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Wednesday 10 May 2023
Congressman George Santos Charged with Fraud, Money Laundering, Theft of Public Funds, and False StatementsRead the Press Release
CENTRAL ISLIP, NY – A 13-count indictment was unsealed today in the United States District Court for the Eastern District of New York charging George Anthony Devolder Santos, better known as “George Santos,” a United States Congressman representing the Third District of New York, with seven counts of wire fraud, three counts of money laundering, one count of theft of public funds, and two counts of making materially false statements to the House of Representatives.
The indictment was returned yesterday under seal by a federal grand jury sitting in Central Islip, New York. Santos was arrested this morning and will be arraigned this afternoon before U.S. Magistrate Judge Arlene R. Lindsay at the federal courthouse in Central Islip, New York.
Breon Peace, United States Attorney for the Eastern District of New York, Kenneth A. Polite, Jr., Assistant Attorney General of the Justice Department’s Criminal Division, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Anne T. Donnelly, District Attorney, Nassau County, announced the charges.
“This indictment seeks to hold Santos accountable for various alleged fraudulent schemes and brazen misrepresentations,” stated United States Attorney Peace. “Taken together, the allegations in the indictment charge Santos with relying on repeated dishonesty and deception to ascend to the halls of Congress and enrich himself. He used political contributions to line his pockets, unlawfully applied for unemployment benefits that should have gone to New Yorkers who had lost their jobs due to the pandemic, and lied to the House of Representatives. My Office and our law enforcement partners will continue to aggressively root out corruption and self-dealing from our community’s public institutions and hold public officials accountable to the constituents who elected them.”
“The Criminal Division’s Public Integrity Section is committed to rooting out fraud and corruption, especially when committed by our elected officials,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “As alleged, Santos engaged in criminal conduct intended to deceive and defraud the American public. As this indictment reflects, the Department of Justice will hold accountable anyone who engages in such criminality.”
“As today's enforcement action demonstrates, the FBI remains committed to holding all equally accountable under the law. As we allege, Congressman Santos committed federal crimes, and he will now be forced to face the consequences of his actions. I would like to commend the diligent efforts of the investigative and prosecutorial teams in this matter,” stated FBI Assistant Director-in-Charge Driscoll.
“At the height of the pandemic in 2020, George Santos allegedly applied for and received unemployment benefits while he was employed and running for Congress,” stated District Attorney Donnelly. “As charged in the indictment, the defendant’s alleged behavior continued during his second run for Congress when he pocketed campaign contributions and used that money to pay down personal debts and buy designer clothing. This indictment is the result of a lengthy collaboration between law enforcement agencies, and I thank our partners at the U.S. Attorney’s Office, the Department of Justice and the Federal Bureau of Investigation for their dedication to rooting out public corruption.”
Mr. Peace also thanked the U.S. Department of Labor, Office of Inspector General, the New York State Department of Labor (NYS DOL), and the Queens County District Attorney’s Office for their assistance.
As alleged in the indictment, Santos, who was elected to Congress last November and sworn in as the U.S. Representative for New York’s Third Congressional District on January 7, 2023, engaged in multiple fraudulent schemes.
Fraudulent Political Contribution Solicitation Scheme
Beginning in September 2022, during his successful campaign for Congress, Santos operated a limited liability company (Company #1) through which he allegedly defrauded prospective political supporters. Santos enlisted a Queens-based political consultant (Person #1) to communicate with prospective donors on Santos’s behalf. Santos allegedly directed Person #1 to falsely tell donors that, among other things, their money would be used to help elect Santos to the House, including by purchasing television advertisements. In reliance on these false statements, two donors (Contributor #1 and Contributor #2) each transferred $25,000 to Company #1’s bank account, which Santos controlled.
As alleged in the indictment, shortly after the funds were received into Company #1’s bank account, the money was transferred into Santos’s personal bank accounts—in one instance laundered through two of Santos’s personal accounts. Santos allegedly then used much of that money for personal expenses. Among other things, Santos allegedly used the funds to make personal purchases (including of designer clothing), to withdraw cash, to discharge personal debts, and to transfer money to his associates.
Unemployment Insurance Fraud Scheme
Beginning in approximately February 2020, Santos was employed as a Regional Director of a Florida-based investment firm (Investment Firm #1), where he earned an annual salary of approximately $120,000. By late-March 2020, in response to the outbreak of COVID-19 in the United States, new legislation was signed into law that provided additional federal funding to assist out-of-work Americans during the pandemic.
In mid-June 2020, although he was employed and was not eligible for unemployment benefits, Santos applied for government assistance through the New York State Department of Labor, allegedly claiming falsely to have been unemployed since March 2020. From that point until April 2021—when Santos was working and receiving a salary on a near-continuous basis and during his unsuccessful run for Congress—he falsely affirmed each week that he was eligible for unemployment benefits when he was not. As a result, Santos allegedly fraudulently received more than $24,000 in unemployment insurance benefits.
False Statements to the House of Representatives
Finally, the indictment describes Santos’s alleged efforts to mislead the House of Representatives and the public about his financial condition in connection with each of his two Congressional campaigns.
Santos, like all candidates for the House, had a legal duty to file with the Clerk of the House of Representatives a Financial Disclosure Statement (House Disclosures) before each election. In each of his House Disclosures, Santos was personally required to give a full and complete accounting of his assets, income, and liabilities, among other things. He certified that his House Disclosures were true, complete, and correct.
In May 2020, in connection with his first campaign for election to the House, Santos filed two House Disclosures in which he allegedly falsely certified that, during the reporting period, his only earned income consisted of salary, commission, and bonuses totaling $55,000 from another company (Company #2), and that the only compensation exceeding $5,000 he received from a single source was an unspecified commission bonus from Company #2. In actuality, Santos allegedly overstated the income he received from Company #2 and altogether failed to disclose the salary he received from Investment Firm #1.
In September 2022, in connection with his second campaign for election to the House, Santos filed another House Disclosure, in which he allegedly overstated his income and assets. In this House Disclosure, he falsely certified that during the reporting period:
- He had earned $750,000 in salary from the Devolder Organization LLC, a Florida‑based entity of which Santos was the sole beneficial owner;
- He had received between $1,000,001 and $5,000,000 in dividends from the Devolder Organization LLC;
- He had a checking account with deposits of between $100,001 and $250,000; and
- He had a savings account with deposits of between $1,000,001 and $5,000,000.
As alleged in the indictment, these assertions were false: Santos had not received from the Devolder Organization LLC the reported amounts of salary or dividends and did not maintain checking or savings accounts with deposits in the reported amounts. Further, Santos allegedly failed to disclose that, in 2021, he received approximately $28,000 in income from Investment Firm #1 and more than $20,000 in unemployment insurance benefits from the NYS DOL.
The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted of the charges, Santos faces a maximum penalty of 20 years in prison for the top counts. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI is investigating the case with assistance from the Nassau County District Attorney’s Office, the IRS-Criminal Investigation, and the U.S. Department of Labor, Office of Inspector General.
The government’s case is being prosecuted by the Office’s Public Integrity Section, the Long Island Criminal Division, and the Criminal Division’s Public Integrity Section. Assistant United States Attorneys Ryan Harris, Anthony Bagnuola, and Laura Zuckerwise, along with Trial Attorneys Jolee Porter and Jacob Steiner, are in charge of the prosecution with assistance from Paralegal Specialist Rachel Friedman. Senior Litigation Counsel Victor R. Salgado of the Criminal Division’s Public Integrity Section provided substantial contributions to the prosecution.
The Defendant:
GEORGE ANTHONY DEVOLDER SANTOS
Age: 34
Washington, District of ColumbiaE.D.N.Y. Docket No. 23-CR-197
Cincinnati man sentenced to one year & one day in prison for pandemic relief fraudRead the Press Release
CINCINNATI – Marcus Hawkins, 35, of Cincinnati, was sentenced in U.S. District Court today to 12 months and one day in prison for COVID-19 relief fraud.
As part of his conviction, Hawkins will pay $60,000 in restitution to the Small Business Administration.
According to court documents, Hawkins applied for several loans in July 2020 under the Economic Injury Disaster Loan program, which was expanded under the Coronavirus Aid, Relief and Economic Security (CARES) Act to provide payments for businesses temporarily experiencing a loss due to the pandemic.
At the time, Hawkins was self-employed, occasionally doing business as DSR Studio or DSR Studios.
In one application, Hawkins claimed his business – DSR Studio – was in the agriculture industry and employed 10 workers.
Less than three weeks later, Hawkins submitted another false application, claiming his business – DSR Studios – was in the entertainment services industry and employed five workers. In reality, Hawkins did not have any employees. In both applications, Hawkins fraudulently inflated the gross revenues of the business.
The Small Business Administration initially funded an advance in the amount of $10,000 for the business, but later determined the applications were duplicative and likely fraudulent and declined to fund the requested loan amounts. Hawkins also fraudulently applied for a loan under the entity name Road Runner Development LLC and received $50,000.
Hawkins pleaded guilty in July 2022 to making false statements to the federal government.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and other members of the Financial Crimes Working Group Pandemic Fraud Committee announced the sentence imposed by Senior U.S. District Court Judge Susan J. Dlott. Assistant United States Attorney Ebunoluwa A. Taiwo is representing the United States in this case.
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Chelsea Man Indicted for Fentanyl Trafficking and Unlawful Reentry into the United StatesRead the Press Release
BOSTON – A Chelsea man has been indicted by a federal grand jury in Boston in connection with selling five kilograms of fentanyl to an undercover agent after unlawfully reentering the United States after deportation.
Luis Alberto German-Peguero, a/k/a “Alberto Chirry,” 32, was indicted on one count of conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl, one count of distribution of and possession with intent to distribute 400 grams or more of fentanyl, and one count of illegal reentry of a deported alien. Peguero was previously charged by complaint and arrested by federal authorities on April 14, 2023. He has been in federal custody since his arrest and will appear in federal court in Boston at a later date.
According to the charging documents, German-Peguero is a citizen of the Dominican Republic and, in November 2020, was removed from the United States following a state drug trafficking conviction out of Plymouth Superior Court, for which he served more than one year in prison.It is alleged that, sometime after his removal, German-Peguero unlawfully reentered the United States. On March 22, 2023, German-Peguero allegedly sold five kilograms of fentanyl to an undercover agent in Peabody. German-Peguero was subsequently arrested in Newton on April 14, 2023 and determined to be unlawfully present in the United States.
The charges of conspiracy and distribution of and possession with intent to distribute 400 grams or more of fentanyl after committing a prior serious drug felony provide for a mandatory minimum sentence of 15 years and up to life in prison, at least five years of supervised release and a fine of up to $10 million. The charge of illegal reentry provides for a sentence of up to 20 years in prison and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.United States Attorney Rachael S. Rollins and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorney Stephen W. Hassink of Rollins’s Narcotics & Money Laundering Unit is prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Charleston Man Pleads Guilty to Federal Gun CrimeRead the Press Release
CHARLESTON, W.Va. – Travis Devon Woods, 34, of Charleston, pleaded guilty today to being a felon in possession of a firearm.
According to court documents and statements made in court, on June 6, 2022, law enforcement officers visited Woods’ Livingston Avenue residence in Charleston to speak with him. Before opening his door for the officers, Woods tossed a Sig Sauer, model P250, .45-caliber semiautomatic pistol out a back window of his residence. Officers recovered the firearm. Woods admitted that he possessed the firearm and tossed it out the window because he knew he was prohibited from possessing a firearm.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Woods knew he was prohibited from possessing a firearm because of his prior felony convictions for being a felon in possession of a firearm in U.S. District Court for the Southern District of West Virginia on July 1, 2015, and first-degree robbery in Kanawha County Circuit Court on March 19, 2009.
Woods is scheduled to be sentenced on August 29, 2023, and faces a maximum penalty of 10 years in prison, three years of supervised release, and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Charleston Police Department.
Senior United States District Judge David A. Faber presided over the hearing. Assistant United States Attorney Troy D. Adams 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. 2:22-cr-229.
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Browning woman admits sexual abuse of minor boyRead the Press Release
GREAT FALLS — A Browning woman today admitted to sexually abusing a boy on the Blackfeet Indian Reservation, U.S. Attorney Jesse Laslovich said.
Brittany Lynn Gervais, 26, pleaded guilty to sexual abuse of a minor. Gervais faces a maximum of 15 years in prison, a $250,000 fine and not less than five 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. 4. Gervais was detained pending further proceedings.
In court documents, the government alleged that in the early morning hours of Aug. 4, 2021, a relative of the victim, identified as John Doe, was outside her residence visiting with a neighbor when she saw John Doe approach, with Gervais trailing. John Doe was 13 years old and has developmental delays. The relative saw blood on John Doe’s clothing and called an ambulance. The investigation determined that Gervais offered John Doe money to walk with her. At some point, Gervais sexually assaulted him.
Assistant U.S. Attorneys Kalah A. Paisley and Wendy A. Johnson are prosecuting the case. The FBI and Blackfeet Law Enforcement Service conducted the investigation.
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Brockton Man Arrested for Passport FraudRead the Press Release
BOSTON – A Brockton man has been arrested in connection for allegedly lying that his United States passport had been lost in order to secure a replacement to enter the country, when actually it had been confiscated by prosecuting courts in Cabo Verde following his arrest for murder.
Johnny Barros Brandao, 40, was charged with one count of passport fraud. Following an initial appearance yesterday before U.S. District Court Magistrate Judge Paul G. Levenson, Brandao was detained pending a hearing set for May 12, 2023.
According to the charging documents, on March 27, 2014, in Cabo Verde, Brandao shot an individual in the head using a .45 caliber revolver, took one million and five hundred thousand Cape Verdean Escudo and then dumped the victim’s body on the side of a road. It is further alleged that on July 26, 2021, Brandao shot and killed another individual using a 9mm caliber firearm and threw the victim’s body over a cliff.
Brandao was arrested in Cabo Verde on these charges. On Dec. 12, 2022, after a period of pretrial detention, Brandao was released subject to supervision. The Cabo Verde court also ordered that Brandao not depart Cabo Verde – confiscating his Cabo Verdean national ID card as well as his United States and Cabo Verde passports.
According to the charging documents, on Dec. 28, 2022, Brandao applied for a replacement United States passport at the U.S. Embassy in Dakar, Senegal. In the section of the form that directs the applicant to explain how his prior passport was lost or stolen, it is alleged that Brandao reported he had lost his passport while out to dinner on Dec. 25, 2022.
The charge of passport fraud provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins and Jonathan Davidson, Special Agent in Charge of U.S. Department of State’s Diplomatic Security Service, Boston Field Office made the announcement today. Valuable assistance was provided by U.S. Customs and Border Protection and the U.S. Department of Homeland Security Federal Protective Services. Assistant U.S. Attorney Meghan C. Cleary of Rollins’s Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Bowling Green Felon Indicted for Illegally Possessing a FirearmRead the Press Release
Bowling Green, KY – A federal grand jury in Bowling Green, Kentucky, returned an indictment on March 15, 2023, charging a Bowling Green felon with illegally possessing a firearm.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge R. Shawn Morrow of the ATF Louisville Field Division, and Chief Michael Delaney of the Bowling Green Police Department made the announcement.
