Department, New Jersey State Police, Newark IRS Criminal Investigation, and international partners from European Cyber Crime Centre of Europol, National Police Agency of Japan, Gendarmerie Nationale Cyberspace Command of France, National Crime Agency and South West Regional Organized Crime Unit of the United Kingdom, Kantonspolizei Zürich of Switzerland, High-Tech Crime Unit of the Dutch Police Services Agency of the Netherlands, Bundeskriminalamt and Landeskriminalamt of Germany, Mossos d'Esquadra Police Department of Spain, Norwegian Police Service of Norway, and Swedish Police Authority of Sweden.
The government is represented by Assistant U.S. Attorneys Andrew M. Trombly and David E. Malagold for the District of New Jersey’s Cybercrime Unit in Newark; Assistant U.S. Attorney Elizabeth Aloi for the District of Columbia’s Fraud, Public Corruption, and Civil Rights Section; and Trial Attorneys Jessica C. Peck, Benjamin Proctor, and Jorge Gonzalez of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS).
The FBI Tampa Field Office and Orlando Resident Agency, along with Assistant U.S. Attorney Chauncey Bratt for the Middle District of Florida and CCIPS Trial Attorneys Christen Gallagher and Alison Zitron, made critical contributions to the case. The FBI Washington Field Office and Metropolitan Police Department also provided valuable assistance.
The Justice Department’s Office of International Affairs and National Security Division also provided significant assistance.
Victims of LockBit, Babuk, Conti, or Hive ransomware should contact their local FBI field office for further information. For additional information on ransomware, including the LockBit, Babuk, and Hive variants, please visit www.StopRansomware.gov .
The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) today announced that it is designating the defendant for his role in launching cyberattacks against U.S. law enforcement, businesses, and critical infrastructure.
The Department of State has also announced an award of up to $10 million for information that leads to the apprehension of this defendant. Information that may be eligible for this award can be submitted at tips.fbi.gov or RewardsForJustice.net. Congress established the Transnational Organized Crime Rewards Program in 2013 to support law enforcement efforts to dismantle transnational criminal organizations and bring their leaders and members to justice. The Department of State’s Bureau of International Narcotics and Law Enforcement Affairs manages the program in coordination with other U.S. federal agencies.
The charge and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
matveev.indictment.pdf22-142
- River Ridge Man Pleads Guilty to Violations of the Federal Gun Control and Federal Controlled Substances Acts
Redmond, Washington man sentenced to one year in prison for Paycheck Protection Program fraudRead the Press Release
Seattle – A 62-year-old Redmond, Washington man was sentenced today in U.S. District Court in Seattle to one year in prison for conspiring to defraud the federal Paycheck Protection Program (PPP) of $646,000 in COVID-19 relief funds, announced U.S. Attorney Nick Brown. Joseph M. Freeman used the names of two companies he registered to obtain forgivable Paycheck Protection Program loans. After detecting the fraud, federal investigators froze approximately $220,000 that remained in Freeman’s bank account and returned it to the Small Business Administration. At the sentencing hearing U.S. District Judge James L. Robart said, “Other people who were in the same situation chose to suffer those circumstances rather than commit fraud on the Paycheck Protection Program… I think it is important to understand you cannot steal from the government.”
“When Mr. Freeman obtained pandemic relief funds through fraud, it meant other legitimately needy business owners were delayed and possibly denied funds as there was a limited pool of relief money,” said U.S. Attorney Nick Brown. “As we continue to emerge from the pandemic, it is critical that we uncover the fraud and hold accountable those who sought to unjustly profit from programs designed to keep the needy afloat.”
According to records in the case, in May 2020, Freeman and his coconspirators used information about a company he formed in 2004 to claim $500,000 in PPP funds. Freeman claimed Special Delivery LLC had 15 employees and a payroll of $200,000 per month, when in fact it had no employees other than Freeman. Freeman used fake Internal Revenue Forms to make it appear the company had employees and sought $500,000 in PPP funds. On May 20, 2020, the loan proceeds were wired to Freeman’s bank. After receiving the funds, Freeman created an account with a payroll service to disburse the funds to individuals who were not employees of the company. In fact, the list included friends, family, and people to whom Freeman personally owed money.
On June 15, 2020, Freeman and his coconspirators submitted a second fake application. Freeman claimed New Jack Trucking LLC had 10 employees and a monthly payroll of $58,400. Freeman and his associates claimed the business had been in operation in February 2020 even though the entity never had any genuine business activity. The coconspirators used fake IRS forms and a falsified bank statement to make it appear New Jack Trucking was a genuine business with employees. On June 16, 2020, Freeman and his coconspirators obtained $146,000 for that fraudulent application.
Freeman supplied some of the loan proceeds to his coconspirators and used some of the funds for his own benefit. The account contained debits for airline travel, hotel expenses, and tickets to various venues and sporting events.
In July 2020, after federal investigators detected the fraud and notified Freeman’s bank, approximately $220,000 of the loan proceeds were frozen and returned to the Small Business Administration. The net loss from the scheme is $426,666.
As Assistant United States Attorney Cindy Chang noted, the damage was not just the stolen funds, but the strain fake applications put on the benefit system. “During major disasters and times of crisis, it is particularly important for the government to be able to disburse aid quickly to victims to mitigate the impact of the crisis. When individuals exploit these vulnerable periods, they not only drain finite monetary resources, they also burden limited infrastructure resources. For example, it was widely reported that the large volume of PPP applications in the first few months of the pandemic overwhelmed SBA servers and frustrated small business owners across the country who were unable to even submit an application, much less receive funds.”
Judge Robart ordered Freeman to pay $426,666 in restitution and to be on three years of supervised release following his prison sentence.
This case was investigated by the U.S Treasury Inspector General for Tax Administration (TIGTA).
The case was prosecuted by Assistant United States Attorney Cindy Chang.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Rapid City Man Sentenced for Illegal Possession of AmmunitionRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Jeffrey L. Viken has sentenced a Rapid City, South Dakota, man convicted of Possession of Ammunition by a Prohibited Person. The sentencing took place on May 15, 2023.
Travis Maho, 34, was sentenced to five years in federal prison, followed by three years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Maho was indicted for Possession of Ammunition by a Prohibited Person and Possession with Intent to Distribute a Controlled Substance by a federal grand jury in September of 2022. He pleaded guilty on February 24, 2023.
In June of 2022, in Rapid City, Maho, a previously convicted felon who is prohibited from possessing ammunition, was knowingly in possession of 7.62x54 caliber, .32 caliber, and .45 Auto caliber ammunition, which was found after Maho came into contact with law enforcement. Maho was also in possession of distributable quantities of methamphetamine.
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.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Rapid City Police Department. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Maho was immediately remanded to the custody of the U.S. Marshals Service.
Ransomware Charges Unsealed Against Russian NationalRead the Press Release
WASHINGTON – An indictment was unsealed today in the District of Columbia charging a Russian national with participating in a global ransomware campaign which deployed ransomware variants against victims in the District of Columbia, the United States, and around the world. Mikhail Pavlovich Matveev, alleged to use the online monikers Wazawaka, m1x, Broriscelcin, and Uhodiransomwar, 30, of Kaliningrad, Russia, is charged with intentional damage to a protected computer and threats relating to a protected computer.
The charges were announced by U.S. Attorney for the District of Columbia Matthew M. Graves, Special Agent in Charge James Dennehy, of the FBI’s Newark Field Office,
“Data theft and extortion attempts by ransomware groups are corrosive, cynical attacks on key institutions and the good people behind them as they go about their business and serve the public,” said U.S. Attorney Graves. “Whether these criminals target law enforcement, other government agencies, or private companies like health care providers, we will use every tool at our disposal to prosecute and punish such offenses. Thanks to exceptional work by our partners here, we identified and charged this culprit.”
“We want the indictment, sanctions and reward for Mikhail Matveev to sound an alarm in the ranks of cyber criminals all over the world,” said SAC Dennehy. “The FBI and our law enforcement partners, as well as our international partners, are coming after you. These malicious actors believe they can operate with impunity – and don’t fear getting caught because they sit in a country where they feel safe and protected. That may be the case now, but the safe harbor may not exist forever. When we have an opportunity, we will do everything in our power to bring Matveev and his ilk to justice.”
According to the indictment, from as early as 2020, Matveev was an active member of Babuk, a global ransomware campaign which ranked among the most active and destructive cybercriminal threats in the world. Specifically, on April 26, 2021, the Babuk conspirators deployed Babuk ransomware against the Metropolitan Police Department in Washington, D.C. and then threatened to disclose sensitive information to the public unless a payment was made. As part of the ransomware conspiracy which attacked MPD, Matveev allegedly intentionally infected MPD’s computer systems with Babuk ransomware, stole data, and then attempted to extort MPD, threatening disclosure of sensitive information unless payment was made. The actions caused at least $5,000 in losses to MPD.
Matveev is also charged with a series of similar crimes in an indictment filed in the District of New Jersey.
