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9 June 2023
Spiro Resident Sentenced for ManslaughterRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Hunter Caleb Spence, age 20, of Spiro, Oklahoma, was sentenced to 42 months for manslaughter.
The charges arose from investigations by the Poteau Police Department, the Oklahoma Highway Patrol, the Oklahoma State Bureau of Investigation, and the Federal Bureau of Investigation.
On March 9, 2022, Spence pleaded guilty to a Superseding Indictment charging him with one count of Manslaughter in Indian Country for killing another while operating a motor vehicle under the influence of one or more intoxicating substances.
On October 28, 2020, Spence flipped his car on US Highway 270, near Wister, Oklahoma while attempting to pass another vehicle. A passenger in Spence’s vehicle was ejected and died. Spence admitted to the Oklahoma Highway Patrol Trooper investigating the scene that he had smoked marijuana prior to the crash. Blood tests confirmed the presence of tetrahydrocannabinol (THC) in his system. The crime occurred in Leflore County, within the boundaries of the Choctaw Nation Reservation and within the Eastern District of Oklahoma.
The Honorable Charles B. Goodwin, U.S. District Judge in the United States District Court for the Western District of Oklahoma, sitting by assignment, presided over the hearing in Oklahoma City. Spence will remain in custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorney Joshua Satter represented the United States at the sentencing.
Sioux Falls Man Sentenced to over Three Years for Felon in Possession of a FirearmRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Sioux Falls, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person. The sentencing took place on June 6, 2023, in Sioux Falls, South Dakota.
Richard Paul Olson, age 33, was sentenced to three years and one month in federal prison, followed by three years of supervised release. He was ordered to pay $100 as a statutorily required special assessment to the Federal Crime Victims Fund and forfeiture of the firearm was ordered by the Court.
Olson was indicted for Possession of a Firearm by a Prohibited Person by a federal grand jury in September of 2022. He pleaded guilty on May 10, 2023.
According to court documents, during the execution of a warrant at Olson’s residence on April 21, 2022, law enforcement located a firearm loaded with a round in the chamber and four rounds in the magazine in his residence. Olson was in possession of that firearm, storing it in his nightstand. Olson is prohibited from possessing firearms due to previous felony convictions.
This case was investigated by the U.S. Marshals Service, SD Highway Patrol, and the Bureau of Alcohol, Tobacco, and Firearms. Assistant U.S. Attorney Jeremy R. Jehangiri prosecuted the case.
Olson was remanded to the custody of the U.S. Marshals Service to continue serving his sentence.
Sioux Falls Man Sentenced to over Five Years in Federal Prison for Bank RobberyRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Sioux Falls, South Dakota, man, convicted of Bank Robbery. The sentencing took place on June 5, 2023 in Sioux Falls, South Dakota.
Ayub Ibrahim Mohamed, age 23, was sentenced to five years and three months in federal prison, followed by three years of supervised release. He was ordered to pay $100 as a statutorily required special assessment to the Federal Crime Victims Fund.
Mohamed was indicted for Bank Robbery by a federal grand jury in September of 2022. He pleaded guilty on March 1, 2023.
According to court documents, on August 23, 2022, Mohamed entered a Wells Fargo Bank in Sioux Falls, and demanded $200,000 from the tellers. Bank employees complied with Mohamed’s demands, providing $200,000. Mohamed took the bank’s money. Law enforcement responded in short order. Mohamed was apprehended outside of the bank and the money was recovered.
This case was investigated by the FBI and the Sioux Falls Police Department. Assistant U.S. Attorney Jeremy R. Jehangiri prosecuted the case.
Mohamed was remanded to the custody of the U.S. Marshals Service to continue serving his sentence.
San Mateo Company to Pay More Than $1,000,000 for Improperly Seeking and Obtaining Paycheck Protection Program LoansRead the Press Release
SAN FRANCISCO – Fujisoft America, Inc., a San Mateo-based subsidiary of Fujisoft Inc., has agreed to pay $1,050,000 to resolve allegations that it knowingly violated the False Claims Act when it applied for, received, and retained two Paycheck Protection Program (PPP) loans totaling $400,000 in violation of PPP rules, announced United States Attorney Ismail J. Ramsey and Small Business Administration Office of Inspector General (SBA OIG) Western Region Acting Special Agent in Charge Keven Standley.
“PPP loans were intended as economic lifelines for small businesses during the pandemic,” said U.S. Attorney Ramsey. “It is unacceptable for large companies to claim a portion of this limited pool of PPP funds, which was meant for small businesses, in order to enrich themselves at the expense of the American taxpayer. This Office will continue to pursue businesses that misused the program by obtaining PPP loans for which they were not eligible.”
“Those who violate the False Claim Act by fraudulently receiving and retaining SBA program funds meant for eligible small businesses will be held accountable,” said SBA OIG’s Western Region Acting Special Agent in Charge Keven Standley. “This settlement sends a strong message that those responsible will be brought to justice. I want to thank the Department of Justice and our law enforcement partners for their dedication and pursuit of justice.”
Congress created the PPP in March 2020 as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act to provide emergency financial support to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. The CARES Act authorized billions of dollars in forgivable loans to small businesses struggling to pay employees and other business expenses. PPP loan applicants were required to certify that they were in fact small businesses in order to be eligible for PPP loans. Among other things, PPP loan applicants generally were required to certify that they and their affiliates had no more than 500 employees to be eligible for a “first-draw” loan and had no more than 300 employees to be eligible for an additional “second-draw” loan. PPP loan applicants were also required to certify that they had a decrease in revenue of at least 25% from 2019 to 2020 to be eligible for a second-draw loan. Pursuant to the settlement announced today, Fujisoft America acknowledged that it sought and obtained PPP loans in violation of these rules.
Fujisoft America’s parent company, Fujisoft Inc, is a publicly-traded company listed on the Tokyo Stock Exchange; together with its various subsidiaries, Fujisoft Inc. has over 15,000 employees and its earnings have increased steadily between 2019 and 2021—its revenue in 2019 before the pandemic was over $1.6 billion and during the pandemic grew to over $1.7 billion in 2020 and then $1.8 billion in 2021. Fujisoft America nevertheless sought and obtained loans intended for small businesses.
As part of the settlement, Fujisoft America, Inc. admitted, among other things, that:
• Fujisoft America, Inc. knew that it was not eligible for PPP loans because, with its affiliates, it had more than 500 employees.
• In 2020, Fujisoft America, Inc. applied for and received a $250,000 PPP first-draw loan, and subsequently obtained loan forgiveness and retained that $250,000, by falsely certifying that it met the company size restrictions necessary to be eligible for a PPP first-draw loan.
• In 2021, Fujisoft America, Inc. applied for and received a $150,000 PPP second-draw loan, and subsequently obtained loan forgiveness and retained that $150,000, by falsely certifying that it met the company size restrictions necessary to be eligible for a PPP second-draw loan. Fujisoft America, Inc. also falsely certified that it had a decrease in revenue in excess of 25% from 2019 to 2020 when, with its affiliates, its revenue from 2019 to 2020 had increased.
• As a result of its false claims and false statements, Fujisoft America, Inc. received and retained $400,000 in PPP funds to which it was not entitled.Assistant U.S. Attorney Shiwon Choe handled this matter for the government. The investigation and settlement resulted from a coordinated effort by the U.S. Attorney’s Office for the Northern District of California and SBA OIG.
fsai_settlement_agreement.pdfRussian Nationals Charged with Hacking One Cryptocurrency Exchange and Illicitly Operating AnotherRead the Press Release
The Justice Department unsealed charges related to the 2011 hack of the cryptocurrency exchange Mt. Gox and the operation of the illicit cryptocurrency exchange BTC-e.
According to court documents, Alexey Bilyuchenko, 43, and Aleksandr Verner, 29, both Russian nationals, are charged with conspiring to launder approximately 647,000 bitcoins from their hack of Mt. Gox. Bilyuchenko is also charged with conspiring with Alexander Vinnik to operate BTC-e from 2011 to 2017.
“This announcement marks an important milestone in two major cryptocurrency investigations. As alleged in the indictments, starting in 2011, Bilyuchenko and Verner stole a massive amount of cryptocurrency from Mt. Gox, contributing to the exchange’s ultimate insolvency. Armed with the ill-gotten gains from Mt. Gox, Bilyuchenko allegedly went on to help set up the notorious BTC-e virtual currency exchange, which laundered funds for cyber criminals worldwide,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “These indictments highlight the department’s unwavering commitment to bring to justice bad actors in the cryptocurrency ecosystem and prevent the abuse of the financial system.”
“As cyber criminals have become more sophisticated in their methods of thievery, our career prosecutors and law enforcement partners, too, have become experts in the latest technologies being abused for malicious purposes,” said U.S. Attorney Damian Williams for the Southern District of New York. “As alleged, Alexey Bilyuchenko and Aleksandr Verner thought they could outsmart the law by using sophisticated hacks to steal and launder massive amounts of cryptocurrency, a novel technology at the time, but the charges unsealed demonstrate our ability to tenaciously pursue these alleged criminals, no matter how complex their schemes, until they are brought to justice.”
“For years, Bilyuchenko and his co-conspirators allegedly operated a digital currency exchange that enabled criminals around the world – including computer hackers, ransomware actors, narcotics rings, and corrupt public officials – to launder billions of dollars,” said U.S. Attorney Ismail J. Ramsey for the Northern District of California. “The Department of Justice will work tirelessly to identify cyber criminals, no matter where they are. And Bilyuchenko and his co-conspirators will learn that the Department of Justice has long arms and an even longer memory for crimes that harm our communities.”
Southern District of New York indictment
According to court documents unsealed in the Southern District of New York (SDNY), in or about September 2011, Bilyuchenko, Verner, and their co-conspirators allegedly gained unauthorized access to the server holding the cryptocurrency wallets for Mt. Gox. At the time, Mt. Gox was the largest Bitcoin exchange in existence, servicing thousands of users worldwide. Mt. Gox stored the cryptocurrency wallets containing its customers’ bitcoin, and the corresponding private keys used to authorize bitcoin transfers from those wallets, on a computer server in Japan.
“The FBI will continue to work with our U.S. government and international partners to relentlessly pursue and disrupt malicious cyber actors wherever they may reside,” said Assistant Director Bryan Vorndran of the FBI’s Cyber Division. “When cyber criminals engage in fraudulent activity, such as hacking and illicitly operating cryptocurrency exchanges, it is critical that we impose cost on the bad actors and ensure they face justice.”
Bilyuchenko, Verner, and their co-conspirators allegedly used their unauthorized access to Mt. Gox’s server to fraudulently cause bitcoin to be transferred from Mt. Gox’s wallets to bitcoin addresses controlled by Bilyuchenko, Verner, and their co-conspirators. From September 2011 through at least May 2014, Bilyuchenko, Verner, and their co-conspirators allegedly caused the theft of at least approximately 647,000 bitcoins from Mt. Gox, representing the vast majority of the bitcoins belonging to Mt. Gox’s customers. Bilyuchenko, Verner, and their co-conspirators allegedly laundered the bulk of the bitcoins stolen through Mt. Gox principally through bitcoin addresses associated with accounts Bilyuchenko, Verner, and their co-conspirators controlled at two other online bitcoin exchanges.
“Cryptocurrency offers a new way for criminals to steal and launder money, but greed and deceit are nothing new,” said Chief Jim Lee of IRS Criminal Investigation (IRS-CI). “IRS-CI is specially equipped to follow the complex financial trail left by criminals, and we are dedicated to holding those accountable for crimes committed. IRS-CI is proud to stand with our law enforcement partners to announce this indictment.”
In furtherance of the money laundering scheme, in or about April 2012, Bilyuchenko, Verner, and their co-conspirators allegedly negotiated and entered into a fraudulent contract (the “Advertising Contract”) to provide purported advertising services to a Bitcoin brokerage service based in the Southern District of New York (the “New York Bitcoin Broker”). Under the guise of the Advertising Contract, in order to conceal and liquidate the bitcoins stolen from Mt. Gox, Bilyuchenko and Verner allegedly made regular requests to the owner and operator of the New York Bitcoin Broker to make large wire transfers into various offshore bank accounts, including in the names of shell corporations, controlled by Bilyuchenko, Verner, and their co-conspirators. In accordance with these requests, between in or about March 2012 and in or about April 2013, the New York Bitcoin Broker allegedly transferred more than approximately $6.6 million to overseas bank accounts controlled by Bilyuchenko, Verner, and their co-conspirators. In exchange for the wire transfers, the New York Bitcoin Broker allegedly received “credit” on Exchange-1, through which Bilyuchenko, Verner, and their co-conspirators allegedly laundered more than 300,000 of the bitcoins stolen from Mt. Gox. The fraudulent Advertising Contract with the New York Bitcoin Broker allegedly enabled Bilyuchenko, Verner, and their co-conspirators to conceal and liquidate bitcoins stolen through the Mt. Gox Hack.
Mt. Gox ceased operations in 2014 after the theft was revealed.
Northern District of California indictment
According to court documents unsealed in the Northern District of California (NDCA), Bilyuchenko allegedly worked with Vinnik and others to operate the BTC-e exchange from 2011 until it was shut down by law enforcement in July 2017. During that time period, BTC-e was one of the world’s largest cryptocurrency exchanges and was one of the primary ways by which cyber criminals around the world transferred, laundered, and stored the criminal proceeds of their illegal activities.
BTC-e served over one million users worldwide, moving millions of bitcoin worth of deposits and withdrawals, and processing billions of dollars’ worth of transactions. BTC-e received criminal proceeds of numerous computer intrusions and hacking incidents, ransomware events, identity theft schemes, corrupt public officials, and narcotics distribution rings.
“The Secret Service has a long tradition of pursuing and bringing to justice those who aim to exploit our financial systems and target innocent victims,” said Special Agent in Charge William Mancino of the U.S. Secret Service’s Criminal Investigative Division. “Working together with our local, state, and federal law enforcement partners, we will continue to investigate criminal organizations that operate in the ever-evolving cyber domain.”
“Homeland Security Investigations (HSI) continues to investigate cyber criminals illicitly operating in virtual spaces, and we are proud to have worked collaboratively with our law enforcement partners to bring these two individuals to justice,” said Acting Executive Associate Director Katrina W. Berger of HSI. “Our special agents continue to investigate transnational criminal organizations operating in emerging technologies, leveraging our broad authorities to identify, and dismantle those behind sophisticated crypto-scams.”