According to the indictment, on February 5, 2023, Kaylin Maxie, 28, possessed a Sig Sauer P365 Nitron, nine-millimeter semiautomatic pistol, after having been convicted of the following offenses. On April 12, 2021, in Warren Circuit Court, Maxie was convicted of first-degree possession of a controlled substance and possession of a firearm by a convicted felon. On August 27, 2019, in Warren Circuit Court, Maxie was convicted of trafficking in a controlled substance in the first degree.
Maxie had a detention hearing before a U.S. Magistrate Judge in the Western District of Kentucky this week and he was ordered detained pending trial. If convicted, Maxie faces a maximum sentence of 15 years in prison. A federal district court judge will determine any sentence after considering the sentencing guidelines and other statutory factors. There is no parole in the federal system.
This case is being investigated by the ATF Bowling Green Field Office and the Bowling Green Police Department.
Assistant U.S. Attorney Mark J. Yurchisin II, of the U.S. Attorney’s Bowling Green Branch Office, is prosecuting this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Boston Man Pleads Guilty to Distributing 7,000 Pills Containing Fentanyl and Fentanyl AnalogueRead the Press Release
BOSTON – A Boston man pleaded guilty today to drug distribution offense involving fentanyl and a fentanyl analogue known as para-fluorofentanyl.
Melvin Cordero, 41, pleaded guilty to one count of distribution of and possession with intent to distribute fentanyl and p-fluorofentanyl. U.S. District Court Judge Richard G. Stearns scheduled sentencing for Aug. 30, 2023.
On March 15, 2022, Cordero delivered 7,000 pills containing fentanyl and para-fluorofentanyl to an individual who was cooperating with federal law enforcement. The buy was part of a broader federal investigation into a drug-trafficking organization based in the Dominican Republic. Cordero delivered the pills to the cooperator in Boston’s South End. Cordero was arrested and charged in November 2022. Following Cordero’s arrest, law enforcement seized from him a machine used for manufacturing counterfeit pills that he had attempted to sell to an undercover officer.
The charge of distribution of and possession with intent to distribute fentanyl and p-fluorofentanyl provides for a sentence of up to 20 years in prison, at least three years and up to a lifetime of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.United States Attorney Rachael S. Rollins and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement today. Valuable assistance was provided by the DEA New York Field Office, the Boston Police Department and the Massachusetts State Police. Assistant U.S. Attorney Samuel R. Feldman of Rollins’ Narcotics & Money Laundering Unit is prosecuting the case.
Bloomington Man Found Guilty After Federal Trial for Downloading and Possessing Videos and Images Depicting Child Sexual AbuseRead the Press Release
INDIANAPOLIS- A federal jury has found James Lee Willis, 40, of Bloomington, Indiana, guilty of receiving and possessing child sexual abuse material.
According to court documents and evidence introduced at trial, in January 2018, law enforcement officers first became aware of Willis’s online activity when an IP address that later traced to his house showed downloads of videos and images that depicted minors engaging in sexually explicit conduct. Some files depicted very graphic material of minors under 10 years old being sexually abused and raped by adult men.
In February 2018, law enforcement officers searched Willis’s Bloomington residence and found electronic devices containing evidence that Willis had searched for and downloaded child sexual abuse material over the internet. The digital forensic evidence from the devices again demonstrated Willis’s interest in videos and images of minors as young as 10 years old being sexually abused, including evidence of when Willis downloaded the material and evidence of when he watched it on the devices.
In all, the evidence showed that on dates in January and February 2018, Willis downloaded and watched dozens of files from the internet that contained videos and images of child sexual exploitation.
U.S. Attorney Zachary A. Myers and Herbert J. Stapleton, Special Agent in Charge of the FBI’s Indianapolis Field Office made the announcement.
This case was investigated by the Federal Bureau of Investigation and the Indiana Internet Crimes Against Children (ICAC) Task Force, a partnership of federal, state, and local law enforcement agencies led by the Indiana State Police. The Task Force is dedicated to investigating and prosecuting crimes involving the technology-facilitated sexual exploitation of children and the trafficking of child sexual abuse material. Each year, Indiana ICAC investigators evaluate thousands of tips, investigate hundreds of cases, and rescue dozens of children from ongoing sexual abuse.
U.S. Attorney Myers thanked Assistant U.S. Attorneys Kristina M. Korobov and Adam Eakman, who prosecuted this case.
U.S. District Court Judge Jane E. Magnus-Stinson presided over the trial and will sentence Willis at a later date. Willis faces a prison sentence of a minimum of 5 years, up to 20 years, for each of the 5 charges related to his downloading activity, and from 0 to 20 years for the charge relating to his possession of the material. Willis also faces a period of supervision of 5 years, up to life, following his release from prison, and he must register as a sex offender wherever he lives, works, or goes to school. Actual sentences are determined by a federal district court judge and are typically less than the maximum penalties.
If you are a victim of child sexual exploitation, please contact your local police department. Resources for victims of child exploitation can be found on our website at https://www.justice.gov/usao-sdin/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 U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc
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Attempted "Straw" Firearm Purchaser Sentenced to One Year in PrisonRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Taylor A. Kratochwill-Loomis, 22, DeForest, Wisconsin, was sentenced today by U.S. District Judge William M. Conley to one year and one day in prison for making false statements while attempting to purchase a firearm for a prohibited person. This is commonly known as a “straw purchase.” Kratochwill-Loomis pled guilty to this offense on January 18, 2023.
On November 30, 2021, Kratochwill-Loomis entered Top Pack Defense, Sun Prairie, Wisconsin and attempted to purchase a Glock handgun for Deontrae McIntosh, who was prohibited from purchasing a handgun because of his age and the fact that he was facing felony charges in Wisconsin State court. Her attempted transaction was video recorded through the store’s surveillance system. On the required purchase forms, Kratochwill-Loomis falsely stated that she was purchasing the firearm for herself and not for another person. McIntosh also pled guilty to attempting to obtain a firearm using false statements—through Kratochwill-Loomis—and was sentenced to five years of probation on March 22, 2023.
Top Pack Defense Staff refused to sell the firearm, correctly suspecting that Kratochwill-Loomis was attempting to purchase the handgun for another person. Immediately following that failed attempt, Kratochwill-Loomis and McIntosh, who was waiting in a car outside, went to the Cabela’s store in Sun Prairie, where Kratochwill-Loomis again tried to purchase a Glock handgun for McIntosh. Sun Prairie police investigators interrupted the second purchase attempt at Cabela’s, interviewing and ultimately arresting Kratochwill-Loomis and McIntosh.
In sentencing Kratochwill-Loomis, Judge Conley stated, “Gun violence is out of control. Straw purchasers fuel the problem by placing firearms in the hands of prohibited persons.”
U.S. Attorney O’Shea said, “Each week we learn anew—over and over and over—about the danger guns pose when they fall into the wrong hands. Straw purchasers, those who lie to obtain firearms for others, are part of the problem. The U.S. Attorney’s Office, together with our law enforcement partners and in cooperation with licensed firearm dealers, has zero tolerance for straw purchasers who buy or attempt to buy firearms for people who cannot legally purchase them.”
The charges against Kratochwill-Loomis and McIntosh were the result of an investigation conducted by Sun Prairie Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. U.S. Attorney O’Shea prosecuted this case.
Atlanta drug trafficking organization has been successfully dismantledRead the Press Release
ATLANTA - Esteban Niere has been sentenced for conspiring to distribute cocaine and methamphetamine. Niere was a member of a drug trafficking organization operating in southwest Atlanta that was successfully disrupted following a federal, state, and local law enforcement investigation.
“This group of drug traffickers targeted vulnerable communities in our district for distributing illegal narcotics,” said U.S. Attorney Ryan K. Buchanan. “Through the diligent efforts of our federal, state, and local law enforcement partners, we dismantled the organization’s distribution chain and prosecuted the suppliers. This case demonstrates our commitment to removing dangerous drugs from our streets as well as the dealers who peddle them.”
“The DEA is committed to deploying resources to combat and interrupt the dangerous drug trafficking organizations that have set up business in the Atlanta area,” said Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Division. “We will continue to work aggressively to hold accountable those who are trafficking dangerous drugs.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: In 2019, DEA special agents identified a prolific drug trafficker, Kevin Clark, who coordinated multiple narcotics transactions in and around his residence in southwest Atlanta. Through an investigation that followed, law enforcement was able to disrupt and eventually dismantle a drug trafficking organization comprising Clark’s sources-of-supply, including Esteban Niere, Alejandro Elias-Miranda, and Eduardo Gutierrez, and mid-level traffickers, including Christopher Jones, Christopher Allen, and Tierre Freeman. Law enforcement also seized multiple vehicles, firearms, cash, and jewelry, which were used in the commission, or purchased with the proceeds, of the offenses.
Each of the following defendants in the case pleaded guilty to the charge of drug trafficking conspiracy and received the following sentences imposed by U.S. District Judge Michael L. Brown:
- Kevin Clark, 46, of Atlanta, Georgia, entered a guilty plea to the drug trafficking conspiracy and received a sentence of seven years, three months in prison, to be followed by five years of supervised release.
- Esteban Niere, a/k/a “Perfecto Neri-Diaz,” 50, of San Luis Potosi, Mexico, entered a guilty plea to the drug trafficking conspiracy and received a sentence of ten years in prison, to be followed by five years of supervised release.
- Eduardo Gutierrez, a/k/a “Santos Campos-Rios,” 43, of Morelia, Mexico, entered a guilty plea to the drug trafficking conspiracy and received a sentence of sentence of six years, eight months in prison, to be followed by five years of supervised release.
- Christopher Jones, 42, of Norcross, Georgia, entered a guilty plea to the drug trafficking conspiracy and received a sentence of 15 years in prison, to be followed by 10 years of supervised release.
- Tierre Freeman, a/k/a “Tierre Ford,” 46, of Stockbridge, Georgia, entered a guilty plea to the drug trafficking conspiracy and received a sentence of 10 years in prison, to be followed by four years of supervised release.
- Christopher Allen, 48, of Austell, Georgia, entered a guilty plea to the drug trafficking conspiracy and received a sentence of two years in prison, to be followed by four years of supervised release.
- Lamon Brown, 50, of Jonesboro, Georgia, entered a guilty plea to the drug trafficking conspiracy and received a sentence of two years, seven months in prison, to be followed by three years of supervised release.
- Alejandro Elias-Miranda, 37, of Toluca, Mexico, entered a guilty plea to the drug trafficking conspiracy and received a sentence of six years, eight months in prison, to be followed by eight years of supervised release.
This case was investigated by the Drug Enforcement Administration, the U.S. Marshals Service, and the Georgia Bureau of Investigation, with valuable assistance provided by the Georgia State Patrol, Atlanta Police Department, Gwinnett County Police Department, Henry County Police Department, Douglasville Police Department, Rockdale County Sheriff’s Office, Cartersville Police Department, Forsyth County Sheriff’s Office, Covington Police Department, Troup County Sheriff’s Office, and the Lee County Sheriff’s Office.
Assistant U.S. Attorney C. Brock Brockington prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Atlanta Man Sentenced to 97 Months in PrisonRead the Press Release
SOUTH BEND – Mylin Murel, 20 years old, of Atlanta, GA, was sentenced by United States District Court Judge Robert L. Miller, Jr. after pleading guilty to stealing firearms from a federally licensed firearms dealer, announced United States Attorney Clifford D. Johnson.
Murel was sentenced to 97 months in prison followed by 3 years of supervised release.
According to documents in the case, in June 2021, Murel broke into a federal firearms licensed dealer’s store and stole 15 handguns, a shotgun, 2 sound suppressors, and ammunition. In the days following the burglary, Murel spoke with other individuals about buying/selling firearms. As part of these conversations, Murel exchanged a photo of numerous guns he had stolen. Murel sold one of the stolen firearms to an individual for $650.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the South Bend Police Department. This case was prosecuted by Assistant United States Attorneys Joel Gabrielse and Jerome W. McKeever.
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.
Alexandria Man Sentenced for Fatal Fentanyl Trafficking ConspiracyRead the Press Release
ALEXANDRIA, Va. – An Alexandria man was sentenced today to 15 years in prison for conspiring to distribute 400 grams or more of fentanyl that resulted in the death of a young woman.
According to court documents, from around July 2020 through June 2021, Reza Hashemi, 34, distributed over 400 grams of fentanyl in Northern Virginia. Hashemi was identified following the October 24, 2020, overdose death of a 22-year-old male, J.V., in Vienna. Hashemi admitted to distributing pressed counterfeit pills containing fentanyl to J.V. During the course of the investigation into J.V.’s death, law enforcement approached Hashemi and informed him of the death, but he continued to distribute fentanyl.
On May 28, 2021, in Alexandria, Hashemi distributed an approximate 1-gram quantity of powder fentanyl to J.F., which caused J.F.’s death by accidental fentanyl poisoning. J.F. was 26 years old at the time.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Kevin Davis, Fairfax County Chief of Police, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema.
Assistant U.S. Attorneys Heather Call and Bibeane Metsch prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:23-cr-1.
Ada Resident Sentenced for Bank RobberyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Matthew Thomas Pettigrew, age 42, of Ada, Oklahoma, was sentenced to 46 months for Bank Robbery on April 6, 2023.
The charge arose from an investigation by the Ada Police Department and the Federal Bureau of Investigation.
On November 15, 2021, Pettigrew entered the Citizens Bank of Ada, a federally insured financial institution, and demanded money. The following day law enforcement officers tracked Pettigrew to a casino, where he was arrested.
On March 9, 2022, Pettigrew pleaded guilty to one count of Bank Robbery.
The Honorable Charles B. Goodwin, United States District Judge for the Eastern District of Oklahoma, presided over the case and sentenced Pettigrew in Oklahoma City, Oklahoma. Pettigrew was remanded to the custody of the U.S. Marshal at the conclusion of his sentencing. He will remain in custody pending transportation to a designated United States Bureau of Prisons facility to serve his sentence of incarceration.
Assistant United States Attorney Cameron McEwen represented the United States.
A Mexican Citizen Previously Convicted of Criminal Sexual Conduct Arrested for Being in the United States UnlawfullyRead the Press Release
DETROIT – A citizen of Mexico, who had been convicted of Criminal Sexual Conduct and was previously removed from the United States, was recently arrested on a criminal complaint by U.S. Border Patrol Agents for unlawfully being in the United States, announced United State Attorney Dawn N. Ison. This case is the latest example of 26 individuals prosecuted by the U.S. Attorney’s Office this year who were illegally in the United States, most of whom had previously been convicted of serious criminal offenses.
Ison was joined in the announcement by Chief Patrol Agent Robert Danley, United States Border Patrol, Detroit Sector.
Arrested was Pedro Zarate-Banos, age 49. Zarate appeared in federal court in Detroit yesterday and has a detention hearing scheduled for May 10.