Intentional damage to a protected computer carries a statutory maximum of 10 years in prison. Threats relating to a protected computer carries a statutory maximum of 10 years in prison. The charges also carry potential financial penalties. The maximum statutory sentence for federal offenses is prescribed by Congress and is provided here for informational purposes. The sentencing will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
This case is being investigated by the FBI’s Newark Field Office with assistance from the FBI’s Washington Field Office, and the Metropolitan Police Department. As part of a broader investigation involving charges in the District of New Jersey, assistance was provided by New Jersey State Police, Newark IRS Criminal Investigation, and the International partners from European Cyber Crime Centre of Europol, National Police Agency of Japan, Gendarmerie Nationale Cyberspace Command of France, National Crime Agency and South West Regional Organized Crime Unit of the United Kingdom, Kantonspolizei Zürich of Switzerland, High-Tech Crime Unit of the Dutch Police Services Agency of the Netherlands, Bundeskriminalamt and Landeskriminalamt of Germany, Mossos d'Esquadra Police Department of Spain, Norwegian Police Service of Norway and Swedish Police Authority of Sweden.
This case is being prosecuted by Assistant U.S. Attorneys Elizabeth Aloi of the U.S. Attorney’s Office for the District of Columbia, and Trial Attorney Ben Proctor of the Justice Department’s Computer Crime and Intellectual Property Section.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Providence Man Sentenced to Federal Prison for Trafficking Cocaine and FentanylRead the Press Release
PROVIDENCE – A Providence man, who court records show has been convicted multiple times on various felony drug, firearm, and/or assault charges, has been sentenced to federal prison for trafficking in fentanyl and crack cocaine, announced United States Attorney Zachary A. Cunha.
According to information presented to the court, in early 2020, while on state probation for an unrelated felony firearm conviction in state court, Josimar Pereira, 36, in the course of six transactions in a one-month period, sold a total of more than $6,300 worth of cocaine and fentanyl to another person while under surveillance by members of the FBI’s Rhode Island Safe Streets Gang Task Force. On each occasion, the drugs were quickly seized by Task Force agents.
In December 2022, Pereira pleaded guilty in federal court to a charge of distribution of cocaine and a charge of distribution of fentanyl. He was sentenced on May 15, 2023, by U.S. District Court Judge Mary S. McElroy to forty-four months in federal prison to be followed by three years of federal supervised release,
According to court records, at the time of his arrest in this matter Pereira was serving a term of state probation related to his 2018 conviction in Rhode Island Superior Court on a charge of possession of a sawed-off shotgun or rifle.
The most recent case filed against Pereira was prosecuted in U.S. District Court by Assistant United States Attorney Stacey A. Erickson.
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Portland Man Sentenced to 5 Years for Unlawfully Possessing FirearmsRead the Press Release
PORTLAND, Maine: A Portland man was sentenced today in U.S. District Court in Portland for being a felon in possession of firearms.
U.S. District Judge Nancy Torresen sentenced Abdulkadir Bile, aka “Ace,” 31, to 60 months imprisonment followed by three years of supervised release. He also received a $6,900 fine. Bile pleaded guilty on March 29, 2022.
According to court records, in October 2021, agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) executed a search warrant at Bile’s residence in Portland and recovered two firearms from a bed in which Bile was sleeping. Bile was convicted in 2013 of felony aggravated assault in Androscoggin County Superior Court and in 2017 of unlawful trafficking of Schedule W drugs in the Cumberland County Unified Criminal Docket. These convictions prohibited Bile from possessing firearms under federal law.
ATF investigated the case.
Project Safe Neighborhoods: 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. To learn more information about Project Safe Neighborhood, visit www.justice.gov/psn.
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Philadelphia Man Sentenced to 77 Months in Prison for Role in Salem County Bank RobberyRead the Press Release
CAMDEN, N.J. – A Philadelphia man was sentenced today to 77 months in prison and three years of supervised release for serving as the get-away driver to two Pennsylvania men who robbed a bank in Carneys Point, New Jersey, in July 2018, while brandishing a firearm. Kenneth S. Thompson, 44, of Philadelphia, pleaded guilty on Sept. 27, 2022, before U.S. District Judge Joseph H. Rodriguez in Camden federal court to an indictment charging him with bank robbery.
Omaha Man to Prison for Illegal Possession of Firearm in IowaRead the Press Release
A man who illegally possessed a firearm was sentenced May 16, 2023, to 33 months in federal prison.
Mark Hadland, 49, from Omaha, Nebraska, received the prison term after a February 7, 2023, guilty plea to prohibited person in possession of a firearm. Hadland was previously convicted of felony Theft by Unlawful Taking Over $1500, in the Douglas County District Court for Nebraska, on or about April 7, 2010.
Evidence at the hearings showed that on August 8, 2022, Buena Vista County, Iowa, law enforcement conducted a traffic stop of the vehicle Hadland was driving. It was determined Hadland’s driver’s license was revoked, and he admitted a marijuana roach was in the vehicle. Pursuant to a search of Hadland’s vehicle, law enforcement seized marijuana, drug paraphernalia, a cane with a detachable top concealing a 14-inch knife, loose ammunition, and a stolen firearm with one round in the chamber. Hadland further admitted that he was a user of marijuana and methamphetamine.
Hadland was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Hadland was sentenced to 30 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system. Hadland is being held in the United States Marshal’s custody until he can be transported to a federal prison.
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 case was prosecuted by Assistant United States Attorney Patrick T. Greenwood and investigated by Buena Vista County Sheriff’s Office, Storm Lake Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 22-4093. Follow us on Twitter @USAO_NDIA.
Omaha Drug Dealer Sentenced for Methamphetamine Conspiracy and Firearms CrimesRead the Press Release
United States Attorney Steven Russell announced that Steven Sainsbury, 47, of Omaha, Nebraska, was sentenced today in federal court in Omaha for his participation in a methamphetamine drug conspiracy and for possessing a firearm during a drug trafficking crime. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Sainsbury to 240 months’ imprisonment on the drug charge and a consecutive 60 months’ imprisonment on the firearm charge for a total sentence of 300 months in the Bureau of Prisons. There is no parole in the federal system. After his release from prison, he will begin a five-year term of supervised release.
On March 31, 2021, an Omaha Police confidential source purchased more than 50 grams of methamphetamine from Sainsbury, an Omaha-based methamphetamine dealer. A search of his home resulted in the seizure of more than 300 grams of methamphetamine, 19 grams of heroin, 14 grams of cocaine, a Glock 10mm handgun, and $5,744 in United States currency.
In an interview with police, Sainsbury provided police with the name of his supplier: co-defendant Jose Leyva-Martinez. With this information, officers searched Leyva-Martinez’s home, seizing nearly 4 kilograms of methamphetamine, 1 kilogram of cocaine, money transfer receipts, ammunition, 2 drug scales, vehicle titles for a gray Toyota Tacoma, a gray Honda civic, and a black GMC 1500, a money counter, drug ledger, jewelry, $468,990.00 in United States currency, and an Astra 9mm handgun. The handgun was found in a bedroom near $28,000 in United States currency.
Leyva-Martinez admitted to being a methamphetamine supplier and distributor for the Sinaloa Cartel. He admitted that all three vehicles and the residence were put in his name at the direction of the Cartel. Law enforcement estimated that the seized currency represented cash proceeds from the sale of more than 100 pounds of methamphetamine. This was confirmed by Leyva-Martinez and Sainsbury, both of whom admitted to distributing between 1-3 pounds of methamphetamine, per day, over the course of the previous several months.
Leyva-Martinez’s home, vehicles, monies, and other valuables were seized by law enforcement as proceeds of narcotics trafficking. For his part in the conspiracy, Leyva-Martinez was sentenced to 270 months in the Bureau of Prisons followed by a five-year term of supervised release.
This case was investigated by the Omaha Police Department.
North Las Vegas Resident Pleads Guilty to COVID-19 Relief FraudRead the Press Release
LAS VEGAS – A North Las Vegas resident pleaded guilty yesterday to carrying out a scheme to submit more than $1.1 million dollars in fraudulent Paycheck Protection Program (PPP) loan applications on behalf of himself and others.
According to court documents and statements made in court, beginning no later than on or about March 14, 2021, and continuing until at least on or about October 9, 2021, Jaquari Davonte Woodward (24) devised and participated in a scheme to defraud the Small Business Administration and a California lending institution (a non-bank lender). On March 17, 2021, he submitted a loan application as the purported sole proprietor of a music business. He inflated the amount of money his purported music business made and submitted an IRS tax form containing false information. Thereafter, Woodward mass-marketed his scheme on social media by posting the amount of money he received, and offering to help others apply, requesting in exchange $10,000 from any approved loan applications. As part of the scheme, Woodward submitted at least 56 fraudulent applications for PPP loans on behalf of himself and others.
As a result of the Woodward’s fraudulent PPP loan applications, approximately $1,166,582 in fraudulent loan proceeds were deposited into bank accounts controlled by him and other individuals for whom he submitted fraudulent applications. He received about $41,166 in fraudulent PPP loans, as well as a significant share of the over $1 million in fraudulent loans he applied for and obtained on behalf of others, totaling at least $100,000.
Woodward pleaded guilty to wire fraud before United States District Judge Gloria M. Navarro. Sentencing is scheduled for August 15, 2023. Woodward faces the maximum statutory penalty of 30 years in prison, a term of supervised release, a fine, and restitution.
United States Attorney Jason M. Frierson for the District of Nevada, Special Agent in Charge Weston King for the Small Business Administration, Office of Inspector General’s (SBA OIG) Western Region, and Special Agent in Charge Spencer L. Evans for the FBI made the announcement.
The SBA OIG and FBI investigated the case. Assistant United States Attorney Eric Schmale is prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit www.justice.gov/coronavirus.
