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Wednesday 3 May 2023
Parmelee Man Sentenced for Prohibited Person in Possession of a FirearmRead 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 Parmelee, South Dakota, man convicted of being a Prohibited Person in Possession of a Firearm. The sentencing took place on May 2, 2023.
Alun James Guerue, age 27, was sentenced to time served from May 2, 2023, through August 14, 2023, equaling approximately three and half months of custody, followed by three years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100. He was also ordered to forfeit the Glock 19 pistol and ammunition involved in the matter.
Guerue was indicted by a federal grand jury in November of 2021. He pleaded guilty on January 19, 2023.
The conviction stemmed from an incident near Soldier Creek, South Dakota, on February 26, 2021, when a law enforcement officer conducted a traffic stop on a vehicle traveling 83-mph in a 65-mph zone. The driver was identified as Guerue. A search of the vehicle uncovered a Glock 19 pistol, marijuana, and cocaine. The pistol belonged to Guerue, who was an unlawful user of a controlled substance, thus prohibited from possessing any firearms. The pistol had been shipped and transported in interstate commerce and foreign commerce
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Meghan N. Dilges 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.
Guerue was immediately remanded to the custody of the U.S. Marshals Service.
Ohio man sentenced for Wheeling traffic stop that yielded counterfeit fentanyl pills, methamphetamineRead the Press Release
WHEELING, WEST VIRGINIA – A Thornville, Ohio, man was sentenced to 9 years in prison today for having a large amount of methamphetamine on Wheeling Island.
Christopher W. Thomas, 33, pled guilty to a possession charge in May 2022. During a traffic stop of Thomas’s vehicle, officers found 79 grams of methamphetamine and more than 240 grams of fentanyl, some of which was in the form of counterfeit Xanax pills. Thomas also had other items to manufacture the pills, including a metal pill press with hydraulic jack, cutting agents and a portable mixer. Officers also recovered a loaded 9mm pistol, a box of ammunition, and nearly $5,000 cash.
The Marshall County Drug Task Force, a HIDTA-funded initiative; West Virginia State Police; and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
Assistant U.S. Attorney Clayton Reid prosecuted the case on behalf of the government.
U.S. District Judge John Preston Bailey presided.
Norfolk Man Charged with Distributing Fentanyl and “Tranq” Mixture, Known as the Zombie DrugRead the Press Release
NORFOLK, Va. – A federal grand jury indicted a Norfolk man today on charges of conspiracy to distribute and possess with intent to distribute Fentanyl mixed with Xylazine, opening two drug-involved premises, possession with intent to distribute Fentanyl mixed with Xylazine, possession with intent to distribute cocaine, and being a convicted felon in possession of firearms.
According to allegations in the indictment, on or about February 17, 2023, William Griggs, 54, operated two drug-involved houses in the City of Norfolk where he stored and packaged fentanyl mixed with Xylazine for distribution in Norfolk, and stored and packaged cocaine.
Xylazine, also known as “Tranq,” is a powerful sedative that the U.S. Food and Drug Administration (FDA) has approved for veterinary use only. Xylazine and fentanyl drug mixtures place users at a higher risk of suffering a fatal drug poisoning. People who inject drug mixtures containing Xylazine also can develop severe wounds, including necrosis—the rotting of human tissue—that may lead to amputation. The combination is referred to on the street as the “Zombie” drug.
The U.S. Drug Enforcement Administration (DEA) recently issued a public safety alert warning the American public of a sharp increase in the trafficking of Fentanyl mixed with Xylazine and the drug’s deadly effects. The FDA also published an alert to health care providers about the risks to patients exposed to Xylazine in illicit drugs.
If convicted of the allegations, Griggs faces up to life 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; Jarod Forget, Special Agent in Charge for the DEA Washington Division; and Mark Talbot, Chief of Norfolk Police, made the announcement after the grand jury returned an Indictment.
Assistant U.S. Attorney Kevin M. Comstock 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. 2:23-cr-60.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
New Underwood Man Indicted for Child PornographyRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced that a federal grand jury has indicted a New Underwood, South Dakota, man for Receipt of Child Pornography with a Prior Child Pornography Conviction and Possession of Child Pornography with a Prior Child Pornography Conviction.
Kent Joy, age 47, was indicted in March of 2023. He appeared before U.S. Magistrate Judge Daneta L. Wollmann on April 28, 2023, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is a mandatory minimum of 10 years in federal prison, up to 20 years and/or a $250,000 fine, a mandatory minimum of five years of supervised release, and $100 to the Federal Crime Victims Fund for each count. Restitution may also be ordered.
The charges relate to Joy, a person previously convicted for a child pornography offense, knowingly receiving and possessing child pornography between April 18, 2018, and September 19, 2022.
The charges are merely accusations and Joy is presumed innocent until and unless proven guilty.
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 investigation is being conducted by the South Dakota Division of Criminal Investigation, South Dakota Internet Crimes Against Children Task Force, and Homeland Security Investigations. Assistant U.S. Attorney Kelsey Blair is prosecuting the case.
Joy was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for June 27, 2023.
Network of Transnational Fraudsters Indicted for Racketeering in Scheme to Steal Millions from American Consumers’ Bank AccountsRead the Press Release
A federal grand jury in Los Angeles has returned an indictment charging 14 defendants for their participation in a years-long scheme to steal millions of dollars from American consumers’ bank accounts, the Justice Department announced today.
According to court documents, Edward Courdy, 73, of Hawaiian Gardens, California; Linden Fellerman, 67, of Las Vegas; Guy Benoit, 68, of Cyprus; Steven Kennedy, 54, of Canada; Sayyid Quadri, of Canada; Ahmad Shoaib, 63, of Canada; John Beebe, 52, of Honolulu; Michael Young, 41, of Hollywood, Florida; Lance Johnson, 52, of Laveen, Arizona; Jenny Sullivan, 46, of Denver; Veronica Crosswell, 35, of Long Beach, California; Eric Bauer, 65, of Huntington Beach, California; Randy Grabeel, 71, of Pittsburg, California; and Debra Vogel, 68, of Las Vegas, were members and associates of a racketeering enterprise that unlawfully debited money from the bank accounts of unknowing U.S. consumer-victims.
Through various members and associates, the enterprise obtained identifying and banking information for victims, and created shell entities that claimed to offer products or services, such as cloud storage. The enterprise then executed unauthorized debits against victims’ bank accounts, which it falsely represented to banks were authorized by the victims. Some of the unauthorized debits resulted in returned transactions, which generated high return rates. To both conceal and continue conducting unauthorized debits, the enterprise’s shell entities also generated “micro debits” against other bank accounts controlled and funded by or for the enterprise. The micro debits artificially lowered shell entities’ return rates to levels that conspirators believed would reduce bank scrutiny and lessen potential negative impact on the enterprise’s banking relations.
Co-conspirator Harold Sobel was previously convicted for his role in the scheme in Las Vegas federal court and sentenced to 42 months in prison. In a related civil case also filed in Los Angeles federal court, injunctive relief and settlements totaling nearly $5 million were obtained against various persons, including several who are charged in this criminal indictment.
“The scheme alleged in the indictment involved an elaborate plot to reach into consumers’ bank accounts and steal their hard-earned savings,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Department of Justice will use all of the tools at its disposal to prosecute such schemes.”
“This sophisticated scheme allegedly generated millions of dollars in revenue by stealing consumers’ personal information and then using that information to fraudulently reach straight into the bank accounts of thousands of Americans,” said U.S. Attorney Martin Estrada for the Central District of California. “The indictment alleges that an international network of fraudsters engaged in a wide-ranging ring which sought to victimize consumers while concealing their activities from banks and law enforcement authorities. Thanks to law enforcement, the defendants’ alleged efforts to continue this scheme have failed.”
“The U.S. Postal Inspection Service (USPIS) is committed to protecting the U.S. Postal Service and its customers, the American people,” said Inspector in Charge Eric Shen of the USPIS Criminal Investigations Group. “This case is illustrative of our efforts to protect American consumers from a sophisticated fraud scheme that cost American consumers millions of dollars. Postal Inspectors are proud to partner with the Department of Justice to put a stop to these types of schemes.”
Courdy, Fellerman, Benoit, Kennedy, Quadri, Shoaib, Beebe, Young, Johnson, Sullivan, Crosswell, and Bauer are charged with racketeering conspiracy and wire fraud; Grabeel and Vogel are charged with racketeering conspiracy. Some defendants made their initial court appearances yesterday. If convicted, each defendant faces a maximum penalty of 20 years in prison for racketeering conspiracy and, if applicable, 30 years in prison for each count of wire fraud. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The department urges individuals to be on the lookout for unauthorized debits to their accounts. Regularly check your bank, credit card, and other financial statements and contact your financial institution if you see a charge you do not recognize. Report any fraudulent debit you identify to law enforcement. Reports may be filed with the FTC at https://reportfraud.ftc.gov or at 877-FTC-HELP.
The USPIS is investigating the case.
Trial Attorneys Wei Xiang, Meredith Healy, and Amy Kaplan of the Justice Department’s Consumer Protection Branch and Assistant U.S. Attorney Monica Tait for the Central District of California are prosecuting the case. The U.S. Attorney’s Office for the Southern District of Texas provided substantial assistance.
The Consumer Protection Branch, in conjunction with the USPIS, is pursing wrongdoers who disguise the unlawful nature of business activities by, among other methods, artificially lowering financial account return rates. These tactics are designed to deceive banks, resulting in bank accounts remaining open and facilitating fraud schemes and other illegal activities, including schemes that debit consumers’ bank accounts without authorization, tech support scams, and subscription traps.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Network of Transnational Fraudsters Charged in Racketeering Scheme to Steal Millions from American Consumers’ Bank AccountsRead the Press Release
LOS ANGELES – Authorities have arrested five defendants – including several Southern California residents – for their alleged participation in a years-long scheme to steal millions of dollars from American consumers’ bank accounts, the Justice Department announced today.
The arrests follow a federal grand jury last week returning a seven-count indictment that charges a total of 14 defendants with conspiracy to violate the Racketeer Influenced and Corrupt Organizations (RICO) Act.
According to the indictment, various members and associates of the alleged criminal enterprise created shell entities that claimed to offer products or services, such as cloud storage. Then, after obtaining identifying and banking information for victims, the enterprise allegedly executed unauthorized debits against victims’ bank accounts, which it falsely represented to banks were authorized by the victims.
Because some of the unauthorized debits resulted in returned transactions – which generated high return rates and could raise red flags at financial institutions – the indictment alleges the enterprise’s shell entities also generated “micro debits” against other bank accounts controlled by the enterprise. The micro debits allegedly artificially lowered shell entities’ return rates to levels that conspirators believed would reduce bank scrutiny and lessen potential negative impact on the enterprise’s banking relations.
The five defendants arrested Tuesday are:
- Edward Courdy, 73, of Hawaiian Gardens;
- Eric Bauer, 65, of Huntington Beach;
- Veronica Crosswell, 35, of Long Beach;
- Jenny Sullivan, 46, of Denver; and
- John Beebe, 52, of Honolulu;
Defendant Linden Fellerman, 67, of Las Vegas, has agreed to surrender himself on Friday, May 5, 2023 to authorities in Los Angeles.
Three other defendants have been summoned to appear in United States District Court in Los Angeles on May 24. Those defendants are:
- Michael Young, 41, of Hollywood, Florida;
- Randy Grabeel, 71, of Pittsburg, California; and
- Debra Vogel, 68, of Las Vegas.
Seven other defendants are currently fugitives being sought by federal authorities. They are:
- Guy Benoit, 68, a resident of Canada and Cyprus;
- Steven Kennedy, 54, of Canada;
- Sayyid Quadri of Canada;
- Ahmad Shoaib, 63, of Canada; and
- Lance Johnson, 52, of Laveen, Arizona;
In addition to the RICO offense alleged in the indictment, all of the defendants – except Grabeel and Vogel – are charged with at least one count of wire fraud.
Harold Sobel previously was convicted for his role in the scheme in Las Vegas federal court and sentenced to 3½ years in prison. In a related civil case also filed in Los Angeles federal court, injunctive relief and settlements totaling nearly $5 million were obtained against various persons, including several who are charged in this criminal indictment.
“This sophisticated scheme allegedly generated millions of dollars in revenue by using consumers’ personal information to fraudulently reach straight into the bank accounts of thousands of Americans,” said United States Attorney Martin Estrada. “The indictment alleges that an international network of fraudsters engaged in a wide-ranging scheme which sought to victimize consumers while concealing their activities from banks and law enforcement authorities. Thanks to law enforcement, the defendants’ alleged efforts to continue this scheme have failed.”
“The scheme alleged in the indictment involved an elaborate plot to reach into consumers’ bank accounts and steal their hard-earned savings,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Department of Justice will use all of the tools at its disposal to prosecute such schemes.”
An indictment contains allegations that a defendant committed a crime. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Some defendants made their initial court appearances yesterday. If convicted, each defendant faces a maximum penalty of 20 years in prison for racketeering conspiracy and, if applicable, 30 years in prison for each count of wire fraud.
The U.S. Postal Inspection Service is investigating the case.