According to court records, Border Patrol agents from the Detroit station received information that Zarate-Banos was illegally present in the United States. After further investigation, they discovered that Zarate-Banos was previously removed from the United States as an aggravated felon. Agents located Banos and conducted a vehicle stop in Macomb, Michigan. After a brief interview, Zarate-Banos admitted to being illegally present in the United States. Zarate-Banos was convicted on December 2, 2002, in 22nd Circuit Court in Ann Arbor, of 3rd Degree Criminal Sexual Conduct, and was formally removed from the United States on September 20, 2005.
“Our office is dedicated to enforcing our immigration laws prohibiting deported non-citizens, particularly those who commit serious felony offenses, from re-entering the United States without first seeking prior authority and approval,” said U.S. Attorney Ison.
““I’m proud of our agents’ hard work and investigative skills that led to this arrest. Their actions have made our community safer,” said Chief Patrol Agent Robert Danley, U.S. Border Patrol Detroit Sector.
Since January 2023, the U.S. Attorney’s Office for the Eastern District of Michigan has prosecuted 26 individuals unlawfully in the United States, most of whom have prior criminal convictions for violent crimes, drug trafficking, weapons offenses, drunk driving, or theft/larceny offenses. Most of these defendants have previously been removed from the United States by immigration authorities multiple times. Some of these cases include:
United States v. Bullard
Alfred Bullard, age 40, a citizen of the Bahamas, was convicted in February 2023 of being an unlawful alien in possession of a firearm. Bullard had been arrested by Detroit police officers after federal agents conducting surveillance observed him firing a gun into the air. Bullard admitted to firing the gun in order to frighten away unknown cars traveling in his neighborhood. Bullard has pleaded guilty in federal court and is awaiting sentencing.
United States v. Pena-Moreno
Nolbed Y. Pena-Moreno, age 25, a citizen of Honduras, was arrested by Detroit police officers in March 2023 after he fired a .40 caliber pistol in a Detroit neighborhood. Pena-Moreno was indicted by a federal grand jury in April 2023 for being an unlawful alien in possession of a firearm. This case is set for trial on May 23, 2023.
United States v. Al-Hakiem
Vires Al-Hakiem, age 43, is a native of Iraq and citizen the Netherlands, who was unlawfully in the United States. In June 2021, he sent a text message containing a video to his then spouse threatening her with a gun. A subsequent search of Al-Hakiem’s bedroom found six firearms and over 2,600 rounds of ammunition. Al-Hakiem has prior criminal arrests for Assault and Battery, Domestic Violence, Drug Possession, Malicious Destruction of Property, and Larceny. In January 2023, Al-Hakiem pleaded guilty in federal court to being an unlawful alien in possession of a firearm and ammunition, and he is scheduled to be sentenced on May 31, 2023.
United States v. Chilel-Lopez
Bairon Chilel-Lopez, age 24, is citizen of Guatemala, who was arrested in 2021 by the Detroit police after he shot a female victim in an alley in southwest Detroit, and he pushed her from the vehicle. Chilel-Lopez was charged in state court with Assault with Intent to Do Great Bodily Harm and firearms offenses. Those charges remain pending. Chilel-Lopez was unlawfully in the United States and had been removed on multiple occasions. He also has prior convictions for immigration offenses and driving while intoxicated. Chilel-Lopez was sentenced in federal court on January 5, 2023, to 57 months in prison for illegal re-entry into the United States and for being an unlawful alien in possession of a firearm.
United States v. Garcia-Zecena
Cesar Augusto Garcia-Zecena, age 32, is a citizen of Guatemala who had illegally entered the United States multiple times and had been removed from the country on three prior occasions. In 2022, Garcia-Zecena was convicted in state court of assault with a dangerous weapon after he attempted to rape an Ann Arbor woman. On May 9, 2023, Garcia-Zecena pleaded guilty in federal court to unlawful re-entry after removal, and he is scheduled to be sentenced on June 29, 2023.
United States v. Solis-Pena
Emilio Solis-Pena, age 47, is a citizen of Mexico, who had six prior removals from the United States and a lengthy criminal record. His prior convictions included a 2007 conviction in Texas for conspiracy to possess with intent to distribute cocaine and for conspiracy to launder money, for which he received a sentence of 87 months. In 2019, Solis-Pena was convicted in Michigan of delivery/manufacture of 1000 grams or more of controlled substances, and he was sentenced to 7 to 40 years. On May 4, 2023, Solis-Pena was indicted in federal court for the crime of unlawful re-entry into the United States.
A complaint is only a charge and is not evidence of guilt. Trial cannot be held on felony charges in a complaint. When the investigation is completed, a determination will be made whether to seek a felony indictment.
Tuesday 9 May 2023
Министерство Юстиции Сша Объявляет О Санкционированном Судом Пресечении Деятельности Вредоносной Сети «snake», Контролируемой Федеральной Службой Безопасности РоссииRead the Press Release
БРУКЛИН, НЬЮ-ЙОРК – Сегодня, Министерство юстиции США объявило о завершении санкционированной судом операции под кодовым названием «МЕДУЗА» по пресечению деятельности глобальной одноранговой сети компьютеров, зараженных высокотехнологичным вредоносным ПО под названием «Snake», которое правительство Соединенных Штатов связывает с подразделением в Центре 16 Федеральной службы безопасности Российской Федерации (ФСБ). На протяжении почти 20 лет данное подразделение, упоминаемое в судебных документах как «Турла», использовало версии вредоносного ПО «Snake» для хищения конфиденциальных документов в, по крайней мере 50 странах, из сотен компьютерных систем, принадлежащих правительствам стран-членов Организации Североатлантического договора (НАТО), журналистам и другим объектам внимания представляющих интерес для Российской Федерации. После хищения данных документов, «Турла» извлекала их через негласную сеть компьютеров в Соединенных Штатах и по всему миру, заражённых ПО «Snake» без ведома их владельцев.
В результате операции «MEDUSA» вредоносное ПО «Turla Snake» на заражённых компьютерах было отключено с помощью созданного ФБР инструмента под названием «PERSEUS», который давал команды, заставившие вредоносное ПО «Snake» перезаписать собственные ключевые компоненты. На территории США операция была проведена ФБР в соответствии с ордером на обыск, выданным федеральным судьей-магистратом Восточного округа Нью-Йорка Шерил Л. Поллак, санкционировавшим удаленный доступ к заражённым компьютерам. Сегодня утром, суд разгласил отредактированные версии письменного показания под присягой, представленного в обоснование ходатайства о выдаче ордера на обыск, и самого ордера на обыск, выданного судом. В целях содействия потерпевшим за пределами Соединенных Штатов, ФБР взаимодействует с местными властями, как предоставляя уведомления о заражениях ПО «Snake» так и рекомендации по принятию корректировочных мер, в странах под юрисдикцией местных властей.
Меррик Б. Гарланд, Генеральный прокурор США; Брион Пис, федеральный прокурор США по Восточному округу Нью-Йорка; Лиза О. Монако, заместитель Генерального прокурора США, Министерство юстиции США и Майкл Д. Дрисколл, заместитель директора-начальник Нью-Йоркского регионального отделения ФБР, объявили о данной операции.
«Министерство юстиции вместе с нашими международными партнерами ликвидировало глобальную сеть зараженных вредоносным ПО компьютеров, которую российское правительство использовало в течение почти двух десятилетий для ведения кибершпионажа, в том числе против наших союзников по НАТО», — заявил Генеральный прокурор Гарланд. «Мы будем продолжать укреплять нашу коллективную оборону против дестабилизирующей деятельности российского режима по подрыву безопасности Соединенных Штатов и наших союзников».
«Россия использовала высокотехнологичное вредоносное ПО для хищения конфиденциальной информации у наших союзников, маскируя её пропуском через сеть зараженных компьютеров в Соединенных Штатах, цинично пытаясь скрыть свои преступления. Ответ на угрозу кибершпионажа требует творческого подхода и готовности использовать все законные средства для защиты нашей страны и наших союзников», — заявил федеральный прокурор США Пис. «Санкционированные судом обыск и работы по устранению последствий заражения, проведенные в удаленном режиме и объявленные сегодня, демонстрируют приверженность моего Управления и наших партнеров к использованию всех инструментов, имеющихся в нашем распоряжении, для защиты американского народа».
«Благодаря высокотехнологичной операции, которая обратила российское вредоносное ПО против себя, правоохранительные органы США нейтрализовали один из российских инструментов кибершпионажа высочайшего уровня, применяемого в течение двух десятилетий для продвижения авторитарных целей России», — заявила заместитель Генерального прокурора Лиза Монако. «Сочетая эту операцию с обнародованием информации, необходимой потерпевшим для самозащиты, Министерство юстиции продолжает ставить потерпевших в центр внимания в нашей работе по борьбе с киберпреступностью и активно сражаться со злоумышленниками в киберпространстве».
«Операция, о которой мы сегодня объявили, успешно пресекла деятельность ведущего инструмента кибершпионажа российского правительства. В течение двух десятилетий вредоносное ПО позволяло российской разведке заражать компьютерные системы и похищать конфиденциальную информацию, нанося ущерб не только правительству США и нашим союзникам, но и частному сектору. Это должно послужить напоминанием России и любой другой враждебной стране, готовой похищать информацию, что ФБР и наши партнеры сполчены в наших усилиях по защите наших стран», – заявил заместитель директора-начальник Нью-Йоркского регионального отделения ФБР Дрисколл.
Как подробно описано в судебных документах, правительство США уже почти 20 лет расследует вредоносное ПО «Snake» и связанные со «Snake» инструменты. Государственные органы США следят за сотрудниками ФСБ, прикомандированными к «Турла» и проводящими ежедневные операции с применением «Snake» с установленного объекта ФСБ в городе Рязань, РФ.
Хотя ПО «Snake» было предметом нескольких отчетов в области кибербезопасности на протяжении всего своего существования, «Turla» осуществляла многочисленные обновления и редакции, и выборочно применяла его с тем чтобы ПО «Snake» оставалось самым высокотехнологичным долгосрочным внедрением вредоносного ПО, применяемым ФСБ в кибершпионаже. В случае непресечения его деятельности, внедрение ПО «Snake» на зараженных компьютерах, сохраняется в системе на неопределенное время, как правило, оставаясь незамеченным владельцем компьютера или его авторизованными пользователями. По наблюдениям ФБР, ПО «Snake» остается на некоторых компьютерах, несмотря на усилия потерпевшего по устранению заражения.
ПО «Snake» даёт операторам «Турла» возможность удаленного применения отдельных вредоносных программ для расширения функциональности «Snake» в целях выявления и хищения конфиденциальной информации и документов, хранящихся на определенных компьютерах. Прежде всего, набор зараженных «Snake» компьютеров по всему миру, действует как негласная одноранговая сеть, применяющая оптимизированные протоколы передачи данных, предназначенные для препятствования мониторингу и сбору данных, службами радиотехнической разведки Западных и иных стран.
Для маршрутизации данных, извлеченных из целевых систем для передачи операторам «Turla» в России, через многочисленные ретрансляционные узлы, разбросанные по всему миру, «Турла» использует сеть «Snake». Например, ФБР и партнеры ФБР из разведывательного сообщества США, совместно с государственными органами стран-союзников, следили за использованием ФСБ сети «Snake» для извлечения данных из конфиденциальных компьютерных систем, в том числе, систем применяемых правительствами стран-членов НАТО, путем маршрутизации этих данных через компьютеры, зараженные «Snake» в США, без ведома их владельцев.
Как описано в судебных документах, с помощью анализа вредоносной программы «Snake» и сети «Snake», ФБР разработало метод расшифровывания и декодирования обмена информацией в сети «Snake». Используя информацию, собранную посредством наблюдения за сетью «Snake» и анализа вредоносного ПО «Snake», ФБР разработало инструмент под названием «PERSEUS», который устанавливает сеансы связи с внедрением вредоносного ПО «Snake» на определенном компьютере. Впоследствии, «PERSEUS» выдает команды, вызывающие самостоятельное отключение внедрения «Snake» без причинения ущерба самому компьютеру или легитимным программам, установленным на компьютере.
Сегодня, для поддержки сетевых защитников по всему миру, ФБР, Агентство национальной безопасности, Агентство по кибербезопасности и защите инфраструктуры, Национальная миссия по кибербезопасности при Киберкомандовании США, и шесть других спецслужб и агенств по кибербезопасности каждой из стран-участников альянса «Пять глаз», опубликовали совместную рекомендацию по кибербезопасности («Совместная рекомендация»), содержащую подробную техническую информацию о вредоносном ПО «Snake», которую специалисты по кибербезопасности смогут применять для идентификации и защиты от новых заражений вредоносным ПО «Snake» в их сетях. С Совместной рекомендацией можно ознакомиться здесь. ФБР и Государственный департамент США также предоставляют дополнительную информацию местным властям в странах, где были обнаружены компьютеры, подвергшиеся заражению вредоносным ПО «Snake».
Несмотря на то, что операция «MEDUSA» отключила вредоносное ПО «Snake» на заражённых компьютерах, пострадавшим следует принять дополнительные меры для предотвращения дальнейшего ущерба. Операция по отключению «Snake» не устранила уязвимости, не искала и не удаляла какие-либо другие вредоносные программы или средства взлома, которые группы хакеров могли разместить в сетях пострадавших. Министерство юстиции настоятельно призывает сетевых защитников ознакомиться с Совместной рекомендацией для получения дальнейших указаний по обнаружению уязвимостей и установлению корректировочных патч-файлов. Более того, как отмечалось в судебных документах, «Турла» часто использует «кейлоггер» вместе со «Snake», который «Турла» может использовать для хищения учетных данных, например, имен пользователей и паролей легитимных пользователей. Потерпевшим следует знать, что «Турла» может использовать эти похищенные учетные данные для восстановления доступа к зараженным компьютерам и другим учетным записям мошенническим путем.
ФБР уведомляет всех владельцев или операторов компьютеров, доступ к которым был произведен в удаленном режиме в соответствии с ордером на обыск, о проведении санкционированной судом операции.
Уголовное расследование использования вредоносного ПО «Snake» ФСБ проводит Управление прокуратуры по национальной безопасности и Управление прокуратуры по борьбе с киберпреступностью. Заместитель федерального прокурора Иэн Ричардсон отвечает за расследование, при содействии Отдела контрразведки и экспортного контроля Управления по национальной безопасности.
Меры по пресечению работы сети вредоносного ПО «Snake» были осуществлены под руководством Нью-Йоркского регионального управления ФБР, Управлением ФБР по борьбе с киберпреступностью, Федеральной прокуратурой США по Восточному округу Нью-Йорка и Отделом контрразведки и экспортного контроля Управления по национальной безопасности. Содействие было также оказано Отделом по компьютерным преступлениям и интеллектуальной собственности Управления по борьбе с уголовной преступностью.
Эти усилия не увенчались бы успехом без сотрудничества многочисленных структур частного сектора, включая тех потерпевших, которые позволили ФБР наблюдать за потоком информации «Snake» в своих системах.
Ордер на обыск:
Относительно поиска информации, связанной с компьютерами, составляющими сеть вредоносного программного обеспечения «Snake».