The SDNY indictment charges Bilyuchenko and Verner with conspiracy to commit money laundering. The NDCA indictment charges Bilyuchenko with money laundering conspiracy and operating an unlicensed money services business.
The U.S. Attorney’s Office for the Southern District of New York’s Complex Frauds and Cybercrime Unit is handling the SDNY case. The FBI and IRS-CI are investigating the case and SDNY Assistant U.S. Attorney Olga I. Zverovich is prosecuting the case.
The Corporate and Securities Fraud Section of the U.S. Attorney’s Office for the Northern District of California and the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) are handling the NDCA case. The FBI; IRS-CI Oakland Field Office and Cyber Crime Unit in Washington, D.C.; U.S. Secret Service Criminal Investigative Division; and HSI are investigating the case. CCIPS Trial Attorney C. Alden Pelker and NDCA Assistant U.S. Attorney Claudia Quiroz, both members of the National Cryptocurrency Enforcement Team, and NDCA Assistant U.S. Attorney Katherine Lloyd-Lovett are prosecuting the case. The Justice Department’s Office of International Affairs provided invaluable assistance.
A criminal indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Russian Nationals Charged with Hacking One Cryptocurrency Exchange and Illicitly Operating AnotherRead the Press Release
SAN FRANCISCO – The Department of Justice today unsealed charges related to the 2011 hack of the cryptocurrency exchange Mt. Gox and the operation of the illicit cryptocurrency exchange BTC-e.
According to court documents, Alexey Bilyuchenko, 43, and Aleksandr Verner, 29, both Russian nationals, are charged with laundering approximately 647,000 bitcoins from their hack of Mt. Gox. Bilyuchenko is also charged with conspiring with Alexander Vinnik to operate BTC-e from 2011 to 2017.
“This announcement marks an important milestone in two major cryptocurrency investigations. As alleged in the indictments, starting in 2011, Bilyuchenko and Verner stole a massive amount of cryptocurrency from Mt. Gox, contributing to the exchange’s ultimate insolvency. Armed with the ill-gotten gains from Mt. Gox, Bilyuchenko went on to help set up the notorious BTC-e virtual currency exchange, which laundered funds for cyber criminals worldwide,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “These indictments highlight the department’s unwavering commitment to bring to justice bad actors in the cryptocurrency ecosystem and prevent the abuse of the financial system.”
Southern District of New York Indictment
According to court documents unsealed in the Southern District of New York (SDNY), in or about September 2011, Bilyuchenko, Verner, and their co-conspirators allegedly gained unauthorized access to the server holding the cryptocurrency wallets for Mt. Gox. At the time, Mt. Gox was the largest Bitcoin exchange in existence, servicing thousands of users worldwide. Mt. Gox stored the cryptocurrency wallets containing its customers’ bitcoin, and the corresponding private keys used to authorize bitcoin transfers from those wallets, on a computer server in Japan.
“As cyber criminals have become more sophisticated in their methods of thievery, our career prosecutors and law enforcement partners, too, have become experts in the latest technologies being abused for malicious purposes,” said U.S. Attorney Damian Williams for the Southern District of New York. “As alleged, Alexey Bilyuchenko and Aleksandr Verner thought they could outsmart the law by using sophisticated hacks to steal and launder massive amounts of cryptocurrency, a novel technology at the time, but the charges unsealed today demonstrate our ability to tenaciously pursue these alleged criminals, no matter how complex their schemes, until they are brought to justice.”
Bilyuchenko, Verner, and their co-conspirators allegedly used their unauthorized access to Mt. Gox’s server to fraudulently cause bitcoin to be transferred from Mt. Gox’s wallets to bitcoin addresses controlled by Bilyuchenko, Verner, and their co-conspirators. From September 2011 through at least May 2014, Bilyuchenko, Verner, and their co-conspirators allegedly caused the theft of at least approximately 647,000 bitcoins from Mt. Gox, representing the vast majority of the bitcoins belonging to Mt. Gox’s customers. Bilyuchenko, Verner, and their co-conspirators allegedly laundered the bulk of the bitcoins stolen through Mt. Gox principally through bitcoin addresses associated with accounts Bilyuchenko, Verner, and their co-conspirators controlled at two other online bitcoin exchanges.
“The FBI will continue to work with our U.S. government and international partners to relentlessly pursue and disrupt malicious cyber actors wherever they may reside,” said Assistant Director Bryan Vorndran of the FBI’s Cyber Division. “When cyber criminals engage in fraudulent activity, such as hacking and illicitly operating cryptocurrency exchanges, it is critical that we impose cost on the bad actors and ensure they face justice.”
“Cryptocurrency offers a new way for criminals to steal and launder money, but greed and deceit are nothing new,” said Chief Jim Lee of the IRS Criminal Investigation (IRS-CI). “IRS-CI is specially equipped to follow the complex financial trail left by criminals, and we are dedicated to holding those accountable for crimes committed. IRS-CI is proud to stand with our law enforcement partners to announce this indictment.”
In furtherance of the money laundering scheme, in or about April 2012, Bilyuchenko, Verner, and their co-conspirators allegedly negotiated and entered into a fraudulent contract (the “Advertising Contract”) to provide purported advertising services to a Bitcoin brokerage service based in the Southern District of New York (the “New York Bitcoin Broker”). Under the guise of the Advertising Contract, in order to conceal and liquidate the bitcoins stolen from Mt. Gox, Bilyuchenko and Verner allegedly made regular requests to the owner and operator of the New York Bitcoin Broker to make large wire transfers into various offshore bank accounts, including in the names of shell corporations, controlled by Bilyuchenko, Verner, and their co-conspirators. In accordance with these requests, between in or about March 2012 and in or about April 2013, the New York Bitcoin Broker allegedly transferred more than approximately $6.6 million to overseas bank accounts controlled by Bilyuchenko, Verner, and their co-conspirators. In exchange for the wire transfers, the New York Bitcoin Broker allegedly received “credit” on Exchange-1, through which Bilyuchenko, Verner, and their co-conspirators allegedly laundered more than 300,000 of the bitcoins stolen from Mt. Gox. The fraudulent Advertising Contract with the New York Bitcoin Broker allegedly enabled Bilyuchenko, Verner, and their co-conspirators to conceal and liquidate bitcoins stolen through the Mt. Gox Hack.
Mt. Gox ceased operations in 2014 after the theft was revealed.
Northern District of California Indictment
According to court documents unsealed in the Northern District of California (NDCA), Bilyuchenko allegedly worked with Vinnik and others to operate the BTC-e exchange from 2011 until it was shut down by law enforcement in July 2017. During that period, BTC-e was one of the world’s largest cryptocurrency exchanges and was one of the primary ways by which cyber criminals around the world transferred, laundered, and stored the criminal proceeds of their illegal activities.
“For years, Bilyuchenko and his co-conspirators operated a digital currency exchange that enabled criminals around the world – including computer hackers, ransomware actors, narcotics rings, and corrupt public officials – to launder billions of dollars,” said U.S. Attorney Ismail J. Ramsey for the Northern District of California. “The Department of Justice will work tirelessly to identify cyber criminals, no matter where they are. And Bilyuchenko and his co-conspirators will learn that the Department of Justice has long arms and an even longer memory for crimes that harm our communities.”
“Bilyuchenko conspired with Vinnik and others to create a lawless and anonymous space in service to cybercriminals and cryptocurrency laundering,” said Robert Tripp, SAC of the FBI San Francisco Field Office. “FBI investigators were committed to shining a light on this activity through dogged investigation, technical skill, and partnerships. We will continue to work with our local and global law enforcement colleagues to identify, pursue, and arrest criminals no matter where they reside and no matter how long it takes.”
BTC-e served over one million users worldwide, moving millions of bitcoin worth of deposits and withdrawals, and processing billions of dollars’ worth of transactions. BTC-e received criminal proceeds of numerous computer intrusions and hacking incidents, ransomware events, identity theft schemes, corrupt public officials, and narcotics distribution rings.
“The Secret Service has a long tradition of pursuing and bringing to justice those who aim to exploit our financial systems and target innocent victims,” said Special Agent in Charge William Mancino of the U.S. Secret Service’s Criminal Investigative Division. “Working together with our local, state, and federal law enforcement partners, we will continue to investigate criminal organizations that operate in the ever-evolving cyber domain.”
“Homeland Security Investigations (HSI) continues to investigate cyber criminals illicitly operating in virtual spaces, and we are proud to have worked collaboratively with our law enforcement partners to bring these two individuals to justice,” said Acting Executive Associate Director Katrina W. Berger of HSI. “Our special agents continue to investigate transnational criminal organizations operating in emerging technologies, leveraging our broad authorities to identify, and dismantle those behind sophisticated crypto-scams.”
“HSI San Francisco/NorCal is on the alert to money laundering via crypto currency and other criminal activity that pervade the dark web,” said Special Agent in Charge Tatum King of HSI San Francisco. “In addition to the multi-year efforts of HSI personnel, partnerships continue to be key in this monumental and complex work and we are appreciative of joint efforts with FBI San Francisco, U.S. Secret Service San Francisco, IRS-CI San Francisco, and the Northern District U.S. Attorney’s Office, all of whom have expended significant resources in pursuit of this investigation.”
The SDNY indictment charges Bilyuchenko and Verner with conspiracy to commit money laundering. The NDCA indictment charges Bilyuchenko with money laundering conspiracy and operating an unlicensed money services business.
The U.S. Attorney’s Office for the Southern District of New York’s Complex Frauds and Cybercrime Unit is handling the SDNY case. The FBI and IRS-CI are investigating the case and SDNY Assistant U.S. Attorney Olga I. Zverovich is prosecuting the case.
The Corporate and Securities Fraud Section of the U.S. Attorney’s Office for the Northern District of California and the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) are handling the NDCA case. The FBI; IRS-CI Oakland Field Office and Cyber Crime Unit in Washington, D.C.; U.S. Secret Service Criminal Investigative Division; and Homeland Security Investigations are investigating the case. CCIPS Trial Attorney C. Alden Pelker and NDCA Assistant U.S. Attorney Claudia Quiroz, both members of the National Cryptocurrency Enforcement Team, and NDCA Assistant U.S. Attorney Katherine Lloyd-Lovett are prosecuting the case. The Justice Department’s Office of International Affairs provided invaluable assistance.A criminal indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
biluchenko_indicment_redacted_cr-22-0255_vc.pdf u.s._v._bilyuchenko_and_verner_indictment.pdfRussian Nationals Charged with Hacking One Cryptocurrency Exchange and Illicitly Operating AnotherRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Kenneth A. Polite, Jr., the Assistant Attorney General for the Department of Justice’s Criminal Division, Ismail J. Ramsey, the United States Attorney for the Northern District of California, James C. Lee, the Chief of the Internal Revenue Service-Criminal Investigation (“IRS-CI”), Michael J. Driscoll, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), William Mancino, the Special Agent in Charge of the U.S. Secret Service’s Criminal Investigative Division (“USSS”), and Katrina W. Berger, the Acting Executive Associate Director of Homeland Security Investigations (“HSI”), announced the unsealing of charges against ALEXEY BILYUCHENKO and ALEKSANDR VERNER, both Russian nationals. BILYUCHENKO and VERNER are charged in the Southern District of New York with conspiring to launder approximately 647,000 bitcoins from the 2011 hack of Mt. Gox (the “SDNY Case”). BILYUCHENKO is separately charged in the Northern District of California with conspiring with Alexander Vinnik to operate the illicit cryptocurrency exchange BTC-e from 2011 to 2017 (the “NDCA Case”). The SDNY Case has been assigned to U.S. District Judge P. Kevin Castel. The NDCA Case has been assigned to U.S. District Judge Chhabria.
U.S. Attorney Damian Williams said: “As cyber criminals have become more sophisticated in their methods of thievery, our career prosecutors and law enforcement partners, too, have become experts in the latest technologies being abused for malicious purposes. As alleged, Alexey Bilyuchenko and Aleksandr Verner thought they could outsmart the law by using sophisticated hacks to steal and launder massive amounts of cryptocurrency, a novel technology at the time, but the charges unsealed demonstrate our ability to tenaciously pursue these alleged criminals, no matter how complex their schemes, until they are brought to justice.”
Assistant Attorney General Kenneth A. Polite, Jr. said: “This announcement marks an important milestone in two major cryptocurrency investigations. As alleged in the indictments, starting in 2011, Bilyuchenko and Verner stole a massive amount of cryptocurrency from Mt. Gox, contributing to the exchange’s ultimate insolvency. Armed with the ill-gotten gains from Mt. Gox, Bilyuchenko allegedly went on to help set up the notorious BTC-e virtual currency exchange, which laundered funds for cyber criminals worldwide. These indictments highlight the department’s unwavering commitment to bring to justice bad actors in the cryptocurrency ecosystem and prevent the abuse of the financial system.”
NDCA U.S. Attorney Ismail J. Ramsey said: “For years, Bilyuchenko and his coconspirators operated a digital currency exchange that enabled criminals around the world – including computer hackers, ransomware actors, narcotics rings, and corrupt public officials – to launder billions of dollars. The Department of Justice will work tirelessly to identify cyber criminals, no matter where they are. And Bilyuchenko and his coconspirators will learn that the Department of Justice has long arms and an even longer memory for crimes that harm our communities.”
IRS-CI Chief James C. Lee said: “Cryptocurrency offers a new way for criminals to steal and launder money, but greed and deceit are nothing new. IRS-CI is specially equipped to follow the complex financial trail left by criminals, and we are dedicated to holding those accountable for crimes committed. IRS-CI is proud to stand with our law enforcement partners to announce these indictments.”
FBI Assistant Director in Charge Michael J. Driscoll said: “As alleged in the indictment, the defendants gained unauthorized access to a server used by Mt. Gox to house cryptocurrency wallets. Mt. Gox was the world’s largest bitcoin exchange at the time, and the defendants used their unauthorized access to steal the bulk of the bitcoins held by Mt. Gox customers. The FBI and our partners will continue to work tirelessly to protect the integrity of all of our financial markets.”
USSS Special Agent in Charge William Mancino said: “The Secret Service has a long tradition of pursuing and bringing to justice those who aim to exploit our financial systems and target innocent victims. Working together with our local, state, and federal law enforcement partners, we will continue to investigate criminal organizations that operate in the ever-evolving cyber domain.”
HSI Acting Executive Associate Director Katrina W. Berger said: “Homeland Security Investigations continues to investigate cyber criminals illicitly operating in virtual spaces, and we are proud to have worked collaboratively with our law enforcement partners to bring these two individuals to justice. Our special agents continue to investigate transnational criminal organizations operating in emerging technologies, leveraging our broad authorities to identify and dismantle those behind sophisticated crypto scams.”