Anyone with information about allegations of fraud related to COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Newtown Contractor Sentenced to Prison for Tax EvasionRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that THOMAS R. SAINT, 67, of Newtown, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to six months of imprisonment, followed by one year of supervised release, for tax evasion.
According to court documents and statements made in court, Saint is the sole owner of Tom Saint Painting and Remodeling LLC, a Schedule C business engaged in painting and home renovation services. From 2013 through 2019, Saint attempted to evade the assessment of federal taxes by cashing business checks instead of depositing them into his business’s bank account, depositing cash and business checks into his personal bank account, and failing to inform his tax preparer of this conduct, which resulted in the filing of false returns with the IRS that substantially understated his gross receipts and income.
For the 2013 through 2019 tax years, Saint failed to report a total of $2,163,645 in gross receipts, resulting in a tax loss to the government of $791,500.
Saint has paid restitution of $791,500, and has agreed to cooperate with the IRS to pay interest and penalties.
On February 22, 2023, Saint pleaded guilty to one count of tax evasion.
Saint, who is released on a $100,000 bond, is required to report to prison on August 4.
This investigation was conducted by the Internal Revenue Service, Criminal Investigation Division. The case was prosecuted by Assistant U.S. Attorney Susan Wines.
New Orleans Man Indicted for Federal Gun and Drug OffensesRead the Press Release
NEW ORLEANS, LOUISIANA – NATHANIEL WILLIAMS, age 27, a resident of New Orleans, Louisiana, was charged on May 12, 2023 in a three-count indictment for violating the Federal Gun Control and Federal Controlled Substances Acts, announced United States Attorney Duane A. Evans.
WILLIAMS is charged in Count 1 with possession of a firearm by a convicted felon, in violation of Title 18, United States Code, Section 922(g)(1). He is charged in Count 2 with possession with intent to distribute cocaine, in violation of Title 21, United States Code, Sections 841(a)(1) and (b)(1)(C). He is charged in Count 3 with possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A).
If convicted of Count 1, WILLIAMS faces a maximum term of imprisonment of 15 years, up to a $250,000 fine, and up to three years of supervised release. If convicted of Count 2, he faces a maximum term of imprisonment of 20 years, up to a $1,000,000 fine, and at least three years of supervised release. If convicted of Count 3, he faces a mandatory minimum sentence of five years up to life imprisonment, which is to run consecutively to all other sentences, up to a $250,000 fine, and up to five years of supervised release. As to each count, he faces payment of a mandatory special assessment fee of $100.
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
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 case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the New Orleans Police Department. Assistant United States Attorney David Berman of the Violent Crimes Unit is in charge of the prosecution.
Navajo Man Charged with Involuntary ManslaughterRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced that Sheldon Carlton Daye was charged with involuntary manslaughter. Daye, 29, of Vanderwagen, and an enrolled member of the Navajo Nation, will remain on conditions of release pending trial, which has not been scheduled.
According to the indictment, on Oct. 2, 2022, Daye allegedly hit and killed two people who were stopped on the shoulder of Highway 602, repairing a flat tire, near Bread Springs, NM. Daye was allegedly driving while under the influence at the time. The incident occurred within the exterior boundaries of the Navajo Nation.
An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Daye faces up to 8 years in prison.
The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Police Department and the New Mexico State Police. Assistant United States Attorney Alexander F. Flores is prosecuting the case.
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Muskogee County Resident Sentenced for Assault and Firearm Offenses in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Joseph Eugene Meyer, age 39, of Muskogee, Oklahoma, was sentenced to 156 months in prison for Assault with a Dangerous Weapon with Intent to Do Bodily Harm in Indian Country and Use, Carry, and Brandish of a Firearm During and in Relation to a Crime of Violence.
The charges arose from investigations by the Federal Bureau of Investigation, Muskogee Police Department, and Wagoner County Sheriff’s Office.
Between December 7 and December 10, 2019, Meyer beat the victim with a revolver and other objects. As a result of the assault, the victim suffered from a subdural hematoma, broken ribs, a collapsed lung, and other wounds, bruises, and contusions.
On November 2, 2021, Meyer pleaded guilty to one count of Assault with a Dangerous Weapon with Intent to Do Bodily Harm in Indian Country and one count of Use, Carry, and Brandish of a Firearm During and in Relation to a Crime of Violence.
The United States Attorney’s Office for the Eastern District of Oklahoma prosecuted this case because the victim is a member of a federally recognized Indian tribe and the crimes occurred within the boundaries of the Cherokee Nation Reservation and the Eastern District of Oklahoma.
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearings in Muskogee, Oklahoma. Meyer was remanded to the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a sentence of incarceration.
Assistant United States Attorney Benjamin D. Traster represented the United States.
Mission Man and Mellette County Woman Sentenced in Burglary and Homicide CaseRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange, U.S. District Court, has sentenced a Mission, South Dakota, man and a Mellette County, South Dakota, woman, in a case that involved charges of Second Degree Murder, First Degree Burglary, and related firearms offenses.
Sativa Looking Cloud, age 21, pleaded guilty on January 18, 2023, to Second Degree Murder and First Degree Burglary. On May 8, 2023, Looking Cloud was sentenced to 20 years in federal prison, followed by five years of supervised release, and ordered to pay a $200 special assessment to the Federal Crime Victims Fund.
Stephen Fallis, age 30, pleaded guilty on January 19, 2023, to Possession of a Stolen Firearm and Prohibited Person in Possession of a Firearm. On May 1, 2023, he was sentenced to eight years in federal prison, followed by three years of supervised release, and order to pay a $200 special assessment to the Federal Crimes Victim Fund.
Looking Cloud and Fallis will also forfeit ownership of all firearms and ammunition seized in the case. Restitution may also be ordered. Looking Cloud and Fallis were indicted by a federal grand jury in March of 2022.
The case stemmed from two separate incidents that occurred in Mellette County in February of 2022. In the early morning hours of February 16, 2023, Looking Cloud and Fallis went to a residence in Mellette County. Both were in possession of handguns. Looking Cloud entered the residence without permission and argued with the occupants. She then produced a 9mm handgun and fired multiple shots in the direction of the occupants, causing them to flee into another room. Looking Cloud and Fallis then departed the residence in their vehicle. The occupants of the residence called 911.
On the morning of February 17, 2022, law enforcement executed a search warrant at Fallis’s Todd County residence, seizing multiple firearms, including two firearms bearing obliterated serial numbers.
On the evening of February 17, 2022, Fallis and Looking Cloud were at a residence in Mellette County. Looking Cloud got into an argument with a woman and produced 9mm handgun. She fired a single shot at the woman at point blank range, striking her in the chest. Looking Cloud and Fallis fled the residence. The occupants of the residence heard the gunshot and called 911. The woman was pronounced dead at the scene.
In the early morning hours of February 18, 2022, Looking Cloud was arrested in Mellette County. The 9mm handgun used by Looking Cloud was seized as evidence.
On March 1, 2023, Fallis was located at a residence in Vermillion, South Dakota, and placed under arrest. A 9mm handgun was seized from his person. Fallis admitted to being an unlawful user of controlled substances.
This case was investigated by the FBI, Rosebud Sioux Tribe Law Enforcement Services, U.S. Marshals Service, South Dakota Division of Criminal Investigation, Clay County Sheriff’s Office, Vermillion Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Looking Cloud and Fallis were immediately remanded to the custody of the U.S. Marshals Service.
Mission Man Sentenced for LarcenyRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange, U.S. District Court, has sentenced a Mission, South Dakota, man convicted of Larceny. The sentencing took place on May 8, 2023.
Dustin Gallegos, Jr., age 25, was sentenced to all time served through November 8, 2023, equal to approximately 10 months in custody, followed by three years of supervised release. He was further ordered to pay restitution of $9,908.13, and a $100 special assessment to the Federal Crime Victims Fund.
Gallegos was indicted by a federal grand jury in May of 2022. He pleaded guilty on February 2, 2023.
The conviction stemmed from an incident that occurred on March 7, 2022, in Todd County, South Dakota. On that date, Gallegos was driving a motor vehicle on U.S. Highway 83, when he lost control of his vehicle and wrecked. A passing motorist stopped to assist and let Gallegos wait with her in her vehicle for first responders to arrive. When law enforcement arrived at the scene, the woman got out of her vehicle to speak to an officer, at which point Gallegos got in the driver seat and stole the vehicle and drove away. The vehicle was later recovered in Mission.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Gallegos was immediately remanded to the custody of the U.S. Marshals Service.
Miami Man Sentenced to 30 Months in Federal Prison for Possession of Stolen MailRead the Press Release
Montgomery, Alabama – Today, United States Attorney Sandra J. Stewart announced that Alberto Carlos Varona, 30, from Miami, Florida, received a sentence of 30 months in prison after pleading guilty to possession of stolen mail.
According to his plea agreement and other court records, in February of 2021, Prattville, Alabama law enforcement officers received information about attempts to cash stolen checks at various banks. On February 26, 2021, officers from the Prattville Police Department initiated a traffic stop on a vehicle they suspected to be involved in the scheme. Officers identified Varona as the driver and, upon searching the vehicle, found 37 stolen checks. Soon after, a federal grand jury indicted Varona on four counts of possession of stolen mail matter. Varona pleaded guilty to these charges on September 29, 2021. During the May 10, 2023, sentencing hearing, the court considered the significant amount of potential loss from all 37 of the stolen checks when determining Varona’s sentence.