Реестр Восточного округа Нью-Йорка № 23-MJ-0428 (CLP)
Whatcom County contractor sentenced to two years in prison for failing to pay more than $1 million in employment taxes on employeesRead the Press Release
Seattle – A 64-year-old Everson, Washington, man was sentenced today in U.S. District Court in Seattle to two years in prison for failing to pay over taxes, announced U.S. Attorney Nick Brown. Between 2013 and 2019, Jay Howard Prather owned and operated Heritage General Building Contractors. He had as many as 48 employees over that period and withheld $1,095,388 in Social Security, Medicare, federal income taxes, and unemployment taxes from his employees’ paychecks. Then, instead of paying the money to federal programs as required, he used the money to buy expensive horses, exotic sportscars, and to remodel his multi-million-dollar lavish estate. At the sentencing hearing, U.S. District Judge John C. Coughenour said Prather “was warned several times that his conduct was illegal.”
“Mr. Prather stole from his employees and continued to do so even after he was confronted by those employees and by his accountant. He simply had no respect for the law or any concern about how his actions would impact his employees in the future,” said U.S. Attorney Nick Brown. “Instead, he spent money that should have gone to their Social Security and Medicare accounts on his personal luxuries: $200,000 for thoroughbred horses and more than $360,000 on three Porsche automobiles.”
According to records filed in the case, several employees confronted Prather about his failure to pay over the money he had withheld from their paychecks. In 2017, he met with an accountant who told him his tax obligation was significant. Prather sought to limit his payment to the two former employees who were threatening to sue him if he did not pay. The accountant told him that was not possible. Prather stopped communicating with the accountant and never paid the taxes owed.
Even as Prather refused to pay the taxes he owed for his employees, he used their labor, and the money he withheld, to build and remodel his luxurious estate in rural Whatcom County.
In 2020 he formed a new custom cabinet company, Artisan Builders Inc. According to an affidavit from investigators, to date Prather has not paid the taxes he withheld from the two employees of that company.
“Mr. Prather made the wrong decision when he chose to buy horses and Porsches for his own fun over doing the lawful, right, and mandatory thing,” said Special Agent in Charge Bret Kressin, IRS Criminal Investigation (IRS:CI), Seattle Field Office. “Mr. Prather abused his employees’ trust when he spent their withholdings for his own unjust enrichment.”
Judge Coughenour imposed a restitution obligation of $1,095,388.
The case was investigated by the Internal Revenue Service: Criminal Investigation.
The case was prosecuted by Assistant United States Attorney Erika Evans.
West Virginia man gets 15 years for role in drug conspiracyRead the Press Release
WHEELING, WEST VIRGINIA – A Wheeling, West Virginia, man was sentenced today to more than 15 years in prison for his role in distributing controlled substances on behalf of the region’s most prominent drug trafficker.
Ronald Shaw, also known as “Fuzz,” 51, was ordered to serve 188 months in prison after having previously pled guilty to possession with intent to deliver methamphetamine. Shaw admitted to having nearly half of a kilogram of methamphetamine near Overbrook Playground in Wheeling. Shaw also possessed almost half of a kilogram of cocaine.
U.S. District Judge John Preston Bailey considered evidence regarding Shaw’s involvement with the trafficking network led by Personne “Rico” McGhee. McGhee, who is presently under federal indictment, is alleged to have led an organization connected to the Sinaloa drug cartel in Mexico, as well as to drug dealers in Ohio and California.
“Ronald Shaw played a key role in distributing drugs on behalf of Rico McGhee,” said United States Attorney William Ihlenfeld. “The reason the McGhee organization was successful was due to individuals like Mr. Shaw, who helped to redistribute narcotics shipped here from Mexico.”
The case was investigated by the Ohio Valley Drug Task Force, which includes officers from the Wheeling Police Department, the West Virginia State Police, the Ohio County Sheriff’s Department, and the Drug Enforcement Administration.
The Belmont County (OH) Sheriff’s Office and the Belmont County Prosecutor’s Office provided important assistance. The investigation was supported by the ATF, the Marshall County Drug Task Force, and the Hancock-Brooke-Weirton Drug Task Force, the Allegheny County (PA) Police, and the U.S. Marshals Service.
Assistant U.S. Attorney Shawn Adkins prosecuted the case on behalf of the government.
Read more about related cases here: https://www.justice.gov/usao-ndwv/pr/federal-indictment-cuts-major-source-west-virginia-drug-supply
This press release corrected the original version, updating the drug weight amount.
Wasilla Man Indicted for Operating Aircraft without an Airman’s Certificate Following 2022 CrashRead the Press Release
ANCHORAGE – A federal grand jury in Alaska returned an indictment on April 21, 2023, charging a Wasilla man with serving as an airman without an airman’s certificate and displaying false or misleading marks about the registration of an aircraft.
According to court documents, Michael Anthony Roberts, 61, served as an airman without an airman’s certificate when he piloted Piper PA-18 registered as N99640, at Wolf Lake Airport, Wasilla, Alaska on February 27, 2022. The aircraft crashed on takeoff. The indictment also charges that Roberts displayed a false or misleading mark on the Piper PA-18 about the registration of the aircraft.
Roberts is charged with one count of serving as an airman without a pilot certificate, in violation of 49 U.S.C. § 46306(b)(7) and one count of displaying false or misleading marks about the registration of an aircraft, in violation of 49 U.S.C. § 46306(b)(3). If convicted, he faces a maximum penalty of three years in prison and a $250,000 fine on each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The defendant had his initial court appearance on May 9, 2023, before U.S. Magistrate Judge Matthew M. Scoble of the U.S. District Court for the District of Alaska, where he was ordered to be detained pending trial.
U.S. Attorney S. Lane Tucker of the District of Alaska made the announcement.
The Office of the Inspector General for the Department of Transportation, the Federal Aviation Administration, and the Alaska State Troopers are investigating the case.
Assistant U.S. Attorney Seth Brickey is prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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usao/ak/23-037
U.K. Citizen Extradited and Pleads Guilty to Cyber Crime OffensesRead the Press Release
A U.K. citizen pleaded guilty today in New York to his role in cyberstalking and multiple schemes that involve computer hacking, including the July 2020 hack of Twitter.
Joseph James O’Connor, aka PlugwalkJoe, 23, was extradited from Spain on April 26.
“O’Connor’s criminal activities were flagrant and malicious, and his conduct impacted multiple people’s lives. He harassed, threatened, and extorted his victims, causing substantial emotional harm,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “Like many criminal actors, O’Connor tried to stay anonymous by using a computer to hide behind stealth accounts and aliases from outside the United States. But this plea shows that our investigators and prosecutors will identify, locate, and bring to justice such criminals to ensure they face the consequences for their crimes.”
“O’Connor has left an impressive trail of destruction in the wake of his wave of criminality,” said U.S. Attorney Ismail J. Ramsey for the Northern District of California. “This case serves as a warning that the reach of the law is long, and criminals anywhere who use computers to commit crimes may end up facing the consequences of their actions in places they did not anticipate.”
“O’Connor used his sophisticated technological abilities for malicious purposes – conducting a complex SIM swap attack to steal large amounts of cryptocurrency, hacking Twitter, conducting computer intrusions to take over social media accounts, and even cyberstalking two victims, including a minor victim,” said U.S. Attorney Damian Williams for the Southern District of New York. “O’Connor’s guilty plea today is a testament to the importance of law enforcement cooperation, and I thank our law enforcement partners for helping to bring to justice those who victimize others through cyber-attacks.”
“Today’s guilty plea is confirmation that the FBI’s strategy to counter cyber crime is working. It’s also indicative of what can be accomplished when we work closely with our partners to bring these perpetrators to justice and make the cyber ecosystem more secure,” said Assistant Director Bryan Vorndran of the FBI’s Cyber Division. “O'Connor's extradition is as a warning to all dangerous cyber criminals that the FBI will work tirelessly to find them and hold them accountable wherever in the world they may try to hide.”
NDCA Case
According to court documents, between 2019 and 2020, O’Connor participated in a variety of crimes associated with exploitation of social media accounts, online extortion, and cyberstalking.
In July 2020, O’Connor participated in a conspiracy to gain unauthorized access to social media accounts maintained by Twitter Inc. (Twitter). In early July 2020, O’Connor’s co-conspirators used social engineering techniques to obtain unauthorized access to administrative tools used by Twitter to maintain its operations. The co-conspirators were able to use the tools to transfer control of certain Twitter accounts from their rightful owners to various unauthorized users. In some instances, the co-conspirators took control themselves and used that control to launch a scheme to defraud other Twitter users. In other instances, the co-conspirators sold access to Twitter accounts to others. O’Connor communicated with others regarding purchasing unauthorized access to a variety of Twitter accounts, including accounts associated with public figures around the world. A number of Twitter accounts targeted by O’Connor were subsequently transferred away from their rightful owners. O’Connor agreed to purchase unauthorized access to one Twitter account for $10,000.
O’Connor also accessed without authorization one of the most highly visible TikTok accounts in August 2020, which was associated with a public figure with millions of followers (Victim-1). O’Connor and his co-conspirators obtained unauthorized access to Victim-1’s account via a SIM swap after discussing a variety of celebrities to target, and O’Connor used his unauthorized access to Victim-1’s platform to post self-promotional messages, including a video in which O’Connor’s voice is recognizable. O’Connor also stated publicly, via a post to Victim-1’s TikTok account, that he would release sensitive, personal material related to Victim-1 to individuals who joined a specified Discord server.
O’Connor also targeted another public figure (Victim-2) in June 2019. O’Connor and his co-conspirators obtained unauthorized access to Victim-2’s account on Snapchat via a SIM swap. They used that access to obtain sensitive materials, to include private images, that Victim-2 had not made publicly available. O’Connor sent copies of these sensitive materials to his co-conspirators. O’Connor and his co-conspirators also reached out to Victim-2 and threatened to publicly release the stolen sensitive materials unless Victim-2 agreed to publicly post messages related to O’Connor’s online persona, among other things.
Lastly, O’Connor stalked and threatened a minor victim (Victim-3) in June and July 2020. In June 2020, O’Connor orchestrated a series of swatting attacks on Victim-3. A “swatting” attack occurs when an individual makes a false emergency call to a public authority in order to cause a law enforcement response that may put the victim or others in danger. On June 25, 2020, O’Connor called a local police department and falsely claimed that Victim-3 was making threats to shoot people. O’Connor provided an address that he believed was Victim-3’s address, which would have the result of causing a law enforcement response. That same day, O’Connor placed another call to the same police department and stated that he was planning to kill multiple people at the same address. In response to that call, the department dispatched every on-duty officer to that address in reference to an armed and dangerous individual. O’Connor sent other swatting messages that same day to a high school, a restaurant, and a sheriff’s department in the same area. In those messages, O’Connor represented himself as either Victim-3 or as a resident at the address he believed was Victim-3’s. The following month, O’Connor called multiple family members of Victim-3 and threatened to kill them.
The NDCA Case was transferred to SDNY pursuant to Federal Rule of Criminal Procedure 20 and consolidated with the SDNY Case.
SDNY Case
According to court documents, between approximately March 2019 and May 2019, O’Connor and his co-conspirators perpetrated a scheme to use subscriber identity module (SIM) swaps, a cyber intrusion technique, to conduct cyber intrusions to steal approximately $794,000 worth of cryptocurrency from a Manhattan-based cryptocurrency company (Company-1), which provided wallet infrastructure and related software to cryptocurrency exchanges around the world.
During a SIM swap attack, cyber threat actors gain control of a victim’s mobile phone number by linking that number to a SIM card controlled by the threat actors, resulting in the victim’s calls and messages being routed to a malicious unauthorized device controlled by the threat actors. The threat actors then typically use control of the victim’s mobile phone number to obtain unauthorized access to accounts held by the victim that are registered to the mobile phone number.
As part of the scheme, O’Connor and his co-conspirators successfully perpetrated SIM swap attacks targeting at least three Company-1 executives. Following a successful SIM swap attack targeting one of the executives on or about April 30, 2019, O’Connor and his co-conspirators successfully gained unauthorized access to multiple Company-1 accounts and computer systems. On or about May 1, 2019, through their unauthorized access, O’Connor and his co-conspirators stole and fraudulently diverted cryptocurrency of various types from cryptocurrency wallets maintained by Company-1 on behalf of two of its clients. The stolen cryptocurrency was worth at least approximately $794,000 at the time of the theft.
After stealing and fraudulently diverting the stolen cryptocurrency, O’Connor and his co-conspirators laundered it through dozens of transfers and transactions and exchanged some of it for Bitcoin using cryptocurrency exchange services. Ultimately, a portion of the stolen cryptocurrency was deposited into a cryptocurrency exchange account controlled by O’Connor.
As part of the NDCA Case, O’Connor pleaded guilty to conspiracy to commit computer intrusion and two counts of committing computer intrusions, each of which carries a maximum penalty of five years in prison; making extortive communications, which carries a maximum penalty of two years in prison; two counts of stalking, each of which carries a maximum penalty of five years in prison; and making threatening communications, which carries a maximum penalty of five years in prison. As part of the SDNY case, O’Connor pleaded guilty to conspiracy to commit computer intrusions, which carries a maximum penalty of five years in prison; conspiracy to commit wire fraud, which carries a maximum penalty of 20 years in prison; and conspiracy to commit money laundering, which carries a maximum penalty of 20 years in prison. O’Connor also agreed to forfeit $794,012.64 and to make restitution to victims of his crimes. He is scheduled to be sentenced on June 23. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI is investigating the case.
The U.S. Attorney’s Office for the Northern District of California and the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) are handling the NDCA case. Assistant U.S. Attorney Andrew F. Dawson for the Northern District of California and CCIPS Assistant Deputy Chief Adrienne L. Rose are prosecuting the case.
The U.S. Attorney’s Office for the Southern District of New York’s Complex Frauds and Cybercrime Unit is handling the SDNY case. Assistant U.S. Attorney Olga I. Zverovich for the Southern District of New York is prosecuting the case.
The Justice Department’s Office of International Affairs provided valuable assistance in securing the extradition of O’Connor.
U.K. Citizen Extradited and Pleads Guilty to Cybercrime OffensesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Kenneth A. Polite, Jr., the Assistant Attorney General for the Department of Justice’s Criminal Division, and Ismail J. Ramsey, the United States Attorney for the Northern District of California, announced today the extradition and guilty plea of JOSEPH JAMES O’CONNOR, a/k/a “PlugwalkJoe,” a U.K. citizen. O’CONNOR was extradited from Spain on April 26, 2023, and pled guilty earlier today before U.S. District Judge Jed S. Rakoff to two sets of charges: (i) conspiracy to commit computer hacking and other charges pending in the Southern District of New York relating to a fraudulent scheme perpetrated by O’CONNOR and his co-conspirators to use a cyber intrusion technique known as a SIM swap attack to steal approximately $794,000 worth of cryptocurrency from a Manhattan-based cryptocurrency company and then to launder the proceeds of the scheme (the “SDNY Case”) and (ii) a set of charges filed in the Northern District of California, and transferred to the SDNY under Federal Rule of Criminal Procedure 20, relating to O’Connor’s role in the July 2020 hack of Twitter, computer intrusions related to takeovers of TikTok and Snapchat user accounts, and cyberstalking two separate victims (the “NDCA Case”).