The SDNY Case
According to the allegations in the Indictment unsealed in the Southern District of New York:[1]
In or about September 2011, BILYUCHENKO, VERNER, and their co-conspirators gained unauthorized access to the server holding the cryptocurrency wallets for Mt. Gox. At the time, Mt. Gox was the largest bitcoin exchange in existence, servicing thousands of users worldwide, including users in the Southern District of New York. Mt. Gox stored the cryptocurrency wallets containing its customers’ bitcoin and the corresponding private keys used to authorize bitcoin transfers from those wallets on a computer server in Japan.
BILYUCHENKO, VERNER, and their co-conspirators used their unauthorized access to Mt. Gox’s server to fraudulently cause bitcoins to be transferred from Mt. Gox’s wallets to bitcoin addresses controlled by BILYUCHENKO, VERNER, and their co-conspirators. From September 2011 through at least May 2014, BILYUCHENKO, VERNER, and their co-conspirators caused the theft of at least approximately 647,000 bitcoins from Mt. Gox, representing the vast majority of the bitcoins belonging to Mt. Gox’s customers. BILYUCHENKO, VERNER, and their co-conspirators laundered the bulk of the bitcoins stolen from Mt. Gox principally through bitcoin addresses associated with accounts BILYUCHENKO, VERNER, and their co-conspirators controlled at two other online bitcoin exchanges (“Exchange-1” and “Exchange-2”), as well as a particular user account on Mt. Gox itself.
In furtherance of the money laundering scheme, in or about April 2012, BILYUCHENKO, VERNER, and their co-conspirators negotiated and entered into a fraudulent contract (the “Advertising Contract”) to provide purported advertising services to a bitcoin brokerage service based in the Southern District of New York (the “New York Bitcoin Broker”). Under the guise of the Advertising Contract, in order to conceal and liquidate the bitcoins stolen from Mt. Gox, BILYUCHENKO and VERNER made regular requests to the owner and operator of the New York Bitcoin Broker to make large wire transfers into various offshore bank accounts, including in the names of shell corporations, controlled by BILYUCHENKO, VERNER, and their co-conspirators. In accordance with these requests, between in or about March 2012 and in or about April 2013, the New York Bitcoin Broker transferred more than approximately $6.6 million to overseas bank accounts controlled by BILYUCHENKO, VERNER, and their co-conspirators. In exchange for the wire transfers, the New York Bitcoin Broker received “credit” on Exchange-1, through which BILYUCHENKO, VERNER, and their co-conspirators laundered more than 300,000 of the bitcoins stolen from Mt. Gox. The fraudulent Advertising Contract with the New York Bitcoin Broker enabled BILYUCHENKO, VERNER, and their co-conspirators to conceal and liquidate bitcoins stolen through the Mt. Gox hack.
Mt. Gox ceased operations in 2014 after the theft was revealed.
The NDCA Case
According to the allegations in the Indictment unsealed in the Northern District of California:[2]
BILYUCHENKO worked with Alexander Vinnik and others to operate the BTC-e exchange from 2011 until it was shut down by law enforcement in July 2017. During that time period, BTC-e was one of the world’s largest cryptocurrency exchanges and was one of the primary ways by which cyber criminals around the world transferred, laundered, and stored the criminal proceeds of their illegal activities.
BTC-e served over one million users worldwide, moving millions of bitcoin worth of deposits and withdrawals and processing billions of dollars’ worth of transactions. BTC-e received criminal proceeds of numerous computer intrusions and hacking incidents, ransomware events, identity theft schemes, corrupt public officials, and narcotics distribution rings.
* * *
The SDNY Indictment charges BILYUCHENKO, 43, and VERNER, 29, both Russian nationals, with conspiracy to commit money laundering. If convicted of the charge in the SDNY Indictment, each defendant faces a maximum penalty of 20 years in prison.
The NDCA Indictment charges BILYUCHENKO with conspiracy to commit money laundering and operating an unlicensed money services business. If convicted of the charges in the NDCA Indictment, BILYUCHENKO faces a maximum penalty of 25 years in prison.
The maximum potential sentences set forth above are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the Court.
Mr. Williams praised IRS-CI and the FBI for their work in investigating the SDNY Case.
The SDNY Case is being handled by the Complex Frauds and Cybercrime Unit of the United States Attorney’s Office for the Southern District of New York. Assistant U.S. Attorney Olga I. Zverovich is in charge of the prosecution of the SDNY Case.
The NDCA Case is behind handled by the Corporate and Securities Fraud Section of the U.S. Attorney’s Office for the Northern District of California and the Criminal Division’s Computer Crime and Intellectual Property Section (“CCIPS”). CCIPS Trial Attorney C. Alden Pelker and NDCA Assistant U.S. Attorney Claudia Quiroz, both members of the National Cryptocurrency Enforcement Team, and NDCA Assistant U.S. Attorney Katherine Lloyd-Lovett are prosecuting the case. The FBI; IRS-CI Oakland Field Office and Cyber Crime Unit in Washington, D.C.; U.S. Secret Service Criminal Investigative Division; and Homeland Security Investigations are investigating the case. The Justice Department’s Office of International Affairs provided invaluable assistance.
The charges in the Indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
[2] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
U.S. v. Bilyuchenko and Verner IndictmentRockford Man Sentenced to 15 Years in Federal Prison for the Sexual Exploitation of ChildrenRead the Press Release
ROCKFORD — A Rockford man has been sentenced to 15 years in federal prison for sexually exploiting children.
JAMES UMBAUGH, 57, admitted in a plea agreement that in 2018 he knowingly possessed, on his home computer, images of prepubescent minors, minors under the age of twelve, and toddlers engaged in sex acts. Umbaugh possessed more than 7,900 images and videos of child pornography, including children engaged in sexually explicit conduct that Umbaugh obtained online. Umbaugh further admitted that from 2016 to 2018 he acted as a moderator and administrator for chat rooms and websites that promoted the distribution of child abuse and child exploitation materials.
In addition to the prison term, U.S. District Court Judge Philip G. Reinhard on Friday ordered Umbaugh to pay $18,000 in restitution to his victims.
The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The government was represented by Assistant U.S. Attorney Jessica S. Maveus. Assistant U.S. Attorney Michael D. Love and Attorney James Burke of the Department of Justice’s Child Exploitation and Obscenity Section assisted with the investigation and prosecution.
Rebecca C. Lutzko Sworn in as interim United States Attorney for the Northern District of OhioRead the Press Release
CLEVELAND – Rebecca C. Lutzko was sworn in today as the interim United States Attorney for the Northern District of Ohio by United States District Judge Patricia Anne Gaughan at the federal courthouse in Cleveland.
“As a career federal prosecutor, I am honored to be selected to lead our dedicated team as we continue working toward making the Northern District a safer and better place to live, and carrying out the mission of the Department of Justice,” said interim United States Attorney Lutzko. “I want to thank President Biden for my nomination, Senators Brown and Vance for their support, and the District Judges of our court for their vote of confidence in me as the confirmation process proceeds through the Senate.”
Lutzko was nominated by President Joseph R. Biden on June 7, 2023, and was installed by the United States District Judges in the Northern District of Ohio pending her Senate confirmation. As the interim United States Attorney, Lutzko will supervise the prosecution of federal crimes in the district, including crimes related to public corruption, civil rights violations, white collar crime, child exploitation, terrorism, firearms offenses, narcotics offenses, and more. The office also defends the United States in civil cases and collects debts owed to the United States. The office covers Ohio’s northern 40 counties, which includes Cleveland, Toledo, Akron and Youngstown, and has a staff of approximately 166 employees.
Lutzko has served the district as an Assistant United States Attorney since 2005. In this capacity, she has held several leadership and line assistant positions in the office, serving as Chief of the Appeals Unit since 2017 and previously serving as Deputy Chief of the Major Fraud and Corruption Unit from 2010 to 2011.
Before becoming an Assistant United States Attorney, Lutzko was an associate at BakerHostetler in Cleveland from 1998 to 2005. She also served as a law clerk for Judge Alice M. Batchelder of the United States Court of Appeals for the Sixth Circuit from 1997 to 1998.
Lutzko received her J.D., cum laude, from Georgetown University Law Center in 1997 and her B.A., magna cum laude, from Boston University in 1993.
Raleigh County Man Sentenced to More than 12 Years in Prison for Federal Drug CrimeRead the Press Release
BECKLEY, W.Va. – Larry Wayne Meadows, 71, of Shady Spring, was sentenced today to 12 years and seven months in prison, to be followed by three years of supervised release, for possession with intent to distribute methamphetamine.
According to court documents and statements made in court, on September 21, 2021, law enforcement officers executed a search warrant at Meadows’ residence and found approximately 28 grams of methamphetamine, several grams of a heroin and fentanyl mixture, and a large assortment of prescription pills. Meadows admitted that he possessed these drugs with the intent to distribute them. Meadows further admitted to possessing four firearms that officers also found inside his residence.
Meadows told officers that he had been distributing about 1 ounce of methamphetamine and 1 ounce of heroin each week for about a year. Meadows’ criminal record includes two prior federal felony convictions for controlled substance offenses.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Beckley/Raleigh County Drug and Violent Crime Unit (BRCDVCU).
United States District Judge Frank W. Volk imposed the sentence. Assistant United States Attorney Timothy D. Boggess and former Assistant United States Attorney Alex Hamner 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. 5:22-cr-99.
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Prohibited Person Charged in Connection with Firearm Recovered During a Homicide Investigation in FranklinRead the Press Release
CONCORD – Justin Gebo will appear before Magistrate Judge Andrea K. Johnstone for an initial appearance in federal court today for being a prohibited person in possession of firearms, U.S. Attorney Jane E. Young announces.
According to the charging documents, one of the alleged firearms was recovered during a homicide investigation on June 3, 2023 in Franklin, New Hampshire.
Gebo, 28, was charged with three counts of being a prohibited person in possession of a firearm, including (1) being in possession of a firearm while under indictment; (2) being a felon in possession of a firearm; and (3) being a user of illegal drugs in possession of a firearm.
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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Plaquemines Parish Woman Sentenced for Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – CALLEIGH AMOS, age 30, a resident of Plaquemines Parish, Louisiana, was sentenced on June 8, 2023, to 6 months imprisonment, 3 years of supervised release, and a $100 mandatory special assessment fee by U.S. District Judge Susie Morgan, announced U.S. Attorney Duane A. Evans. AMOS previously pled guilty to conspiracy to distribute and possess with intent to distribute methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(C), and 846.
According to court documents, a Drug Enforcement Administration investigation revealed that AMOS was involved in a narcotics distribution conspiracy with several other co-conspirators between June 8, 2020, and June 5, 2021. As part of the conspiracy, AMOS regularly distributed quantities of methamphetamine.
This case was investigated by the Drug Enforcement Administration and Plaquemines Parish Sheriff’s Office. The prosecution was handled by Assistant United States Attorney J. Benjamin Myers of the Narcotics Unit.
Pharmacist Convicted for $1M Opioid Distribution ConspiracyRead the Press Release
A federal jury in the Southern District of Texas convicted a Texas pharmacist today for conspiracy to unlawfully distribute and dispense opioids and maintaining a drug-involved premises.
According to court documents and evidence presented at trial, from May 2018 to August 2019, Sokari “Momma” Bobmanuel, 63, of Houston, was the owner and pharmacist-in-charge of Cornerstone Rx Pharmacy, which illegally distributed nearly 160,000 opioid pills, including oxycodone and hydrocodone. Bobmanuel, through Cornerstone, distributed controlled substances outside the scope of professional practice, and without a legitimate medical purpose, to individuals who bought prescriptions in the names of other people. These individuals then sold the pills they bought from Cornerstone on the black market. Bobmanuel charged exorbitant prices for her pills – often over $1,000 for a single oxycodone prescription – generating over $1 million from the scheme.
The jury convicted Bobmanuel on one count of conspiracy to unlawfully distribute and dispense controlled substances and one count of maintaining a drug-involved premises. Her sentencing is scheduled for Sept. 20 and she faces a maximum penalty of 20 years in prison on each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
To date, 11 other defendants, including a physician and two nurse practitioners, have pleaded guilty to the conspiracy.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas, Special Agent in Charge Daniel C. Comeaux of the DEA Houston Division, and Special Agent in Charge James Smith of the FBI Houston Field Office made the announcement.
The DEA Houston Division and FBI investigated the case.
Trial Attorneys Emily Petro, Monica Cooper, Ariel Glasner, and Courtney Chester of the Criminal Division’s Fraud Section are prosecuting the case. Assistant U.S. Attorney Stephanie Bauman for the Southern District of Texas is handling forfeiture.
Puerto Rican Man Sentenced to 87 Months on Cocaine Possession ConvictionRead the Press Release
St. Thomas, VI – United States Attorney Delia L. Smith announced today that Emanuel Campbell Camacho of Puerto Rico was sentenced to 87 months of imprisonment by Chief District Judge Robert A. Molloy on his conviction of possession with intent to distribute cocaine.
According to court documents, on September 22, 2020, Drug Enforcement Administration agents learned that Campbell Camacho and Carlos Rafael Velez-Lopez, both of Puerto Rico, had traveled by commercial flight from Puerto Rico to St. Thomas, and were driving a purple Jeep Wrangler. After two days of surveillance, agents observed Campbell Camacho leave the Windward Passage Hotel as the passenger of a blue Mazda sedan that traveled to a parking lot at Mandela Circle. Campbell Camacho exited his vehicle and leaned into the passenger side of another vehicle parked next to his vehicle. Moments later, Campbell Camacho removed a large duffle bag from the parked vehicle and place it inside his vehicle. Agents followed Campbell Camacho back to Windward Passage Hotel and observed him carrying the duffle bag up to the second floor level of the hotel. As they approached Campbell Camacho, agents also observed Velez-Lopez near the top of the stairs with a cell phone in his hands. Agents later discovered 30 bricks of cocaine in Campbell Camacho’s black duffle bag. A search of Velez-Lopez’s cell phones revealed that Campbell Camacho and Velez-Lopez were in constant contact while Camacho traveled to Mandela Circle to collect the cocaine. Velez-Lopez is scheduled for sentencing on July 7, 2023.