The Prattville Police Department, the United States Secret Service, and the United States Postal Inspection Service investigated this case, with assistance from the United States Marshals Service. Assistant United States Attorney Justin L. Jones prosecuted the case.
Mexican Man Sentenced for Drug TraffickingRead the Press Release
United States Attorney Steven Russell announced that Jose Adan Rodriguez-Meza, 39, of Mexico, was sentenced today in federal court in Omaha, Nebraska, for his participation in methamphetamine drug trafficking. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Rodriguez-Meza to 135 months’ imprisonment. There is no parole in the federal system. After his release from prison, Lorenzo-Cruz will begin a five-year term of supervised release.
In February 2022, Rodriguez-Meza was identified by the Drug Enforcement Administration and the Omaha Police Department as a bulk distributor of methamphetamine. Using a confidential informant, investigators purchased a total of six pounds of methamphetamine on February 28, 2022, March 23, 2022, and April 8, 2022. On April 8, 2022, a search warrant was executed on Rodriguez-Meza’s residence and an additional four pounds of pure methamphetamine were seized.
This case was investigated by the Drug Enforcement Administration and the Omaha Police Department.
Marrero Man Pleads Guilty to a Violation of the Federal Gun Control ActRead the Press Release
NEW ORLEANS, LOUISIANA – On May 11, 2023, MELVIN WALKER, age 34, a resident of Marrero, Louisiana, pled guilty to a one-count indictment, charging him with being a felon in possession of a firearm and ammunition, in violation of 18 U.S.C. §§ 922(g)(1) and 924(a)(8), announced U.S. Attorney Duane A. Evans.
WALKER faces a maximum sentence of 15 years imprisonment, a fine of up to $250,000.00, a period of supervised release of up to 3 years, and a mandatory special assessment fee of $100.00.
According to court records, the Jefferson Parish Sheriff’s Office arrested WALKER after he discharged a nine-millimeter firearm at the occupant(s) of a white SUV during a drive by shooting. Prior to WALKER discharging the firearm, the occupant(s) of the white SUV fired a .223 caliber firearm at WALKER as he stood outside of his residence. During a search of WALKER’s residence, a nine-millimeter magazine, loaded with nine-millimeter caliber ammunition, was recovered from WALKER’s residence. WALKER is a convicted felon and is prohibited from possessing a firearm and ammunition.
The Honorable Jay C. Zainey, United States District Judge, will sentence WALKER on August 15, 2023.
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 case was investigated by the federal Bureau of Alcohol, Tobacco, Firearms, and Explosives. It is being prosecuted by Assistant United States Attorney Brittany Reed of the Public Integrity Unit.
Man Pleads Guilty to Conspiracy to Sell Stolen Financial Information on Dark WebRead the Press Release
An Illinois man pleaded guilty yesterday to leading a conspiracy to sell stolen financial information on the dark web, aka darknet.
According to court documents, Michael D. Mihalo, aka Dale Michael Mihalo Jr., 40, of Naperville, was the founder of a darknet “carding” site called Skynet Market, which was used to sell stolen financial information on the internet. Operating under the moniker ggmccloud1, Mihalo and his co-conspirators were also prominent vendors on additional darknet markets, including AlphaBay Market, Wall Street Market, and Hansa Market. Each market required users to conduct transactions in digital currencies, including Bitcoin. Through these markets, Mihalo and his co-conspirators sold the stolen financial information, primarily the credit and debit card numbers and associated information, of tens of thousands of U.S. victims between Feb. 22, 2016, and Oct. 1, 2019.
Mihalo assembled and directed the team that helped him sell this stolen financial information on the darknet. Each of the co-conspirators benefitted from the trusted reputation Mihalo, as ggmccloud1, had built on the darknet sites to sell more stolen financial information than they would have been able to sell individually. Taylor Ross Staats, 40, of Texas, conspired with Mihalo and others to sell stolen financial information on the internet. Staats served as a “card-checker,” who ensured the financial information sold by Mihalo and others on multiple darknet sites remained active and had not been canceled by the relevant financial institutions. Staats personally earned at least $21,000 worth of Bitcoin for these services.
Mihalo personally possessed, sent, and received the information associated with 49,084 stolen payment cards with the intent that the payment card information would be trafficked on darknet sites, all in furtherance of the conspiracy. Mihalo earned at least $1 million worth of cryptocurrencies at the time of the sales, including Bitcoin, Ethereum, and Monero. These funds have significantly appreciated since that time.
Mihalo pleaded guilty to one count of conspiracy to commit access device fraud, one count of access device fraud, and six counts of money laundering. He will be sentenced on a later date. He faces a maximum penalty of five years in prison for the conspiracy count and a maximum penalty of 10 years in prison on each of the remaining counts. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Under the terms of his plea agreement, Mihalo must also forfeit to the government any property he personally obtained through the offenses, including several million dollars’ worth of cryptocurrency, financial accounts, and real property, and has agreed to entry of a money judgment of an amount to be determined by the judge at sentencing.
Mihalo is the second defendant to plead guilty in this case. Staats pleaded guilty on Dec. 14, 2022, to one count of conspiracy to commit access device fraud in connection with his role as “card-checker” for Mihalo and the other co-conspirators. He faces a maximum penalty of five years in prison for the conspiracy count and will be sentenced on a later date.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Teresa A. Moore for the Western District of Missouri, Assistant Director Bryan Vorndran of the FBI’s Cyber Division, and Special Agent in Charge Charles Dayoub of the FBI Kansas City Field Office made the announcement.
The FBI Kansas City Field Office investigated the case.
Senior Counsel Louisa Becker of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Matthew Blackwood for the Western District of Missouri are prosecuting the case. The Justice Department’s Office of International Affairs provided significant assistance.
The Justice Department also thanks its law enforcement colleagues at the Royal Canadian Mounted Police in Canada for their assistance in this case.
Stolen victim payment card information obtained over the course of the investigation has been and/or will continue to be provided to the financial institutions that issued the payment cards. If you were active on Skynet Market, AlphaBay Market, Wall Street Market, or Hansa Market; have been in contact with any of Skynet Market’s administrators; or believe your financial information may have been stolen and sold on any of these markets between Feb. 22, 2016, and Oct. 1, 2019, please file a report with the FBI’s Internet Crime Complaint Center (ic3.gov) and reference this press release.
Man Accused of Setting Fire at Ex-Girlfriend’s St. Louis County HomeRead the Press Release
ST. LOUIS – A man appeared in U.S. District Court in St. Louis Tuesday to face an indictment accusing him of setting fire to a St. Louis County home last month.
Christopher Willis, 39, pleaded not guilty to the felony charge of maliciously damaging or destroying by means of fire. The indictment says the fire occurred in a rental home on April 29 on Nero Drive in unincorporated St. Louis County.
A motion seeking to have Willis held in jail until trial says that six days after Willis and his girlfriend broke up, Willis entered her home with a key, took her cellular phone and piled some of her clothing in the basement. Willis then set fire to the clothing and walked away as the girlfriend, her daughter and her aunt slept, the motion says. Smoke alarms sounded and the three were able to escape the home, the motion says.
The charge carries a potential penalty of at least five years in prison and a maximum of 20 years, a $250,000 fine or both.
A charge set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The case was investigated by the St. Louis regional Bomb and Arson Unit and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Ryan Finlen is prosecuting the case.
Madison Man Sentenced to 7 Years for Methamphetamine TraffickingRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Matthew J. Yancey, 23, Madison, Wisconsin, was sentenced today by Chief U.S. District Judge James D. Peterson to 7 years in federal prison for distributing 50 grams or more of methamphetamine. Yancey pled guilty to this charge on February 24, 2023.
Between June 13 and July 20, 2022, Yancey sold methamphetamine to an undercover officer in Madison, including a sale on July 7 that totaled 55.6 grams. Following Yancey’s arrest, officers searched the residence where he was staying and found fentanyl, cocaine, and methamphetamine.
At sentencing, Judge Peterson stated that protection of the public “is the primary driver” of his sentence. The judge addressed the gravity of the conduct, calling this a “serious drug crime.” The judge remarked that Yancey had an “unrelenting criminal history.” The judge observed that Yancey had not “demonstrated yet a real ability to succeed in the community.” This is Yancey’s second federal conviction.
The charges against Yancey were the result of an investigation conducted by the Madison Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Dane County Narcotics Task Force. The prosecution of the case has been handled by Assistant U.S. Attorney Kathryn E. Ginsberg.
Lohman Man Indicted for Producing Child PornographyRead the Press Release
KANSAS CITY, Mo. – A Lohman, Mo., man was indicted by a federal grand jury today on charges related to producing child pornography.
Anthony D. Pitts-Fugate, 30, was charged in a three-count indictment returned by a federal grand jury in Kansas City, Mo. Today’s indictment replaces a criminal complaint filed against Pitts-Fugate on April 17, 2023.
According to an affidavit filed in support of the original federal criminal complaint, Pitts-Fugate engaged in a Kik chat group that was being monitored by an undercover law enforcement officer. Pitts-Fugate allegedly produced and sent to the undercover officer a video and a photo of a child being sexually assaulted.
Pitts-Fugate was arrested at his residence on April 17, 2023, and remains in federal custody pending a detention hearing.
Today’s indictment charges Pitts-Fugate with one count of producing child pornography, one count of distributing child pornography, and one count of possessing child pornography.