Assistant United States Attorney Monica Tait of the Major Frauds Section, and Trial Attorneys Wei Xiang, Meredith Healy and Amy Kaplan of the Justice Department’s Consumer Protection Branch are prosecuting the case. The United States Attorney’s Office for the Southern District of Texas provided substantial assistance.
The Department of Justice urges individuals to be on the lookout for unauthorized debits to their accounts. Regularly check your bank, credit card, and other financial statements and contact your financial institution if you see a charge you do not recognize. Report any fraudulent debit you identify to law enforcement. Reports may be filed with the FTC at https://reportfraud.ftc.gov -- or at 877-FTC-HELP.
The Consumer Protection Branch, in conjunction with the U.S. Postal Inspection Service, is pursing wrongdoers who disguise the unlawful nature of business activities by, among other methods, artificially lowering financial account return rates. These tactics are designed to deceive banks, resulting in bank accounts remaining open and facilitating fraud schemes and other illegal activities, including schemes that debit consumers’ bank accounts without authorization, tech support scams, and subscription traps.
NYPD Officer Convicted of Possession and Attempted Receipt of Child Pornography and Sexual Exploitation of MinorsRead the Press Release
Timothy Martinez was convicted today by a federal jury in Brooklyn of all four counts of a superseding indictment charging him with attempted receipt of child pornography, possession of child pornography, and two counts of sexual exploitation and attempted sexual exploitation of a minor. The verdict followed a one-week trial before United States District Judge Frederic Block. Martinez is employed as a police officer by the New York City Police Department, and immediately prior to his arrest, was on active duty in the U.S. Army Reserve. When sentenced, Martinez faces a mandatory minimum of 15 years in prison.
Breon Peace, United States Attorney for the Eastern District of New York, Ivan J. Arvelo, Special Agent-in-Charge, Homeland Security Investigations, New York, and Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), announced the verdict.
“The jury found that the defendant not only violated the trust of the public that he was sworn to serve but specifically victimized vulnerable children for years. Instead of using his position as a member of the NYPD to protect children, he shamefully gained the trust of minors in order to sexually exploit them,” stated United States Attorney Peace. “Protecting children from sexual exploitation will always be a priority of this Office. I commend the prosecutors and investigators for their outstanding work removing this predator from patrolling the streets and from our district.”
“When he swore his oath as a police officer, Timothy Martinez was entrusted to enforce the law and protect the innocent. Instead of upholding his oath, Martinez preyed on the young, turning innocent children into victims,” said HSI New York Special Agent-in-Charge Ivan J. Arvelo. “Our elation at this verdict is tempered by the pain and suffering these young victims endured as a result of this predator’s criminal actions. Those in positions of public trust are held to a higher standard as guardians of the innocent and HSI New York will continue to utilize every resource at our disposal to protect children from those who seek to do them harm.”
“Our police officers have a sworn duty to protect, but this defendant betrayed that oath and preyed upon some of the most at-risk members of our community,” stated NYPD Commissioner Sewell. “Such reprehensible behavior is wholly unacceptable of anyone, especially a member of law enforcement. I commend and thank Homeland Security Investigations and the U.S. Attorney for the Eastern District of New York for their important work on this case.”
As proven at trial, between October 2016 and March 2017, Martinez engaged in live video sex chats with Jane Doe #1, who had been treated for a brain tumor, and he convinced her to perform sexual acts. Additionally, between September 3, 2012 and November 2016, the defendant engaged in live video sex chats with Jane Doe #2 and he similarly convinced her to show him her nude body and engage in sex acts even after she disclosed that she had been sexually abused by family members. Martinez also possessed hundreds of images of child pornography. In June 2018, the defendant attempted to receive numerous videos of child pornography from an individual he believed to be a minor.
This prosecution is 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 United States Attorneys’ Offices and the Department of Justice 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.projectsafechildhood.gov
The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorneys William P. Campos, Marietou Diouf, and Chand W. Edwards-Balfour are in charge of the prosecution with the assistance of Paralegal Specialist Allison Henry.
The Defendant:
TIMOTHY MARTINEZ
Age: 43
Staten Island, New YorkE.D.N.Y. Docket No. 20-CR-98 (S-2) (FB)
Muncie Pedophile Sentenced to 14 Years in Federal Prison for Distribution of Child Sexual Abuse Material via KikRead the Press Release
INDIANAPOLIS- Benjamin Covey, 43, of Eaton, Indiana was sentenced to 14 years in federal prison for distribution of child sexual abuse material.
According to court documents, on January 28, 2022, the Muncie Police Department (MPD) received an FBI tip stating that images depicting child sexual abuse had been uploaded to the instant messaging application, Kik, by username “BosJangles.” The username belonged to Benjamin Covey. That same day, it was also discovered that Covey had been accused of allowing juveniles to drink and showing them sexually explicit materials.
Investigators with the MPD contacted Covey, who agreed to an interview. Covey confirmed he used the Kik account “BosJangles” to join a group chat called “pedo for kids.” Investigators searched Covey’s cellphone and uncovered 600 images depicting child sexual abuse material. Many of the images depicted prepubescent boys being made to engage in sex acts. At least one of the images depicted an adult engaged in a sex act with a toddler.
“This dangerous criminal used Kik to find other pedophiles and share the horrific abuse of the most vulnerable victims,” said Zachary A. Myers, United States Attorney for the Southern District of Indiana. “Those who gather online to revel in the exploitation of children will be identified and prosecuted. I am grateful to the FBI and the Muncie Police Department for work to ensure that this defendant will serve a significant prison sentence, where out children will be out of his reach.”
“The distribution of child sexual abuse material over any platform is not a harmless, victimless crime, but one that continues to traumatize these children every time it is viewed,” said FBI Indianapolis Special Agent in Charge Herbert J. Stapleton. “The most vulnerable in our society deserve all the protection we can provide, and the FBI and our partners are committed to unmasking these predators and holding them accountable.”
The FBI investigated this case with valuable assistance provided by the Muncie Police Department. The sentence was imposed by Chief U.S. District Court Judge, Tanya Walton Pratt. Judge Pratt also ordered that Covey be supervised by the U.S. Probation Office for 10 years following his release from federal prison. Covey must also register as a sex offender wherever he lives, works, or goes to school, as required by law.
U.S. Attorney Myers thanked Assistant United States Attorney Lawrence D. Hilton, who prosecuted this 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. 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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Middlesex County Man Sentenced to 97 Months in Prison for Perpetrating Murder-for-Hire PlotRead the Press Release
NEWARK, N.J. – A Middlesex County man was sentenced to 97 months in prison for plotting to pay a purported hitman to kill his ex-wife and her daughter, U.S. Attorney Philip R. Sellinger announced today.
Michael Stewart, 69, of Monroe Township, New Jersey, previously pleaded guilty before U.S. District Judge Julien Xavier Neals to an information charging him with one count of the use of interstate commerce facilities in the commission of a murder for hire. Judge Neals imposed the sentence on May 2, 2023, in Newark federal court.
According to documents filed in this case and statements made in court:
In the summer of 2021, Stewart and a confidential source discussed the murder of Stewart’s ex-wife and her daughter. Stewart indicated he would pay for the murders and asked the confidential source to find a hitman. In October 2021, Stewart met with an undercover agent – whom he believed to be a hitman – and told him he wanted the ex-wife’s daughter killed first, followed by the ex-wife. He told the undercover agent he would pay for the killings and provided him with names, addresses, layout of the victims’ property and types of cars used by the victims. Stewart also showed the undercover agent a photo of his ex-wife. He provided the undercover agent $500 as a partial payment.
In addition to the prison term, Judge Neals sentenced Stewart to three years of supervised release.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the sentencing.
The government is represented by Assistant U.S. Attorney Olta Bejleri of the Organized Crime/Gangs Unit in Newark.
Mexican Citizen Sentenced to 158 Months in Federal Prison for Illegal Reentry into the United StatesRead the Press Release
LITTLE ROCK— A Mexican citizen who returned to the United States after being previously deported was sentenced to serve 13 years and 2 months in federal prison for illegal reentry. Wednesday afternoon, United States District Judge Brian S. Miller sentenced Cristobal Palomerez-Heredia, 45, of Mexico, to 158 months’ imprisonment.
On March 18, 2020, officers with the Star City Police Department responded to a shots-fired call. When officers arrived, they found Palomerez-Heredia pacing back and forth, appearing aggressive and agitated. While trying to detain Palomerez-Heredia, he charged the officer, punching, scratching, and headbutting the officer multiple times causing injuries to the officer’s mouth, jaw, forearm, and hand. Palomerez-Heredia was eventually subdued and taken into custody.
On September 2, 2021, Palomerez-Heredia was indicted by a federal grand jury and charged with illegal reentry. Palomerez-Heredia had been previously deported to Mexico in September 2012.
On September 22, 2021, officers with the Star City Police Department again responded to a shooting call. When officers arrived at the residence, Palomerez-Heredia began shooting at them from his front door. Officers took protective positions as Palomerez-Heredia continued to fire rounds at them. After backup arrived, officers were able to take Palomerez-Heredia into custody. During the execution of a search warrant at the residence, officers located a loaded .22 caliber rifle with a scope, 24 spent .22 shell casings, and an additional loaded magazine. On that same day, agents with the Department of Homeland Security-Immigration and Customs Enforcement (DHS-ICE) positively identified Palomerez-Heredia and arrested him on a federal warrant.
Palomerez-Heredia has prior federal criminal convictions for illegal alien in possession of a firearm (2006) and deported alien found in the United States (2011). Palomerez-Heredia received a 12-year sentence for attempted murder in the Circuit Court of Lincoln County, Arkansas, stemming from the shootout on September 22, 2021.
In addition to the 158-month prison sentence, which Judge Miller ordered to run consecutive to Palomerez-Heredia’s 12-year sentence for attempted murder, Judge Miller sentenced Palomerez-Heredia to serve three years of supervised release following imprisonment. The only condition of Palomerez-Heredia’s supervised release is that he not return to the United States after deportation. The case was investigated by the Star City Police Department and Officer Charles Davis with DHS-ICE; the case was prosecuted by Assistant United States Attorney Jordan Crews.
# # #
This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Member of U.S. Attorney’s Office Receives Director’s AwardRead the Press Release
NEWARK, N.J. – Caroline Sadlowski, Counsel to the U.S. Attorney for the District of New Jersey, was recognized by Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson at the 38th annual Director’s Awards Ceremony today in Washington, D.C.
At the ceremony, which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building, Ms. Sadlowski was honored with the Executive Achievement Award, which recognizes someone who has made significant contributions toward improving the efficiency, effectiveness, and productivity of the office through personal initiative, innovation, leadership, and creativity.
“Caroline Sadlowski is a remarkable leader, advisor, and advocate, who works tirelessly to support the office’s mission and employees,” U.S. Attorney Philip R. Sellinger said. “I am proud to congratulate Caroline on receiving a Director’s Award that recognizes her significant contributions to the office and the people of New Jersey. Every organization has a few cornerstone people who are depended upon by everyone. For the U.S. Attorney’s Office for the District of New Jersey, Caroline Sadlowski is one of those people.”
Ms. Sadlowski has been with the U.S. Attorney’s Office for the District of New Jersey for 19 years, has served in leadership positions in both the Appeals and Civil Divisions, and served in the front office as Counsel since 2018. Ms. Sadlowski advises the U.S. Attorney and other office supervisors on case-related decisions, bringing her tremendous insight and sound judgment to the office’s criminal, civil, and appellate matters based on her near two-decades of experience. She serves as one of the office’s ethics officers, providing ethics training to all supervisors and ethics advice to the U.S. Attorney on a wide array of issues. Ms. Sadlowski also oversees the office’s administrative division, particularly focusing on human resource and budget issues, and leads the office’s participation in the District’s Reentry Court and Pretrial Opportunity Program, two nationally recognized programs that focus on helping those enmeshed in the criminal justice system.
Member of Conspiracy to Illegally Export Firearms, Ammunition and Military-Type Items to Assist Separatists Fighting Against the Government of Cameroon Sentenced to 46 Months in Federal PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Godlove Nche Manchoe, age 44, of Bowie, Maryland, yesterday to 46 months in federal prison, followed by two years of supervised release, for conspiracy, and for illegally exporting firearms and ammunition from the United States to Nigeria without obtaining the required licenses from the U.S. State Department. According to trial testimony and court documents, the purpose of the conspiracy was to assist separatists fighting against the government of Cameroon.
The sentence was announced by Erek L. Barron, United States Attorney for the District of Maryland; Special Agent in Charge James C. Harris of Homeland Security Investigations (“HSI”) Baltimore; Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”) Baltimore Field Division; and Special Agent in Charge Christopher Dillard of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (“DCIS”) - Mid-Atlantic Field Office.
According to his plea agreement, from at least November 2017 until July 19, 2019, Manchoe and his co-conspirators agreed to export firearms, ammunition and other military-type items in violation of the federal smuggling statute, the Arms Export Control Act and other export laws. Manchoe participated in meetings of the conspirators, both online and in person, including in the basement of co-conspirator Tamufor St. Michael’s residence, where the conspirators, including Manchoe, also reloaded ammunition, assembled firearms, and wrapped various items for overseas shipment. Manchoe also donated and forwarded funds received from other co-conspirators to St. Michael, to be used towards the purchase of ammunition and/or weapons in furtherance of the conspiracy.