The Drug Enforcement Administration investigated this case and Assistant United States Attorney Kyle Payne prosecuted the case. This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Puerto Rican Man Sentenced to 10 Years on Cocaine Possession ChargeRead the Press Release
St. Thomas, VI – United States Attorney Delia L. Smith announced today that Carlos Caez-Torres, 45, of Puerto Rico, was sentenced by District Court Judge Robert A. Molloy to 120 months incarceration on his conviction of possession with intent to distribute a controlled substance while on board a vessel subject to the jurisdiction of the United States. Molloy also sentenced Caez-Torres to five years of supervised release and ordered him to pay a special assessment of $100.00.
According to court documents, in the early morning hours of February 28, 2023, Customs and Border Protection (CBP) Marine Interdiction Unit detected a vessel with two people onboard traveling without navigational lights on the west side of St. Thomas heading towards Puerto Rico. CBP approached the vessel ordering it to stop, but the operator of the vessel refused to comply. The occupants of the vessel were observed throwing a black bag into the ocean. CBP disabled the vessel and later retrieved the black bag from the ocean which contained 18 kilograms of cocaine.
The U.S. Customs and Border Protection and Homeland Security Investigations investigated the case, and Assistant United States Attorneys Everard Potter and Natasha Baker prosecuted this case. This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Orange County Doctor Sentenced to More Than 12½ Years in Prison for Prescribing Opioids to ‘Patients’ Whom He Knew Were AddictsRead the Press Release
LOS ANGELES – An Orange County physician was sentenced today to 151 months in federal prison for illegally distributing opioids and other powerful narcotics by writing prescriptions for “patients” without a legitimate medical purpose.
Dr. Dzung Ahn Pham, 61, of Tustin, was sentenced by United States District Judge Josephine L. Staton, who also fined him $35,000, and ordered him immediately remanded into federal custody.
Pham pleaded guilty in October 2022 to one count of conspiracy to distribute controlled substances.
Pham owned Irvine Village Urgent Care and conspired with licensed pharmacist Jennifer Thaoyen Nguyen, 52, of Irvine, who operated the Irvine-based Bristol Pharmacy, to illegally distribute narcotics, including opioids. Pham knowingly prescribed oxycodone, hydrocodone, amphetamine salts, and other controlled substances to people while acting outside the usual course of professional practice and without a legitimate medical purpose, including to people he knew were drug addicts.
Because Pham knew that many pharmacies would not fill his prescriptions, he would direct his “patients” to Nguyen, who would fill them. Pham and Nguyen also took steps to attempt to conceal their criminal conspiracy by agreeing to have Pham write prescriptions for non-controlled substances to avoid red flags to the DEA and Nguyen’s wholesaler based on the amount of controlled substances Pham was prescribing and Nguyen was dispensing.
In November 2017, Pham wrote prescriptions to a patient, identified in court documents as “S.C.” and whom Pham knew was a drug addict, for more than 700 pills of 30mg oxycodone. To provide more narcotics to S.C., in August 2018, Pham wrote prescriptions for 75 pills of 30mg oxycodone in the name of a person labeled in court documents as “R.C.,” who was S.C.’s wife and who had never seen Pham for any medical appointment. R.C. was unaware that Pham issued the prescription in her name for S.C.
As part of the conspiracy, Pham admitted from January 2013 to December 2018, he wrote prescriptions to 18 different “patients” for a total of approximately 53,693 pills of oxycodone, approximately 68,795 pills of hydrocodone, and approximately 29,286 pills of amphetamine salts.
According to court documents, Pham abused his trust and authority as a physician to fuel the addiction of drug users in exchange for financial gain. Pham generated large amounts of cash from the operation of Irvine Village Urgent Care by charging between $100 and $150 per office visit, including many times collecting office visit fees in which Pham wrote prescriptions for the “patients” even though they did not even have an office visit.
“[Pham], a licensed physician trusted by society and the patients that went to him, stopped treating patients and, plain and simple, became a drug dealer,” prosecutors argued in a sentencing memorandum “He turned ‘patients’ into addicts and/or fueled the addictions of drug abusers.”
Nguyen pleaded guilty in October 2022 to one count of conspiracy to distribute controlled substances. On March 17, Judge Staton sentenced Nguyen to 33 months in federal prison and fined her $10,000.
The Drug Enforcement Administration, the California Department of Health Care Services, IRS Criminal Investigation, and the Irvine Police Department investigated this matter.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Assistant United States Attorneys Brett A. Sagel and Gregory W. Staples of the Santa Ana Branch Office prosecuted this case.
Omaha Man Sentenced for Possession of a Stolen FirearmRead the Press Release
United States Attorney Steven A. Russell announced that Bumatet G. Duop, 25, of Omaha, Nebraska, was sentenced today in federal court in Omaha for possessing a stolen firearm. United States District Judge Brian C. Buescher, sentenced Duop to 15 months imprisonment. There is no parole in the federal system. After his federal sentence is complete, Duop will begin a 3-year term of supervised release.
The defendant is presently serving a 10-year prison term in the Clarinda Iowa Department of Corrections following a conviction for intimidation with a dangerous weapon imposed in April 2022. After his release from state custody, Duop will begin serving his federal sentence.
On January 26, 2022, the Omaha Police Department executed a Court authorized search warrant at Duop’s Omaha residence to look for firearms and drugs. Duop was found in a bedroom of the residence where officers also located at Taurus 9mm handgun, which had been stolen out of Lincoln, Nebraska, on September 12, 2020.
This case was investigated by a Bureau of Alcohol, Tobacco, Firearms and Explosives and Omaha Police Department and was 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.
Omaha Man Sentenced as Felon in Possession of a FirearmRead the Press Release
United States Attorney Steven A. Russell announced that Jermaine L. Lewis, 24, of Omaha, Nebraska, was sentenced today in federal court in Omaha for being a prohibited person (felon) in possession of a firearm. Chief United States District Judge Robert F. Rossiter, Jr., sentenced Lewis to 43 months imprisonment. There is no parole in the federal system. After his federal sentence is complete, Lewis will begin a 3-year term of supervised release.
On May 7, 2021, officers observed several parties congregating at an abandoned Omaha residence, including Lewis. While there, Lewis reached into the passenger side of a car and appeared to wrap an unknown item inside the car. Lewis then appeared to bend down outside the vehicle near the front porch. Later that evening, shot spotter alerted law enforcement to 35 shots fired near a residence within 400 feet of the abandoned residence. Digital surveillance showed that Lewis’ car was at the residence during this time.
Officers discovered a rifle and box of ammunition concealed in a blanket under the front porch of the abandoned residence. On May 8, 2021, officers saw Lewis’ car arrive at the abandoned residence and observed him walking up to the house and bending down to look for the rifle.
On July 12, 2021, officers submitted swabs taken from the rifle to the University of Nebraska Medical Center DNA lab, which compared it to a buccal swab taken from Lewis. The DNA results concluded that Lewis could not be excluded as a contributor, and that it was eleven thousand times more likely to be his DNA than that of another unrelated individual.
This case was investigated by the Federal Bureau of Investigation.
Omaha Man Convicted of Sex Trafficking a Minor and Production of Child PornographyRead the Press Release
United States Attorney Steven A. Russell announced that Rolando E. Midder, 43, was found guilty on June 9, 2023, following a four-day jury trial in federal court for Sex Trafficking of a Minor and Producing Child Pornography. Chief United States District Judge Robert Rossiter scheduled Midder’s sentencing for September 1, 2023, at 2p.m. Midder faces up to life in prison, with a mandatory minimum of fifteen years.
The evidence at trial showed that Midder began living with a minor female in February of 2022. Midder advertised the minor girl as being available for commercial sex acts, communicated with individuals who expressed interest in the postings, and coordinated days, times, and locations for the commercial sex acts to occur. These advertisements continued until Midder’s arrest on June 27, 2022. After being recovered by law enforcement, the minor female was observed to be extremely malnourished and had numerous bruises, burns, and scars on her. She expressed fear that Midder would kill her if he learned she had spoken with law enforcement. Upon Midder’s arrest, a search warrant for his phone was obtained. Law enforcement located videos he had filmed, showing himself forcing the minor to engage in a sex act with him.
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 United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the FBI Omaha’s Child Exploitation and Human Trafficking Task Force.
Oglala Man Indicted for Aggravated Sexual Abuse and KidnappingRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced that a federal grand jury has indicted an Oglala, South Dakota, man for three counts of Aggravated Sexual Abuse and Kidnapping.
Drace Dreaming Bear, age 21, was indicted in March of 2023. He appeared before U.S. Magistrate Judge Daneta L. Wollmann on June 7, 2023, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction for each charge is life in prison and/or a $250,000 fine, a mandatory minimum of five years up to life of supervised release, and $100 to the Federal Crime Victims Fund for each count of conviction. Restitution may also be ordered.
The charges relate to Dreaming Bear kidnapping, confining, and sexually abusing a female at Oglala between December 3 and 4, 2022.
The charges are merely accusations and Dreaming Bear is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Megan Poppen is prosecuting the case.
Dreaming Bear was released on bond pending trial. A trial date has been set for August 15, 2023.
New York City Transit Worker and New York State Court Officer Plead Guilty to Covid-19 Loan FraudRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Arthur Cornwall, a signal maintainer with the New York City Transit Authority, and Sean Williams, a New York State Court Officer, pleaded guilty to conspiring to commit wire fraud in connection with their receipt of approximately $770,000 in small business loans under the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan Program (EIDLP). Today’s proceeding was held before United States Magistrate Judge Steven I. Locke. When sentenced, Cornwall and Williams each face up to 30 years in prison, as well as restitution totaling more than $770,000 and a fine of up to $1.5 million.
Breon Peace, United States Attorney for the Eastern District of New York and Daniel Brubaker, Inspector-in-Charge, United States Postal Inspection Service, New York Division (USPIS), announced the guilty pleas.
“The abuse of disaster relief programs is a serious crime, and it is reprehensible that two civil servants would blatantly steal from these programs for small businesses and families struggling during the pandemic,” stated United States Attorney Peace. “The defendants are being held accountable. This case should serve as a reminder that while the worst days of the pandemic are in the past, law enforcement has a long memory for those who defrauded those relief programs.”
Inspector in Charge of the New York Division Daniel B. Brubaker said: “The government response to the COVID-19 Pandemic was unprecedented in its scope to help those who desperately needed government assistance in an extraordinary time in our nation’s history. These civil servants schemed and defrauded the public, in violation of their sworn oaths, by stealing money that should have gone to support our communities and not to fund their lifestyles. Postal Inspectors and our partners in the U.S. Attorney’s Office are committed to vigorously investigating and pursuing such offenders in order to maintain the integrity of and public confidence in disaster relief programs. Today’s guilty pleas are the result of this commitment.”
As set forth in court filings, between May 2020 and July 2020, amid the COVID-19 pandemic, Cornwall and Williams fraudulently applied for, and received, at least six PPP and EIDLP loans, totaling approximately $770,000, on behalf of purported corporate entities they controlled. As part of the scheme designed to mislead the SBA and a financial institution disbursing the funds, the supporting documentation submitted by the defendants contained false information, including the identity of the individual applying for the loan, the number of employees, revenue, payroll costs, and the intended use of the loan proceeds. Instead of using the funds for disaster relief, Cornwall and Williams diverted them for their personal use, including the discharge of personal credit card debt and the purchase of cryptocurrency.
Congress created the PPP and EIDLP as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Enacted on March 29, 2020, the CARES Act provided emergency financial assistance in connection with economic effects of the COVID-19 pandemic. One source of relief provided by the CARES Act was the allocation of funds for the issuance of forgivable loans to small businesses for job retention and certain other expenses through the PPP. The PPP allowed qualifying small businesses to receive unsecured loans on favorable terms, which they were required to use for specified expenses, including payroll costs, interest on mortgages, rent and utilities. The PPP provided for forgiveness of the loan if the recipient businesses spent the proceeds on these specified expenses within a limited time period and used a certain percentage for payroll costs.
Another source of relief provided by the CARES Act was the EIDLP, which provided low-interest financing to small businesses, renters, and homeowners in regions affected by declared disasters. Under the program, EIDLP recipients were eligible to receive advances of up to $10,000 for small businesses within three days of applying for an EIDL (EIDL Advance). The amount of an EIDL Advance was determined based on the number of employees working for the applicant. The EIDL Advance did not have to be repaid.
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:
ARTHUR CORNWALL
Age: 42
West Babylon, New YorkSEAN WILLIAMS
Age: 41
Valley Stream, New YorkE.D.N.Y. Docket No. 23-CR-238 (JMA)
New Jersey Man Sentenced for Transporting AliensRead the Press Release
SYRACUSE, NEW YORK – Francisco Vidals-Escamilla, age 34, of Garfield, New Jersey, was sentenced today to time served (approximately 221 days in jail) for unlawfully transporting aliens, announced United States Attorney Carla B. Freedman and Chief Patrol Agent Robert N. Garcia, United States Border Patrol, Swanton Sector.
As part of his earlier guilty plea, Vidals-Escamilla admitted that, on or about October 31, 2022, someone offered to pay Vidals-Escamilla $1,100 to pick up four people and bring them to New York City. Vidals-Escamilla drove to a location in or near Churubusco, New York, within about 2.5 miles of the United States-Canadian border. When Vidals-Escamilla arrived, four people were waiting by the side of the road near a wooded area. All four were citizens of Mexico and had unlawfully entered the United States. The people entered Vidals-Escamilla’s car and he drove away. Border Patrol agents stopped Vidals-Escamilla’s car and arrested him a few minutes later.
Chief United States District Judge Brenda K. Sannes also imposed a 1-year term of supervised release.
The United States Border Patrol investigated the case. Assistant U.S. Attorney Thomas Sutcliffe prosecuted the case.
New York Woman Sentenced on Stolen Cell Phones ConvictionRead the Press Release
St. Thomas, VI – United States Attorney Delia L. Smith announced today that Keyla Mateo of New York was sentenced to four years probation by Chief District Judge Robert A. Molloy on her conviction of conspiracy to transport stolen iPhones.
According to court documents, from May through July of 2018, Mateo and three co-conspirators stole and later transported iPhones from St. Thomas to Bronx, NY, where the phones were sold. As part of the conspiracy, one of Mateo’s co-conspirators contacted cell phone carriers, including Sprint and AT&T, impersonating legitimate customers by adding cell phones to the legitimate customers’ accounts without their knowledge or consent. Mateo’s co-conspirators also arranged for the iPhones to be mailed to another member of the conspiracy to a post office box located in St. Thomas. Mateo would then arrange for the stolen iPhones to be ship from St. Thomas to her address in New York. After arriving in New York, the stolen iPhone were sold by Mateo. The criminal scheme involved a total of 59 stolen cell phones valued at approximately $1,000.00 each. All defendants pleaded guilty to the conspiracy and Mateo’s co-conspirators are awaiting trial.