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. Attorney Ashley S. Turner. It was investigated by the FBI, the Cole County, Mo., Sheriff’s Department, and the Boone County, Mo., Sheriff’s Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Local Prosecutor Brings African Cybercrime Delegation to Greensboro & Washington, D.C.Read the Press Release
GREENSBORO – United States Attorney Sandra Hairston announced today that a delegation of African judges, prosecutors, and investigators arrived in Greensboro as part of an international exchange program. The visit is taking place from May 14 to 19, 2023, and will involve meetings with government officials, local law enforcement, and crime analysts with the goal of sharing information and strengthening transnational partnerships among the United States and multiple African governments.
The study visit was organized by Assistant U.S. Attorney (AUSA) Anand Ramaswamy, in his capacity as the International Computer Hacking and Intellectual Property (ICHIP) Attorney Advisor for sub-Saharan Africa in Addis Ababa, Ethiopia, from the U.S. Department of Justice Criminal Division’s Office of Overseas Prosecutorial Development, Assistance and Training (OPDAT). AUSA Ramaswamy has been detailed overseas as part of the U.S. Transnational High-Tech Crime Global Law Enforcement Network (GLEN) as an International Computer Hacking and Intellectual Property (ICHIP) attorney advisor focused on combating cybercrime. The GLEN is a worldwide law enforcement capacity building network of ICHIP attorney advisors and others who deliver training and technical assistance to foreign law enforcement, prosecutorial, and judicial partners to combat intellectual property and cybercrime activity as well as to help strengthen foreign partners’ ability to collect and use electronic evidence to combat all types of crime, including transnational organized crime. The GLEN is a partnership between the U.S. Department of State, the Bureau of International Narcotics and Law Enforcement Affairs (INL), the U.S. Department of Justice’s Computer Crime and Intellectual Property Section (CCIPS), and the Office of Overseas Prosecutorial Development, Assistance, and Training (OPDAT). INL provides the funding for the ICHIPs and their assistance activities, including this study tour.
The objective of the GLEN is to promote the rule of law and to protect Americans from criminal threats emanating from abroad by delivering targeted training to encourage both immediate assistance as well as long-term institutional change. This assistance includes training workshops, legislative review, case-based mentoring, skills-development, and promoting institutional reform, such as the formation of specialized units to address these criminal threats. There are currently 12 ICHIP attorney advisors in Sao Paulo, Brazil; Panama City, Panama; Eurojust at The Hague; Bucharest, Romania; Zagreb, Croatia; Abuja, Nigeria; Addis Ababa, Ethiopia; Hong Kong; Kuala Lumpur, Malaysia; Bangkok, Thailand; two global ICHIPs, based in the United States, one for dark web/cryptocurrency and the other focused on internet-based fraud/public health; as well as a Global Cyber Forensic Advisor based in Washington, DC.
AUSA Ramaswamy previously served as an Assistant District Attorney in Alamance, Orange, and Rockingham counties before joining the U.S. Attorney’s Office (USAO) for the Middle District of North Carolina in 2007. During his tenure in the USAO, Ramaswamy prosecuted both national and international cybercrimes, online human trafficking and exploitation, and many other federal crimes. Since 2020, he has served the Department of Justice overseas as an ICHIP attorney advisor working to build a stronger international front against cybercrime.
The visit includes representatives from Angola, Botswana, Egypt, Ethiopia, Ghana, Kenya, Morocco, Nigeria, Sierra Leone, Tanzania, and Zambia. After spending Monday and Tuesday in Greensboro, delegates will travel to Washington, DC for the remainder of the visit.
Learn more about the ICHIP program, here.
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Lewiston Man Faces up to 10 Years Following Guilty Plea to Being a Felon in Possession of AmmunitionRead the Press Release
PORTLAND, Maine: A Lewiston man pleaded guilty today in U.S. District Court in Portland to being a felon in possession of ammunition.
According to court records, in December 2021, Shaiquan Moran-Stenson, 27, fired multiple shots near Bartlett Street in Lewiston. Video cameras at two residences recorded Moran-Stenson firing shots across the street before he ran into a parked car and fired additional shots as the vehicle drove away. Investigators recovered .40 caliber shell casings from the area. At the time of the shooting, Moran-Stenson was on supervised release for a prior conviction and was prohibited from possessing ammunition.
Moran-Stenson faces up to 10 years in prison, a fine of up to $250,000, and up to three years of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The Lewiston Police Department, Portland Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation.
Project Safe Neighborhoods: 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. To learn more information about Project Safe Neighborhood, visit www.justice.gov/psn.
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Kennett Man Sentenced to Serve 120 Months in Federal Prison on Gun and Drug ChargesRead the Press Release
CAPE GIRARDEAU – Senior U.S. District Judge Stephen N. Limbaugh Jr. on Tuesday sentenced a man from Kennett, Missouri to 10 years in federal prison on drug and gun charges.
Steven Chunn, 40, pleaded guilty in February to possession with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime. He admitted that on July 11, 2022, he was found to be in possession of 59 grams of methamphetamine and a Hi Point C9 9mm semi-automatic pistol following a traffic stop in Portageville, Missouri. Chunn further admitted he possessed the methamphetamine for distribution and the firearm was for protection of the drugs and money obtained from drug sales. The firearm was located underneath the driver seat and was loaded and ready to fire with eight rounds of hollow point ammunition in the magazine and a round in the chamber.
At the time of his arrest, Chunn had an active warrant for a parole violation on a felony drug case out of New Madrid County. Judge Limbaugh ordered Chunn’s federal sentence to run consecutive to his state case.
This case was investigated by the Portageville Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Julie Hunter handled the prosecution for the government.
Kanawha County Woman Pleads Guilty to Federal Fraud CrimeRead the Press Release
CHARLESTON, W.Va. – Kathy Darlene Strickmaker, 63, of Dry Branch, pleaded guilty today to bank fraud.
According to court documents and statements made in court, from on or about January 15, 2015, through on or about November 21, 2018, Strickmaker devised a scheme to defraud a financial institution by writing fraudulent checks on accounts of a Charleston business where she was employed as an administrative assistant. Strickmaker’s duties as administrative assistant included paying bills on behalf of the business, which maintained multiple accounts at a bank in Charleston, and managing the business’s payroll and accounts payable. Strickmaker admitted that she wrote at least 80 unauthorized checks drawn from the business’s bank accounts and forged her employer’s signature on them. Strickmaker further admitted that she made the unauthorized checks payable to three individuals in amounts of between approximately $800 to $3,300. These individuals cashed or deposited the checks at local banks within the Southern District of West Virginia, keeping $100 per check and transferring the balance to another individual at Strickmaker’s direction.
Strickmaker also admitted to writing fraudulent and unauthorized checks from the business’s bank accounts from 2016 through 2018 that she made payable to herself. Strickmaker also forged her employer’s signature on those checks.
Strickmaker is scheduled to be sentenced on August 30, 2023, and faces a maximum penalty of 30 years in prison, three years of supervised release, and a $1 million fine. Strickmaker also owes at least $250,000 in restitution.
United States Attorney Will Thompson made the announcement and commended the investigative work of the West Virginia State Police-Bureau of Criminal Investigations (BCI) and the West Virginia State Auditor’s Office (WVSAO).
Chief United States District Judge Thomas E. Johnston presided over the hearing. Assistant United States Attorney Holly Wilson is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:23-cr-57.
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Justice Department Announces Five Cases as Part of Recently Launched Disruptive Technology Strike ForceRead the Press Release
The Justice Department today announced criminal charges in five cases and four arrests from five different U.S. Attorney’s offices in connection with the recently launched multi-agency Disruptive Technology Strike Force.
The Disruptive Technology Strike Force is co-led by the Departments of Justice and Commerce to counter efforts by hostile nation-states to illicitly acquire sensitive U.S. technology to advance their authoritarian regimes and facilitate human rights abuses. The Strike Force’s work has led to the unsealing of charges against multiple defendants in five cases accused of crimes including export violations, smuggling and theft of trade secrets.
Two of these cases involve the disruption of alleged procurement networks created to help the Russian military and intelligence services obtain sensitive technology in violation of U.S. laws. In the Eastern District of New York, a Greek national was arrested on May 9 for federal crimes in connection with allegedly acquiring more than 10 different types of sensitive technologies on behalf of the Russian government and serving as a procurement agent for two Russian Specially Designated Nationals (SDNs) operating on behalf of Russia’s intelligence services. In the District of Arizona, two Russian nationals were arrested for their involvement in a procurement scheme to supply multiple Russian commercial airline companies – which were subject to bans from engaging in certain type of commercial transactions – with export-controlled parts and components, including braking technology.
Two of the other cases announced today charge former software engineers with stealing software and hardware source code from U.S. tech companies in order to market it to Chinese competitors. In the Central District of California, a senior software engineer was arrested on May 5 for theft of trade secrets for allegedly stealing source code used in metrology software which is used in “smart” automotive manufacturing equipment. The defendant then allegedly marketed the stolen technology to multiple Chinese companies. In the Northern District of California, a citizen of the People’s Republic of China (PRC) and former Apple engineer is accused of allegedly stealing thousands of documents containing the source code for software and hardware pertaining to Apple’s autonomous vehicle technology. This defendant fled to China and is believed to be working for a PRC-based autonomous vehicle competitor.