As detailed in his plea agreement, in December 2018, a shipping container, with a 1989 Toyota truck inside, was delivered to the street outside St. Michael’s residence for the conspirators to use to export the firearms, ammunition and other items. St. Michael and other co-conspirators then loaded the container, secreting weapons, ammunition and other military-type items inside the truck and multiple compressors. The container was sent to the Port of Baltimore for export, departing on January 17, 2019, with a destination of Onne, Nigeria. The conspirators caused the electronic export information (“EEI”) to be filed with the Department of Commerce listing the contents of the container as one Toyota Tundra truck, one 1989 Toyota truck, and “doors and frames.” The EEI also listed the U.S. Principal Party in Interest as an individual with the initials M.A.O. and a non-existent address. The telephone number listed for M.A.O. corresponded with a pre-paid cellular telephone.
Approximately one month later, the shipping container was ordered returned to the Port of Baltimore and on May 20, 2019, law enforcement personnel in Baltimore unsealed the container and examined its contents. In addition to the trucks and what appeared to be the contents of an old schoolhouse, the conspirators had concealed firearms, ammunition, rifle scopes, and other items in duffle bags placed in the trucks and in heavily wrapped packages inside sealed compressor units, in the shipping container. In all, law enforcement recovered from the shipping container 38 firearms, 28 of which had obliterated serial numbers. The guns included sniper rifles, SKS assault rifles (some with bayonets), other rifles and several handguns. There were 44 high-capacity magazines, two rifle scopes and over 35,000 rounds of ammunition, as well as military-type items, including boots, pepper spray, zip-tie style handcuffs, hydration packs, and other items.
Six other members of the conspiracy pleaded guilty to their involvement in the conspiracy. In April, Judge Bennett sentenced Tse Ernst Bangarie and Edith Ngang each to 46 months of incarceration and an additional three are awaiting are awaiting sentencing. A jury convicted three other members for the conspiracy, transportation of firearms with obliterated serial numbers, and smuggling following a jury trial in May 2022. Judge Bennett has sentenced two of those individuals, Eric Fru Nji and Wilson Nuyila Tita, to 63 months of incarceration and the third, Wilson Che Fonguh, is awaiting sentencing.
United States Attorney Erek L. Barron commended HSI, the ATF and DCIS for their work in the investigation. Mr. Barron recognized the U.S. Department of Commerce, Office of Export Enforcement; the U.S. Department of State, Diplomatic Security Service; the Naval Criminal Investigative Service; and the U.S. Postal Inspection Service for their contributions to the investigation. U.S. Attorney Barron thanked Assistant U.S. Attorney Kathleen O. Gavin, who is prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/community-outreach.
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Marrero Man Federally Indicted for Illegal Weapon PossessionRead the Press Release
NEW ORLEANS, LOUISIANA – RASHEED SMITH, age 32, a resident of Marrero, Louisiana, was indicted on April 28, 2023 for illegal possession of a firearm, announced U.S. Attorney Duane A. Evans.
If convicted, SMITH faces a maximum term of imprisonment of 15 years, up to a $250,000 fine, up to 3 years of supervised release, and a mandatory special assessment fee of $100.
U. S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the federal Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Jefferson Parish Sheriff’s Office. Assistant United States Attorney Greg Kennedy of the Violent Crimes Unit is in charge of the prosecution.
Man Sentenced to Three Years in Federal Prison for Stealing over $197,000 in Coronavirus Aid and Relief Funds from Four StatesRead the Press Release
INDIANAPOLIS- Daniel Jibunor, 31, of Nigeria, has been sentenced to 3 years in federal prison after pleading guilty to aggravated identity theft and wire fraud for his role in stealing over $197,000 in unemployment insurance funds the provided by the 2020 Federal Coronavirus Aid, Relief and Economic Security (CARES) Act.
According to court documents, on September 11, 2020, Jibunor used a fake debit card under a fake name to try to purchase $1,850 in Western Union money orders at a Kroger in Bloomington, Indiana. When a Kroger employee asked to see the bank card, Jibunor attempted to give her a different bank card in his own name. Bloomington Police Department officers were called to the scene. During their investigation, officers searched Jibunor’s person and vehicle and located two fraudulently obtained unemployment insurance debit cards, two fake debit cards, a GoBank Green Dot card, approximately $12,980 in cash, and 21 money orders totaling $19,540.
The unemployment insurance debit cards Jibunor in the names of real people, including at least ten victims whose stolen identities were used to file fraudulent unemployment claims. Jibunor used the cards to purchase money orders from various businesses, including Kroger, Walmart, and the U.S. Post Office, and to make ATM withdrawals.
During an interview with investigators, Jibunor admitted to using unemployment debit cards to obtain money orders for another individual he would not identify. Jibunor possessed payment cards loaded with approximately $161,511 in unemployment insurance funds stolen from California and Nevada. In addition, the GoBank Green Dot card was loaded with unemployment insurance funds stolen from the programs in Arizona and Illinois, as well as $36,102 in fraud proceeds associated with an Economic Injury Disaster Loan.
In sum, Jibunor’ s criminal conduct resulted in at least $197,613 in actual losses to unemployment offices in California, Arizona, Nevada, and Illinois as well as the federal government.
“At the height of the global pandemic, this defendant decided to steal emergency funds intended to be a vital lifeline for families in need,” said Zachary A. Myers, U.S. Attorney for the Southern District of Indiana. “Stealing identities and relief money during a disaster is a despicable crime that merits serious punishment. The federal prison sentence imposed today demonstrates that the U.S. Attorney’s Office and our law enforcement partners are committed to finding the criminals who have defrauded COVID-19 emergency response programs and holding them accountable.”
“Daniel Jibunor defrauded the state workforce agencies of Arizona, California, Illinois, and Nevada by participating in a conspiracy to file fraudulent unemployment insurance (UI) claims in the names of identity theft victims. Jibunor stole benefits intended to assist those who became unemployed due to the COVID-19 pandemic. We will continue working with our law enforcement partners to protect the integrity of the UI system from those who exploit these benefit programs,” said Irene Lindow, Special Agent in Charge, Great Lakes Region, U.S. Department of Labor, Office of Inspector General.
“Those who profit off programs meant to help others in need is unacceptable. This sentence illustrates the FBI’s commitment to combating unemployment fraud,” said FBI Indianapolis Acting Special Agent in Charge Robert “Alex” Middleton. “Along with our law enforcement partners, we will continue to aggressively identify and pursue fraudsters who steal money and hold them accountable.”
This case was investigated by the Federal Bureau of Investigation, the United States Department of Labor Office of Inspector General, and the Bloomington Police Department. The sentence was imposed by U.S. District Court Judge Jane Magnus-Stinson. Judge Stinson also ordered that Jibunor pay $197,613 in restitution and be supervised by the U.S. Probation Office for 1 year following his release from federal prison.
U.S. Attorney Myers thanked Assistant United States Attorney Kyle M. Sawa, who prosecuted this case.
On May 17, 2021, the Attorney General established the COVID‑19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID‑19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form
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Long Island Man Pleads Guilty to Bribing Federal Official to Obtain Nearly $1 Million in Federal ContractsRead the Press Release
Earlier today, in federal court in Central Islip, Michael Montenes, the owner of M.S. Hi-Tech, Incorporated (MSHT), a Hauppauge-based distributor of electronic components, pleaded guilty to a criminal information charging him with bribery of a federal official in connection with a scheme to pay more than $18,000 to a Department of Energy (DOE) Procurement Officer in exchange for approximately $969,000 in DOE contracts. The proceeding was held before United States Magistrate Judge Steven L. Tiscione. When sentenced, Montenes faces up to 15 years in prison. As part of his guilty plea, Montenes agreed to forfeit approximately $969,000 and to pay DOE more than $1.8 million in restitution.
Breon Peace, United States Attorney for the Eastern District of New York, and Teri L. Donaldson, Department of Energy Inspector General, announced the guilty plea.
“Like the faulty components that he bribed a government official to purchase and caused damage to a Department of Energy laboratory, Montenes’s scheme has gone down in flames and he must now face the consequences for his crime,” stated United States Attorney Peace. “This Office will continue to root out corruption that undermines the integrity of competitive bidding in the procurement process.”
Mr. Peace thanked the U.S. Department of Defense, Defense Criminal Investigative Service, for its work on the case.
“The Department of Energy, Office of Inspector General will continue to ensure that there is no place in our supply chain for bribery and corrupt schemes,” said Department of Energy Inspector General Teri L. Donaldson. “Anyone who suspects such conduct is encouraged to report it immediately. We appreciate the fine work of the U.S. Attorney’s Office and our federal law enforcement partners on this joint investigation.”
Between approximately December 2017 and December 2020, Montenes paid a Procurement Officer (Co-conspirator 1), who was employed at a DOE laboratory in Virginia approximately $18,800 in bribes to induce Co-conspirator 1 to enter into contracts for electronic components that MSHT, supplied to the DOE’s Virginia laboratory. Montenes mailed these payments, which ranged from $500 to $7,200, from Long Island to Co-conspirator 1 in Virginia. During the bribery scheme, Co-conspirator 1 awarded contracts worth more than $969,000 to MSHT, which represented 95% of all of MSHT’s sales to the DOE’s Virginia laboratory. In July 2021, some of the electronic components that MSHT sold to DOE based upon Montenes’s bribes failed and caused a fire, resulting in approximately $1.8 million in repairs and other costs to DOE.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Bradley T. King is in charge of the prosecution.
The Defendants:
Michael Montenes
Age: 61
St. James, New YorkE.D.N.Y. Docket No. 23-CR-124 (JS)
Kanawha County Woman Sentenced to Prison for Federal Fraud CrimesRead the Press Release
CHARLESTON, W.Va. – Karen L. Hodges, also known as “Karen Igo,” “Karen Clay,” “Karen Richmond,” and “Karen Gessel,” 49, of St. Albans, was sentenced today to one year and four months in prison, to be followed by three years of supervised release, for three counts of securities fraud. Hodges must also pay $38,570.78 in restitution.
According to court documents and statements made in court, Hodges admitted to having counterfeit checks created so they appeared to be payroll checks issued by Kroger. Between October 20, 2018, and December 19, 2018, Hodges presented and cashed three counterfeit payroll checks totaling $2,461.96 at Kroger locations within the Southern District of West Virginia. Hodges admitted that she has never worked for Kroger, and knew that she was deceiving Kroger into giving her cash based on these counterfeit payroll checks.
Hodges further admitted to presenting and uttering numerous other counterfeit checks totaling $37,587.66 during the same time period at Kroger locations within the Southern District of West Virginia, as well as the Northern District of West Virginia, Indiana, Kentucky, Ohio and Virginia. Hodges also admitted to cashing two legitimate checks in her father’s name totaling $983.12 without his authorization at Kroger locations within the Southern District of West Virginia.
United States Attorney Will Thompson made the announcement and commended the investigative work of the United States Secret Service.
Senior United States District Judge John T. Copenhaver, Jr. imposed the sentence. Assistant United States Attorneys Kristin F. Scott and Ryan A. Keefe prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-223.
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Kanawha County Man Sentenced to Prison for Federal Gun CrimeRead the Press Release
CHARLESTON, W.Va. – Charles Ryan Tucker, 45, of Mammoth, was sentenced today to two years and six months in prison, to be followed by two years of supervised release, for being a felon in possession of a firearm.
According to court documents and statements made in court, on January 13, 2022, law enforcement officers attempted to arrest Tucker on a state warrant in Cedar Grove and he fled on foot. Tucker was caught and while resisting arrest told the officers he possessed a firearm. Officers found a loaded Smith & Wesson M&P Shield 9mm pistol holstered on Tucker’s belt and concealed beneath his clothing.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Tucker was prohibited from possessing a firearm because of his prior felony convictions for breaking and entering on May 3, 2021, and grand larceny on January 26, 2015, both in Kanawha County Circuit Court.
United States Attorney Will Thompson made the announcement and commended the investigative work of the United States Marshals Service and the Cops United Felony Fugitive Enforcement Division (CUFFED) Task Force.
United States District Judge Joseph R. Goodwin imposed the sentence. Assistant United States Attorneys Timothy D. Boggess and Negar M. Kordestani prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-17.
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Justice Department’s Office on Violence Against Women Publishes Regulation Governing Special Tribal Criminal Jurisdiction Reimbursement ProgramRead the Press Release
The Justice Department’s Office on Violence Against Women (OVW) published a regulation governing the Special Tribal Criminal Jurisdiction (STCJ) Reimbursement Program, a new program authorized under the Violence Against Women Act Reauthorization Act of 2022 (VAWA 2022) to reimburse Tribal governments for expenses incurred in exercising STCJ over non-Native individuals who commit certain covered crimes on Tribal lands. VAWA 2013 included a historic provision recognizing Tribes’ authority to exercise STCJ over non-Indian offenders who committed domestic violence or dating violence or violated certain protection orders in Indian country. Last year’s VAWA reauthorization built on the success of VAWA 2013 by expanding the covered crimes under STCJ, enabling Tribes to hold accountable non-Native perpetrators of sexual violence, sex trafficking, stalking, child violence, assault of Tribal justice personnel and obstruction of justice.