The Federal Bureau of Investigations and the U.S. Postal Service investigated this case and Assistant United States Attorney Evan Rikhye prosecuted the case.
Muskogee Resident Sentenced for Federal Firearm CrimeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced today that Nika Daniel Alexander, age 20, of Muskogee, Oklahoma, was sentenced to 84 months for brandishing a firearm during a crime of violence.
The charge arose from investigations by the Muskogee Police Department, the Cherokee County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On October 21, 2021, Alexander pleaded guilty to one count of Use, Carry, and Brandish of a Firearm in Furtherance of a Crime of Violence. During the plea hearing, Alexander admitted that he participated in a robbery, during which he beat the victim, held a shotgun to his head, and took his wallet, necklace, and cell phone.
The United States Attorney’s Office for the Eastern District of Oklahoma prosecuted this case because the defendant is a member of a federally recognized Indian tribe and the crime occurred in Muskogee County, within the boundaries of the Muscogee (Creek) Nation Reservation and the Eastern District of Oklahoma.
The Honorable Timothy D. DeGiusti, Chief Judge in the United States District Court for the Western District of Oklahoma, sitting by assignment, presided over the sentencing hearing in Oklahoma City. Alexander will remain in the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorney T. Cameron McEwen represented the United States.
Multiple Defendants Indicted on Federal Racketeering, Narcotics and Firearm ChargesRead the Press Release
ERIE, Pa. – Fifty-eight defendants have been charged with violating federal racketeering, narcotics, and firearm laws, Acting United States Attorney Troy Rivetti announced today.
The 30-count Indictment, returned on May 30, 2023, and unsealed today, charged the first 22 listed defendants with conspiring to participate in a criminal enterprise as members and associates of an Erie, Pennsylvania neighborhood street gang known as “4-Nation” under the Racketeer Influenced and Corrupt Organizations Act (RICO). The Indictment named the following individuals as having conspired to participate in this criminal organization:
Davante Qualee Jones, 29
Dajean Dupree Williams, 28
Javar Beason, Jr., 26
Darian Allen Beasley, 31
John Ferrell Cooley, Jr., 27
Von Darnell McCallum, Jr., 26
Jaquon Lashawn Manning, 22
Marius Lavon Russell, 31
Jermaine Antwon Phillips, Jr., 27
Rayshawn Markel Woodard, 23
Michael Jarod Manning, 32
Dajour Raekwon Woodard, 24
Chikuyo Asania Bayete, 25
Raheem Tyre Farmer, 28
Kalen Allen Gambill, 36
Damon Deandre Grady, 25
Eric Martin Jells, Jr., 25
Levanta Davon Keim, 25
Tayvon Marquise Lindsey, 27
Dorrell Antwun McLaurin, 24
Tymeir Mekhi Sadique Oglesby, 24
Lamont Devail Warren, Jr., 25According to information presented in the Indictment, these individuals engaged in organized criminal activity as part of their membership and association with the 4-Nation gang which included drug distribution and acts of violence within the Western District of Pennsylvania and elsewhere. According to the Indictment, one of the principal activities of the gang involves the sale and distribution of marijuana, prescription hydrocodone, cocaine, cocaine base, heroin, methamphetamine, fentanyl powder, and fentanyl pills within the gang’s geographic territory. 4-Nation members would obtain drugs from sources of supply primarily in California, Arizona, and Mexico and disseminate these drugs for redistribution by other gang members and associates. 4-Nation gang members possessed firearms and guarded their territory to prevent encroachment by rival gang members or drug dealers through assaults and shootings. The Indictment details more than 150,000 fentanyl pills, over 100 pounds of methamphetamine, and multiple kilograms of fentanyl and fentanyl analogue powder trafficked by the gang into Erie, Pennsylvania.
The RICO conspiracy statute carries a maximum penalty of up to life imprisonment and a fine of not more than $250,000.
The Indictment named all 58 charged individuals at Count Two as part of an overlapping drug distribution conspiracy including:
Antwon Donnell Arrington, 48
Jamonte Capriese Hollingsworth, 34
Stewart Lee Phillips, 46
Tyler Quinn Magee, 30
Chikuyo Isani Bayete, 28
Dajuwon Brown Faulkner, 20
Demari Naquan Euell, 24
Cordell Jamal Gregory, 30
Jadarious Devon Samuel Lofton, 22
Shikeal Marquese Page, 29
Antoun Depree Moore, Jr., 25
Stephen William Carter, 31
Rhashan Dunston, 28
Dazerion Jaquial Hinton, 24
Devon Devontae Blue, 21
Javarie Barnett, 24
Damond Wilson Carr, 31
Saint Martin Ellman, 26
William Todd Stephens, 32
Wessam Ali Abood, 30
Alexis Marie Althof, 28
Samantha Lynn Ermekeil, 26
David Leroy Hall, 47
Travis Blake Longley, 29
Tasha Nicole Pacley, 34
Anthony James Stufflebeam, 36
Kevin John Berdis, 28
Mackenzie Alaska Fike-Bliscik, 24
Joseph Michael Lazar, 59
Bethany Nicole Mallette, 27
Immanuel Rashad Smith, 28
Jaelyn Rachelle Kuczynski, 33
Gary A. Warren, III, 32
Henry Daniel Barker, 34
Jamond Carnell McDonald, 20
Dazjona Marique Goodwine, 31According to the Indictment, these individuals conspired to distribute and possess with intent to distribute Schedule I and Schedule II controlled substances, including large quantities of fentanyl, a fentanyl analogue, methamphetamine, cocaine, and cocaine base, from at least August 2023 through the date of the Indictment, in the Western District of Pennsylvania and elsewhere. The statute calls for a maximum sentence of up to life imprisonment.
Dajour Woodard is charged at Count Three with attempted possession with intent to distribute four hundred (400) grams or more of a mixture and substance containing a detectable amount of fentanyl on or about August 9, 2021. The statute calls for a mandatory minimum sentence of ten years of incarceration.
Damond Carr is charged at Count Four with possession with intent to distribute forty (40) grams or more of a mixture and substance containing a detectable amount of fentanyl and at Count Five with possession of a firearm by a convicted felon, both occurring on or about October 15, 2021. The statute at Count Four calls for a mandatory minimum sentence of five years incarceration. The statute at Count Five calls for a maximum sentence of twenty years of incarceration.
Jaquon Manning and Michael Manning are charged at Count Six with possession with intent to distribute one hundred (100) grams or more of a mixture and substance containing a detectable amount of fentanyl analogue, five hundred (500) grams or more of a mixture and substance containing a detectable amount of methamphetamine, and forty (40) grams or more of a mixture and substance containing a detectable amount of fentanyl on or about February 11, 2022. The statute calls for a mandatory minimum sentence of ten years of incarceration.
Dajean Williams is charged at Count Seven with possession with intent to distribute four hundred (400) grams or more of a mixture and substance containing a detectable amount of fentanyl, one hundred (100) grams or more of a mixture and substance containing a detectable amount of fentanyl analogue, and a quantity of a mixture and substance containing a detectable amount of cocaine, and at Count Eight with possession of a firearm by a convicted felon, both occurring on or about April 20, 2022. The statute at Count Seven calls for a mandatory minimum sentence of ten years of incarceration. The statute at Count Eight calls for a maximum sentence of twenty years of incarceration.
Javar Beason, Jr. is charged at Count Nine with interstate and foreign travel in aid of business enterprise involving narcotics or controlled substances from on or about June 26, 2022 and continuing to on or about June 28, 2022. The statute calls for a maximum sentence of five years of incarceration.
Jamonte Hollingsworth is charged at Count Ten with possession with intent to distribute and distribution of forty (40) grams or more of a mixture and substance containing a detectable amount of fentanyl on or about September 6, 2022. The statute calls for a mandatory minimum sentence of five years of incarceration.
Kalen Gambill is charged at Count Eleven with possession with intent to distribute and distribution of fifty (50) grams or more of a mixture and substance containing a detectable amount of methamphetamine on or about September 7, 2022. The statute calls for a mandatory minimum sentence of five years of incarceration.
Javar Beason, Jr. is charged at Count Twelve with conducting a monetary transaction, affecting interstate commerce, in criminally derived property with a value greater than $10,000, which property was derived from specified unlawful activity on or about October 12, 2022. The statute calls for a maximum sentence of ten years of incarceration.
Tasha Pacley is charged at Count Thirteen with possession of firearms by a convicted felon on or about October 13, 2022. The statute calls for a maximum sentence of ten years of incarceration.
Javar Beason, Jr, Antwon Arrington, Jadarius Lofton, and Mackenzie Fike-Bliscik are charged at Count Fifteen with possession with intent to distribute and distribution of forty (40) grams or more of a mixture and substance containing a detectable amount of fentanyl on or about November 29, 2022. The statute calls for a mandatory minimum sentence of five years of incarceration.
Antwon Arrington is charged at Count Sixteen with maintaining a drug-involved premise from no later than in and around December 2022 through on or about January 14, 2022. The statute at Count Sixteen calls for a maximum sentence of twenty years of incarceration.
Antwon Arrington is also charged at Count Seventeen with possession with intent to distribute four hundred (400) grams or more of a mixture and substance containing a detectable amount of fentanyl, five hundred (500) grams or more of a mixture containing a detectable amount of methamphetamine, and five hundred (500) grams or more of a mixture containing a mixture and substance containing a detectable amount of cocaine, and at Count Eighteen with possession of a firearm by a convicted felon, both occurring on or about January 14, 2023. The statute at Count Seventeen calls for a mandatory minimum sentence of ten years of incarceration. The statute at Count Eighteen calls for a maximum sentence of ten years of incarceration.
Javar Beason, Jr. is charged at Count Nineteen with possession with intent to distribute five hundred (500) grams or more of a mixture and substance containing a detectable amount of methamphetamine, at Count Twenty with possession of a firearm by a convicted felon, and at Count Twenty-One with using and carrying a firearm in furtherance of a drug trafficking crime, all occurring on or about January 14, 2023. The statute at Count Nineteen calls for a mandatory minimum sentence of ten years of incarceration. The statute at Count Twenty calls for a maximum sentence of ten years of incarceration. The statute at Count Twenty-One calls for a mandatory consecutive sentence of five years of incarceration.
Darian Beasley is charged at Count Twenty-Two with possession with intent to distribute five hundred (500) grams or more of a mixture and substance containing a detectable amount of cocaine and a mixture and substance containing a detectable amount of cocaine base in the form commonly known as crack, and at Count Twenty-Three with possession of a firearm by a convicted felon, both occurring on or about January 14, 2023. The statute at Count Twenty-Two calls for a mandatory minimum sentence of ten years of incarceration. The statute at Count Twenty-Three calls for a maximum sentence of ten years of incarceration.
Jaquon Manning is charged at Count Twenty-Four with possession with intent to distribute four hundred (400) grams or more of a mixture and substance containing a detectable amount of fentanyl on or about January 31, 2023. The statute calls for a mandatory minimum sentence of ten years of incarceration.
Jaquon Manning and Joseph Lazar are charged at Count Twenty-Five with possession with intent to distribute and distribution of fifty (50) grams or more of a mixture and substance containing a detectable amount of methamphetamine on or about February 2, 2023. The statute calls for a mandatory minimum sentence of five years of incarceration.
Jaquon Manning, Dajuwan Faulkner, and Samantha Ermekeil are charged at Count Twenty-Six with possession with intent to distribute and distribution of fifty (50) grams or more of a mixture and substance containing a detectable amount of methamphetamine on or about February 22, 2023. The statute calls for a mandatory minimum sentence of five years of incarceration.
Jaquon Manning, Jaelyn Kuczynski, and Gary Warren are charged at Count Twenty-Seven with possession with intent to distribute and distribution of fifty (50) grams or more of a mixture and substance containing a detectable amount of methamphetamine on or about March 2, 2023. The statute calls for a mandatory minimum sentence of five years of incarceration.
Jaquon Manning and Henry Barker are charged at Count Twenty-Eight with possession with intent to distribute and distribution of fifty (50) grams or more of a mixture and substance containing a detectable amount of methamphetamine on or about March 10, 2023. The statute calls for a mandatory minimum sentence of five years of incarceration.
John Cooley, Jr. and Dazjona Goodwine are charged at Count Twenty-Nine with attempted possession with intent to distribute four hundred (400) grams or more of a mixture and substance containing a detectable amount of fentanyl on or about March 13, 2023. The statute calls for a mandatory minimum sentence of ten years of incarceration.
Stewart Phillips is charged at Count Thirty with possession with intent to distribute forty (40) grams or more of a mixture and substance containing a detectable amount of fentanyl on or about March 15, 2023. The statute calls for a mandatory minimum sentence of five years of incarceration.
“We are committed to disrupting the violence and destruction that gangs such as these inflict upon our communities,” said Acting U. S. Attorney Troy S. Rivetti. “The unified efforts of each of the agencies involved in this investigation is to be commended. This work and the continued efforts of the EAGLE Safe Streets Task Force is dedicated to restoring Erie residents’ rights to feel safe in their own neighborhoods.
“This gang brought violence and despair to our neighborhoods and pedaled drugs onto the streets, exploiting the young and vulnerable,” said FBI Pittsburgh Special Agent in Charge Mike Nordwall. “This investigation was a collaborative effort led by the FBI’s EAGLE Safe Streets Task Force and the community will see the impact immediately. I commend the work done by the investigative team and restate the commitment of the FBI and our partners to aggressively pursue those that bring harm to our communities.”
“Today’s announcement deals a major blow to a drug trafficking gang whose activities have inflicted irreparable harm and pain throughout our communities,” said William S. Walker, Special Agent in Charge of HSI Philadelphia. “Results like these are only achieved through partnerships and information sharing. There is no doubt that the Erie and its surrounding areas are safer today due to the outstanding teamwork of the dedicated law enforcement professionals who investigated and prosecuted this case. HSI will continue to prioritize investigations that prevent illicit and highly addictive opioids from being distributed in our neighborhoods.”
“The Pennsylvania State Police is proud of the hard work by our investigators that has resulted in getting dangerous narcotics and drug dealers off our streets. We’re thankful for the cooperation with our local, state, and federal law enforcement partners, and our communities are much safer for it.”