U.S. Attorney Damian Williams said: “Joseph O’Connor, a/k/a “PlugwalkJoe,” used his sophisticated technological abilities for malicious purposes – conducting a complex SIM swap attack to steal large amounts of cryptocurrency, hacking Twitter, conducting computer intrusions to take over social media accounts, and even cyberstalking two victims, including a minor victim. O’Connor’s guilty plea today is a testament to the importance of law enforcement cooperation, and I thank our law enforcement partners for helping to bring to justice those who victimize others through cyber-attacks.”
Assistant Attorney General Kenneth A. Polite, Jr. said: “O’Connor’s criminal activities were flagrant and malicious, and his conduct impacted multiple people’s lives. He harassed, threatened, and extorted his victims, causing substantial emotional harm. Like many criminal actors, O’Connor tried to stay anonymous by using a computer to hide behind stealth accounts and aliases from outside the United States. But this plea shows that our investigators and prosecutors will identify, locate, and bring to justice such criminals to ensure they face the consequences for their crimes.”
NDCA U.S. Attorney Ismail J. Ramsey said: “O’Connor has left an impressive trail of destruction in the wake of his wave of criminality. This case serves as a warning that the reach of the law is long, and criminals anywhere who use computers to commit crimes may end up facing the consequences of their actions in places they did not anticipate.”
According to the allegations in the publicly filed charging documents against O’CONNOR, court filings, and statements made in court:
The SDNY Case
During a cyber intrusion known as a SIM swap attack, cyber threat actors gain control of a victim’s mobile phone number by linking that number to a subscriber identity module (“SIM”) card controlled by the threat actors, resulting in the victim’s calls and messages being routed to a malicious unauthorized device controlled by the threat actors. The threat actors then typically use control of the victim’s mobile phone number to obtain unauthorized access to accounts held by the victim that are registered to the mobile phone number.
Between approximately March 2019 and May 2019, JOSEPH JAMES O’CONNOR and his co-conspirators perpetrated a scheme to use SIM swaps to conduct cyber intrusions in order to steal approximately $794,000 worth of cryptocurrency from a Manhattan-based cryptocurrency company (“Company-1”), which, at all relevant times, provided wallet infrastructure and related software to cryptocurrency exchanges around the world.
As part of the scheme, O’CONNOR and his co-conspirators successfully perpetrated SIM swap attacks targeting at least three Company-1 executives. Following a successful SIM swap attack targeting one of the executives on or about April 30, 2019, O’CONNOR and his co-conspirators successfully gained unauthorized access to multiple Company-1 accounts and computer systems. On or about May 1, 2019, through their unauthorized access, O’CONNOR and his co-conspirators stole and fraudulently diverted cryptocurrency of various types (the “Stolen Cryptocurrency”) from cryptocurrency wallets maintained by Company-1 on behalf of two of its clients. The Stolen Cryptocurrency was worth at least approximately $794,000 at the time of the theft.
After stealing and fraudulently diverting the Stolen Cryptocurrency, O’CONNOR and his co-conspirators laundered it through dozens of transfers and transactions and exchanged some of it for Bitcoin using cryptocurrency exchange services. Ultimately, a portion of the Stolen Cryptocurrency was deposited into a cryptocurrency exchange account controlled by O’CONNOR.
The NDCA Case
Between 2019 and 2020, O’CONNOR participated in a variety of crimes associated with exploitation of social media accounts, online extortion, and cyberstalking.
In July 2020, O’CONNOR participated in a conspiracy to gain unauthorized access to social media accounts maintained by Twitter, Inc. (“Twitter”). In early July 2020, O’CONNOR’s co-conspirators used social engineering techniques to obtain unauthorized access to administrative tools used by Twitter to maintain its operations. Those co-conspirators were able to use the tools to transfer control of certain Twitter accounts from their rightful owners to various unauthorized users. In some instances, the co-conspirators took control themselves and used that control to launch a scheme to defraud other Twitter users. In other instances, the co-conspirators sold access to Twitter accounts to others. O’CONNOR communicated with others regarding purchasing unauthorized access to a variety of Twitter accounts, including accounts associated with public figures around the world. A number of Twitter accounts targeted by O’CONNOR were subsequently transferred away from their rightful owners. O’CONNOR agreed to purchase unauthorized access to one Twitter account for $10,000.
O’CONNOR also accessed without authorization one of the most highly visible TikTok accounts in August 2020, which was associated with a public figure with millions of followers (“Victim-1”). O’CONNOR and his associates obtained unauthorized access to Victim-1’s account via a SIM swap after discussing a variety of celebrities to target, and O’CONNOR used his unauthorized access to Victim-1’s platform to post self-promotional messages, including a video in which O’CONNOR’s voice is recognizable. O’CONNOR also stated publicly, via a post to Victim-1’s TikTok account, that he would release sensitive, personal material related to Victim-1 to individuals who joined a specified Discord server.
O’CONNOR targeted another public figure (“Victim-2”) in June 2019. O’CONNOR and his associates obtained unauthorized access to Victim-2’s account on Snapchat via a SIM swap. They used that access to obtain sensitive materials, to include private images, that Victim-2 had not made publicly available. O’CONNOR sent copies of these sensitive materials to his associates. O’CONNOR and his associates also reached out to Victim-2 and threatened to publicly release the stolen sensitive materials unless Victim-2 agreed to publicly post messages related to O’CONNOR’s online persona, among other things.
Lastly, O’CONNOR stalked and threatened a minor victim (“Victim-3”) in June and July 2020. In June 2020, O’CONNOR orchestrated a series of swatting attacks on Victim-3. A “swatting” attack occurs when an individual makes a false emergency call to a public authority in order to cause a law enforcement response that may put the victim or others in danger. On June 25, 2020, O’CONNOR called a local police department and falsely claimed that Victim-3 was making threats to shoot people. O’CONNOR provided an address that he believed was Victim-3’s address, which would have the result of causing a law enforcement response. That same day, O’CONNOR placed another call to the same police department and stated that he was planning to kill multiple people at the same address. In response to that call, the department dispatched every on-duty officer to that address in reference to an armed and dangerous individual. O’CONNOR sent other swatting messages that same day to a high school, a restaurant, and a sheriff’s department in the same area. In those messages, O’CONNOR represented himself as either Victim-3 or as a resident at the address he believed was Victim-3’s. The following month, O’CONNOR called multiple family members of Victim-3 and threatened to kill them.
The NDCA Case was transferred to the Southern District of New York pursuant to Federal Rule of Criminal Procedure 20 and consolidated with the SDNY Case before Judge Rakoff.
* * *
O’CONNOR, 23, of the United Kingdom, pled guilty before Judge Rakoff to the following charges: (i) as part of the SDNY Case — conspiracy to commit computer intrusions, which carries a maximum sentence of five years in prison; conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison; and conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison, and (ii) as part of the NDCA Case — conspiracy to commit computer intrusion and two counts of committing computer intrusions, each of which carries a maximum sentence of five years in prison; making extortive communications, which carries a maximum sentence of two years in prison; two counts of stalking, each of which carries a maximum sentence of five years in prison; and making threatening communications, which carries a maximum sentence of five years in prison. As part of his guilty plea, O’CONNOR agreed to forfeit a sum of money equal to $794,012.64 and to make restitution to victims of his crimes. O’CONNOR is scheduled to be sentenced by Judge Rakoff on June 23, 2023, at 3:30 p.m.
The maximum potential sentences set forth above are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the Court.
Mr. Williams praised the outstanding work of the Federal Bureau of Investigation. He also thanked the Justice Department’s Office of International Affairs for its assistance in the extradition.
The SDNY Case is being handled by the Complex Frauds and Cybercrime Unit of the United States Attorney’s Office for the Southern District of New York. Assistant U.S. Attorney Olga I. Zverovich is in charge of the prosecution of the SDNY Case. The NDCA Case is being handled by the United States Attorney’s Office for the Northern District of California and the Computer Crime and Intellectual Property Section (“CCIPS”) of the Department of Justice. Assistant United States Attorney Andrew F. Dawson and CCIPS Assistant Deputy Chief Adrienne L. Rose are in charge of the prosecution of the NDCA Case.
U.K. Citizen Extradited and Pleads Guilty to Cyber Crime OffensesRead the Press Release
United States Attorney Ismail J. Ramsey for the Northern District of California, United States Attorney Damian Williams for the Southern District of New York, and Assistant Attorney General Kenneth A. Polite, Jr., for the Department of Justice’s Criminal Division announced today that Joseph James O’Connor, a/k/a “PlugwalkJoe,” a U.K. citizen, was extradited from Spain and entered a plea of guilty to two sets of charges involving crimes perpetrated in New York and California.
O’Connor was extradited from Spain on April 26, 2023, and pleaded guilty earlier today to two sets of charges: (i) a set of charges filed in the Northern District of California, and transferred to the SDNY under Federal Rule of Criminal Procedure 20, relating to O’Connor’s role in the July 2020 hack of Twitter, computer intrusions related to takeovers of TikTok and Snapchat user accounts, and cyberstalking two separate victims (the “NDCA Case”) and (ii) a conspiracy to commit computer hacking and other charges pending in the Southern District of New York relating to a fraudulent scheme perpetrated by O’Connor and his co-conspirators to use a cyber intrusion technique known as a SIM swap attack to steal approximately $794,000 worth of cryptocurrency from a Manhattan-based cryptocurrency company and then to launder the proceeds of the scheme (the “SDNY Case”). Hon. Jed S. Rakoff, U.S. District Judge. accepted the guilty pleas.
“O’Connor has left an impressive trail of destruction in the wake of his wave of criminality,” said U.S. Attorney Ramsey. “This case serves as a warning that the reach of the law is long, and criminals anywhere who use computers to commit crimes may end up facing the consequences of their actions in places they did not anticipate.”
U.S. Attorney Damian Williams said: “Joseph O’Connor, a/k/a “PlugwalkJoe,” used his sophisticated technological abilities for malicious purposes – conducting a complex SIM swap attack to steal large amounts of cryptocurrency, hacking Twitter, conducting computer intrusions to take over social media accounts, and even cyberstalking two victims, including a minor victim. O’Connor’s guilty plea today is a testament to the importance of law enforcement cooperation, and I thank our law enforcement partners for helping to bring to justice those who victimize others through cyber-attacks.”
“O’Connor’s criminal activities were flagrant and malicious, and his conduct impacted multiple people’s lives. He harassed, threatened, and extorted his victims, causing substantial emotional harm,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “Like many criminal actors, O’Connor tried to stay anonymous by using a computer to hide behind stealth accounts and aliases from outside the United States. But this plea shows that our investigators and prosecutors will identify, locate, and bring to justice such criminals to ensure they face the consequences for their crimes.”
"O’Connor tried to use international borders and the anonymity of the internet to keep himself safe while engaging in hacking and cyberstalking,” said FBI Special Agent in Charge of the San Francisco Division Robert K. Tripp. “He learned about the tenacity of the FBI to identify and locate cybercriminals, and the power of law enforcement partnerships here and across the world to hold those people accountable."
According to the allegations in the publicly filed charging documents, court filings, and statements made in court, between 2019 and 2020, O’Connor, 23, of the United Kingdom, participated in a variety of crimes associated with exploitation of social media accounts, online extortion, and cyberstalking:
The NDCA Case
In July 2020, O’Connor participated in a conspiracy to gain unauthorized access to social media accounts maintained by Twitter, Inc. (“Twitter”). In early July 2020, O’Connor’s co-conspirators used social engineering techniques to obtain unauthorized access to administrative tools used by Twitter to maintain its operations. Those co-conspirators were able to use the tools to transfer control of certain Twitter accounts from their rightful owners to various unauthorized users. In some instances, the co-conspirators took control themselves and used that control to launch a scheme to defraud other Twitter users. In other instances, the co-conspirators sold access to Twitter accounts to others. O’Connor communicated with others regarding purchasing unauthorized access to a variety of Twitter accounts, including accounts associated with public figures around the world. A number of Twitter accounts targeted by O’Connor were subsequently transferred away from their rightful owners. O’Connor agreed to purchase unauthorized access to one Twitter account for $10,000.
O’Connor also accessed without authorization one of the most highly visible TikTok accounts in August 2020, which was associated with a public figure with millions of followers (“Victim-1”). O’Connor and his associates obtained unauthorized access to Victim-1’s account via a SIM swap after discussing a variety of celebrities to target, and O’Connor used his unauthorized access to Victim-1’s platform to post self-promotional messages, including a video in which O’Connor’s voice is recognizable. O’Connor also stated publicly, via a post to Victim 1’s TikTok account, that he would release sensitive, personal material related to Victim-1 to individuals who joined a specified Discord server.
O’Connor targeted another public figure (“Victim-2”) in June 2019. O’Connor and his associates obtained unauthorized access to Victim-2’s account on Snapchat via a SIM swap. They used that access to obtain sensitive materials, to include private images, that Victim-2 had not made publicly available. O’Connor sent copies of these sensitive materials to his associates. O’Connor and his associates also reached out to Victim-2 and threatened to publicly release the stolen sensitive materials unless Victim-2 agreed to publicly post messages related to O’Connor’s online persona, among other things.
Additionally, O’Connor stalked and threatened a minor victim (“Victim-3”) in June and July 2020. In June 2020, O’Connor orchestrated a series of swatting attacks on Victim-3. A “swatting” attack occurs when an individual makes a false emergency call to a public authority in order to cause a law enforcement response that may put the victim or others in danger. On June 25, 2020, O’Connor called a local police department and falsely claimed that Victim-3 was making threats to shoot people. O’Connor provided an address that he believed was Victim-3’s address, which would have the result of causing a law enforcement response. That same day, O’Connor placed another call to the same police department and stated that he was planning to kill multiple people at the same address. In response to that call, the department dispatched every on-duty officer to that address in reference to an armed and dangerous individual. O’Connor sent other swatting messages that same day to a high school, a restaurant, and a sheriff’s department in the same area. In those messages, O’Connor represented himself as either Victim-3 or as a resident at the address he believed was Victim-3’s. The following month, O’Connor called multiple family members of Victim-3 and threatened to kill them.
The NDCA Case was transferred to the Southern District of New York pursuant to Federal Rule of Criminal Procedure 20 and consolidated with the SDNY Case before Judge Rakoff.
The SDNY Case
Between approximately March 2019 and May 2019, O’Connor and his co-conspirators perpetrated a scheme to use SIM swaps to conduct cyber intrusions to steal approximately $794,000 worth of cryptocurrency from a Manhattan-based cryptocurrency company (“Company-1”), which, at all relevant times, provided wallet infrastructure and related software to cryptocurrency exchanges around the world.