“Tribes know best what their communities need, so I encourage tribal leaders, community members, and survivors to review this regulation for the Tribal Jurisdiction Reimbursement Program – it is critical that programs serving Tribal communities are informed by tribal voices,” said OVW Acting Director Allison Randall. “We are dedicated to removing barriers to access, and it is a victory that VAWA 2022 allows us to continue the Tribal Jurisdiction Program as well as reimburse expenses incurred as a result of implementation.”
OVW published the regulation on April 11. The regulation is available at Regulations.gov and the public is able to review the rule and submit comments no later than June 12. This regulation is an interim final rule, which means that it takes effect on the day of publication. OVW will take into consideration the comments received during the 60-day comment period as well as Tribes’ reaction to the implementation of the first year of the program before issuing a final rule.
Federally recognized Tribes that exercise STCJ are eligible for reimbursement funding under the STCJ Reimbursement Program. For Fiscal Year 2023, the combined appropriation for this program and the STCJ Grant Program is $11 million. Of that amount, OVW may allocate up to $4.4 million for the STCJ Reimbursement Program. Through this program, and as outlined in the interim final rule, Tribes may receive reimbursement for costs that are associated with exercising STCJ, such as law enforcement expenses, incarceration expenses, offender medical and dental expenses not otherwise covered by insurance, prosecution expenses, and defense counsel expenses. During the first quarter of Fiscal Year 2024, OVW plans to post a Notice of Reimbursement Opportunity on justice.gov/ovw with instructions on how to apply for the maximum allowable reimbursement. Later in calendar year 2024, OVW plans to provide instructions on how to apply for waivers of the annual maximum.
OVW administers grant programs designed to develop the nation’s capacity to reduce sexual assault, domestic and dating violence, and stalking, and tribal entities are generally eligible to apply for any OVW grant program where a comparable non-Tribal entity is eligible. OVW’s Tribal Affairs Division manages grant programs that are specifically targeted to Native American populations and tribes including the aforementioned STCJ Grant Program, Tribal Governments Program, Tribal Coalitions Program and Tribal Sexual Assault Services Program.
Recently, OVW announced that the 18th Annual Government-to-Government Violence Against Women Tribal Consultation will be held Aug. 8-10, 2023, in Tulsa, Oklahoma, to solicit recommendations from Tribal leaders on: administering Tribal funds and programs; enhancing the safety of Indian women from domestic violence, dating violence, sexual assault, homicide, stalking, and sex trafficking; strengthening the federal response to such crimes; and improving access to local, regional, state, and federal crime information databases and criminal justice information systems. Additional information is available at www.ovwconsultation.org. A report of proceedings from last year’s consultation is available on OVW’s website.
Justice Department Resolves Sexual Harassment Lawsuit Against Massachusetts LandlordRead the Press Release
The Justice Department announced today that it has secured a $450,000 settlement resolving allegations that Salazar Dos Santos, a Chicopee, Massachusetts, landlord, violated the Fair Housing Act by sexually harassing female tenants for at least 11 years. The settlement also resolves claims against the Trusts of Salazar Dos Santos and America Dos Santos, which held the properties where the harassment occurred.
The Justice Department’s lawsuit, filed in 2019, alleged that from at least 2008, Dos Santos subjected multiple female tenants to unwelcome sexual contact, which included coercing them to engage in sex acts, physically sexually assaulting them, exposing himself and locking them in his office to sexually assault them. The lawsuit asserted that Dos Santos implicitly offered to provide relief from rental payment obligations in exchange for engaging in sexual acts with him and threatened tenants who resisted or objected to his unwelcome sexual harassment. It is further alleged that some victims were sexually harassed dozens of times for months (one tenant on more than 40 occasions), and that Dos Santos evicted some tenants after they refused his advances.
“Coercing tenants to engage in sex acts and retaliating against those who resist are among the most egregious forms of sexual harassment that we see today,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department remains committed to combating sexual harassment in housing, and securing relief for those whose lives have been upended by such dehumanizing and unlawful conduct.”
“Sexual harassment and the conduct alleged here is repugnant and completely unacceptable. Stable and safe housing is fundamental for positive outcomes in life. Insidiously, sexual harassment and violations in the context of housing often target vulnerable tenants who fear eviction and homelessness,” said U.S. Attorney Rachael S. Rollins for the District of Massachusetts. “Although not present in this case, there are also times that immigration status is the manipulation utilized to target and victimize vulnerable tenants. Under the Fair Housing Act, the federal government has the authority to investigate and hold to account predatory landlords and property managers who engage in this despicable conduct. The District of Massachusetts is committed to actively and aggressively investigating these types of cases. Last, but certainly not least, I want to commend the brave women who came forward in this matter.”
Under the proposed consent decree agreed upon by all parties, subject to approval by the U.S. District Court for the District of Massachusetts, the defendants are required to pay a total of $425,000 to compensate individuals harmed by the harassment and a $25,000 civil penalty. The consent decree also bars future discrimination and retaliation, requires that property management responsibilities be turned over to an independent manager, mandates the implementation of a sexual harassment policy, complaint procedure, and Fair Housing Act training and requires detailed reporting regarding property management activities and compliance with the terms of the consent decree. The consent decree permanently bars Dos Santos from participating in any property management responsibilities at any residential rental property.
The Justice Department’s Sexual Harassment in Housing Initiative is led by the Civil Rights Division, in coordination with U.S. Attorneys’ Offices across the country. The goal of the department’s initiative is to address and raise awareness about sexual harassment by landlords, property managers, maintenance workers, loan officers or other people who have control over housing. Since launching the initiative in October 2017, the department has filed 30 lawsuits alleging sexual harassment in housing and recovered over $10 million for victims of such harassment.
The Justice Department’s Civil Rights Division enforces the Fair Housing Act, which prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. The Civil Rights Division is committed to protecting people from sexual misconduct. More information about the Civil Rights Division and the laws it enforces is available at justice.gov/crt. Individuals may report sexual harassment or other forms of housing discrimination by calling the Justice Department’s Housing Discrimination Tip Line at 1-833-591-0291, or submitting a report online. Individuals may also report such discrimination by contacting HUD at 1-800-669-9777 or by filing a complaint online.
Indianapolis Meth Dealers Sentenced to a Combined 11 Years in Federal PrisonRead the Press Release
INDIANAPOLIS- Sierra Goode, 33, and Cody Stonehouse, 32, both of Indianapolis, Indiana, have been sentenced to 70 and 63 months in federal prison respectively after pleading guilty to distributing methamphetamine. Cody Stonehouse was sentenced in July 2021.
According to court documents, on October 9, 2020, Drug Enforcement Administration agents witnessed Stonehouse sell 40 grams of a substance containing methamphetamine to an individual. On December 9, 2020, agents once again witnessed Stonehouse sell 140 grams of a substance containing methamphetamine to another individual. Agents approached the vehicle where the transaction took place and arrested Stonehouse. Agents located 140 grams of methamphetamine on the console and front passenger seat where Stonehouse was sitting.
Sierra Goode was identified as the source of supply for Stonehouse, distributing three ounces of methamphetamine to him for $1,950. Shortly after, IMPD officers conducted a traffic stop on Goode. Goode admitted to selling the methamphetamine to Stonehouse. During a search of Goode’s vehicle, officers located a digital scale and $1,950. Lab tests determined that the actual amount of methamphetamine distributed was 50.8 grams.
United States Attorney for the Southern District of Indiana, Zachary A. Myers, Michael Gannon, Assistant Special Agent in Charge of the DEA’s Indianapolis Field Office, and Randal Taylor, Chief of the Indianapolis Metropolitan Police Department made the announcement.
“Methamphetamine traffickers continue to inflict serious harm on our families and neighbors,” said U.S. Attorney for the Southern District of Indiana, Zachary A. Myers. “The U.S. Attorney’s Office remains committed to working with our federal, state, and local partners to do our part in getting these dangerous drugs off the street and holding traffickers accountable.”
DEA and IMPD investigated this case. The sentences were imposed by U.S. District Court Chief Judge Tanya Walton Pratt and U.S. District Court Judge James R. Sweeney. The District Judges ordered that Goode be supervised by the U.S. Probation Office for 3 years, and Stonehouse be supervised for 2 years following their release from federal prison. Stonehouse was also ordered to pay a $100 fine.
U.S. Attorney Myers thanked Assistant United States Attorney Jayson W. McGrath, who prosecuted 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.
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Haverhill Man Sentenced for Fentanyl ConspiracyRead the Press Release
BOSTON – A Haverhill man was sentenced today in federal court in Boston for fentanyl conspiracy charges.
Sergio Garcia, 37, was sentenced by U.S. District Court Judge Allison D. Burroughs to 46 months in prison and two years of supervised release. In March 2022, Garcia pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl and one count of possession with intent to distribute 400 grams or more of fentanyl.
In April 2020, Garcia received one kilogram of fentanyl through the U.S. Postal Service. Garcia directed his brother-in-law to procure the package and deliver the fentanyl to his home in Haverhill. During a subsequent search of Garcia’s home, the kilogram of fentanyl was found in Garcia’s basement.
United States Attorney Rachael S. Rollins; Ketty Larco-Ward, Inspector in Charge of the United States Postal Inspection Service’s Boston Field Office; and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration’s New England Field Division made the announcement. The Haverhill Police Department provided valuable assistance with the investigation. Assistant U.S. Attorney Philip C. Cheng of Rollins’ Organized Crime and Money Laundering Unit prosecuted the case.
HSI Investigation Leads to Indictment of Chinese National Circumventing Antidumping and Countervailing Duties in Puerto RicoRead the Press Release
SAN JUAN, Puerto Rico – On April 26, 2023 a federal Grand Jury in the District of Puerto Rico returned an indictment charging Shuyi Mo, a citizen and resident of the People’s Republic of China (PRC), with thirty-one counts of wire fraud in violation of 18 U.S.C. § 1343, one count of a wire fraud conspiracy in violation of 18 U.S.C. § 1349, and one count of conspiracy to defraud the United States in violation of 18 U.S.C. § 371.
Mo was arrested on Saturday April 29, 2023, by HSI San Juan in coordination with HSI San Francisco as he awaited to board a flight to the PRC via the San Francisco International Airport.
An investigation by Homeland Security Investigations (HSI) San Juan Global Trade Investigations Group (GTIG), in collaboration with US Customs and Border Protection (CBP), revealed an illegal transshipment scheme of merchandise from the PRC to Puerto Rico via Malaysia.
According to the indictment, Shuyi Mo is the manager of PRC-based supplier Neviews Development Co. LTD (NEVIEWS) who conspired with a US importer based in Puerto Rico to transship porcelain mosaic tiles from PRC through Malaysia to circumvent anti-dumping and countervailing duties of approximately 718%.
“Companies that import products made abroad must comply with the law, including paying the import duties that protect domestic manufacturers and producers from unfair competition,” said W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. “The U. S. Attorney’s Office is committed to enforcing the law against those who fail to pay the government money it is owed, just as it will enforce the law against those who falsely claim government funds.”
“The misclassification of merchandise to pay lower duties to the United States Government is a duty evasion violation that will not go unpunished. One of our main missions in HSI is to protect U.S. businesses from fraudulent trade practices. We will continue our collaboration with customs and trade authorities to expose these illegal practices and bring those who engage in these practices to justice,” said Acting Special Agent in Charge Rebecca González-Ramos.
“CBP remains vigilant on products produced in certain countries and are transshipped through third countries to evade detection and elude duties,” stated Roberto Vaquero, Director of San Juan Field Operations. “CBP has a long history of innovation and technology to support a growing trade enforcement mission and has been successful with origin determinations in the past, whether it be through DNA analysis, pollen analysis, or other means.”
Assistant United States Attorney Alexander Alum of the Financial Fraud & Public Corruption Section of the United States Attorney’s Office for the District of Puerto Rico is prosecuting this case.
If you have information on potential customs fraud violations, please contact Homeland Security Investigations at 787-729-6969.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
About Homeland Security Investigations (HSI)
HSI is the principal investigative arm of the U.S. Department of Homeland Security (DHS), responsible for investigating transnational crime and threats, specifically those criminal organizations that exploit the global infrastructure through which international trade, travel, and finance move. HSI's workforce of more than 8,700 employees is comprised of more than 6,000 special agents stationed in 237 U.S. cities and 93 overseas locations in 56 countries. HSI's international presence represents the largest DHS investigative law enforcement presence overseas and one of the largest in U.S. law enforcement.
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Gresham Man Sentenced to Federal Prison for Stealing Covid Relief FundsRead the Press Release
PORTLAND, Ore.—A Gresham, Oregon man was sentenced to federal prison today for stealing more than $77,000 in funds intended to help small businesses during the COVID-19 pandemic.
Justin Allen Cunningham, 41, was sentenced to 10 months in federal prison and three years’ supervised release. He was also ordered to pay $81,207 in restitution.