The fifth and final case involves a Chinese procurement network established to provide Iran with materials used in weapons of mass destruction (WMDs) and ballistic missiles. In the Southern District of New York, a PRC national is charged with allegedly participating in a scheme to use his employer to conduct transactions with a U.S. financial institution for the benefit of a purported Iranian entity, as part of an effort to provide isostatic graphite, a material used in the production of WMDs, to Iran.
“These charges demonstrate the Justice Department’s commitment to preventing sensitive technology from falling into the hands of foreign adversaries, including Russia, China, and Iran,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “We will not tolerate those who would violate U.S. laws to allow authoritarian regimes and other hostile nations to use advanced technology to threaten U.S. national security and undermine democratic values around the world.”
“Protecting sensitive American technology – like source code for ‘smart’ automotive manufacturing equipment or items used to develop quantum cryptography – from being illegally acquired by our adversaries is why we stood up the Disruptive Technology Strike Force,” said Matthew S. Axelrod, Assistant Secretary for Export Enforcement at the Department of Commerce. “The Strike Force actions announced today reflect the core mission of our Export Enforcement team – keeping our country’s most sensitive technologies out of the world’s most dangerous hands.”
“The theft of technology and trade secrets from U.S. companies is a threat to our economic and national security,” said Assistant Director Suzanne Turner of the FBI’s Counterintelligence Division. “The charges announced today aren’t the only instances of foreign adversaries trying to steal our technology. Combating the illegal transfer of technology is one of the FBI’s highest priorities, and we will continue to work with our federal partners, including the Department of Commerce, to investigate those who steal U.S. technology to ultimately use it in weapons that threaten us and our allies.”
“The protection of sensitive U.S. technologies has been and continues to be a top priority for HSI,” said Assistant Director James Mancuso of Homeland Security Investigations. “HSI and the partners of the Strike Force will ensure that the U.S. maintains its technologic edge to protect the economic and national security interests of the United States. The Strike Force will be relentless in its pursuit of bad actors that attempt the theft of any sensitive U.S. technologies.”
United States v. Bogonikolos, Eastern District of New York
A criminal complaint was unsealed today in federal court in Brooklyn charging Dr. Nikolaos “Nikos” Bogonikolos, 59, of Athens, Greece, with wire fraud conspiracy and smuggling. Bogonikolos was arrested in Paris on May 9 and remains in custody pending the resolution of extradition proceedings.
“As alleged, while ostensibly operating as a defense contractor for NATO and other ally countries, the defendant and his Aratos Group were double dealing, helping to fuel Russia’s war effort and their development of next generation weapons,” said U.S. Attorney Breon Peace for the Eastern District of New York. “Our office continues to work tirelessly to ensure that disruptive technologies do not fall into the wrong hands.”
As alleged in the complaint, the defendant headed the Aratos Group (Aratos), a collection of defense and technology companies in the Netherlands and Greece, which are both member countries of the North Atlantic Treaty Organization (NATO). According to Aratos’s website, the companies’ areas of expertise included space technologies, homeland security, blockchain, and counter-drone systems. One of Aratos’ subsidiaries, Aratos Systems BV, was a finalist in the NATO Innovation Challenge for space applications in 2021 for a proposal involving the use of artificial intelligence and blockchain technology for satellites and spacecraft. The defendant presented himself having experience advising the European Parliament and “governments worldwide,” and Aratos supplied defense equipment and related technologies to countries in the Middle East, Africa and Asia.
However, as alleged in the complaint, since 2017 the defendant has been involved in smuggling U.S.-origin military and dual-use technologies to Russia in violation of U.S. law. These highly regulated and sensitive components included advanced electronics and sophisticated testing equipment used in military applications, including quantum cryptography and nuclear weapons testing, as well as tactical battlefield equipment. The defendant claimed that these items were to be used by Aratos, when in reality they were reshipped and sent to Russia in violation of U.S. law. Some of the Russian end users included nuclear and quantum research facilities, as well as Military Unit 33949, part of the Russian Foreign Intelligence Service, known as the SVR.
As described in the complaint, many of these orders were solicited by Serniya Engineering and Sertal LLC (the Serniya Network), Moscow-based companies that operate under the direction of Russian intelligence services. Following Russia’s invasion of Ukraine in February 2022, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) and the Department of Commerce (DOC) Bureau of Industry and Security (BIS) levied sanctions against Serniya, Sertal, and several individuals and companies used in the scheme, calling them “instrumental to the Russian Federation’s war machine.”
As alleged in the complaint, the defendant was recruited as a procurement agent for Russia in 2017. In an email message with a Serniya affiliate, on Dec. 27, 2017, the defendant was told to come to Moscow alone “since the agenda will be a very sensitive one.” Regarding one subsequent order, the defendant advised that he would falsify an export license, saying “I sign that the items are only for Netherlands ;) . . . Sensitive case . . . For the same reason I cannot press the [U.S.] supplier.” The defendant also signed several false end use statements and provided them to U.S. companies, certifying that Aratos was the end user of the requested items, that Aratos would not reexport the goods elsewhere, and that the goods would not be used for weapons development.
The FBI New York Field Office is investigating the case.
Assistant U.S. Attorney Artie McConnell and Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case, with assistance provided by Litigation Analyst Ben Richmond.
The Justice Department’s Office of International Affairs provided valuable support to the investigation. The United States thanks French authorities for their assistance.
The investigation was also coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing sanctions, export controls and economic countermeasures imposed in response to Russia’s unprovoked military invasion of Ukraine. For more on the work of Task Force KleptoCapture, see here.
United States v. Besedin and Patsulya, District of Arizona
On May 11, two Russian nationals, Oleg Sergeyevich Patsulya and Vasilii Sergeyevich Besedin were arrested in the District of Arizona and charged via criminal complaint with conspiracy to violate the Export Control Reform Act (ECRA) and conspiracy to commit international money laundering.
The complaint alleges that Patsulya and Besedin, both of whom reside in Miami-Dade County, Florida, used their Florida limited liability company, MIC P&I, LLC, and worked with others to evade U.S. export laws and regulations to send aircraft parts to Russian airline companies. The complaint alleges that Patsulya and Besedin fielded requests for parts directly from the Russian airlines — many of which were already subject to increased export sanctions as a result of Russia’s further invasion of Ukraine — and then used intermediary companies and foreign bank accounts in third-party countries to mask the true identity of the customers and the source of payments. Patsulya and Besedin then approached aircraft parts suppliers in the United States, lied about who their customers were, and lied about where the parts would be going. In furtherance of their criminal conspiracy, Patsulya and Besedin traveled to the District of Arizona in September 2022 and attempted to purchase export-controlled aircraft brake systems from an Arizona aircraft parts supply company.
If convicted, the defendants face up to 20 years in prison for violating the ECRA and up to 20 years in prison for conspiring to commit international money laundering.
The BIS Phoenix Field Office and the FBI Phoenix Field Office are conducting the joint investigation. The BIS Boston Field Office, FBI Miami Field Office, HSI Phoenix Field Office, Customs and Border Protection-Phoenix Field Office, and the U.S. Marshals Office in Miami provided valuable assistance.
Assistant U.S. Attorneys Todd M. Allison and William G. Voit for the District of Arizona and Trial Attorney Christopher M. Rigali of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case. The U.S. Attorney’s Office for the Southern District of Florida provided valuable assistance.
The investigation was also coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing sanctions, export controls and economic imposed in response to Russia’s unprovoked military invasion of Ukraine.
United States v. Li, Central District of California
A California man was arrested on May 6 in the Central District of California on criminal charges related to his alleged theft of sensitive technologies from his Southern California-based employers and use of them to market his own competing company to businesses in the PRC.
According to court documents, Liming Li, 64, of Rancho Cucamonga, stole trade secrets belonging to two of his former employers based in Southern California then used them to build his own competing business in China.
Li was arrested at Ontario International Airport on May 6 after arriving on a flight from Taiwan pursuant to a criminal complaint that charges him with theft of trade secrets. Since his arrest, Li has been in federal custody, and he has a detention hearing scheduled for May 22.
“Li stole thousands of files of sensitive technology that did not belong to him and used it to help foreign companies build competing technology – technology that could be used in the manufacture of nuclear submarines and military aircraft,” said U.S. Attorney Martin Estrada for the Central District of California. “Protecting our nation’s national security is paramount, and my office will aggressively investigate and prosecute those who misappropriate sensitive intellectual property to the benefit of foreign actors.”
According to an affidavit filed with the complaint, from 1996 to November 2019, Li worked in various engineering, management, and software development roles for two companies in Southern California software businesses. The companies are identified in court documents as “Company #1” and “Company #2.”
These software programs are related to high precision measurement studies interpretation and point cloud technology, which often are used in making 3D models. They can be used in various sensitive manufacturing contexts, including manufacturing parts for nuclear submarines and military aircraft, and are subject to U.S. export controls for national security, nuclear nonproliferation and anti-terrorism reasons. As a result of its military application, federal law mandates that this software cannot be exported to the PRC without a license from the Department of Commerce.
Li worked for Company #1 from 1996 to 2018 and then worked at Company #2 from 2018 until November 2019. Shortly before beginning his employment with the Company #2, Li and his wife established their own business, JSL Innovations, which was based out of their Rancho Cucamonga home.