“Today, the Erie Police and its many local, state and federal partners continue working together on removing violent criminals and drug dealers,” said Daniel P. Spizarny, Sr., Chief of Police, City of Erie Police Department. “We are committed to making Erie a safer community with welcoming and vibrant
Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Paul S. Sellers is prosecuting this case on behalf of the government.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The Federal Bureau of Investigation (FBI) Erie Resident Agency Erie Area Gang Law Enforcement (EAGLE) Safe Streets Task Force, which is comprised of investigators from the FBI, United States Customs and Border Patrol, Erie Police Department, Pennsylvania State Police, Pennsylvania Office of the Attorney General, Millcreek Police Department, Oil City Police Department, Franklin Police Department, and Erie School District Police Department, conducted the investigation leading to the Indictment in this case in coordination with the Department of Homeland Security – Homeland Security Investigations; Internal Revenue Service; Bureau of Alcohol, Tobacco Firearms and Explosives; Pennsylvania State Police Vice and Drug Law Units; Erie County Detectives; and Erie County District Attorney’s Office.
The investigation was also conducted in association with the Northwest Pennsylvania Drug Initiative which was formed following Erie County’s designation as a High Intensity Drug Trafficking Area (HIDTA) in 2021. The HIDTA program was created by Congress in 1988 to coordinate and assist Federal, State, and Local law enforcement agencies in addressing regional drug threats with the purpose of reducing drug trafficking and drug production in the United States. The Northwest Pennsylvania Drug Initiative coordinates personnel and resources between multiple agencies including the Pennsylvania State Police, Federal Burau of Investigation, Drug Enforcement Administration, Homeland Security Investigations, Erie Police Department, Erie County District Attorney’s Office, Erie County Detectives, United States Postal Inspection Service, the EAGLE Task Force, and other participating agencies.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Mishawaka Man Sentenced to 151 months in PrisonRead the Press Release
SOUTH BEND – Cameron Moore, 52 years old, of Mishawaka, Indiana, was sentenced by United States District Court Chief Judge Jon E. DeGuilio after pleading guilty to possessing with intent to distribute methamphetamine, announced United States Attorney Clifford D. Johnson.
Moore was sentenced to 151 months in prison followed by 5 years of supervised release.
According to documents in the case, Moore sold methamphetamine throughout 2022. Additionally, in October 2022, investigators intercepted two packages intended for delivery to him through the United States Postal Service. One package contained approximately 3.6 kilograms of methamphetamine while the other package contained approximately 2.7 kilograms of marijuana.
This case was investigated by the United States Postal Inspection Service with the assistance of the Elkhart County Intelligence and Covert Enforcement Unit and the Elkhart County Prosecutor’s Office. This case was prosecuted by Assistant United States Attorney Molly E. Donnelly.
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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Midway Man Sentenced to 20 Years in Federal Prison for Drug TraffickingRead the Press Release
FAYETTEVILLE –A Midway, Arkansas, man was sentenced on June 7, 2023, to 240 months in federal prison followed by five years of supervised release on one count of Possession with the Intent to Distribute Methamphetamine. The Honorable Judge Timothy L. Brooks presided over the sentencing hearing for the United States District Court in Fayetteville.
According to court documents, on September 8, 2022, investigators with the State of Arkansas 14th Judicial District Drug Task Force assisted Arkansas Department of Community Corrections Parole Officers with a search of the residence of Bobby Joe Amescua Gray, II, age 34, in Midway, Arkansas. Upon the arrival of investigators, Gray attempted to flee out of the rear of the residence but was quicky apprehended. Gray’s vehicle was searched, resulting in the discovery of 4.467 kilograms of 100% pure methamphetamine, a firearm, packaging and scales associated with methamphetamine sales and over $5,000 in United States Currency derived from methamphetamine sales.
U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
The State of Arkansas 14th Judicial District Drug Task Force and Federal Bureau of Investigation investigated the case.
Assistant U.S. Attorney Brandon Carter prosecuted the case for the United States.
Today’s announcement is part of the Western District of Arkansas’ Operation Home on Ice, which is part of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program. The OCDETF program is the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s illicit drug supply.
Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov , WDAR Case No. 3:22 CR 30013-001.
Members of “Robles Park” Racketeering Enterprise Sentenced for Attempted Murder, Series of Shootings, Drug Trafficking, and Committing Millions in FraudRead the Press Release
Tampa, Florida – U.S. District Judge Mary S. Scriven has sentenced Keaujay Hornsby, a/k/a “Plug,” (26, Tampa) to 16 years and 9 months in federal prison and Kareem Spann, a/k/a “Reem,” (27, Tampa) to 10 years and 10 months in federal prison for criminal conduct committed by, and on behalf of, the Racketeering Influenced and Corrupt Organization (RICO) group known as the “Robles Park Enterprise.” These crimes included a series of shootings, attempted murder, drug trafficking, fraud, and identity theft. Spann had pleaded guilty on February 7, 2023, and Hornsby had pleaded guilty on July 1, 2023.
According to court documents and evidence presented at sentencing, in the early morning of July 19, 2020, Hornsby and other members of the Enterprise congregated outside the Truth Lounge club in Tampa, Florida. The streets and sidewalks were flooded with people, including rival gang members in the parking lot outside the club. Spann was driving while Hornsby occupied the front passenger seat, with a loaded gun resting on his lap. Spann drove a black Infinity through the crowd, while Hornsby engaged in a verbal altercation with rival gang members. Suddenly, Hornsby and the rival gang members ignited a mass shooting in which Hornsby pulled out his gun and unleashed a barrage of gunfire into the crowd. Panic ensued, with surveillance video capturing the immediate chaos as the crowd scattered for safety. Law enforcement later recovered dozens of ammunition casings. The shooting resulted in the injury of at least eight people, including minors, some of whom were shot in the jaw, shoulder, elbow, wrist, finger, foot, arms, and legs.
Six days later, on Saturday, July 25, 2020, and in retaliation for the Truth Lounge shooting, three rival gang members ambushed Hornsby and Spann as they exited the International Plaza in Tampa. On that afternoon, three individuals surrounded the defendants and opened fire. Hornsby took Spann’s gun and returned fire. In total, seven vehicles were struck by gunfire, including two occupied by bystanders. Law enforcement later determined that at least 25 bullets had been fired from three different firearms.
Two days later, on July 27, 2020, while driving east on Columbus Drive, Hornsby and Spann spotted a rival gang member who was driving south on Rome Street. They followed that individual and waited to get close to him before Hornsby lowered his window, and opened fire on a residential street, unleashing dozens of shots at his target.
In addition to acts of violence, the Robles Park Enterprise also trafficked in cocaine, marijuana, and firearms.
Finally, members of the Robles Park Enterprise, including Hornsby and Spann, worked with one another to unlawfully obtain the personal identifying information (PII) of other persons. They used this PII to submit false applications via interstate wire communications and claim unemployment benefits to which they were not entitled. In total, the defendants submitted over 200 fraudulent claims, in 20 different states, with an intended loss of approximately $2.8 million dollars. For many of those claims, a bank card was issued from the state in which the claim was filed, loaded with Unemployment Insurance funds from financial institutions and sent to the Middle District of Florida. The defendants later used these cards to withdraw cash from ATMs in Tampa and Hollywood, Florida.
On June 10, 2022, a third member of this conspiracy, Tywon Spann was sentenced to six years and nine months imprisonment.
This case was investigated by the Federal Bureau of Investigation, the Tampa Police Department, and the Department of Labor, with substantial assistance from the United States Secret Service. It was prosecuted by Assistant United States Attorney Diego F. Novaes and former Assistant United States attorney Natalie H. Adams.
Man Sentenced for Sex Trafficking of MinorsRead the Press Release
A Pennsylvania man was sentenced today to 25 years in prison for trafficking four minors in Philadelphia.
According to court documents, from at least February 2016 to 2017, Andre Felts, 35, of Philadelphia, led a prostitution ring and trafficked at least four minors ranging in age from 15 to 17 years old. Felts kept a significant portion of the money paid to the minor victims and he and others, at his direction, posted advertisements on the internet for commercial sex with the minors, provided transportation to and from sexual encounters, and identified locations for commercial sex acts to occur. His co-defendants, Ryan Keel and Kevin Francis, allowed Felts to use their homes for commercial sex encounters with the minors in exchange for a portion of the proceeds. On one occasion, Felts assaulted a minor victim.
Felts was also sentenced to a lifetime of supervised release.
On May 31, Keel was sentenced to 11 years and three months in prison, followed by 10 years of supervised release. On July 27, 2022, Kevin Francis was sentenced to 10 years in prison, followed by 10 years of supervised release. All three defendants were ordered to jointly pay $235,000 in restitution to the victims as part of their sentences.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Jacqueline C. Romero for the Eastern District of Pennsylvania, and Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division made the announcement.
The FBI investigated the case.
Trial Attorneys Gwendelynn Bills and Jessica Urban of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorneys Alexandra Lastowski and Priya De Souza for the Eastern District of Pennsylvania prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the 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.
Las Vegas Tax Preparer Sentenced to Prison for Filing False Tax ReturnsRead the Press Release
LAS VEGAS – A Las Vegas tax preparer was sentenced yesterday by United States District Judge Richard F. Boulware II to three years in prison, followed by one year of supervised release, for fraudulently preparing and filing over $1.2 million false income tax returns.
Maria Magdalena Mendoza (52) pleaded guilty in February 2023, to two counts of aiding and assisting in the preparation and presentation of false income tax returns.
According to court documents, beginning around 2013, Mendoza ran her own tax preparation business under the names “Taxes & More” and “Taxs y Mas.” She used false or inflated deductions and credits on tax returns filed on behalf of her clients. Additionally, she used her clients’ personal identifying information to falsely obtain a larger refund on her own tax returns. In total, Mendoza prepared more than 700 tax returns that claimed more than $3 million in refunds from the IRS. She caused more than $1.2 million in tax loss. Furthermore, Mendoza inflated her clients’ refund requests without their knowledge and stole the excess amount of those refunds. Through this scheme, Mendoza diverted over $500,000 of her clients’ tax refund payments into her own accounts from 2013 to 2017. In March of 2023, while on pretrial release, Mendoza was arrested while in possession of a stolen passport, drivers licenses, and credit cards in the name of other individuals, along with forged copies of checks.
“The defendant prepared hundreds of false income tax returns and brazenly defrauded the IRS of more than $1.2 million,” said United States Attorney Jason M. Frierson for the District of Nevada. “Tax preparers who use false deductions to inflate tax refunds and defraud their clients will be investigated. We will hold unscrupulous tax return preparers accountable.”
“Ms. Mendoza not only cheated the IRS but she victimized her clients in a pattern that extends years before indictment, all the way up to the eve of sentencing,” said Albert Childress, Special Agent in Charge IRS Criminal Investigation. “Through this scheme, she diverted over $500,000 of her clients’ tax refund payments to herself. The defendant further harmed her clients by causing them to be audited by the IRS. Return preparers who seek to profit through false tax return schemes will be caught and held accountable.”
“Taxpayers expect that tax preparers will prepare their tax returns in accordance with the law. It is unacceptable for tax preparers to break this confidence by submitting fraudulent returns in their clients’ names,” stated Inspector General J. Russell George, the Treasury Inspector General for Tax Administration (TIGTA). “TIGTA is committed to bringing to justice any tax preparers who betray their clients’ trust for their personal gain.”
The IRS CI and TIGTA investigated the case. Assistant United States Attorney Eric Schmale prosecuted the case.
If you have information about an individual or a business you suspect of tax fraud, you can submit a report to the IRS at: https://www.irs.gov/individuals/how-do-you-report-suspected-tax-fraud-activity.
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Justice Department Announces Improvements to Conditions in Erie County Holding Center and Erie County Correctional FacilityRead the Press Release
The Justice Department announced today that it has joined with Erie County, New York, to request that the U.S. District Court for the Western District of New York terminate the consent decree regarding the Erie County Holding Center and the Erie County Correctional Facility. The county successfully achieved substantial compliance with the decree and maintained compliance for more than 18 months, as required by the decree. If the U.S. District Court grants the parties’ joint motion, it will end federal compliance monitoring and return oversight of the facilities back to the county.
“Under the consent decree, Erie County made fundamental improvements to conditions in the Erie County Holding Center and the Erie County Correctional Facility,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Although the Erie County facilities continue to face the same challenges as other jails in caring and treating for people with serious medical and mental health issues, more than a decade of hard work has significantly improved how care and treatment is provided inside these facilities. The Civil Rights Division will continue to prioritize addressing and improving conditions inside jails and prisons across the country.”
The department brought this case under the Civil Rights of Institutionalized Persons Act (CRIPA), which prohibits a pattern or practice of deprivation of constitutional rights of individuals confined to state or local government-run correctional facilities. Specifically, the department found systemic deficiencies related to suicide prevention, medical care and mental health care which resulted in preventable death of incarcerated individuals. The facilities also had fundamentally inadequate policies and practices related to the use of force and the protection of incarcerated individuals from violence and sexual misconduct. These problems were exacerbated by a flawed housing classification system.
Since the District Court entered the consent decree in August 2011, the county has made substantial progress in the facilities’ medical and mental health programs, protection of incarcerated individuals from harm, and environmental health and safety. For example:
- The county has established a Medical Review Committee that oversees the implementation of medical policies and procedures, performs quarterly quality management reviews of the sick call process and analyzes medical data to ensure access to quality care.
- The county has developed a Stabilization Treatment Unit designed for the therapeutic benefit of individuals with serious mental illness. In addition, the county has implemented provisions of the consent decree requiring constant observation and frequent assessments by mental health professionals for individuals requiring a crisis level of care, who may be at risk of suicide. This program is overseen by a constant observation treatment team, which reviews the cases of all individuals in the program as well as those recently discharged.
- The county implemented a detox program administered by a nurse practitioner with specialized training on the management of this high-risk population. The detox program recently added a Medication-Assisted Treatment program, which addresses potentially life-threatening risks for individuals experiencing opiate withdrawal.
- The county appointed a senior-level staff person to serve as the sexual abuse prevention coordinator and supervise improvements in policies, staff training and education of incarcerated individuals.
- The county improved its staff training on use of force, and all uses of force are now reported to the New York State Commission of Correction. These reports are then reviewed by an independent auditor to ensure they are consistent with accepted correctional practices.
Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt/special-litigation-section. Individuals who believe their civil rights may have been violated may file a complaint at www.civilrights.justice.gov.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty beyond a reasonable doubt:
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on June 6 was:
Jaylin John Ridesatthedoor, 19, of Browning, on charges of attempted kidnapping, assault with a dangerous weapon and assault resulting in serious bodily injury. If convicted of the most serious crime, Ridesatthedoor faces a maximum of 20 years in prison, a $250,000 fine and three years of supervised release. Ridesatthedoor was released pending further proceedings. The FBI, Blackfeet Law Enforcement Services and Glacier County Sheriff’s Office investigated the case. PACER case reference. 23-38.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Indictment Charges Connecticut, Kansas, and California Men with Operating Gun Trafficking RingRead the Press Release
An investigation into an organization that trafficked numerous firearms into Connecticut has resulted in federal charges against residents of Connecticut, Kansas, and California.
Today’s announcement was made by Vanessa Roberts Avery, United States Attorney for the District of Connecticut; Robert Fuller, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation; James Ferguson, Special Agent in Charge, ATF Boston Field Division; Michael J. Krol, Acting Special Agent in Charge of Homeland Security Investigations (HSI), New England; and Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division.
On May 31, 2023, a federal grand jury in Hartford returned a 19-count indictment charging the following men with engaging in a firearms trafficking conspiracy, and additional offenses:
LUIS PEREZ, 44, of Waterbury, Connecticut
ALGELLY DIAZ, 40, of Hartford, Connecticut
BRIAN BAKER, 46, of Scott City, Kansas
RAMON PICHARDO, 33, of Elkhart, Kansas
FERNANDO SOTO, JR., 51, of Diamond Bar, CaliforniaU.S. Attorney Avery noted that this case is being prosecuted, in part, under the new criminal provisions of the Bipartisan Safer Communities Act, which Congress enacted and the President signed in June 2022. The Act is the first federal statute specifically designed to target the unlawful trafficking and straw-purchasing of firearms.
As alleged in court documents and statements made in court, a joint investigation revealed that Perez was acquiring firearms that were purchased by co-conspirators in Kansas and shipped through the U.S. Mail to a stash location that Diaz maintained in Hartford. Perez coordinated the purchase of the firearms through Baker in Kansas and Soto in California. Perez then obtained the firearms from Diaz and sold them to others throughout Connecticut. Perez, Diaz, Baker, and Soto are all convicted felons who cannot not lawfully purchase or possess firearms. Baker used straw purchasers, including Pichardo, to purchase firearms from licensed gun dealers in Kansas. In May 2023, members of the FBI Waterbury Safe Streets Task Force conducted controlled purchases of a total of nine firearms from Perez.
It is further alleged that between August 2020 and May 2023, Pichardo purchased at least 73 firearms from a licensed gun dealer in Deerfield, Kansas. To date, six of these firearms have been recovered by law enforcement in Connecticut, Michigan, and California. A firearm purchased by Pichardo in July 2022 was recovered on August 27, 2022, in San Bernardino, California, at the scene of the homicide of a juvenile.
Perez, Diaz, Baker, and Pichardo were arrested on federal criminal complaints on May 19, 2023. On that date, investigators executed search warrants at locations in Connecticut, Kansas, and California. A search of Perez’s Waterbury residence and vehicle revealed nine firearms; more than 200 rounds of ammunition; distribution quantities of cocaine, crack cocaine, and fentanyl/heroin; items used to process and package narcotics for street sale; and more than $7,000 in cash. A search of Diaz’s residence revealed approximately 90 rounds of ammunition, and a search of Pichardo’s residence revealed six firearms. In addition, a court-authorized search of a package that was shipped to Diaz and seized from the mail stream revealed an additional three firearms.
The charge of engaging in a firearms trafficking conspiracy carries a maximum term of imprisonment of 15 years. The indictment also charges Perez, Baker, and Diaz with multiple counts of firearms trafficking, an offense that also carries a maximum term of imprisonment of 15 years. In addition, Perez, Baker, and Soto are charged with unlawfully mailing firearms, an offense that carries a maximum term of imprisonment of two years.
The indictment also charges Perez with unlawful possession of a firearm by a felon, which carries a maximum term of imprisonment of 15 years; possession of a firearm in furtherance of a drug trafficking crime, which carries a mandatory consecutive sentence of at least five years; possession with intent to distribute, and distribution of, cocaine, which carries a maximum term of imprisonment of 20 years; and possession with intent to distribute 500 grams or more of cocaine and quantities of heroin and fentanyl, which carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years.
In addition, Diaz is charged with unlawful possession of ammunition by a felon, which carries a maximum term of imprisonment of 15 years.
Perez, Diaz, and Pichardo appeared yesterday before U.S. Magistrate Judge Robert M. Spector in New Haven and entered pleas of not guilty to the charges against them. Perez and Diaz are detained, and Pichardo is released on a $25,000 bond.
Soto, who was arrested on June 5 and currently released on a $60,000 bond, and Baker, who is detained, are scheduled to be arraigned in Connecticut on June 16.
U.S. Attorney Avery stressed that an indictment is not evidence of guilt. A charge is only an allegation, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Homeland Security Investigations (HSI), the U.S. Postal Inspection Service, the Waterbury Police Department, the Connecticut State Police, and the Chino (Calif.) Police Department.
This case is being prosecuted by Assistant U.S. Attorney Natasha M. Freismuth through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts, and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
U.S. Attorney Avery thanked the U.S. Attorney’s Office for the District of Kansas, the U.S. Attorney’s Office for the Central District of California, and the U.S. Attorney’s Office for the Eastern District of Michigan for their assistance in the investigation and prosecution of this case.
Hampton Roads Robbers SentencedRead the Press Release
NORFOLK, Va. – A Hampton man was sentenced today to 27 years in prison, and a Virginia Beach man was sentenced today to 15 years in prison for their roles in a serial armed robbery crew.
According to court records and evidence presented at trial, Kareem Ross, 34 and Roshaun Griffin, 36, were members of a five-man armed robbery crew that were apprehended on March 18 after a high-speed pursuit through Virginia Beach following an attempted robbery of a Tiger Mart gas station. A pursuing Virginia Beach police cruiser’s dash camera captured the men throwing several loaded weapons from their car. Only after spike strips were deployed multiple times did the car finally come to a stop. All men were apprehended, and police recovered ski masks and gloves from inside their vehicle. The clothing and shoes each of them were wearing matched what could be seen in video surveillance from six prior armed robberies. Ross wore a NASA sweatshirt at the first two of six robberies. He was arrested wearing that same NASA sweatshirt.
The rental vehicle they were arrested in was traced back to the Norfolk Airport from where it was rented. One of the co-conspirators Marvin Lockhart, 32, was caught on the airport video wearing purple shoes was caught later that night on surveillance committing an armed robbery of the Jr. Market in Norfolk wearing purple shoes. One of the co-conspirators, Harold Spencer, 32, who shot at a fleeing customer during the second of six-armed robberies, took a “selfie” on his cell phone wearing a ski mask worn in all six robberies—a ski mask, which was recovered after the high-speed pursuit and later was shown to contain his DNA. His cell phone also contained photographs of his co-conspirator holding a handgun with a drum magazine, multiple Glock firearms consistent with those thrown from the fleeing vehicle, pictures of large sums of cash, and lottery tickets. Griffin participated in one of the earlier robberies and locked the door so the victims could not escape.
The armed robbery crew stole cash, cigarettes, and lottery tickets. Investigators from the Virginia Lottery received alerts from convenience stores where attempts were made by Spencer and Ross, to cash the stolen tickets. Investigators pulled the surveillance video from those attempts and identified both men. Additionally, through a shoe impression expert from the Virginia Department of Forensic Science, investigators were able to connect the shoes Spencer was arrested in with a lift of an impression made at the Arrowhead Food Mart he had robbed on March 5. Those shoes could be seen at all six armed robberies Spencer had committed.
Several months before to this conduct, one of the co-conspirators Jon Morgan, 32, had completed a prior prison sentence for armed robbery.
Spencer faces a mandatory minimum sentence of 31 years and a maximum penalty of life in prison when sentenced on November 2, 2023. Morgan faces up to 125 months in prison when is sentenced on a date yet to be set. Marvin Lockhart, Jr., 32, of Virginia Beach faces a mandatory minimum sentence of 16 years and a maximum penalty of life in prison when he is sentenced on a date yet to be set. 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; Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office; and Paul W. Neudigate, Chief of Police, Virginia Beach Police Department, made the announcement after U.S. District Judge Arenda Wright Allen accepted the verdict.
Assistant U.S. Attorneys Joe DePadilla and John F. Butler are 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. 2:20-cr-106. 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. 2:22-cr-106.
Greenbrier County Man Sentenced to Prison for Violating Federal Sex Offender Registration and Notification ActRead the Press Release
BECKLEY, W.Va. – Justin Charles Baker, 35, of Smoot, was sentenced today to one year and one month in prison, to be followed by 10 years of supervised release, for failure to provide information related to interstate travel as required by the Sex Offender Registration and Notification Act (SORNA).
According to court documents and statements made in court, Baker was required to comply with the provisions of SORNA because of his conviction for sexual battery in Cleveland County, North Carolina, Superior Court on July 19, 2021. The conviction involved sexually inappropriate behavior with a 13-year-old relative. Baker was aware of SORNA’s registration requirements. Within two years of his conviction, Baker failed to comply with those requirements in three different states.
Baker failed to update his registration in North Carolina before moving to Virginia in August 2021. Baker also failed to update his registration in Virginia before moving from Covington, Virginia, to the area of Smoot, West Virginia, in August 2022. Baker resided and worked in West Virginia from August 2022 until November 29, 2022, and failed to register as a sex offender in West Virginia in violation of the requirements of SORNA.
United States Attorney Will Thompson made the announcement and commended the investigative work of the United States Marshals Service (USMS).
United States District Judge Frank W. Volk imposed the sentence. Assistant United States Attorney Jennifer Rada Herrald prosecuted the case.
SORNA is part of the Adam Walsh Child Protection and Safety Act of 2006 and provides a comprehensive set of minimum standards for sex offender registration and notification in the United States. SORNA seeks to strengthen the nationwide network of sex offender registration and notification programs, in part by requiring registered sex offenders to register and keep their registration current in each jurisdiction in which they reside, work, or go to school.
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. 5:22-cr-226.
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Georgia Woman Pleads Guilty to Conspiracy to Commit Identity FraudRead the Press Release
ALEXANDRIA, Va. – A Loganville, Georgia, woman pleaded guilty today to her role in a bank fraud conspiracy.
According to court documents, Brianna Mills, 28, conspired with Stanley Desirade, Terrell Hale, and others to transfer, possess, and use wrongfully obtained identifying information— namely, names, social security numbers, dates of birth, and addresses—to make fraudulent withdrawals. From December 2015 to March 2016, Mills was a bank teller at Capital One Bank. Mills used her position as a bank teller to steal customer account information. Mills passed that information to her then-boyfriend, Desirade, who used that information to create fraudulent driver’s licenses. Those licenses were, in turn, used to fraudulently withdraw money from the customers’ accounts at Capital One Bank. The conspiracy attempted to steal almost $1.7 million and successfully defrauded banks of at least $650,000.
Mills is scheduled to be sentenced on August 25. She faces a maximum penalty of 15 years in prison. Mills is the second defendant in this case to plead guilty. Terrell Hale pled guilty on April 14, 2023 and will be sentenced on July 21, 2023. He faces a maximum penalty of 30 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division; Damon E. Wood, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; and Matthew Stohler, Special Agent in Charge of the U.S. Secret Service’s Washington Field Office, made the announcement after Senior U.S. District Judge Claude M. Hilton accepted the plea.
Assistant U.S. Attorney Christopher Hood 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. 1:23-cr-40.
Four Indicted for St. Petersburg Drug ConspiracyRead the Press Release
Tampa, Florida –United States Attorney Roger B. Handberg announces the unsealing of an indictment charging Eric L. Lemon (44, New Port Richey), Eric Lekent Lemon, Jr. (20, St. Petersburg), Dominic Giannantonio (46, St. Petersburg), and Tryon Metteria Byrd IV (43, St. Petersburg) with conspiring to possess with the intent to distribute methamphetamine and cocaine. If convicted on all counts, Lemon and Giannantonio face mandatory minimum penalties of 10 years, up to life, in federal prison. If convicted on all counts, Lemon, Jr., and Byrd face a maximum penalty of 20 years’ imprisonment.
According to the indictment and statements made by prosecutors in open court, the defendants were operating a drug trafficking ring in St. Petersburg, Florida, where they would sell narcotics out of various residential homes. During the course of the investigation, the defendants sold methamphetamine, powder cocaine, and crack cocaine to undercover agents.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the St. Petersburg Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives. It will be prosecuted by Assistant United States Attorney David P. Sullivan.
Four Harrisburg Men Indicted for Trafficking Methamphetamine, Fentanyl, and Firearms ChargesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Devonte Betts, 29; Rodney McMillian, 41; Lamarr Waters, 34; and Tyreese Nealy, 23 of Harrisburg, Pennsylvania, were indicted in a seventeen-count indictment on June 7, 2023, by a federal grand jury on drug trafficking and firearms charges.
According to United States Attorney Gerard M. Karam, the indictment alleges that beginning on August 3, 2022, and continuing through May 10, 2023, the four men conspired to distribute and did distribute a significant amount of methamphetamine and fentanyl. The indictment also alleges that Betts, Waters and McMillian trafficked firearms, selling at least seven firearms between October 20, 2022, and February 18, 2023. On the morning of June 8, 2023, in a joint operation among federal, state, and local authorities, each of the defendants were taken into custody based on arrest warrants that had been issued. Authorities also executed numerous search warrants during the operation, and seized eight additional firearms, hundreds of rounds of ammunition, 420 fentanyl pills, cocaine, several pounds of marijuana and materials used to process and traffic narcotics.
The four men were arraigned in federal court and their detention was ordered pending further hearings that will take place on June 12, 2023.
The case was investigated by the Bureau of Alcohol Tobacco Firearms and Explosives (ATF), Pennsylvania Office of the Attorney General, Pennsylvania State Police and the Harrisburg Police Bureau. Assistant U.S. Attorney Paul J. Miovas, Jr. is prosecuting 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.