According to court documents, in 2021, Cunningham learned about the opportunity to procure Paycheck Protection Program (PPP) loans guaranteed by the U.S. Small Business Administration (SBA) by submitting fraudulent loan applications on behalf of fake business entities. The PPP program, originally authorized by the Coronavirus Aid, Relief, and Economic Security (CARES) Act passed by Congress in March 2020, provided emergency financial assistance to American employers suffering the economic effects of the COVID-19 pandemic and resulting shutdowns.
To facilitate his scheme, Cunningham paid his friends for their help securing him a loan on behalf of a sole proprietorship he ran as a hobby: an online sneaker retailer called “JC shoe juice.” Cunningham obtained an employer identification number from the IRS and opened an online business bank account. He provided this information to a friend who created bogus tax returns for Cunningham’s company and submitted a PPP loan application on his behalf. The loan application falsely claimed that JC shoe juice had operated since 2015, had six employees, and generated more than $460,000 in gross income in 2019. As a result of these false representations, Cunningham was issued a loan worth more than $77,000.
On January 21, 2022, a federal grand jury in Portland returned an indictment charging Cunningham with one count of wire fraud. On October 14, 2022, he pleaded guilty to the single charge.
This case was investigated by the U.S. Treasury Inspector General for Tax Administration (TIGTA), the SBA Office of Inspector General, and the FBI. Assistant U.S. Attorneys Ryan W. Bounds and Meredith D.M. Bateman prosecuted the case.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Fremont County Man Arraigned on Four Counts of AssaultRead the Press Release
Darrell Lyle Moss Jr., age 40, of Fremont County, Wyoming, appeared for arraignment on May 2, 2023, before Senior United States District Court Judge Nancy Freudenthal. Moss pleaded not guilty to two counts of assault with a dangerous weapon with intent to do bodily harm and two counts of assault resulting in serious bodily injury. A trial has been set for June 26, 2023.
If convicted on all counts, Moss faces up to 40 years’ imprisonment with three years of supervised release, up to a $1,000,000 fine, and a $400 special assessment. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This crime is being investigated by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Kerry J. Jacobson.
An indictment merely contains allegations, and every defendant is presumed innocent unless and until proven guilty.
Case No. 23-CR-00033-NDF
Fredonia Man Arrested, Charged with Selling Drugs That Led to Overdose DeathRead the Press Release
BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that John Wallace Buchanan, 36, of Fredonia, NY, was arrested and charged by criminal complaint with distribution of fentanyl causing death, narcotics conspiracy, and possessing firearms in furtherance of drug trafficking crimes. The charges carry a mandatory minimum penalty of 25 years in prison and a maximum of life.
Assistant U.S. Attorney Joshua A. Violanti, who is handling the case, stated that in the early morning hours of January 10, 2022, the Ellicott Police Department responded to a residence on Boulevard Avenue in Celoron, NY, for a death investigation. At the scene, law enforcement found an individual, identified as B.G., lying face down on the living room floor with signs of drug use nearby. The cause of death was listed as a potential overdose. A review of the contents of B.G.’s cell phone identified a Facebook Messenger conversation between B.G.’s Facebook account and the account of John Buchanan. Investigators subsequently identified multiple Facebook conversations, with B.G. wanting to purchase narcotic drugs from Buchanan, dating back to November of 2021, including a conversation just prior to B.G.’s death. Investigators also noted that following a review of Buchanan’s Facebook account, some messages between B.G. and Buchanan may have been deleted from Buchanan’s account. At the scene of B.G.’s death, officers recovered, among other things, ammunition and three firearms. Investigators learned that Buchanan was attempting to sell firearms to B.G. in December 2021. Investigators believe that B.G. and Buchanan also discussed firearms transactions in the conversation prior to B.G.'s death.
Buchanan was ordered detained following a detention hearing before U.S. Magistrate Judge Michael J. Roemer.
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 complaint is the result of an investigation by the Jamestown Police Department, under the direction of Chief Timothy Jackson, the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank A. Tarentino III, New York Field Division, the Chautauqua County Sheriff’s Office, under the direction of Sheriff James Quattrone, and the Ellicott Police Department, under the direction of Chief William Ohnmeiss Jr.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Fort Thompson Man Sentenced for Abusive Sexual Contact of a ChildRead 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 Fort Thompson, South Dakota, man convicted of Abusive Sexual Contact of a Child. The sentencing took place on May 1, 2023.
Carl Estes, age 22, was sentenced to 13 years in federal prison, followed by five years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Estes was indicted by a federal grand jury in September of 2021. He pleaded guilty on January 19, 2023.
In the spring/summer of 2021, Estes was living with his girlfriend in Fort Thompson, on the Crow Creek Indian Reservation. Estes was observed touching the genitalia of his girlfriend’s child, who was five years old at the time of the offense. Estes admitted to investigators that he had sexually abused the victim and drew a diagram indicating which part of his hand he used in the sexual assault.
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 FBI. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Estes was immediately remanded to the custody of the U.S. Marshals Service.
Fort Thompson Man Indicted for Sexual Abuse of a MinorRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced that a federal grand jury has indicted a Fort Thompson, South Dakota, man for Sexual Abuse of a Minor and Abusive Sexual Contact.
Loren Goodlow, age 33, was indicted in April of 2023. He appeared before U.S. Magistrate Judge Daneta L. Wollmann on April 24, 2023, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is 15 years in custody and/or a $250,000 fine, five years up to lifetime supervised release, and $100 to the Federal Crime Victims Fund for each count. Restitution may also be ordered.
The charges relate to Goodlow engaging in sexual acts with two minors who had attained the age of 12 years old but not attained the age of 16.
The charges are merely accusations and Goodlow is presumed innocent until and unless proven guilty.
The investigation is being conducted by the FBI. Assistant U.S. Attorney Kelsey Blair is prosecuting the case.
Goodlow was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for June 27, 2023.
Fort Campbell Couple Indicted on Aggravated Child Abuse ChargesRead the Press Release
NASHVILLE – A federal indictment unsealed today, charges a Fort Campbell couple with aggravated child neglect, announced U.S. Attorney Henry C. Leventis.
Andrew J. Garasich, 27, and Lyndsey T. Bustamante, 27, were indicted by a federal grand jury on Monday and were arrested by FBI agents earlier today. Both are scheduled to appear before a U.S. Magistrate Judge this afternoon.
Documents filed with the Court allege that on January 4, 2023, Bustamante took her baby to a Houston County Community Hospital and claimed that several days earlier, the baby was burned while being given a bath by Garasich. Shortly after arriving at the hospital, the baby was life flighted to Vanderbilt Children’s Hospital where it was discovered that the baby also had a skull fracture. While in the Pediatric Intensive Care Unit at Vanderbilt, the baby underwent numerous medical procedures and surgeries and was treated for organ failures and other life-threatening conditions. It is anticipated that the baby will require additional medical treatment and services for years to come.
Charges in this case are being brought under the Assimilative Crimes Act. As there is no federal child abuse statute, charges may be brought under applicable Tennessee statutes for crimes occurring on the Fort Campbell military installation because Fort Campbell is within the territorial jurisdiction of the United States.
If convicted of this Class A felony, both defendants face a mandatory minimum of 15 years in prison.
This case was investigated by the U.S. Army - Criminal Investigation Division and the FBI. Assistant U.S. Attorneys Monica Morrison and Robert E. McGuire are prosecuting the case.
An indictment is merely an accusation. The defendants are presumed innocent until proven guilty in a court of law.
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Former State Contractor Pleads Guilty to Fraudulent Unemployment Insurance SchemeRead the Press Release
DETROIT - A Detroit woman pleaded guilty today to stealing over $550,000 as part of an extensive unemployment fraud and identity theft conspiracy while working for the State of Michigan Unemployment Insurance Agency, announced United States Attorney Dawn N. Ison.
Joining in the announcement were Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor-Office of Inspector General; James A. Tarasca, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation; and Julia Dale, Director of the State of Michigan Unemployment Insurance Agency
Autumn Mims, 30, pleaded guilty today before United States District Judge Mark A. Goldsmith.
Mims was a contract employee for the State of Michigan Unemployment Insurance Agency (MUIA), working as an Unemployment Insurance Examiner. Her duties included reviewing, processing, and verifying the legitimacy of unemployment insurance claims.
According to court records, shortly after Mims began working with the MUIA in August 2020, she began using her insider access to fraudulently process claims in the names of third parties without their knowledge or authorization. As part of the scheme, Mims personally (1) altered third-party contact information for unemployment insurance assistance; (2) accessed third-party unemployment insurance assistance claim information without authorization; (3) authenticated unauthorized access attempts for third-party unemployment insurance assistance information; (4) dismissed fraud prevention triggers and information requests relating to third-party unemployment insurance assistance; (5) conducted cash withdrawals of unemployment insurance assistance issued in the names of third parties; and, (6) conducted financial transactions utilizing unemployment insurance assistance funds issued in the names of third parties.
Mims also admitted that while she was working with the MUIA and executing her fraud, she was also fraudulently obtaining unemployment insurance benefits for herself by falsely claiming that she was unemployed.
As a result of the conspiracy, over $550,000 in fraudulent unemployment assistance payments were made by the State of Michigan.
Sentencing is set for September 6, 2023 before Judge Goldsmith. Mims faces a mandatory two-year sentence of imprisonment for having engaged in aggravated identity theft. She also faces up to 20 years in prison for having conspired to engage in wire fraud.
“Far from being unemployed as she claimed, Autumn Mims worked hard to abuse her position with the State of Michigan and steal taxpayer money. My office and our law enforcement partners are committed to working even harder to ensure that Mims and others who choose to engage in similar frauds are held fully accountable,” stated U.S. Attorney Ison.
“Autumn Mims, while working as an Michigan Unemployment Insurance Agency examiner, abused her access to unemployment insurance (UI) data systems to defraud the state of Michigan and the Pandemic Unemployment Assistance program. Mims violated the public’s trust by knowingly approving fraudulent unemployment claims, the proceeds of which were deposited into bank accounts that she controlled. We will continue to work with our law enforcement partners and state workforce agencies to protect the integrity of the UI system,“ stated Special Agent-in-Charge Irene Lindow, Great Lakes Region, U.S. Department of Labor, Office of Inspector General.
“Autumn Mims used her position at the Michigan Unemployment Insurance Agency to steal money from people who were suffering pandemic-related economic challenges,” said James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Division. “The FBI, along with our state and federal partners, will investigate this type of scheme and bring to justice those who defraud the unemployment system."
“It’s especially galling when someone employed by UIA and who was entrusted in a time of statewide crisis with helping the residents of Michigan instead violates that trust to satisfy her own greed,” said UIA Director Julia Dale. “Let this case put bad actors on notice: We will continue to work with law enforcement at the local, state, and federal level and use every tool we have to see that justice is served. That is our pledge as we strive to transform the UIA into a national model for fraud-free, fair and fast service.”
The case is being prosecuted by Assistant United States Attorney Andrew J. Yahkind. The investigation is being conducted jointly by the Department of Labor—Office of Inspector General, the Federal Bureau of Investigation, and the Unemployment Insurance Agency, Michigan Department of Labor and Economic Opportunity
Former San Francisco Garbage Company Executive Pleads Guilty to Honest Services Fraud ConspiracyRead the Press Release
SAN FRANCISCO – John Francis Porter pleaded guilty today in U.S. District Court in San Francisco to conspiring to commit honest services mail and wire fraud, admitting that he participated in a scheme with another Recology executive to bribe the former head of the San Francisco Department of Public Works, Mohammed Nuru, announced the United States Attorney’s Office, FBI Special Agent in Charge Robert K. Tripp, and Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge Darren Lian. The guilty plea was accepted by the Honorable William H. Orrick, United States District Court.
Porter, 39, is the former Vice President and Group Manager of the SF Recology Group. According to his plea agreement, Porter admitted that he conspired with another former Recology executive and others to pay bribes to influence Nuru. The bribes included $55,000 in payments for holiday parties Nuru hosted for friends, political supporters, and select DPW employees, from October 2017 through January 2020.
According to Porter’s admissions in the plea agreement, the payments were concealed as “holiday donations” to a non-profit, the Lefty O’Doul’s Foundation for Kids, a charity established to provide access to baseball and baseball equipment for under-privileged children. Porter admitted in his plea agreement that he knew the funds were not being used for that purpose, but instead were made at the request of Nuru and used for his holiday parties.
Porter admitted that the bribes were made to influence Nuru to take official action and exercise influence in Recology’s favor, including making official decisions in his role at DPW that would benefit Recology’s business.
On November 29, 2022, a federal grand jury returned a superseding indictment, charging Porter with one count of conspiracy to commit honest services mail and wire fraud, in violation of 18 U.S.C. § 1349, two counts of honest services wire fraud in violation of 18 U.S.C. §§ 1346 and 1343, one count of honest services mail fraud, in violation of 18 U.S.C. §§ 1341 and 1346, one count of conspiracy to commit bribery in violation of 18 U.S.C. § 371, and one count of bribery of a local official, in violation of 18 U.S.C. §§ 666(a)(2) and 2. Pursuant to today’s guilty plea, Porter pleaded guilty to the conspiracy to commit honest services wire and mail fraud count. If Porter complies with the plea agreement, the additional counts will be dismissed at sentencing.