After Company #2 terminated Li, company security discovered that Li was using his company-issued laptop to attempt to download files from Company #2’s root directory onto his personal external hard drive, according to the complaint affidavit. Company security searched Li’s company-issued laptop and found a folder labeled “ChinaGovernment.” That folder allegedly contained numerous documents showing Li’s efforts to participate in the PRC’s Thousand Talents Program and to use JSL Innovations to provide services and technology to PRC business and government entities related to the export-controlled and trade secret technology that Li took from his former employers in Southern California.
In March 2020, Li entered into an agreement with a PRC-based manufacturing company to serve as its chief technology officer. Li’s agreement with this employer required him to spend at least six months per year in the PRC.
Six months later, FBI agents executed a search warrant at Li’s home and found numerous digital devices containing millions of files belonging to Company #1 and Company #2 and containing the source code for those companies’ proprietary software, the complaint alleges. Although the source code files had been developed by and belonged to these companies, some of the files had been moved into folders labeled “JSL” or “JSL Projects.”
Both Company #1 and Company #2 derive significant value from the secrecy of their proprietary software source code and take extensive steps to protect the source code from discovery by competitors.
If convicted, Li faces a statutory maximum sentence of 10 years in federal prison.
The FBI is investigating this matter with substantial assistance from the Department of Commerce BIS.
Assistant U.S. Attorneys Solomon Kim of the Terrorism and Export Crimes Section; David Ryan, Chief of the Terrorism and Export Crimes Section; Aaron Frumkin of the Cyber and Intellectual Property Crime Section; and Trial Attorney Stephen Marzen of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
United States v. Wang, Northern District of California
Today, a federal court in the Northern District of California unsealed an indictment of former Apple Incorporated (Apple) employee Weibao Wang, 35, formerly of Mountain View, California, for charges related to his alleged theft and attempted theft of trade secrets in connection with a scheme to access, download, and steal Apple technology related to autonomous systems.
According to the indictment, Apple hired Wang to work as a software engineer beginning in March 2016. The indictment describes how Wang signed a confidentiality agreement with Apple. The indictment further states that Apple provided Wang with in-person secrecy training that covered the appropriate handling of confidential material and established rules prohibiting the transfer and transmission of the company’s intellectual property without Apple’s consent. Wang was assigned to work with a team at Apple that designed and developed hardware and software for autonomous systems, which can have a variety of applications, such as self-driving cars.
According to the indictment, in November 2017, Wang signed a letter accepting an offer of full-time employment as a staff engineer with the U.S.-based subsidiary of a company headquartered in the PRC. The parent company is described in the indictment as “COMPANY ONE” and allegedly was working to develop self-driving cars. The indictment alleges Wang waited more than four months after signing the new employment agreement before informing Apple that he was resigning.
After Wang’s last day at Apple on April 16, 2018, Apple representatives reviewed access logs documenting historical activity on Apple’s network. Apple identified Wang as having accessed large amounts of sensitive proprietary and confidential information in the days leading up to his departure from Apple.
The indictment describes the June 27, 2018, search by law enforcement of Wang’s Mountain View residence and the discovery of large quantities of data taken from Apple prior to his departure. Wang was present during the search and told agents he had no plans to travel. Nevertheless, Wang purchased a one-way plane ticket from San Francisco International Airport to Guangzhou, China and boarded a flight that night.
The indictment describes six categories of trade secrets that Wang allegedly stole, or attempted to steal, and charges him with one count for each category.
Wang faces a maximum statutory sentence of 10 years in prison and a fine in the amount of $250,000 (or twice the gross gain or loss resulting from the scheme) for each count of theft or attempted theft of trade secrets.
The FBI is investigating the case.
Assistant U.S. Attorneys Sloan Heffron and Marissa Harris for the Northern District of California are prosecuting the case. Within the National Security Division, this matter is being handled by Brendan Geary of the National Security Division’s Counterintelligence and Export Control Section.
United States v. Xiangjiang Qiao, Southern District of New York
Today, a federal court in the Southern District of New York unsealed an indictment charging Xiangjiang Qiao aka Joe Hansen, 39, of the People’s Republic of China with sanctions evasion, money laundering, and bank fraud offenses based on Qiao’s alleged participation in a scheme to use a sanctioned Chinese company to provide materials used in the production of WMDs to Iran, in exchange for payments made through the U.S. financial system. Qiao is at large in China.
“As alleged, Xiangjiang Qiao conspired to send isostatic graphite to Iran, in violation of U.S. sanctions. Isostatic graphite is a high-tech material used in the nose tips of intercontinental ballistic missiles,” said U.S. Attorney Damian Williams for the Southern District of New York. “The Iranian regime of terror and repression, and those who facilitate it, pose a grave threat to our national security. This office will continue to work relentlessly to bring to justice those who advance the interests of the Iranian regime and thereby threaten the safety and security of the American people.”
According to court documents, Qiao is a Chinese national and an employee of the China-based company Sinotech Dalian Carbon and Graphite Manufacturing Corporation (Sinotech Dalian). Sinotech Dalian is part of a network of Chinese companies involved in the proliferation of WMDs and that, in particular, provide assistance in the procurement of materials for Iran’s ballistic missile program. In 2014, OFAC sanctioned Sinotech Dalian, adding the company to OFAC’s SDN and Blocked Persons list, explaining that Sinotech Dalian is part of a network of China-based entities used to proliferate WMDs and, specifically, to aid Iranian ballistic missile procurement. Sinotech Dalian’s inclusion on the SDN list prohibits it from using the U.S. financial system to conduct transactions without authorization from OFAC. Qiao is an associate of Li Fangwei, aka Karl Lee, who managed the Sinotech Dalian network of companies and was charged in 2014 with sanctions evasion and other offenses based on his alleged illicit activities as a principal contributor to Iran’s ballistic missile program through China-based entities.
In willful violation of U.S. sanctions on Iran and Sinotech Dalian, between at least March 2019 and September 2022, Qiao participated in a scheme to use Sinotech Dalian, including through transactions involving the U.S. financial system, to supply isostatic graphite to Iran for the production of WMDs. Isostatic graphite is a type of graphite with an ultra-fine grain that is used in the manufacture of WMDs. In particular, isostatic graphite is used in the manufacture of rocket nozzles and reentry vehicle nose tips in intercontinental ballistic missiles. Qiao further took steps to conceal Sinotech Dalian’s involvement in the transaction by creating a bank account in the name of a front company to receive two transfers from a U.S. bank totaling over $15,000 as part of his efforts to facilitate the supply of isostatic graphite to Iran.
Qiao is charged with one count of conspiracy to violate U.S. sanctions against Iran and Sinotech Dalian, in violation of the International Emergency Economic Powers Act (IEEPA), which carries a maximum sentence of 20 years in prison; two counts of violating the IEEPA, which each carry a maximum sentence of 20 years in prison; one count of conspiracy to commit bank fraud, which carries a maximum sentence of 30 years in prison; two counts of attempted bank fraud, which each carry a maximum sentence of 30 years in prison; one count of conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison; and two counts of money laundering, which each carry a maximum sentence of 20 years in prison.
The FBI New York Field Office and Counterintelligence Division are investigating the case.
Assistant U.S. Attorneys Gillian S. Grossman and Nicholas S. Bradley for the Southern District of New York are prosecuting the case. Within the National Security Division, this matter is being handled by Trial Attorney S. Derek Shugert of the Counterintelligence and Export Control Section.
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Today’s actions were coordinated through the Disruptive Technology Strike Force, an interagency law enforcement strike force co-led by the Departments of Justice and Commerce designed to target illicit actors, protect supply chains, and prevent critical technology from being acquired by authoritarian regimes and hostile nation-states. Under the leadership of the Assistant Attorney General for National Security and the Assistant Secretary of Commerce for Export Enforcement, the Strike Force leverages tools and authorities across the U.S. Government to enhance the criminal and administrative enforcement of export control laws.
An indictment, complaint or criminal information is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Inland Empire Man Arrested for Allegedly Stealing Sensitive Software from His U.S. Employers to Build a Competing Business in ChinaRead the Press Release
LOS ANGELES – An Inland Empire man has been arrested on a criminal complaint alleging he stole sensitive technologies from his Southern California-based employers and used them to market his own competing company to businesses in the People’s Republic of China (PRC).
Liming Li, 64, of Rancho Cucamonga, is charged with theft of trade secrets. Li was arrested at Ontario International Airport on May 6 after arriving on a flight from Taiwan. Since his arrest, Li has been in federal custody, and he has a detention hearing scheduled for May 22.
“Li stole thousands of files of sensitive technology that did not belong to him and used it to help foreign companies build competing technology – technology that could be used in the manufacture of nuclear submarines and military aircraft,” said United States Attorney Martin Estrada. “Protecting our nation’s national security is paramount, and my office will aggressively investigate and prosecute those who misappropriate sensitive intellectual property to the benefit of foreign actors.”
“The FBI Los Angeles Field Office takes the protection of our national security and critical technology extremely seriously,” said FBI Assistant Director in Charge Donald Alway. “Foreign adversaries, including the Chinese government, actively seek to erode American competitiveness in the global economy, diminish trust in fair market competition, and use stolen knowledge to increase their military modernization capabilities. Stealing proprietary information not only affects U.S. businesses, but, over time destabilizes American economic security. The FBI is dedicated to countering efforts of those seeking to illegally acquire sensitive information.”
The case against Li was brought under the auspices of the Disruptive Technology Strike Force, which is co-led by the Departments of Justice and Commerce. The Strike Force seeks to counter efforts by hostile nation-states to illicitly acquire sensitive U.S. technology to advance their authoritarian regimes and facilitate human rights abuses. The case against Li is one of five announced this morning at a news conference at the Department of Justice where officials detailed cases against defendants accused of crimes that include export violations, smuggling and theft of trade secrets.