During a cyber intrusion known as a SIM swap attack, cyber threat actors gain control of a victim’s mobile phone number by linking that number to a subscriber identity module (“SIM”) card controlled by the threat actors, resulting in the victim’s calls and messages being routed to a malicious unauthorized device controlled by the threat actors. The threat actors then typically use control of the victim’s mobile phone number to obtain unauthorized access to accounts held by the victim that are registered to the mobile phone number.
As part of the scheme, O’Connor and his co-conspirators successfully perpetrated SIM swap attacks targeting at least three Company-1 executives. Following a successful SIM swap attack targeting one of the executives on or about April 30, 2019, O’Connor and his co-conspirators successfully gained unauthorized access to multiple Company-1 accounts and computer systems. On or about May 1, 2019, through their unauthorized access, O’Connor and his co-conspirators stole and fraudulently diverted cryptocurrency of various types (the “Stolen Cryptocurrency”) from cryptocurrency wallets maintained by Company-1 on behalf of two of its clients. The Stolen Cryptocurrency was worth at least approximately $794,000 at the time of the theft.
After stealing and fraudulently diverting the Stolen Cryptocurrency, O’Connor and his co-conspirators laundered it through dozens of transfers and transactions and exchanged some of it for Bitcoin using cryptocurrency exchange services. Ultimately, a portion of the Stolen Cryptocurrency was deposited into a cryptocurrency exchange account controlled by O’Connor.
* * *
As part of the NDCA Case, O’Connor pleaded guilty to conspiracy to commit computer intrusion and two counts of committing computer intrusions, each of which carries a maximum penalty of five years in prison; making extortive communications, which carries a maximum penalty of two years in prison; two counts of stalking, each of which carries a maximum penalty of five years in prison; and making threatening communications, which carries a maximum penalty of five years in prison. As part of the SDNY case, O’Connor pleaded guilty to conspiracy to commit computer intrusions, which carries a maximum penalty of five years in prison; conspiracy to commit wire fraud, which carries a maximum penalty of 20 years in prison; and conspiracy to commit money laundering, which carries a maximum penalty of 20 years in prison. O’Connor also agreed to forfeit $794,012.64 and to make restitution to victims of his crimes. He is scheduled to be sentenced on June 23. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI is investigating the case with assistance from the US Secret Service, San Francisco Field Office; US Secret Service, Criminal Investigations Division; IRS Criminal Investigations, Cyber Crimes Unit; Spanish National Police; and United Kingdom National Crime Agency.
The U.S. Attorney’s Office for the Northern District of California and the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) are handling the NDCA case. Assistant U.S. Attorney Andrew F. Dawson for the Northern District of California and CCIPS Assistant Deputy Chief Adrienne L. Rose are prosecuting the case.
The U.S. Attorney’s Office for the Southern District of New York’s Complex Frauds and Cybercrime Unit is handling the SDNY case. Assistant U.S. Attorney Olga I. Zverovich for the Southern District of New York is prosecuting the case.
The Justice Department’s Office of International Affairs provided valuable assistance in securing the extradition of O’Connor.Three Brothers Convicted of Multi-District Scheme to Defraud the United States Postal Service, UPS and Citizens BankRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that brothers Zumar Dubose, age 34, of Atlantic City, NJ; Abdush Dubose, age 36, of Boynton Beach, FL; and Kariem Dubose, age 42, of Philadelphia, PA, were convicted today at trial of mail fraud, wire fraud, bank fraud, and money laundering conspiracy charges arising from their scheme to defraud and obtain money from the United States Postal Service, UPS and Citizens Bank.
Starting as early as October 2018, in less than one year, the defendants submitted over 1,200 fraudulent insured-parcel claims with the United States Postal Service and UPS, and received almost $300,000 in ill-gotten gains. As part of the scheme, the Dubose brothers sent parcels themselves containing items of no value using insured United States Postal Service postage and UPS tracking labels. They then filed fraudulent claims with United States Postal Service and UPS, claiming that these parcels which had contained nothing of value were lost or damaged in transit, and attached sham proofs of value. The defendants used numerous e-mails, addresses and postboxes, bank accounts and bank cards, fake individual names, and fictitious corporations, including “Urmajesty Banktruckfit Solutions,” “Miworld Three Incorporated,” and “4 Entertainment Corporation,” which were incorporated in the State of New Jersey, and “Seeds of Beauty Incorporated,” which was incorporated in the State of Florida. The claim checks that the brothers received as part of this fraud scheme were deposited into Citizens Bank accounts opened in the names of these fake companies through ATMs in Philadelphia, Pennsylvania, and elsewhere.
When USPS and UPS refused to issue or deliver some of the fraudulently-obtained claim checks, and when Citizens Bank placed a hold on a bank account that was used to deposit the fraud proceeds, the Dubose brothers were undeterred. The brothers repeatedly contacted the United States Postal Service and UPS using fake names; defendant Zumar Dubose even filed lawsuits against UPS in various counties in New Jersey, using fake plaintiff names and falsely claiming that UPS did not pay him funds that he was owed. The defendants also filed lawsuits against Citizens Bank, again pretending to be a different individual, in an effort to obtain the funds from their fraud scheme.
"Lying about insured parcels and then turning around and filing lawsuits against the victim companies, when those companies suspected something was awry is brazen, to say the least," said U.S. Attorney Romero. "Today's guilty verdicts against the Dubose brothers show the commitment of our office and law enforcement partners to investigate and prosecute this type of flagrant fraud."
One of the investigative missions of the U.S. Postal Service Office of Inspector General (OIG) is to help safeguard the Postal Service and U.S. Mail from being utilized for illegal activity. OIG Special Agents vigorously investigate these cases in partnership with our law enforcement partners,” said Special Agent-in-Charge Jeffery Krafels. “These guilty verdicts should serve as a reminder and deterrent to anyone thinking this type of behavior is acceptable.”
The case was investigated by the United States Postal Service Office of the Inspector General and the United States Postal Inspection Service, and is being prosecuted by Assistant United States Attorneys Louis D. Lappen and J. Jeanette Kang. UPS and Citizens Bank provided crucial cooperation in this investigation.
Third Defendant Sentenced for Fentanyl-laced Pills Purchased through Social Media PlatformsRead the Press Release
ABINGDON, Va. – A Norton, Virginia woman, who sold pressed pills containing fentanyl purchased via social media platforms, was sentenced yesterday in U.S. District Court in Abingdon to 36 months in federal prison.
Cheyenne Cassie Carico, 20, pleaded guilty in June 2022 to one count of conspiring to distribute and possession with the intent to distribute 40 grams or more of fentanyl.
As part of the same conspiracy, Paul Mason Perkins, 21, of Big Stone Gap, Virginia, was sentenced to 42 months, and Austin Jeremiah Lane, 23, of Norton, Virginia, was sentenced to 36 months earlier this year.
According to court documents, between February 2021 and February 2022, Perkins used the social media platforms Snapchat and Instagram to purchase thousands of pressed pills containing fentanyl every few weeks from a dealer located in California. Perkins had the pills mailed to his residence in Big Stone Gap where he then redistributed the pills to other individuals throughout Wise County, including multiple sales to co-conspirators Lane and Carico.
United States Attorney Christopher R. Kavanaugh, Michael Weddel, Acting Special Agent in Charge of the Washington Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Tommy D. Coke, Inspector in Charge of the U.S. Postal Inspection Service - Atlanta Division made the announcement.
The Wise County Sheriff’s Office, the Norton Police Department, the Southwest Drug Task Force, the Bureau of Alcohol, Tobacco, Firearms & Explosives, and the United States Postal Inspection Service investigated the case.
Assistant U.S. Attorney Lena Busscher prosecuted the case.
Taylor Woman Sentenced to 30 Years in Prison for Sexually Exploiting an InfantRead the Press Release
DETROIT – A Taylor woman was sentenced today to 30 years in prison for sexually exploiting an infant and another child and for distributing child pornography, announced United States Attorney Dawn N. Ison.
Ison was joined in the announcement by James A. Tarasca, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.
Rheanna Rose Salyer, 26, was sentenced by United States District Judge David M. Lawson.
According to court documents, Salyer admitted creating images sexually exploiting an infant, and that she had sent an image of herself performing inappropriate sexual contact with an infant to another individual over the internet in February 2022. Later that month, Salyer met an undercover officer online who pretended to have a sexual interest in children. During a conversation with the undercover officer, Salyer sent the officer sexually explicit images of the infant, bragged about sexually assaulting the infant, and discussed her desire to engage in sex acts with the undercover officer and the infant together.
Once the FBI was able to confirm Salyer’s identity, agents executed a search warrant at her residence. They discovered additional images of horrific child sexual abuse, including one Salyer created only hours before they entered her home. Salyer’s phone contained numerous conversations with other individuals online discussing her sexual interest in children, and her phone had other sexually explicit images of minors. Salyer also possessed other images of child pornography that she downloaded from the internet or received from others during chats.
“I am thankful for the FBI agents who acted so quickly to save this infant from continued abuse,” stated U.S. Attorney Ison. “This defendant not only abused an infant in an unimaginable manner, but she also shared that abuse with others over the internet. This sentence demonstrates that those who harm our most vulnerable will be held responsible.”
“Rheanna Salyer admitted to sexually exploiting an infant. I can think of nothing more appalling, and today’s sentencing sends an unequivocal message that predatory acts by criminals like her will not be tolerated,” said James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Field Office. “I commend the work of the Southeast Michigan Trafficking and Exploitation Crimes Task Force in this investigation. Their quick and decisive action ensured Salyer will be unable to victimize children for years to come.”
The case was investigated by the Southeast Michigan Trafficking and Exploitation Crimes Task Force of the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Christopher Rawsthorne.
Summer camps must modify policies to accommodate children with disabilitiesRead the Press Release
ATLANTA - Parents are making plans to send their children to summer camps as the school year comes to an end. To ensure that children with disabilities can attend summer camps in the same way as children without disabilities, the U.S. Attorney’s Office announced today that it has sent the attached flyer to summer camps located within the Northern District of Georgia to remind these groups of their legal obligations under the Americans with Disabilities Act (ADA).
“Summer camps provide fun and important developmental opportunities for children and offer parents and caregivers a safe place for their children to socialize with one another during the summer,” said U.S. Attorney Ryan K. Buchanan. “Children with disabilities deserve an equal opportunity to safely participate in camp activities and programs. This is not an option; it is the law.”Under the ADA, summer camps, whether private or run by municipalities and counties, must afford reasonable modifications to ensure that children with disabilities can participate fully in camp programs and activities. Camps must evaluate each child on an individual basis and train their staff in the requirements of the ADA. Camps must also pay for the cost of any reasonable modifications necessary for a child with a disability to participate in camp activities.
For more information, please visit www.ada.gov or call our Civil Rights Hotline at (404) 581-4626.
For inquiries, please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
St. Francis Man Sentenced for Failure to Register as a Sex OffenderRead 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 St. Francis, South Dakota, man convicted of Failure to Register as a Sex Offender. The sentencing took place on May 8, 2023.
Brady Makes Room For Them, 38, was sentenced to two years and four months in federal prison, followed by five years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Makes Room For Them was indicted for Failure to Register as a Sex Offender by a federal grand jury in June of 2022. He pleaded guilty on February 2, 2023.
Makes Room For Them was convicted of Abusive Sexual Contact on September 20, 2005. As a result of this conviction, he is required to register as a sex offender and update his registration within three business days of relocation or changing employment or student status. Makes Room For Them last registered in November of 2021, providing an address in Rapid City, South Dakota. Investigation revealed that Makes Room For Them never resided at his registered address in Rapid City. His whereabouts were unknown until he was located by the Rosebud Sioux Tribe Law Enforcement Services in Rosebud, South Dakota, on January 27, 2022.
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.
This case was investigated by the U.S. Marshals Service, the Rapid City Police Department, and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Abby Roesler prosecuted the case.
Makes Room For Them was immediately remanded to the custody of the U.S. Marshals Service.
Springdale Man Sentenced to 14 Years in Federal Prison for Drug TraffickingRead the Press Release
FAYETTEVILLE – A Springdale man was sentenced today to 168 months in prison followed by three years of supervised release on one count of Possession with Intent to Distribute Methamphetamine. The Honorable Judge Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court documents, on October 1, 2021, as part of an ongoing narcotics investigation, detectives with the Fourth Judicial District Drug Task Force executed a search warrant at the residence of Maurice Kentrell Bright, age 45, in Springdale, Arkansas. During the search, detectives located approximately 283 grams of methamphetamine, two firearms, including a loaded handgun under his pillow, and drug paraphernalia.
The suspected methamphetamine was sent to the HSI lab and tested positive for methamphetamine.
U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
The Fourth Judicial District Drug Task Force investigated the case.
Assistant U.S. Attorney Sydney Butler 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.
Sioux City Woman Sentenced to Federal Prison for Meth ConspiracyRead the Press Release
A woman who conspired to distribute methamphetamine was sentenced on May 9, 2023, to 5 years in federal prison.
Linda Fernandez, 69, from Sioux City, Iowa, pled guilty January 26, 2023, to conspiracy to distribute methamphetamine.
At the plea and sentencing hearings, evidence showed that between May and July 2022, Fernandez and others conspired to distribute over 1.3 kilograms of methamphetamine in the Sioux City area. On July 15, 2022, law enforcement executed a search warrant at Fernandez’s apartment, and discovered approximately one pound of methamphetamine, drug distribution materials, and over $3,300.
Sentencing was held before United States District Court Chief Judge Leonard T. Strand. Fernandez was sentenced to 5 years’ imprisonment and must serve a 3-year term of supervised release following the imprisonment. There is no parole in the federal system. Fernandez remains in custody of the United States Marshal until she can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Patrick T. Greenwood and was investigated by 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 22-4055. Follow us on Twitter @USAO_NDIA.
Robber of St. Louis County Store Sentenced to 130 months in PrisonRead the Press Release
ST. LOUIS – U.S. District Judge Ronnie L. White on Tuesday sentenced a robber who stole from a Kohl’s store in Manchester, Missouri to 130 months in prison.
Mercedes W. Gregory, 34, of St. Louis, pleaded guilty in U.S. District Court in St. Louis in February to one count of robbery and one count of being a felon in possession of a firearm.
Gregory admitted placing multiple items of clothing in a cart and walking out of the Kohl’s store just before 1:30 p.m. on July 12, 2021. A loss prevention officer followed until Gregory said, “If you keep following me, I’m going to shoot you.” Gregory left in a white Chevrolet.
Photo submitted in a court filing.That night, officers with the St. Louis Metropolitan Police Department spotted the car at a gas station in St. Louis. Gregory ran but was caught. Officers found a Taurus handgun in Gregory’s satchel. The Kohl’s merchandise was in the trunk.
Gregory has two prior robbery convictions, a 2008 case in St. Louis County and a 2013 case in St. Louis. Gregory’s parole in the 2013 case ended 11 days before the Kohl’s robbery.
The case was investigated by the Manchester Police Department, the FBI and the St. Louis Metropolitan Police Department. Assistant U.S. Attorney Ryan Finlen is prosecuting the case.
Richmond City Department of Public Works Employee Pleads Guilty to Fraud SchemeRead the Press Release
RICHMOND, Va. – A Richmond woman pleaded guilty today to using her position within the City of Richmond Department of Public Works (DPW) to steer governmental contract awards towards herself and her co-conspirators.