Judge Orrick scheduled Porter’s sentencing for September 7, 2023. Porter faces a maximum statutory penalty of 20 years in prison and a fine of $250,000. In addition, as part of any sentence, a court may order up to three years of supervised release, restitution, forfeiture, and additional assessments, if appropriate. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Porter is the second Recology executive to plead guilty. In July 2021, Paul F. Giusti, a former Government & Community Relations Manager with Recology, pleaded guilty to one count of conspiracy to bribe a local official and to commit honest services fraud, admitting to participating in a conspiracy to bribe Nuru. Giusti has not yet been sentenced.
Nuru was charged in January 2020 with a long-running honest services fraud scheme. On January 6, 2022, Nuru pled guilty to honest services wire fraud, and on August 25, 2022 was sentenced to 84 months in federal prison.
In September 2021, three subsidiaries of Recology that serve San Francisco have entered a deferred prosecution agreement related to the charge of conspiracy to commit honest services fraud and have agreed to pay $36 million in criminal penalties.
The case is being prosecuted by the Corporate and Securities Fraud Section of the U.S. Attorney’s Office for the Northern District of California. Assistant U.S. Attorneys David Ward and Ilham Hosseini are prosecuting the case. The prosecution is the result of an investigation by the Federal Bureau of Investigation (FBI) and the Internal Revenue Service-Criminal Investigation (IRS-CI).
Former Pittsburgh Resident Indicted in Project Safe Childhood CaseRead the Press Release
PITTSBURGH, PA- A former resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of transporting, distributing and possessing child pornography, Acting United States Attorney Troy Rivetti announced today.
The four-count Indictment named Justin Hughes, 42, as the sole defendant.
According to the Indictment presented to the court, on or about November 28, 2022, and November 29, 2022, Hughes did knowingly transport and attempt to transport visual depictions of minors engaged in sexually explicit conduct using the internet. On or about December 25, 2022, Hughes also knowingly distributed visual depictions of minors engaged in sexually explicit conduct to another individual outside of this district, using the internet. Further, in February 2023, Hughes knowingly possessed and accessed with intent to view additional visual depictions of minors engaged in sexually explicit conduct.
The law provides for a maximum total sentence of not less than five and not more than 20 years in prison, a fine of $250,000.00, and a term of supervised release of at least five years. However, if the defendant has a prior sex offense conviction under applicable state or federal law, such defendant shall be imprisoned not less than fifteen years nor more than forty years. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Nicole A. Stockey is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the Indictment in this case. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former ILWU Officer Sentenced to 24 Months in Prison for Embezzlement from Union over 4.5-Year PeriodRead the Press Release
HONOLULU – Charles Kimo Brown, 64, of Mililani, was sentenced today in federal court by United States District Judge Leslie E. Kobayashi to 24 months of imprisonment, a fine of $96,000, a forfeiture money judgment of $1,425.01, and three years of supervised release for embezzling $96,000 while he was the Secretary-Treasurer of the Hawaii Longshore Division of the International Longshore and Warehouse Union Local 142.
According to information presented to the court, as the former Secretary-Treasurer of the Hawaii Longshore Division, Brown was paid according to vouchers that he submitted to the accounting department of Local 142. The hours Brown was supposed to list on the vouchers were based upon the “lost time” that he could have worked for his employer, McCabe, Hamilton & Renny Co., Ltd., where he worked as a machine operator. This was an “honor system” which depended upon the honesty of the defendant and other union officers to accurately report the number of hours they could have worked for their employers instead of working for the union.
While Brown was charged with submitting two false wage vouchers that resulted in him embezzling $1,425.01, the prosecution argued during the trial, and in sentencing, that he should be held accountable for all of the false vouchers that he submitted while acting as Secretary-Treasurer of the union, including 384 false entries, with a total embezzlement of $96,000 during a span of 4.5 years. Judge Kobayashi agreed and sentenced him to a term of imprisonment of 24 months and a fine of $96,000.
In sentencing Brown, Judge Kobayashi stated that she was “troubled” by the facts that the defendant had breached the trust his fellow union members had given him by stealing $96,000 from them during a long, 4.5-year period. While she recognized that there were a number of mitigating factors, and she took them into account, she found that a sentence of 24 months was necessary to reflect the seriousness of the defendant’s crimes and to deter others from committing similar ones.
The case resulted from an investigation by the Department of Labor and the Internal Revenue Service – Criminal Investigation. Assistant U.S. Attorney Marshall Silverberg and Special Assistant U.S. Attorney Nicole Hudspeth handled the prosecution.
Former Executive Director of Miss Florida Scholarship Program Sentenced to Federal Prison for FraudRead the Press Release
MIAMI – A federal district judge in Miami has sentenced 77-year-old Mary Wickersham to 15 months in prison and ordered her to pay $243,000 in restitution for stealing money intended for the Miss Florida Scholarship Program over the course of seven years. Wickersham pleaded guilty earlier this year.
Since 2002, Wickersham served as the Executive Director of the Miss Florida Scholarship Program. The Miss Florida Scholarship Program offers educational and financial assistance to young women across the state. In 2011, Wickersham formed a Florida corporation named “Miss Florida LLC” and used it to open a bank account in the same name. She did so without the knowledge or consent of the Miss Florida Scholarship Program. Wickersham then redirected hundreds of thousands of dollars into the Miss Florida LLC bank account, which she controlled, by using her position as Executive Director to solicit donations from the program’s recurring business sponsors and donors, all while representing that those monies would be used to fund scholarships for the Miss Florida Program women. In fact, Wickersham used the money for her own personal use and gain.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Inspector in Charge Juan A. Vargas of the U.S. Postal Inspection Service (USPIS), Miami Division, announced the sentence imposed by U.S. District Judge Roy K. Altman.
USPIS Miami investigated this case. Assistant U.S. Attorneys Abbie Waxman and Eduardo Gardea Jr. prosecuted it. Assistant U.S. Attorney Sara Klco is handling asset forfeiture.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 22-cr-20057.
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Former Bankruptcy Court Employee Pleads Guilty to Damaging a Protected Computer Without AuthorizationRead the Press Release
GREENSBORO, NC – Sandra J. Hairston, United States Attorney for the Middle District of North Carolina (MDNC), announced today that ROBERT MATTHEW BRITTAIN, of Lexington, pleaded guilty in federal court to one felony count of computer fraud.
According to publicly filed court documents, BRITTAIN was previously employed by the United States Bankruptcy Court for the MDNC as a court management analyst wherein he managed and configured computer products operated by the court’s employees. BRITTAIN resigned from this position in April 2022 after an internal investigation into his conduct. Before leaving his position, BRITTAIN allegedly established a VPN connection from his home to the court’s network which, after his termination, he illegally used to access another employee’s passwords and remotely wipe an iPad belonging to the Bankruptcy Court.
BRITTAIN pleaded guilty to a violation of Title 18, United States Code, Section 1030(a)(5)(A), which criminalizes the knowingly transmission of a program, information, code, or command, and as a result of such conduct, intentionally causing damage without authorization, to a protected computer. Because the computer at issue was used in the administration of justice, BRITTAIN is subject to heightened penalties under Title 18, United States Code, Section 1030(c)(4)(B)(i). Specifically, BRITTAIN faces a maximum term of 10 years of imprisonment, a term of supervised release of not more than 3 years, a fine not to exceed $250,000, and a mandatory special assessment of $100.
The case was investigated by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Tanner Kroeger.
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Former Alabama Deputy Sheriff Pleads Guilty to Sexually Assaulting Woman in His CustodyRead the Press Release
A former deputy sheriff with the Dallas County, Alabama, Sheriff’s Office pleaded guilty today in the Southern District of Alabama for sexually assaulting a woman while he was on duty.
According to the superseding information and plea documents, on Jan. 30, 2020, Joshua Davidson, 32, while on duty as a Dallas County Deputy Sheriff, placed the victim in custody and drove her down a dark road to a desolate location where the victim performed oral sex on him against her will. The victim, who reported the assault immediately, was in fear that Davidson would shoot her if she did not cooperate.
“Law enforcement officials who sexually assault women and those in their custody will and must be held accountable,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will continue to take allegations of sexual assault seriously, and vigorously prosecute those who violate the civil rights of people in their custody and prey on vulnerable victims.”
“The people of Dallas County and the Southern District of Alabama deserve better than to have their rights violated by someone sworn to protect them,” said U.S. Attorney Sean P. Costello for the Southern District of Alabama. “Working with our federal, state and local partners, we will continue to bring to justice law enforcement officers who become criminals themselves.”
“All law enforcement personnel who take an oath to protect and serve the American people must be held to a higher standard,” said Special Agent in Charge Paul Brown of the FBI Mobile Field Office. “FBI Mobile remains committed to holding those who do not meet this standard accountable for their actions, especially those who wear the badge.”
Sentencing is set for Aug. 25.
The FBI Mobile Field Office investigated the case.
Assistant U.S. Attorney Andrew Arrington for the Southern District of Alabama and Trial Attorneys Maura White and MarLa Duncan of the Civil Rights Division’s Criminal Section are prosecuting the case.
Former Alabama Deputy Sheriff Pleads Guilty to Sexually Assaulting Woman in His CustodyRead the Press Release
A former deputy sheriff with the Dallas County, Alabama, Sheriff’s Office pleaded guilty today in the Southern District of Alabama for sexually assaulting a woman while he was on duty.
According to the superseding information and plea documents, on Jan. 30, 2020, Joshua Davidson, 32, while on duty as a Dallas County Deputy Sheriff, placed the victim in custody and drove her down a dark road to a desolate location where the victim performed oral sex on him against her will. The victim, who reported the assault immediately, was in fear that Davidson would shoot her if she did not cooperate.
“Law enforcement officials who sexually assault women and those in their custody will and must be held accountable,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will continue to take allegations of sexual assault seriously, and vigorously prosecute those who violate the civil rights of people in their custody and prey on vulnerable victims.”
“The people of Dallas County and the Southern District of Alabama deserve better than to have their rights violated by someone sworn to protect them,” said U.S. Attorney Sean P. Costello for the Southern District of Alabama. “Working with our federal, state and local partners, we will continue to bring to justice law enforcement officers who become criminals themselves.”
“All law enforcement personnel who take an oath to protect and serve the American people must be held to a higher standard,” said Special Agent in Charge Paul Brown of the FBI Mobile Field Office. “FBI Mobile remains committed to holding those who do not meet this standard accountable for their actions, especially those who wear the badge.”
Sentencing is set for Aug. 25.
The FBI Mobile Field Office investigated the case.
Assistant U.S. Attorney Andrew Arrington for the Southern District of Alabama and Trial Attorneys Maura White and MarLa Duncan of the Civil Rights Division’s Criminal Section are prosecuting the case.
Federal Jury Convicts Pocatello Man of Sexual Exploitation of a Child and Receipt of Child PornographyRead the Press Release
POCATELLO – Yesterday, after a six-day trial, a federal jury convicted Trenton Powell, 43, of Pocatello, of eight counts of sexual exploitation of a child and three counts of receipt of child pornography, U.S. Attorney Josh Hurwit announced. Senior U.S. District Judge B. Lynn Winmill presided over the trial, which began on April 25, and concluded with guilty verdicts on May 2.
According to testimony and evidence presented at trial, Powell sexually abused the first victim for six years while living in Pocatello. Powell photographed the abuse with his iPhone. Years after the abuse ended, another of Powell’s victim reported the abuse to police. Police later seized Powell’s iPhone. After the phone was forensically examined, police recovered images of Powell sexually abusing the first victim. Both victims testified during the trial and confirmed that Powell was the man who molested them.
Powell is scheduled to be sentenced on August 15, 2023, before Judge Winmill at the federal courthouse in Pocatello. He faces a mandatory minimum of 15 years with a maximum of up to 300 years in federal prison. Judge Winmill will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Powell will be required to register as a sex offender as a result of the conviction.
“I am grateful that our office was able to prosecute this defendant for his heinous crimes and bring justice to the courageous victims,” said U.S. Attorney Hurwit. “We appreciate the jury’s service, which is especially difficult in a case like this. We stand ready to seek justice whenever our community and law enforcement partners uncover crimes against children.”
U.S. Attorney Hurwit credited the cooperative efforts of Homeland Security Investigations in Idaho Falls, the Idaho Falls Police Department, and the Pocatello Police Department, which led to the charges. The case was prosecuted by Assistant U.S. Attorneys John Shirts and Justin Paskett.
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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Derry Man Indicted for Passport Fraud and Aggravated Identity TheftRead the Press Release
CONCORD – A Derry man was indicted for using another person’s identity in his application for a U.S. passport, U.S. Attorney Jane E. Young announces.
Andrew Mahn, 28, was indicted on one count of making a false statement in a passport application, one count of false statements, and one count of aggravated identity theft. Mahn was arrested on May 2, 2023 and is being held pending a detention hearing on May 4, 2023.
According to the charging documents, on November 15, 2022, Mahn submitted a fraudulent passport application using the name and date of birth of his victim. Mahn was previously charged with hacking in the Northern District of Illinois, and he was on pretrial release when he applied for the passport.