According to an affidavit filed with the complaint filed in Los Angeles, from 1996 to November 2019, Li worked in various engineering, management and software development roles for two companies in Southern California. The companies are identified in court documents as “Company #1” and “Company #2.”
These software programs are related to high precision measurement studies interpretation and point cloud technology, which often are used in making 3D models. They can be used in various sensitive manufacturing contexts, including manufacturing parts for nuclear submarines and military aircraft, and are subject to United States export controls for national security, nuclear nonproliferation and anti-terrorism reasons. As a result of its military application, federal law mandates that this software cannot be exported to the PRC without a license from the Department of Commerce.
Li worked for Company #1 from 1996 to 2018 and then worked at Company #2 from 2018 until November 2019. Shortly before beginning his employment with the Company #2, Li and his wife established their own business, JSL Innovations, which was based out of their Rancho Cucamonga home.
After Company #2 terminated Li, company security discovered that Li was using his company-issued laptop to attempt to download files from Company #2’s root directory onto his personal external hard drive, according to the complaint affidavit. Company security searched Li’s company-issued laptop and found a folder labeled “ChinaGovernment.” That folder allegedly contained numerous documents showing Li’s efforts to participate in the PRC’s Thousand Talents Program and to use JSL Innovations to provide services and technology to PRC business and government entities related to the export-controlled and trade secret technology that Li took from his former employers in Southern California.
In March 2020, Li entered into an agreement with a PRC-based manufacturing company to serve as its chief technology officer. Li’s agreement with this employer required him to spend at least six months per year in the PRC.
Six months later, FBI agents executed a search warrant at LI’s home and found numerous digital devices containing millions of files belonging to Company #1 and Company #2 and containing the source code for those companies’ proprietary software, the complaint alleges. Although the source code files had been developed by and belonged to these companies, some of the files had been moved into folders labeled “JSL” or “JSL Projects.”
Both Company #1 and Company #2 derive significant value from the secrecy of their proprietary software source code and take extensive steps to protect the source code from discovery by competitors.
A criminal complaint is merely an accusation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
If convicted, Li would face a statutory maximum sentence of 10 years in federal prison.
The FBI is investigating this matter with substantial assistance from the Department of Commerce, Office of Export Enforcement, Bureau of Industry and Security.
Assistant United States Attorneys Solomon Kim of the Terrorism and Export Crimes Section; David Ryan, Chief of the Terrorism and Export Crimes Section; Aaron Frumkin of the Cyber and Intellectual Property Crime Section; and Trial Attorney Stephen Marzen of the Justice Department’s National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
The Disruptive Technology Strike Force is an interagency law enforcement strike force co-led by the Departments of Justice and Commerce. It is designed to target illicit actors, protect supply chains, and prevent critical technology from being acquired by authoritarian regimes and hostile nation-states. Under the leadership of the Assistant Attorney General for National Security and the Assistant Secretary of Commerce for Export Enforcement, the Strike Force leverages tools and authorities across the U.S. Government to enhance the criminal and administrative enforcement of export control laws.
Independence Man Sentenced to 15 Years for Meth ConspiracyRead the Press Release
KANSAS CITY, Mo. – An Independence, Mo., man was sentenced in federal court today for his role a conspiracy to distribute methamphetamine.
Louis Melvin Williamson, 51, was sentenced by U.S. District Judge Greg Kays to 15 years in federal prison without parole. The court also ordered Williamson’s sentence to be served consecutively to any sentence imposed in a separate case in Clay County, Mo.
On Oct. 4, 2022, Williamson pleaded guilty to participating in a conspiracy to distribute methamphetamine from Aug. 11 to Oct. 14, 2020.
Co-defendant Kurt Thomas Kingsley, 40, of Independence, was sentenced on April 6, 2023, to seven years in federal prison without parole after pleading guilty to his role in the drug-trafficking conspiracy and to one count of possessing methamphetamine with the intent to distribute. The court ordered his sentence to be served consecutively to any sentence imposed in a separate case in the District of Kansas.
Co-defendant Kenneth James Paulson, 52, of Blue Springs, Mo., pleaded guilty on Nov. 16, 2022, to his role in the drug-trafficking conspiracy and awaits sentencing.
Williams sold bulk quantities of methamphetamine to other dealers, including Kingsley, who in turn sold to Paulson. Williamson also sold smaller quantities to methamphetamine users. Paulson admitted that he purchased methamphetamine from Kingsley and sold bulk quantities to lower level dealers.
Agents from the Drug Enforcement Administration, through undercover agents and confidential informants, made controlled purchases of methamphetamine from Paulson at his home and at a movie theater parking lot in Grain Valley, Mo. On Oct. 13, 2020, DEA agents stopped Paulson’s car in Blue Springs while he was on his way to another undercover controlled purchase. Agents found 145 grams of 99 percent pure methamphetamine in his car. Agents also searched his residence and found 226 grams of 99 percent pure methamphetamine in his garage. Agents also found a Smith & Wesson 9mm semi-automatic handgun and a Smith & Wesson .38-caliber revolver in his garage.
On Oct. 14, 2020, Kingsley arrived at Paulson’s residence for an arranged drug sale. DEA agents found a black backpack on the passenger’s seat of Kingsley’s Ford F-150 that contained 46.7 grams of pure methamphetamine.
This case is being prosecuted by Assistant U.S. Attorney Brandon Gibson. It was investigated by the Drug Enforcement Administration.
Honduran National Indicted for Illegal Re-EntryRead the Press Release
NEW ORLEANS –HUGO BRIAN FUENTAS-EGUIGURENS, a/k/a “Brian Pineda,” a/k/a “Hugo B. Fuentes,” a/k/a “Hugo Fuentesesguigrens,” age 27, was indicted on May 12, 2023 for illegal reentry of a removed alien in violation of Title 8, United States Code, Section 1326(a), announced U.S. Attorney Duane A. Evans.
According to the indictment, HUGO BRIAN FUENTAS-EGUIGURENS, (“FUENTAS-EGUIGURENS”) reentered the United States after being previously deported on April 26, 2019. If convicted, FUENTAS-EGUIGURENS faces a maximum term of imprisonment of two years, a maximum fine of up to $250,000, a maximum term of supervised release of up to one year, and a mandatory $100 special assessment fee.
U.S. Attorney Evans reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the United States Immigration and Customs Enforcement in investigating this matter. Assistant U.S. Attorney Carter K.D. Guice, Jr. of the General Crimes Unit is in charge of the prosecution.
Havre man admits assaulting woman on Rocky Boy’s Indian ReservationRead the Press Release
GREAT FALLS —A Havre man suspected of punching and strangling a woman on the Rocky Boy’s Indian Reservation admitted to an assault crime today, U.S. Attorney Jesse Laslovich said.
Titus Lee Pedraza, 40, pleaded guilty to assault resulting in substantial bodily injury of a spouse, intimate or dating partner. Pedraza faces a maximum of five years in prison, a $250,000 fine and not more than three years of supervised release.
Chief U.S. District Judge Brian M. Morris presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for Oct. 12. Pedraza was detained pending further proceedings.
The government alleged in court documents that on November 23, 2022, Pedraza was home with the victim, identified as Jane Doe, and the victim’s children. Jane Doe told Pedraza she wanted a babysitter so they could go gamble together. Pedraza, who was drunk, became enraged and accused Jane Doe of wanting to cheat on him. As Jane Doe walked out of the room, Pedraza assaulted her by strangling her and punching her, causing substantial injury.
Assistant U.S. Attorney Amanda L. Myers is prosecuting the case. The FBI and Rocky Boy’s Police Department conducted the investigation.
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Hartford Man Sentenced to 54 Months in Federal Prison for Fentanyl Distribution and Firearm Possession OffensesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that JAMIE PATTERSON, also known as “Diddy,” 25, of Hartford, was sentenced yesterday by U.S. District Judge Sarala V. Nagala in Hartford to 54 months of imprisonment, followed by three years of supervised release, for fentanyl distribution and firearm possession offenses.
According to court documents and statements made in court, on June 4, 2021, New Britain Police responded to Devens Street on reports of shots fired. At the scene, officers found numerous empty shell casings near a disabled vehicle containing an abandoned firearm. Patterson was located hiding underneath a nearby car, and an officer found a loaded 9mm handgun in the spare tire well of car. Forensic analysis of the handgun revealed the presence of Patterson’s DNA.
On July 13, 2021, Hartford Police arrested Patterson after they observed him placing items into a parked car on Hazel Street, and a subsequent search of the car revealed 170 sleeves (doses) of fentanyl and a loaded .380 pistol.
Patterson’s criminal history includes state convictions for felony drug and firearm offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
On February 27, 2023, Patterson pleaded guilty to possession with intent to distribute fentanyl, and possession of a firearm by a felon.
Patterson has been detained in state custody since his arrest on July 13, 2021. He will not receive credit on his federal sentence for his time served to date in state custody.
This investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the New Britain Police Department, and the Hartford Police Department. The case was prosecuted by Assistant U.S. Attorney Robert S. Ruff through the Project Safe Neighborhoods (PSN) initiative, a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. In May 2021, the Justice Department launched a violent crime reduction strategy strengthening PSN based on these core principles: Fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.