According to court documents, Shaun Lindsey, 53, is a Senior Administrative Technician at DPW, a governmental entity responsible for providing engineering, technical, and administrative services to Richmond residents. Before she was placed on administrative leave in February 2022, Lindsey was responsible for managing and obtaining approval for DPW procurements with outside vendors.
From at least 2018 through 2021, Lindsey and her co-conspirators operated a scheme to defraud the DPW. Lindsey and her co-conspirators owned and operated straw companies to bid on DPW work, circumventing Virginia law and City of Richmond rules against self-dealing by public employees. Additionally, Lindsey and her co-conspirators designated and approved DPW work to be performed by these straw companies using their positions at DPW. In some instances, the work to be performed was completely fabricated and no such work was ever needed. In other instances, the work was actually performed by DPW employees, not by contracted vendors. Sometimes, Lindsey and her co-conspirators subcontracted the work out for profit upon winning the DPW work.Where procurement amounts exceeded $5,000, a DPW approval threshold requiring that work be competitively bid, Lindsey manufactured fictitious straw bids on behalf of competitor companies to engineer Lindsey’s preferred company winning the work. In one instance, Lindsey steered a $28,700 contract award to her boyfriend. Finally, within days of Lindsey’s straw company winning work, she sent checks for a portion of the funds to a senior DPW leader, Lindsey’s co-conspirator.
In another example, in early 2019, DPW sought to have overgrown foliage at Parker Field, an area in Richmond, cleared in advance of Fourth of July celebrations that same year. Though Lindsey knew mowing of the field was being performed by DPW employees, she nevertheless created and obtained approval of a requisition request in the DPW purchase order system for a company owned by the wife of a senior DPW leader to mow the entire area 16 times in four days, at a total cost of $4,800. In a different instance, in December 2020, DPW leadership sought to set up holiday decorations of Richmond-area bridges. In response, Lindsey generated a requisition request for her own straw company and thereafter sub-contracted the work out at a profit. The subcontractor believed they had contracted with the City of Richmond, not with Lindsey’s personal company, and when Lindsey failed to pay the sub-contractor the balance for the work, the sub-contractor sought payment directly from the City of Richmond. The City of Richmond then had to pay the subcontractor – effectively paying twice for the same work. In all, Lindsey and her co-conspirators fraudulently caused DPW to disburse at least $603,701 in funds to companies owned by Lindsey and her co-conspirators, causing $226,767 in loss to DPW.Lindsey is scheduled to be sentenced on August 29. She faces a maximum penalty of 20 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office; and James Osuna, Inspector General, City of Richmond Office of the Inspector General, made the announcement after U.S. District Judge M. Hannah Lauck accepted the plea.
Assistant U.S. Attorney Avi Panth is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:22-cr-53.
Retired Special Education Teacher Sentenced for Traveling Overseas to Sexually Abuse ChildrenRead the Press Release
A Pennsylvania man was sentenced today to 35 years in prison for traveling to the Philippines to engage in sex with children as young as 12 years old.
According to court documents, between 2016 and 2019, Craig Alex Levin, 67, of King of Prussia, was a retired special education teacher who traveled to the Philippines nine times, each time for the purpose of engaging in sex with disadvantaged minors who, by Levin’s own words, were hungry or needed money for medicine for family members. In May 2019, the Philippine National Police arrested Levin as he was about to enter the elevator at his hotel with a 15-year-old girl. Upon search of his hotel room, police located several notebooks containing the names and ages of hundreds of girls, whom he rated based on several categories, including age. Only girls under the age of 18 received a top score of 10. There were multiple children as young as 12 listed in the notebooks.
In June 2022, Levin pleaded guilty to six counts charging him with foreign travel to engage in sex with a minor, attempted sex trafficking of a minor, and distribution and transportation of child pornography.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Jacqueline C. Romero for the Eastern District of Pennsylvania, and Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division made the announcement.
The FBI and Philippine National Police investigated the case.
Trial Attorney Austin M. Berry of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Michelle Rotella for the Eastern District of Pennsylvania prosecuted the case. The Justice Department’s Office of International Affairs assisted with securing evidence from the Philippines, including through mutual legal assistance requests.
This case is brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Repeat Offender Sentenced to 16 Years in Prison for Receipt and Possession of Large Child Sexual Abuse Material CollectionRead the Press Release
LAS VEGAS – A Las Vegas resident was sentenced yesterday by United States District Judge Cristina D. Silva to 16 years in prison followed by a lifetime term of supervised release for receipt and possession of more than 118,000 images of child sexual abuse material.
After a bench trial in November 2022, Barry Ray Knight (75) was found guilty of receipt of child pornography and possession of child pornography.
According to court documents and evidence presented at trial, on April 8, 2021, investigators with the Internet Crimes Against Children task force executed a search warrant at Knight’s residence. During the search, investigators seized multiple electronic devices owned by Knight. A forensic examination of the devices revealed that Knight possessed 115,299 images and 3,135 videos depicting children who were as young as toddlers. He used the BitTorrent network to receive files online.
In 2003, Knight was convicted of possession of child pornography in the Eastern District of Missouri.
United States Attorney Jason M. Frierson for the District of Nevada and Special Agent in Charge Spencer L. Evans for the FBI made the announcement.
The FBI and the Las Vegas Metropolitan Police Department investigated the case. Assistant United States Attorneys Supriya Prasad and Kimberly Sokolich prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Department of Justice’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Pomona Man Found Guilty of Abusive Sexual Contact on FlightRead the Press Release
LOS ANGELES – A federal jury today found a Pomona man guilty of a felony offense for intentionally touching the inner thigh of a sleeping woman seated next to him on a flight from Cleveland to Los Angeles in February 2020.
Mohammad Jawad Ansari, 49, was found guilty of one count of abusive sexual contact.
According to evidence presented at a four-day trial, on February 17, 2020, Ansari boarded a flight from Cleveland Hopkins International Airport to Los Angeles International Airport. Ansari occupied a 10th-row window seat while the victim occupied the middle seat next to him. The victim, who was wearing a dress, fell asleep shortly after takeoff and the armrest separating Ansari from the victim was down.
At some point during the flight to Los Angeles, Ansari placed his left hand on the victim’s right knee and knowingly, intentionally, and without the victim’s consent, moved his hand to her inner thigh. The person sitting in the 10th-row aisle seat next to the victim witnessed Ansari’s hand touching the victim’s inner thigh.
The victim woke up, pushed Ansari’s hand away, left her seat, and informed a flight attendant about what had happened. The flight’s attendants observed Ansari during the remainder of the flight and believed he was pretending to sleep.
United States District Judge Fernando L. Aenlle-Rocha scheduled a September 29 sentencing hearing, at which time Ansari will face a statutory maximum sentence of two years in federal prison.
The FBI and the Los Angeles Airport Police investigated this matter.
Assistant United States Attorneys Samuel J. Diaz and James A. Santiago of the International Narcotics, Money Laundering, and Racketeering Section are prosecuting this case.To mark Sexual Assault Prevention Month, the FBI’s Los Angeles Field Office on April 28 issued a public service announcement to bring awareness to the problem of sexual assault on airplanes. Victims of in-flight sexual misconduct – either verbal or physical – or their loved ones are encouraged to report the incident to a flight attendant and to your nearest FBI field office or to submit a tip online to the FBI at https://tips.fbi.gov/.
Pomona Man Found Guilty of Abusive Sexual Contact on FlightRead the Press Release
LOS ANGELES – A federal jury today found a Pomona man guilty of a felony offense for intentionally touching the inner thigh of a sleeping woman seated next to him on a flight from Cleveland to Los Angeles in February 2020.
Mohammad Jawad Ansari, 49, was found guilty of one count of abusive sexual contact.
According to evidence presented at a four-day trial, on February 17, 2020, Ansari boarded a flight from Cleveland Hopkins International Airport to Los Angeles International Airport. Ansari occupied a 10th-row window seat while the victim occupied the middle seat next to him. The victim, who was wearing a dress, fell asleep shortly after takeoff and the armrest separating Ansari from the victim was down.
At some point during the flight to Los Angeles, Ansari placed his left hand on the victim’s right knee and knowingly, intentionally, and without the victim’s consent, moved his hand to her inner thigh. The person sitting in the 10th-row aisle seat next to the victim witnessed Ansari’s hand touching the victim’s inner thigh.
The victim woke up, pushed Ansari’s hand away, left her seat, and informed a flight attendant about what had happened. The flight’s attendants observed Ansari during the remainder of the flight and believed he was pretending to sleep.
United States District Judge Fernando L. Aenlle-Rocha scheduled a September 29 sentencing hearing, at which time Ansari will face a statutory maximum sentence of two years in federal prison.
The FBI and the Los Angeles Airport Police investigated this matter.
Assistant United States Attorneys Samuel J. Diaz and James A. Santiago of the International Narcotics, Money Laundering, and Racketeering Section are prosecuting this case.
To mark Sexual Assault Prevention Month, the FBI’s Los Angeles Field Office on April 28 issued a public service announcement to bring awareness to the problem of sexual assault on airplanes. Victims of in-flight sexual misconduct – either verbal or physical – or their loved ones are encouraged to report the incident to a flight attendant and to your nearest FBI field office or to submit a tip online to the FBI at https://tips.fbi.gov/.
Pittsburgh Man Pleads Guilty in Drug Distribution ConspiracyRead the Press Release
PITTSBURGH, PENNSYLVANIA – Torlando Hopson pled guilty to conspiring to distribute crack cocaine, Acting United States Attorney Troy Rivetti announced today.
Hopson, age 34 of Sharon, Pennsylvania, pled guilty before United States District Judge Cathy Bissoon. Judge Bissoon scheduled sentencing to occur on August 31, 2023, at 11:00 a.m.
The law provides for a sentence of up to 20 years in prison and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed is to be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
The Federal Bureau of Investigation, the Drug Enforcement Administration, the Pennsylvania Attorney General’s Office, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Pennsylvania State Police, the Lawrence County Drug Task Force, the Mercer County Drug Task Force, the New Castle Police Department, the Sharon Police Department, the Hermitage Police Department, and the Farrell Police Department led the investigation resulting in the conviction in this case.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Pittsburgh Man Indicted on Contempt of Court and Assault ChargesRead the Press Release
PITTSBURGH, PA. A resident of Pittsburgh, PA, has been indicted by a federal grand jury in Pittsburgh on charges of violating federal contempt of court laws and assault, Acting United States Attorney Troy Rivetti announced today.
The three-count Indictment named James Taric Byrd, 46, of Pittsburgh, PA, as the sole defendant.
According to the Indictment, on or about July 18, 2022, Byrd is alleged to willfully and knowingly engaged in contempt of court by both engaging in misbehavior in the presence and so near there to the Court in order to obstruct the administration of justice, and by disobeying and resisting the lawful order and command of the Court by striking his own attorney in the court room. He is also charged with assault by striking, beating, or wounding.
The law provides no maximum sentence or fine for the contempt charges. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The United States Marshals conducted the investigation leading to the Indictment in this case.
Assistant United States Attorney DeMarr W. Moulton is prosecuting this case on behalf of the government.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Okmulgee County Resident Sentenced for Brutal MurderRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Neil Shai Cameron Lewis, age 28, of Okmulgee County, Oklahoma, was sentenced to 223 months in prison for Murder in Indian Country—Second Degree.
The charges arose from investigations by the Muscogee (Creek) Nation Lighthorse Police and the Federal Bureau of Investigation.
Lewis pleaded guilty to Murder in Indian Country—Second Degree on September 30, 2021. The investigation of the case revealed Lewis beat the victim to death with a television and a coat rack after an evening of drinking at the victim’s apartment. Police investigating an Emergency Medical Services call discovered the victim lying on the floor of his apartment and Lewis covered in the victim’s blood.
The United States Attorney’s Office for the Eastern District of Oklahoma prosecuted this case because the defendant is a member of a federally recognized Indian tribe and the crimes occurred in Okmulgee County, within the boundaries of the Muscogee (Creek) Nation Reservation and within 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. Lewis was remanded to the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve his sentence of incarceration.
Okmulgee County Resident Sentenced for Brutal MurderRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Neil Shai Cameron Lewis, age 28, of Okmulgee County, Oklahoma, was sentenced to 223 months in prison for Murder in Indian Country—Second Degree.
The charges arose from investigations by the Muscogee (Creek) Nation Lighthorse Police and the Federal Bureau of Investigation.
Lewis pleaded guilty to Murder in Indian Country—Second Degree on September 30, 2021. The investigation of the case revealed Lewis beat the victim to death with a television and a coat rack after an evening of drinking at the victim’s apartment. Police investigating an Emergency Medical Services call discovered the victim lying on the floor of his apartment and Lewis covered in the victim’s blood.
The United States Attorney’s Office for the Eastern District of Oklahoma prosecuted this case because the defendant is a member of a federally recognized Indian tribe and the crimes occurred in Okmulgee County, within the boundaries of the Muscogee (Creek) Nation Reservation and within 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. Lewis was remanded to the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve his sentence of incarceration.
Oklahoma Man Sentenced for Failure to Register as a Sex Offender and Possession of Contraband by InmateRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Sapulpa, Oklahoma, man convicted of Failure to Register as a Sex Offender and Possession of Contraband by Inmate. The sentencing took place on May 8, 2023.
Charles Nathaniel Graves, age 37, was sentenced to 3.5 years in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $200.
Graves was indicted by a federal grand jury in July of 2021 for Failure to Register as a Sex Offender. Graves was also indicted in August of 2022 for Possession of Contraband by Inmate. He pleaded guilty on July 8, 2022, for the first charge and he pleaded guilty on March 31, 2023, on the second charge.
The conviction for the Failure to Register as a Sex Offender charge stems from Graves failing to register as a sex offender as required by federal law between September 1, 2019, and July 7, 2021. Graves had previously been convicted of a sex offense in State court which requires him to register for 25 years upon his release.
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.
The second conviction stems from an incident on March 25, 2022, when Graves, who was in federal custody at the Yankton County Jail in Yankton, South Dakota, was granted a furlough to attend a funeral. Upon his return, Graves was told he would be submitted to a full-body scan. Before the scan could occur, Graves removed a small package that he had inserted into his rectum that contained methamphetamine. He left the package in the room, but it was found by correctional officers and seized as evidence. The package was field-tested and was positive for approximately 5.26 grams of methamphetamine.
This case was investigated by the U.S. Marshals Service and the Yankton County Sheriff’s Office. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Graves was immediately remanded to the custody of the U.S. Marshals Service.
Ohkay Owingeh man pleads guilty to assault with a dangerous weapon in Indian CountryRead the Press Release
FOR IMMEDIATE RELEASE
May 8, 2023
Ohkay Owingeh man pleads guilty to assault with a dangerous weapon in Indian Country
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced that Jerry Segura, Jr. pleaded guilty to assault with a dangerous weapon and using and carrying a firearm during and in relation to a crime of violence, and brandishing a firearm in furtherance of such crime in Indian Country. Segura, 34, of Ohkay Owingeh, New Mexico, and an enrolled member of the Ohkay Owingeh Pueblo, will remain in custody pending sentencing, which has not been scheduled.