The charge of making a false statement in a passport application provides for a sentence of up to 10 years in prison. The charge of making false statements provides for a sentence of up to 5 years in prison. The charge of aggravated identity theft carries a mandatory sentence of two years consecutive to any other sentence imposed. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
The U.S. State Department’s Diplomatic Security Service, Federal Bureau of Investigation, and U.S. Postal Inspection Service led the investigation. Assistant U.S. Attorneys Alexander S. Chen and John J. Kennedy are prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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Deputy Attorney General Recognizes Eastern District of New York Assistant U.S. Attorney at Director's Awards CeremonyRead the Press Release
Assistant United States Attorney Layaliza Soloveichik was among those recognized by Deputy Attorney General Lisa Monaco and Director Monty Wilkinson of the Executive Office for U.S. Attorneys (EOUSA), at the 38th Director’s Awards Ceremony today in Washington, D.C. The EDNY was one of the districts represented at the ceremony, which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building.
Breon Peace, United States Attorney for the Eastern District of New York, said: “Congratulations to Layaliza for receiving a Director’s Award for Superior Performance as an Assistant U.S. Attorney. Layaliza’s vision, skill, and tenacity as a litigator and supervisor on behalf of the United States have enhanced the stature of the U.S. Attorney’s Office for the Eastern District of New York and furthered the mission of the Department of Justice.”
EOUSA Director Wilkinson said: “The recipients we honor today have shown remarkable resilience and commitment to justice through challenging times, rising to the occasion with unwavering dedication to their mission. They have worked tirelessly to protect the rights of Americans and exemplify the very best in federal service.”
Assistant United States Attorney (AUSA) Soloveichik was recognized for her exemplary performance in leading the district’s demanding civil immigration and programmatic practices, which consist of more than 1,500 cases. AUSA Soloveichik serves as Deputy Chief of the Civil Division in the Eastern District of New York and previously served as Chief of the Immigration Litigation Unit. She has also successfully managed a host of emergency litigation and programmatic challenges in cutting-edge cases of national significance. AUSA Soloveichik has also taken on leading roles in defending challenges to national policies related to the COVID-19 pandemic as well as long-standing vaccine policies.
EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao. For more information about the United States Attorney’s Office for the Eastern District of New York, visit www.justice.gov/usao/nye.
Defendants in International Drug Trafficking Conspiracy Found GuiltyRead the Press Release
CHICAGO — The last remaining defendants in an international drug trafficking investigation have been found guilty of multiple drug trafficking charges by a federal jury in Chicago.
Evidence at trial revealed that between May 2016 and August 2017 ANTONIO CARRAZCO-MARTINEZ, 42, of Fort Valley, Georgia, also known as “El B,” JUAN MANUEL BARENAS-REYNOSO, 47, of Chicago, also known as “Chingon,” and NICOLASA BENITEZ DENOVA, 30, of Paige, Texas, also known as “Lio,” conspired with others to traffic cocaine and heroin from Mexico to the Chicago area. Carrazco-Martinez, who was alleged to have been the leader of the group’s Chicago operations, was found guilty of conspiracy to possess with intent to distribute and distribute more than 5 kilograms of cocaine and 1 kilogram of heroin, as well as possession with intent to distribute a controlled substance. Barenas-Reynoso and Benitez-Denova, who were alleged to have courier-related roles, were found guilty of conspiracy to possess with intent to distribute and distribute more than 5 kilograms of cocaine, as well as possession with intent to distribute a controlled substance. Benitez-Denova was also found guilty of conspiracy to possess with intent to distribute and distribute 1 kilogram of heroin. Barenas-Reynoso was acquitted of an additional count of possession with intent to distribute a controlled substance.
Throughout the multi-year investigation, an additional ten defendants were charged:
- Pablo Anibal Vazquez-Duarte, also known as “Compa”, “Topo”, and “Troncan”, who is alleged to be the group’s leader in Mexico and remains a fugitive, was charged with conspiracy to possess with intent to distribute and distribute more than 5 kilograms of cocaine and 1 kilogram of heroin, possession with intent to distribute a controlled substance, and distribution of a controlled substance.
- Leonardo Alfaro-Sandoval, 35, of Michoacan, Mexico, who remains a fugitive, was charged with conspiracy to possess with intent to distribute and distribute more than 5 kilograms of cocaine and 1 kilogram of heroin, and possession with intent to distribute a controlled substance.
- Ricardo Diaz-Deleon, 34, of Nueva Leon, Mexico, also known as “Diablo”, who remains a fugitive, was charged with conspiracy to possess with intent to distribute and distribute more than 5 kilograms of cocaine and 1 kilogram of heroin, and possession with intent to distribute a controlled substance.
- Scott London Johnson, 36, of Taylor, Texas, pleaded guilty to conspiracy to possess with intent to distribute and distribute more than 500 grams of cocaine on July 12, 2022.
- Melchor Cardenas, 30, of San Jose, California, pleaded guilty to conspiracy to possess with intent to distribute and distribute more than 5 kilograms of cocaine and 1 kilogram of heroin.
- Fermin Campos, 41, of Bolingbrook, pleaded guilty to conspiracy to possess with intent to distribute and distribute more than 5 kilograms of cocaine and 1 kilogram of heroin. He was sentenced to 56 months’ imprisonment by U.S. District Judge Sharon Johnson Coleman on February 24, 2022.
- J’Anthony Lara, 25, of Austin, Texas, pleaded guilty to conspiracy to possess with intent to distribute and distribute more than 5 kilograms of cocaine and 1 kilogram of heroin. He is scheduled to be sentenced by U.S. District Judge Sharon Johnson Coleman on October 11, 2023.
- Oscar Martinez-Galvan, 25, of Austin Texas, was charged with conspiracy to possess with intent to distribute and distribute more than 5 kilograms of cocaine and 1 kilogram of heroin, and possession with intent to distribute a controlled substance. His charges were dismissed pursuant to a pretrial diversion agreement on July 29, 2021.
- Ignacio Cordova, 51, of Chicago, pleaded guilty to conspiracy to possess with intent to distribute and distribute more than 5 kilograms of cocaine and 1 kilogram of heroin. He was sentenced to 42 months’ imprisonment by U.S. District Judge Sharon Johnson Coleman on June 4, 2021.
- Clyde Ford, 61, of Ypsilanti, Michigan, pleaded guilty to conspiracy to possess with intent to distribute and distribute more than 5 kilograms of cocaine. He was sentenced to 30 months’ imprisonment by U.S. District Judge John R. Blakey on August 16, 2022.
The verdicts were announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Sheila G. Lyons, Special Agent-in-Charge of the Chicago Field Division of the Drug Enforcement Administration. Substantial assistance was provided by the Chicago Police Department, Illinois State Police, Waukegan Police Department, Homeland Security Investigations Chicago, Internal Revenue Service Criminal Investigations Chicago. The government was represented by Assistant U.S. Attorneys Andrew Erskine, Alejandro Ortega, and Kirsten Moran.
The investigation was conducted under the Organized Crime Drug Enforcement Task Force (OCDETF) program, a partnership between federal, state and local law enforcement agencies. The principal mission of OCDETF is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations.
Cybercriminal Network Fueling the Global Stolen Credit Card Trade is DismantledRead the Press Release
A four-count indictment was unsealed today in the United States District Court for the Eastern District of New York charging Denis Gennadievich Kulkov with access device fraud, computer intrusion and money laundering in connection with his operation of Try2Check, the primary service offering “card-checking” to cybercriminals in the stolen credit card trade.
The Try2Check platform catered to cybercriminals who purchased and sold stolen credit card numbers in bulk on the internet, offering criminals the ability to quickly determine what percentage of the cards were valid and active. As such, Try2Check was a primary enabler of the trade in stolen credit card information, processing at minimum tens of millions of card numbers every year. Today, the U.S. government worked with partners in Germany and Austria to take offline Try2Check’s websites, thus dismantling the defendant’s criminal network. Along with the indictment and global website domain takedown, the State Department has announced a $10 million reward for information leading to the capture of Kulkov, who resides in Russia.
Breon Peace, United States Attorney for the Eastern District of New York and Patrick Freaney, Special Agent-in-Charge, United States Secret Service (USSS), New York Field Office, announced the charges.
“Today is a bad day for criminals who relied on the defendant’s platform as the gold standard to verify that the credit cards they stole from hard working individuals living in the Eastern District of New York and across the world had value,” stated United States Attorney Peace. “Today’s indictment and global takedown of the Try2Check website demonstrates that the Office, together with our partners, will disrupt cybercrime operations no matter where they are based.”
“The individual named in today’s indictment is accused of operating a criminal service with immeasurable reach to fund further illicit activity with global impact,” said U.S. Secret Service Special Agent in Charge Patrick J. Freaney. “Our exceptional partnerships know no borders, and thanks to the cooperation and dedication of our global law enforcement community, Try2Check can no longer serve as a vehicle for continued criminal activity or illicit profits.”
As alleged in the indictment and other court filings, Kulkov created Try2Check in 2005, building it into a primary tool of the illicit credit card trade. Cybercriminals who acquired large batches of stolen credit cards (for example, by hacking into credit card readers at stores) ran the cards through Try2Check to determine what percentage of the stolen credit card numbers remained active. These cybercriminals then used the resulting data to show prospective buyers of the stolen credit card numbers what percentage of the cards retained their value. Try2Check victimized not only credit card issuers and holders, but also a major U.S.-based payment processing company whose systems Try2Check misused to perform the card checks.
Try2Check ran tens of millions of credit card checks per year and supported the operations of major card shops that made hundreds of millions in bitcoin in profits. Over a nine-month period in 2018, the site performed at least 16 million checks, and over a 13-month period beginning in September 2021, the site performed at least 17 million checks. Through the illegal operation of his websites, the defendant made at least $18 million in bitcoin (as well as an unknown amount through other payment systems), which he used to purchase a Ferrari, among other luxury items.
In coordination with the unsealing of the charging documents in this case, Try2Check’s websites were taken offline and the State Department issued a $10 million reward for information leading to the defendant’s capture. If convicted, Kulkov faces 20 years’ imprisonment. The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
The Office extends particular thanks to the Justice Department’s Computer Crime and Intellectual Property Section (CCIPS) and to CCIPS Assistant Deputy Chief James Yoon, for his and the Section’s extensive contributions to this case. The U.S. Secret Service New York Field Office investigated this case with crucial assistance from the following Secret Service offices: the Global Investigative Operations Center (GIOC), the Cyber Investigative Section (CIS), Frankfurt, Paris, Madrid, and the Hague. Crucial assistance was also provided by the FBI’s New York Field Office and Cyber Initiative and Resource Fusion Unit (CIRFU) and by Europol and the National Cyber-Forensics Training Alliance (NCFTA). The Department of Justice’s Office of International Affairs is assisting with foreign evidence requests. The Office extends its appreciation to the German Federal Criminal Police Office (BKA), the German Federal Office for Information Security (BSI), the Austrian Criminal Intelligence Service – Cybercrime Competence Center (C4), and the French Central Directorate of the Judicial Police (DCPJ) and the governments of Austria, Germany and France for their assistance on this case, as well as to the Shadowserver Foundation for crucial technical assistance in addressing Try2Check’s technical infrastructure.
If you have information regarding this individual, please contact the U.S. Secret Service at [email protected].
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Alexander Mindlin and Sara K. Winik are in charge of the prosecution, with assistance from Assistant United States Attorney Brian Morris.
The Defendant:
DENIS GENNADIEVICH KULKOV, (also known as “Kreenjo,” “Nordex” and “Nordexin”)
Samara, RussiaE.D.N.Y. Docket No. 23-CR-171
Convicted Sex Offender Sentenced to More Than 19 Years for Distributing Child Sexual Abuse VideosRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard has sentenced Joel Michael Phelan (48, Jacksonville) to 19 years and 7 months in federal prison, followed by a life term of supervised release, for distributing videos depicting the sexual abuse of children. The court also ordered Phelan to forfeit a cellphone and computers, which were used in the commission of the offense. Phelan had pleaded guilty on January 13, 2023.
According to court documents, the case began with an investigation by the Jacksonville Sheriff’s Office (JSO), which had executed a search warrant at Phelan’s residence in 2017, after receiving reports of the upload of files of child sexual abuse material from the residence. JSO seized multiple devices for further forensic examination. Phelan was arrested on the day the warrant was executed for unlawfully possessing a firearm and for two sex offender registration offenses. Phelan was sentenced to five years in prison for the state offenses.
During a forensic review of the devices, law enforcement found Phelan had hundreds of files of child sexual abuse material and had communicated with others over chat messages about his desire to engage in sexual activity with children.
Phelan was previously convicted in Polk County in 2008 of using a computer to seduce a child after he had traveled to a location for the purpose of engaging in sexual activity with whom he believed to be a 14-year-old girl. Phelan was sentenced to sex offender probation but violated his probation by possessing an illegal image of the sexual exploitation of two young girls.