According to the plea agreement, Segura, Jr. admitted to brandishing a firearm without justification at Jane Doe, his former girlfriend’s adult daughter, which enabled Segura, Jr. to assault her. Segura, Jr. admitted to assaulting Jane Doe in Indian Country.
Segura, Jr. faces a minimum of seven years imprisonment at sentencing.
The Bureau of Indian Affairs investigated this case. Assistant United States Attorney Zachary Jones is prosecuting the case.
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Nampa Man Sentenced to 30 Years in Federal Prison for Producing Child PornographyRead the Press Release
BOISE – Benjamin Morton, 39, of Nampa, was sentenced to 360 months in federal prison for sexual exploitation of a child, U.S. Attorney Josh Hurwit announced today.
According to court records, the investigation began when the Boise Police Department (BPD) received information that an adult male, pretending to be a juvenile online, had arranged to meet the 14-year-old victim. BPD later identified Morton as the suspect and determined that he had sexually abused the victim on two occasions and used his cellphone to record some of the abuse. BPD obtained a search warrant for one of Morton’s social media accounts and located a video that Morton had produced of himself engaging the victim in sexual contact. Within the account, BPD also located evidence that Morton had attempted to communicate with other juveniles. Morton was previously convicted in Canyon County of battery with intent to commit lewd conduct with a minor.
Chief U.S. District Judge David C. Nye also sentenced Morton to a lifetime of supervised release and entered an order forfeiting the cellphone he used to commit the offense. Morton will be required to register as a sex offender as a result of the conviction.
U.S. Attorney Hurwit commended the cooperative efforts of the Boise Police Department and the Nampa Police Department, which led to charges.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Muskogee Resident Sentenced for Robbery in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Philip Lee Ramos a/k/a Phillip Lee Ramos, age 32, of Muskogee, Oklahoma, was sentenced to 60 months in prison for Robbery in Indian Country.
The charges arose from investigations by the Muskogee Police Department.
On April 18, 2023, Philip Lee Ramos pleaded guilty to Robbery in Indian Country. According to court documents, on December 2, 2020, Ramos robbed an individual at knifepoint at a Muskogee, Oklahoma hotel.
The United States Attorney’s Office for the Eastern District of Oklahoma prosecuted this case because the defendant is a member of a federally recognized Indian tribe and the crimes occurred in Muskogee County, within the boundaries of the Muscogee (Creek) Nation Reservation and within 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. Ramos was remanded to the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorney Jordan Howanitz represented the United States at the sentencing.
Mason City Man Returned to Federal Prison for Violating His Supervised ReleaseRead the Press Release
A man who violated his supervised release by selling methamphetamine has been sentenced to more than three years in federal prison.
Adam James Rollins, age 43, from Mason City, Iowa, received the prison term after a May 8, 2023, revocation hearing where he was found to have violated his third term of supervised release which began May 6, 2022. Rollins violated the conditions of release by using, and eventually selling methamphetamine again.
Rollins’ supervised release had previously been revoked in April of 2019 and September of 2021. He was originally sentenced in January of 2010, to 10 years in prison and 8 years of supervised release for conspiring to manufacture methamphetamine in the Mason City area. He also had a previous conviction for a felony drug offense in April of 2005.
Rollins was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Rollins was sentenced to 40 months’ imprisonment. There is no parole in the federal system.
Rollins is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Jack Lammers and investigated by the Kossuth County Sheriff’s Office and the Algona Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 09-CR-3019.
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Lexington Investment Advisor and Attorney Sentenced to 120 Months for Investment FraudRead the Press Release
LEXINGTON, Ky. - A Lexington investment advisor and attorney, Douglas Hawkins, was sentenced to 120 months in prison Tuesday, by U.S. District Judge Karen Caldwell, for investment advisor fraud, securities fraud, and two counts of mail fraud.
According to the evidence at trial, while operating as an investment advisor, Hawkins encouraged his clients to invest in securities that were properties in Jackson, Mississippi. Clients invested over $2 million in the properties. While encouraging these investments, Hawkins withheld vital information about the properties from his clients, including that many were uninhabitable, had burdensome rent collection, and were often subject to theft and vandalism. He also failed to inform his clients that their investment money would be used for purposes other than their properties, including paying other investors and buying a Harley Davidson for an employee.
Hawkins was convicted in February 2023.
In addition to his prison sentence, Hawkins was ordered to pay $1,588,048.50 in restitution. Under federal law, Hawkins must serve 85 percent of his prison sentences. Upon his release from prison, Hawkins will be under the supervision of the U.S. Probation Office for three years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Lesley Allison, Special Agent in Charge, United States Postal Inspection Service; and Justin Malcom Burse, Acting Commissioner, Kentucky Department of Financial Institutions, jointly announced the sentencing.
The investigation was conducted by the United States Postal Inspection Service and Kentucky Department of Financial Institutions. The United States was represented in the case by Assistant U.S. Attorneys Andrea Mattingly-Williams and Will Moynahan.
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Level 1 Sex Offender Pleads Guilty to Child Pornography ChargeRead the Press Release
BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Zachary Feeterman, 28, of Tonawanda, NY, pleaded guilty before U.S. District Judge Lawrence J. Vilardo to possession of child pornography by an individual with a prior sex offense conviction, which carries a mandatory minimum penalty of 10 years in prison, a maximum of 20 years, and a $250,000 fine.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that in March 2016, Feeterman was convicted of attempted possession of a sexual performance by a child less than 16 years of age in New York State Court. On August 8, 2019, Erie County Probation Officers conducted a home inspection at Feeterman’s residence and found an unauthorized cell phone in his possession. A forensic analysis recovered approximately 375 images of child pornography on the cell phone, and 4,670 images and videos of child pornography in a cloud storage account. Some images depicted prepubescent minors as well as violence against children.
The plea is the result of an investigation by members the Erie County Probation Department, under the direction of Commissioner Michelle Olszowy; the FBI's Child Exploitation Task Force, under the direction of Special Agent-in-Charge Matthew Miraglia; and the Town of Tonawanda Police Department, under the direction of Chief James P. Stauffiger.
Sentencing is scheduled for November 11, 2023, at 9:30 a.m. before Judge Vilardo.
Leominster Man and Woman Charged with Drug OffensesRead the Press Release
BOSTON – A Leominster man and woman have been arrested and charged for allegedly conspiring to distribute large quantities of counterfeit Adderall pills containing methamphetamine.
Chanhda Onesyvieng, 48, and Bonnie Bounkong Namsaly, 45, were charged with conspiracy to possess with intent to distribute, and to distribute, controlled substances. Following initial appearances in federal court in Worcester on May 1, 2023, Onesyvieng was ordered detained pending trial and Namsaly was released on conditions.
According to the charging documents, in early April 2023, federal law enforcement received information that Onesyvieng was distributing significant quantities of counterfeit Adderall pills containing methamphetamine in Rhode Island using a phone subscribed under Namsaly’s name. On April 28, 2023, during a traffic stop of Onesyvieng and Namsaly in Worcester, it is alleged that approximately two kilograms of counterfeit Adderall pills containing methamphetamine and approximately 135 grams of cocaine were seized. It is further alleged that, during a subsequent search of the defendants’ residence in Leominster, approximately one kilogram of counterfeit Adderall pills containing methamphetamine, approximately one kilogram of cocaine, and approximately $60,000 in cash were seized.
The charge of conspiracy to possess with intent to distribute, and to distribute, controlled substances provides for a sentence of up to 20 years in prison, at least three years of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and John. E. Mawn Jr., Interim Colonel of the Massachusetts State Police made the announcement today. Assistant U.S. Attorney Danial E. Bennett of Rollins’ Worcester Branch Office is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Leader of Queens-Based "Wood City" Gang Convicted of Revenge Killing over Stolen NecklaceRead the Press Release
A federal jury in Brooklyn returned a guilty verdict late yesterday afternoon against Christopher Acevedo, the leader of “Wood City,” a violent criminal enterprise which also used the names “Yellow Tape Boyz” and “YTB,” of murder in-aid-of racketeering and causing death through the use of a firearm in connection with the August 26, 2019 fatal shooting of a rival gang associate. The verdict followed a three-week trial before United States District Judge Diane Gujarati. When sentenced, Acevedo faces a mandatory term of life imprisonment.
Breon Peace, United States Attorney for the Eastern District of New York, announced the verdict.
“How senseless it was for Acevedo to callously take a human life to maintain and burnish his status as the leader of a violent street gang whose members felt insulted by the taking of a piece of jewelry,” stated United States Attorney Peace. “With today’s verdict, the defendant will spend the rest of his life in prison. Protecting our communities from gang and gun-related violence is a priority of my Office and I commend the attorneys, Special Agents, and detectives whose work brought the defendant to justice.”
Mr. Peace thanked the Federal Bureau of Investigation, New York Field Office, and the New York City Police Department for their exemplary investigative work on the case. Mr. Peace also thanked the FBI Safe Streets Task Force for its assistance with the case.
The evidence at trial established that since at least 2010, the Wood City gang has been engaged in racketeering activity, including murder, drug trafficking, and various forms of fraud and identity theft. Acevedo was the founder and leader of the gang which was so named because many of its members lived around Woodhull Avenue in Jamaica, New York. Since at least 2011, Wood City has been involved in a war with rival “Snow Gang,” another violent gang based in Queens. During this period, members of Wood City and Snow Gang would regularly taunt and insult each other using social media platforms and phone calls. On August 26, 2019, members of Snow Gang, including one of its leaders, robbed a gold “YTB” chain from a high-ranking member of Wood City while he was at a recording studio in Queens. Shortly after the robbery, the Snow Gang leader posted a photo himself wearing the YTB chain on social media. As a leader of Wood City, Acevedo was expected to retaliate for the chain-snatching to protect his gang’s reputation. The defendant and other Wood City members drove to Snow Gang territory and spotted a vehicle with the Snow Gang leader who had robbed the chain and other members and associates of Snow Gang. After following that vehicle to the front of a deli in the vicinity of 140th Avenue and Springfield Boulevard, Acevedo pulled alongside the vehicle and fired a dozen shots, killing the driver David Hutchinson.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys James P. McDonald, Kayla C. Bensing, and Benjamin Weintraub are in charge of the prosecution with the assistance of Paralegal Specialist Brittany Wissel.
The Defendant:
CHRISTOPHER ACEVEDO
Age: 28
Jamaica, New YorkE.D.N.Y. Docket No. 21-CR-162 (DG)
Leader of Large-Scale Methamphetamine Distribution Conspiracy Sentenced to 490 Months in PrisonRead the Press Release
LEXINGTON, Ky. — A Lexington man, Craig Dupree Robertson, 34, was sentenced on Monday to 490 months in federal prison, by Chief U.S. District Judge Danny Reeves for his role in a large-scale methamphetamine and fentanyl trafficking conspiracy.
According to court documents, from October 2020 until September 2021, Robertson and his co-defendants conspired to distribute large quantities of methamphetamine and fentanyl in the Eastern District of Kentucky. The defendants maintained “stash” residences, throughout Lexington, to store and distribute the drugs. Law enforcement made multiple controlled buys of methamphetamine and fentanyl from the co-defendants, as well as seizing ounce and pound quantities of the drugs during traffic stops and through search warrants.
On September 23, 2021, law enforcement executed search warrants at several of the “stash” locations. At one such residence, law enforcement agents seized approximately 957 grams of fentanyl, 418 grams of methamphetamine, a money counting machine, two firearms, two digital scales, a metal press used to manufacture controlled substances, vacuum seal bags, and other items pertaining to the manufacturing and distribution of controlled substances. At a second “stash” location, a storage unit, agents seized 15 pounds of methamphetamine. On many of the occasions from October 2020 to August 2021, the defendants would deposit drug proceeds into bank accounts for transfer of those proceeds to other co-conspirators via mobile transfer applications, in order to continue to operate their drug trafficking activities.
Robertson’s co-defendants were sentenced to the following, for their roles in the conspiracy:
- Brenda Nicole Fugate received 165 months;
- Casey Ryan Creech received 180 months;
- Tony Christopher Fugate received 84 months;
- Houston Paul Johnson received 230 months;
- Pamela Smith Baker received 120 months;
- Angela Marie Halsey received 94 months;
- Michael Dustin Johnson received 115 months;
- Patricia Ann Morgan received 96 months;
- Curtis Dewayne Miller received 320 months; and
- Carl Hunt received 188 months.
Under federal law, Robertson and his co-defendants must serve 85 percent of their prison sentences. In addition to their prison sentences, each will be under the supervision of the U.S. Probation Office for five years – with the exception of Morgan, who will be under supervision for three years. Upon his release from prison, Robertson will be under the supervision of the U.S. Probation Office for life.
Carlton S. Shier IV, United States Attorney for the Eastern District of Kentucky; Shawn Morrow, Special Agent in Charge, ATF Louisville Field Division; J. Todd Scott, Special Agent in Charge, DEA Louisville Field Division; Lesley Allison, Special Agent in Charge, United States Postal Inspection Service Pittsburgh Field Division; Commander Kalan Perdue, Gateway High Intensity Drug Trafficking Area (HIDTA); and Chief Lawrence Weathers, Lexington Police Department, jointly announced the sentences.
The investigation was conducted by ATF, DEA, USPIS, and Gateway AHITDA Task Force, with assistance from Lexington Police Department. The United States was represented by Assistant U.S. Attorneys Todd Bradbury and Cynthia Rieker.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
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Las Vegas Man Pleads Guilty to Methamphetamine and Firearms Trafficking ConspiracyRead the Press Release
LAS VEGAS – A Las Vegas man pleaded guilty to conspiring with others to traffick methamphetamine and firearms — including a shotgun and machine guns.
According to court documents, between July 20, 2022 and September 13, 2022, Charles Sanders, also known as “Cheeze,” 37, conspired with others to distribute 50 grams or more of methamphetamine. Over the course of the conspiracy, he sold at least 500 grams, but less than 1.5 kilograms of methamphetamine. Additionally, during this same time period, Sanders sold 25 firearms, including a shotgun and three machine guns.
Sanders pleaded guilty on May 4, 2023, to one count of conspiracy to distribute a controlled substance and one count of trafficking firearms. United States District Judge Andrew P. Gordon scheduled sentencing for August 16, 2023.
Sanders faces the statutory minimum penalty of five years in prison and a maximum penalty of 40 years in prison for conspiracy to distribute a controlled substance; and a statutory maximum penalty of 15 years in prison for trafficking firearms. He also faces a term of supervised release, a fine, and a special assessment.
United States Attorney Jason M. Frierson for the District of Nevada, Acting Special Agent in Charge Joshua Jackson for the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Acting Special Agent in Charge Christopher Miller for Homeland Security Investigations (HSI) made the announcement.
The ATF, HSI, and the Las Vegas Metropolitan Police Department investigated the case. Assistant United States Attorney Kimberly Sokolich prosecuted the case.
This effort was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States, using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
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