“This significant sentence is proof that not everyone learns their lesson the first time. Every time this previously convicted child predator feeds his perversion by receiving and distributing illicit images of children, he revictimizes those innocent victims,” said Homeland Security Investigations (HSI) Special Agent in Charge John Condon. “This sentence is proof that the Northeast Florida INTERCEPT Task Force, HSI Jacksonville, and our partners at the Jacksonville Sheriff’s Office, will stop at nothing to identify and prosecute those who exploit the vulnerability of our children.”
This case was investigated by the Jacksonville Sheriff’s Office, Homeland Security Investigations (HSI), and the Northeast Florida INTERCEPT Task Force. It was prosecuted by Assistant United States Attorney Kelly S. Karase. The forfeiture was handled by Assistant United States Attorney Mai Tran.
This case is brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Clarksville Psychiatrist Pleads Guilty to Making False Statements to Medicare & TricareRead the Press Release
NASHVILLE – A Clarksville, Tennessee psychiatrist pleaded guilty today in U.S. District Court to two counts of making false statements relating to health care matters, announced U.S. Attorney Henry C. Leventis.
Dr. James Maures Dodson, 57, pleaded guilty to making false statements to Medicare and TRICARE in connection with two types of criminal activity. First, he caused his practice, Clarksville Behavioral Health (CBH), to submit claims for services he did not provide. On several dates between August 16, 2016, and December 10, 2018, he caused CBH to submit claims for more than 24 hours of services per day.
Second, between May 2018 and October 2020, Dodson caused CBH to falsely represent to TRICARE that other CBH providers were certified by TRICARE when they were not. For TRICARE to pay a claim for the services of a provider, TRICARE regulations required that the provider be certified by TRICARE. In May 2018, CBH offered to repay approximately $135,412.16 to TRICARE due to prior claims that had been rendered by non-TRICARE-certified providers. Notwithstanding this agreement, Dodson caused CBH to continue submitting claims to TRICARE, falsely representing that providers at his practice were TRICARE-certified when they were not.Dodson’s sentencing has been set for September 27, 2023. He faces up to 5 years in prison and a fine of up to $250,000 on each count.
This case was investigated by the Department of Health and Human Services, Office of Inspector General and the Department of Defense, Office of Inspector General. Assistant U.S. Attorney Taylor J. Phillips is prosecuting the case.
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Cheyenne Man Sentenced for Being a Felon in Possession of an Illegal FirearmRead the Press Release
Michael Langley, age 26, of Cheyenne, Wyoming, was sentenced to 51 months in prison for being a felon in possession of a firearm. Chief U.S. District Court Judge Scott W. Skavdahl imposed the sentence, which also included three years of supervised release and a $100 special assessment, on May 2, 2023.
According to court documents, on October 10, 2022, Langley was a passenger in a vehicle and fired several shots from a semiautomatic pistol at another vehicle while traveling through Cheyenne. At the time, Langley was a convicted felon who was prohibited from possessing a firearm. Langley pled guilty to unlawfully possessing the pistol, which had an obliterated serial number.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Cheyenne Police Department investigated the crime. Assistant U.S. Attorney Jonathan C. Coppom prosecuted the case.
Case No. 22-CR-00133-SWS
Carnegie Resident Sentenced to 11 Years of Imprisonment for Violating Federal Narcotics LawsRead the Press Release
PITTSBURGH, PA – A resident of Carnegie, Pennsylvania has been sentenced in federal court to 11 years of imprisonment followed by five years of supervised release on his conviction for violating federal narcotics laws related to a nine-month Title III wiretap investigation into drug trafficking in and around the counties of Jefferson, Clearfield, and Allegheny, Acting United States Attorney Troy Rivetti announced today.
United States District Judge Christy Criswell Wiegand imposed the sentence on Terrence Dougherty, age 30.
According to information presented to the court, Dougherty ordered at least sixty pounds of methamphetamine from George Charlan, a methamphetamine supplier residing on the West Coast, and approximately 4.5 kilograms of pure methamphetamine was interdicted while en route to the defendant. A search warrant was executed at the defendant’s residence, and investigators seized approximately half of a pound of methamphetamine, 17 kilograms of marijuana, $18,840 in United States currency, and a loaded firearm.
Assistant United States Attorneys Jonathan D. Lusty and Michael R. Ball prosecuted this case on behalf of the government.
The Drug Enforcement Administration led the multi-agency investigation of this case, which also included the Homeland Security Investigations, United States Postal Service – Office of Inspector General, United States Postal Inspection Service, Internal Revenue Services, Pittsburgh Bureau of Police, Allegheny County Police, and Pennsylvania State Police. Also assisting were the Jefferson County District Attorney’s Office, Clearfield County District Attorney’s Office, and the Clarion Borough Police Department.
California Man Pleads Guilty to Trafficking Fentanyl into TexasRead the Press Release
PECOS, Texas – A California man pleaded guilty Tuesday in a federal court in Pecos to possession with intent to distribute 400 grams or more of a mixture or substance containing a detectable amount of fentanyl.
According to court documents, the Texas Department of Public Safety’s (DPS) Criminal Investigations Division (CID) intercepted a known drug conspiracy occurring in the Pecos area. DPS CID requested U.S. Border Patrol’s assistance to seize suspected fentanyl in a controlled environment. On Feb. 23 at the USBP checkpoint in Sierra Blanca, a USBP canine alerted agents to search the vehicle driven by Edgar Jesus Castillo, 26, of Palmdale, California. During an inspection, agents located an unmarked envelope in the trunk of the vehicle containing a vacuum-sealed bag full of a compressed white powder. The powder tested positive for fentanyl. Castillo had obtained the 1.005 kilograms of fentanyl in California and was transporting it to Pecos, where he intended to rent a hotel room and meet with a customer traveling from Houston.
Castillo faces a penalty of 10 years to life in prison with a maximum fine of $10 million. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Jaime Esparza of the Western District of Texas made the announcement.
The Texas Department of Public Safety, USBP and Homeland Security Investigations are investigating the case.
Assistant U.S. Attorney Matthew Ellis is prosecuting the case.
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California Man & Companies Charged with Defrauding Central Illinois InvestorsRead the Press Release
URBANA, Ill. – A federal grand jury returned an indictment on May 2, 2023, charging Brett Michael Bartlett, 37, of the 9000 block of Grackle Ave., Fountain Valley, California, and his companies, Dynasty Toys, Inc., and 7M E-group Corporation, with wire fraud, mail fraud, securities fraud, and money laundering.
The indictment alleges that Bartlett and his California-based companies, Dynasty Toys, and 7M E-group, devised a scheme to defraud investors and obtain their money by making materially false and fraudulent pretenses, representations, and promises. According to the indictment, Bartlett, thorough Dynasty Toys and 7M E-group, purchased items at liquidation sales and resold those items online, especially through Amazon. Bartlett solicited and accepted money from Central Illinois investors, first to purchase inventory to be resold by 7M E-group at promised annual returns of 20% to 40% and later to purchase Dynasty Toys’ preferred stock shares, which Bartlett claimed were expected to double in value.
According to the indictment, Bartlett induced investors to invest by dramatically overstating the success of the companies and the returns that the companies generated for investors, lying about the companies’ assets, failing to disclose the companies’ struggles even while continuing to solicit investments, and using investors’ funds for Bartlett’s own benefit. For example, Bartlett falsely told investors their existing shares were worth approximately $30 million in total, that Dynasty Toys owned hundreds of millions of dollars of gold assets, and that another company was going to purchase Dynasty Toys for $120 million. As a result, approximately 1,000 individuals, including over 50 investors from Central Illinois, invested over $20 million with Bartlett, 7M E-group, and Dynasty Toys.
According to the indictment, in May of 2020, Bartlett mailed to Central Illinois investors checks totaling millions of dollars, but the checks bounced. The indictment alleges that investors lost approximately $22.5 million as a result of Bartlett’s and his companies’ fraud.
Bartlett, Dynasty Toys, and 7M E-group are scheduled to appear before United States Magistrate Judge Eric I. Long in Urbana, Illinois on June 1, 2023, at 2 p.m. for arraignment on the charges. A trial date will be set at that time.
If convicted, Bartlett faces a penalty of up to twenty years in prison on each fraud charge and a penalty of up to ten years in prison on the money laundering charge. Bartlett also faces a penalty of up to three years of supervised release on each charge. The charges also carry maximum fines of up to $6.25 million for Bartlett and up to $27.5 million for the corporations.
The charges are the result of an investigation by the Federal Bureau of Investigation, Springfield Field Office, and the Federal Deposit Insurance Corporation – Office of Inspector General. Supervisory Assistant U.S. Attorney Eugene L. Miller is representing the government in the prosecution.
In a parallel investigation, the Securities and Exchange Commission filed on the same date as the indictment a civil complaint against Bartlett, 7M E-group Corp., Dynasty Toys, Inc., and other defendants in the United States District Court in the Central District of California seeking a civil judgment against them.
Members of the public are reminded that an indictment is merely an accusation; the defendants are presumed innocent unless proven guilty.
Brownsville Man Pleads Guilty to Possessing Material Depicting Sexual Exploitation of a MinorRead the Press Release
PITTSBURGH, PA – A resident of Brownsville, Pennsylvania, has pleaded guilty to possessing material depicting the sexual exploitation of a minor.
Karl Lutes, age 52, pleaded guilty to one count before United States District Judge Cathy Bissoon.
According to information presented to the court during the guilty plea hearing, on or about February 11, 2020, agents of Homeland Security Investigations executed a search warrant at Lutes’s residence and found him in possession of videos and still images in computer graphics files depicting the sexual exploitation of minors, some of whom had not yet attained the age of 12 years.
Judge Bissoon scheduled sentencing for August 21, 2023. The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Lutes will remain on bond pending sentencing.
Assistant United States Attorney Carolyn J. Bloch prosecuted this case on behalf of the government.
Homeland Security Investigations conducted the investigation leading to the Indictment in this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Bath Man Pleads Guilty to Meth ChargeRead the Press Release
ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Gerald Barclay, 25, of Bath, NY, pleaded guilty to possession with intent to distribute five grams or more of methamphetamine before U.S. District Judge Frank P. Geraci, Jr. The charge carries a minimum penalty of five years in prison, a maximum of 40 years, and a $5,000,000 fine.
Assistant U.S. Attorney Cassie Kocher, who is handling the case, stated that on August 22, 2022, the New York State Police executed a search warrant at Barclay’s residence in Bath, seizing drug packaging materials, digital scales, and approximately $1,866 in United States currency inside the residence. Outside the residence, near a stack of tires next to the garage, investigators found approximately 195 grams of pure methamphetamine.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank A. Tarentino III, New York Field Division and the New York State Police, under the direction of Major Brian Ratajczak.
Sentencing is scheduled for July 27, 2023, at 11:00 a.m. before Judge Geraci.
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Baltimore Man Sentenced to Almost Five Years in Federal Prison in Relation to a Counterfeit Card Encoding SchemeRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Leroy Holmes, age 62, of Baltimore, Maryland, to 57 months in federal prison, followed by three years of supervised release, for bank fraud in connection with a scheme to re-encode credit cards, debit cards and gift cards with the stolen financial information of multiple victims to make fraudulent purchases in the victims’ names and without their knowledge or permission. Holmes used the cards to purchase fuel for truckers at half price, in exchange for cash. Judge Russell also ordered that Holmes must pay restitution in the full amount of the victims’ losses, which is at least $212,000 and must forfeit electronic equipment including several cell phones, laptop computers and hard drives, as well as pay a money judgment of $106,032. The sentence was imposed on May 1, 2023.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge James C. Harris of Homeland Security Investigations (HSI) Baltimore; Postal Inspector in Charge Damon E. Wood of the U.S. Postal Inspection Service - Washington Division; Special Agent in Charge Ross Luciano of the United States Secret Service - Baltimore Field Office; Acting Special Agent in Charge Troy W. Springer of the National Capital Region of the U.S. Department of Labor’s Office of Inspector General (“DOL-OIG”); Chief Robert McCullough of the Baltimore County Police Department; and Anne Arundel County Police Chief Amal E. Awad.
According to his plea agreement, from October 2019 to March 2022, Holmes defrauded financial institutions by creating and using counterfeit credit and debit cards by making unauthorized copies of the cards and reprogramming them, using the real banking information of victims, to fraudulently register as the victims’ credit or debit cards when used. Holmes then used the re-encoded cards to make fraudulent purchases without authority from cardholders or financial institutions, specifically to purchase gas for truckers at a discount at gas stations in Maryland and Pennsylvania in exchange for cash, typically half the total price of the fuel.
Some of the counterfeited credit and debit cards created and used by Holmes contained unemployment insurance benefits provided to victims from the state of California and were used without each victim’s knowledge or permission. Holmes created or used at least 594 counterfeit credit and debit cards, resulting in a loss of at least $212,000 to financial institutions, businesses and cardholders.
United States Attorney Erek L. Barron commended HSI, USPIS, the Secret Service, the DOL-OIG, the Baltimore County Police Department, and the Anne Arundel County Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Evelyn L. Cusson and Joyce K. McDonald, who prosecuted the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach. For more information about resources available to report fraud, please visit https://www.justice.gov/usao-md/report-fraud.
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