This case was also brought in part as a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state, and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
The aggregate maximum penalty under federal law for these offenses is life imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Former soldier sentenced to 30 years in prison for sexual abuse of young children on military bases including Joint Base Lewis-McChordRead the Press Release
Tacoma – A 40-year-old former soldier was sentenced Thursday, June 8, 2023, to thirty years in prison for raping two young children, announced U.S. Attorney Nick Brown. Lewis Patrick Thompson was arrested in July 2020 and pleaded guilty in October 2022. U.S. District Judge Robert J. Bryan ordered Thompson to be on lifetime supervised release following the prison term.
According to records filed in the case, the sexual assaults on the young children occurred on military bases overseas and in the U.S. The assaults occurred when Thompson was serving as a caregiver for the children.
The children disclosed the abuse to trusted adults when they were 11 years old. Both the Army Criminal Investigation Division (CID) and the FBI moved quickly to investigate the matter. Thompson has been incarcerated at the Federal Detention Center at SeaTac, Washington since the arrest.
At a future hearing, Judge Bryan will determine the amount of restitution Thompson must pay to the victims for the counseling and care they require due to the abuse.
The case was prosecuted by Assistant United States Attorney Matt Hampton.
Five-Time Convicted Felon Pleads Guilty to Illegally Possessing Wallet GunRead the Press Release
MACON, Ga. – A Macon resident with multiple violent felony convictions pleaded guilty to illegally possessing a wallet gun, a type of firearm that can be easily concealed and must be registered under federal law.
Johnny Carl Sandefur, Jr., 52, of Macon, pleaded guilty to one count of possessing a firearm as a convicted felon and one count of possession of an unregistered firearm before U.S. District Judge Marc Treadwell on June 8. He faces a maximum of 15 years in prison to be followed by three years of supervised release and a $250,000 fine. Sentencing for is scheduled for Sept. 6. There is no parole in the federal system.
“Violent criminal felons caught in possession of any firearm—especially highly concealable weapons like a wallet gun—will be held accountable,” said U.S. Attorney Peter D. Leary. “In collaboration with our law enforcement partners, we are working to bring repeat violent offenders to justice.”
“This case demonstrates the strong collaboration that exists between law enforcement at the local, state and federal level, as we work to hold dangerous felons accountable and make the communities we serve safer,” said Southeast Regional Fugitive Task Force (SERTF) Sr. Inspector Chris Wright.
“The law-abiding citizens of this community are safer because of this guilty plea which will ensure the incarceration of a dangerous criminal and contribute to the restoration of order and peace to this area,” said ATF Assistant Special Agent in Charge Beau Kolodka.
According to documents and other evidence admitted into court, the Southeast Regional Fugitive Task Force (SERFTF) attempted to execute an arrest warrant for a person wanted for aggravated assault on a peace officer on Nov. 3, 2022, on Skipperton Rd. in Macon. SERFTF agents located the wanted person and Sandefur, who both fled. Sandefur was taken into custody in possession of a .22 magnum derringer wallet gun, two knives and methamphetamine. The wallet gun was not registered in the National Firearms Registration and Transfer Record as required by federal law. Sandefur had active warrants in Bibb County and Houston County, Georgia, at the time of this incident. In addition, he has multiple prior felony convictions including aggravated assault, aggravated stalking, possession of a firearm by a convicted felon, terroristic threats and theft by receiving. It is illegal for a convicted felon to possess a firearm.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the U.S. Marshals Service (USMS) and the Southeast Regional Fugitive Task Force (SERFTF).
Assistant U.S. Attorney Joy Odom is prosecuting the case for the Government.
Five Defendants Indicted for Conspiracy to Distribute Meth in Texas CountyRead the Press Release
SPRINGFIELD CITY, Mo. – Five defendants have been indicted by a federal grand jury for their roles in a conspiracy to distribute methamphetamine in Texas County, Mo., and for illegally possessing firearms.
Richard D. Sims, 61, and his wife, Billie J. Sims, 51, both of Texas County, Mo., Nathan K. Roth, 39, of Mountain Grove, Mo., Cody D. Martin, 29, of Salem, Mo., and Tameica D. Everett, 46, of Yazoo City, Mississippi, were charged in an eight-count indictment returned under seal by a federal grand jury in Springfield, Mo., on May 24, 2023. That indictment has been unsealed and made public following the arrests of all five defendants.
The federal indictment alleges that all five defendants participated in a conspiracy to distribute methamphetamine in Texas County from March 9 to July 11, 2022.
In addition to the conspiracy, the indictment charges Richard and Billie Sims in two counts of distributing methamphetamine and in one count of possessing methamphetamine with the intent to distribute.
Martin is also charged with one count of distributing methamphetamine. Roth and Everett are each also charged with one count of possessing methamphetamine with the intent to distribute.
Richard Sims is also charged with one count of being a felon in possession of four firearms. Sims, who has prior felony convictions, allegedly was in possession of a Canik 9mm semi-automatic pistol, a Hi-Point 9mm semi-automatic pistol, a Colt Army Special .38-caliber revolver, and an Armscor of the Philippines .38-caliber revolver on July 8, 2022.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Jessica R. Eatmon. It was investigated by the Drug Enforcement Administration, the Texas County, Mo., Sheriff’s Department, the South Central Drug Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Licking, Mo., Police Department, the Dent County, Mo., Sheriff’s Department, and the Salem, Mo., Police Department.
Federal Jury Convicts Fentanyl Trafficker Who Stole 7 Kilos from Fayetteville Stash HouseRead the Press Release
WILMINGTON, N.C. – A federal jury convicted Hector Perez Valenzuela, age 34, for conspiracy and drug trafficking charges related to his role in the theft of seven kilograms of fentanyl with an estimated value of more than $250,000 from a Fayetteville stash house.
“According to DEA, fentanyl is the deadliest drug threat our country has faced,” said U.S. Attorney Michael Easley. “We are working closely with our law enforcement partners to stem the tide of this highly addictive and potentially lethal drug in our communities.”
According to court records and evidence presented at trial, in 2019, the Federal Bureau of Investigation and Fayetteville Police Department began investigating a large-scale fentanyl trafficking ring with ties to the Sinaloa cartel.
The leaders of the drug trafficking organization were based on the west coast, but they set up apartments in the Fayetteville, North Carolina as hubs for the distribution of kilogram quantities of fentanyl across the United States.
John Ellingson was a courier for the drug trafficking organization. From Fayetteville, he transported dozens of kilograms of fentanyl to several cities, including Chicago, Atlanta, and Baltimore.
In early November, 2019, Ellingson and two co-conspirators—Kittisack Sam Vorana and Hector Perez Valenzuela, the defendant—decided to steal large quantities of drugs that belonged to the drug trafficking organization. They planned to make the theft look like a burglary. They also planned to sell the drugs and divide the profits.
On November 7, 2019, the defendant and Vorana traveled from the west coast to Fayetteville. They broke into the apartment and took 7 kilograms of fentanyl and approximately 3,000 fentanyl pills.
They then began driving back to the west coast in a rented Dodge Caravan.
In the early morning hours of November 8, 2019, Vorana and the defendant were stopped for speeding in St. Charles County, Missouri. Vorana and the defendant consented to a search of the vehicle.
During the search, law enforcement discovered a toolbox that contained seven brick-like packages. The packages had been wrapped in electrical tape and covered in grease to help evade detection by drug canines. A key to the toolbox was found in the defendant’s pocket.
Vorana and the defendant were arrested and admitted to the theft of narcotics. They also admitted that they planned to sell the drugs in the Portland, Oregon area. Each kilogram was valued at approximately $38,000.
The packages were tested by a Drug Enforcement Administration (DEA) laboratory and found to contain more than seven kilograms of fentanyl.
On June 8, 2023, the jury convicted Perez Valenzuela of both counts with which he was charged: conspiracy to distribute and posses with the intent to distribute fentanyl (Count One) and possession with intent to distribute fentanyl, and aiding and abetting (Count Two). At sentencing, he faces up to 40 years’ imprisonment.
Vorana and Ellingson have previously pleaded guilty to fentanyl conspiracy charges, and they are awaiting sentencing.
This is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launders, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks.
Related Cases:
- United States v. John Ellingson: 5:20-CR-397-M-1.
- United States v. Kittisack Sam Vorana: 5:20-CR-12-M-2.
The leaders of the drug trafficking organization are being prosecuted by the United States Attorney’s Office for the Southern District of California.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after Chief U.S. District Judge Richard E. Myers II accepted the verdict. The Federal Bureau of Investigation, the Drug Enforcement Administration (DEA), the Fayetteville Police Department, and the St. Charles County Police Department investigated the case and Assistant U.S. Attorney Scott Lemmon and Special Assistant U.S. Attorney Scott Gainer prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:20-CR-00012-M-1.
Federal Firearms Licensee Sentenced on Violation of Gun LawsRead the Press Release
PITTSBURGH, Pa. - A resident of Butler, Pennsylvania, has been sentenced in federal court to 45 days imprisonment followed by one-year of supervised release and a $400,000 fine on his conviction of violating federal firearm laws, Acting United States Attorney Troy Rivetti announced today.
Chief United States District Judge Mark R. Hornak imposed the sentence on Grant Williams, age 61, of Butler, Pennsylvania.
According to information presented to the court, between the dates of March 10, 2021 and March 3, 2022; June 28, 2022 and January 13, 2022; March 6, 2020 and April 26, 2022; July 14, 2021 and October 21, 2021; and June 23, 2020 and January 31, 2022, Williams failed to make entry in a record as a federal firearms dealer.
Assistant United States Attorney Brendan J. McKenna prosecuted this case on behalf of the government.
Acting United States Attorney Rivetti commended the Bureau of Alcohol, Tobacco, Firearms, and Explosives for the investigation leading to the successful prosecution of Williams.
Federal Defendant Receives 19+ Year Sentence for Trafficking MethamphetamineRead the Press Release
LAKE CHARLES, La. - United States Attorney Brandon B. Brown announced that a Lake Charles man has been sentenced by United States District Judge James D. Cain, Jr. for trafficking methamphetamine.
Andrew Simmons, III, 42, was sentenced to 235 months (19 years, 7 months) in prison, followed by 5 years of supervised release, for possession of methamphetamine with intent to distribute. On August 10, 2021, troopers with the Louisiana State Police and other law enforcement agents with the Anti-Drug Task Force based in Calcasieu Parish, attempted to execute an arrest warrant on Simmons. As he exited his residence and got into his vehicle, law enforcement officers activated their emergency lights, but Simmons fled at a high rate of speed. After a short vehicle and foot pursuit, Simmons was apprehended.
Officers detected a strong odor of marijuana coming from inside his vehicle and conducted a search of it. Inside the vehicle, officers located a black duffle bag which contained several clear bags containing approximately 4,121 grams of methamphetamine, as well as a loaded Ruger 9mm pistol. Simmons was arrested and charged with possession of methamphetamine with intent to distribute.
The case was investigated by the Department of Homeland Security - Criminal Investigation, Louisiana State Police, and Calcasieu Parish Sheriff’s Office and prosecuted by Assistant U.S. Attorney Daniel J. Vermaelen.
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Fayette County Man Sentenced to 40 Years for Distributing Fentanyl Resulting in Overdose DeathRead the Press Release
LEXINGTON, Ky. — A Lexington man, Keon Lamont Lee, 32, was sentenced on Friday to 480 months in federal prison, by Chief U.S. District Judge Danny Reeves, for distribution of fentanyl resulting in an overdose death.
According to his guilty plea, in February of 2021, Lee illegally provided fentanyl to an individual identified as F.E., who overdosed and died. Lee had obtained two bags of controlled substances from his dealer – one containing cocaine, the other fentanyl. Lee regularly sold cocaine to the victim. Intending to distribute cocaine, Lee instead distributed fentanyl to the victim, who used the drug, overdosed, and died. Text messages from both the victim’s and Lee’s phones confirmed these events, and Lee provided a full confession to law enforcement.
Lee pled guilty during his jury trial, in January 2023.
“This case illustrates the reasons why illicit drug trafficking remains such a threat to our community,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky. “It demonstrates just how dangerous fentanyl is – potentially lethal in the 2mg range – and highlights the common truth that drug users have no idea what they are buying. Whether by mistake, dangerous mixtures with other drugs, or counterfeit pills, users are often seeking one drug but receiving others, with grave results. Fortunately, this case can also illustrate that those who illegally traffic in these dangerous drugs face prosecution and real consequences for their conduct.”
Under federal law, Lee must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for four years.
Carlton S. Shier IV, United States Attorney for the Eastern District of Kentucky; J. Todd Scott, Special Agent in Charge, DEA Louisville Field Division; and Chief Lawrence Weathers, Lexington Police Department, jointly announced the sentence.
The investigation was conducted by the DEA and Lexington Police Department. The United States was represented by Assistant U.S. Attorney Todd Bradbury.
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Drug Trafficker Sentenced to Federal Prison for Distributing Fentanyl Linked to Fatal Overdose in HillsboroRead the Press Release
PORTLAND, Ore.—A drug trafficker was sentenced to federal prison today for his role in a conspiracy to distribute fentanyl that led to the fatal overdose of a Hillsboro, Oregon man in February 2021.
Gerardo Corrales-Aragon, 30, whose place of residence is unknown, was sentenced to 150 months in federal prison and five years’ supervised release.
According to court documents, on February 3, 2021, a 25-year-old man was found deceased by his parents at their home in Hillsboro after he consumed a counterfeit Oxycodone pill containing fentanyl. In less than three weeks, law enforcement uncovered a four-person drug distribution chain whose illicit actions led to the young man’s death. Investigators identified Corrales-Aragon as the individual responsible for transporting the deadly counterfeit pills from California to Oregon for distribution in and around Portland.
On February 23, 2021, law enforcement arrested Corrales-Aragon as he was leaving a local hotel to deliver fentanyl and methamphetamine in exchange for cash. Investigators found 4,000 fentanyl pills and six pounds of methamphetamine in Corrales-Aragon’s backpack and a loaded 9mm “ghost gun” in his waistband. Corrales-Aragon admitted to selling counterfeit pills to the Hillsboro victim’s drug supplier and possessing a firearm for his own protection while trafficking drugs. By the time of his arrest, Corrales-Aragon had been working with Mexican drug cartels to distribute drugs in the U.S. for more than half his life.
On March 16, 2021, a federal grand jury in Portland returned a 13-count indictment charging Corrales-Aragon and four others with conspiring with one another to possess with intent to distribute fentanyl and other related offenses.
On March 6, 2023, Corrales-Aragon pleaded guilty and agreed to a sentencing enhancement that his fentanyl distribution resulted in the death of the Hillsboro victim.
This case was investigated by the Portland Police Bureau, Washington County Sheriff’s Office, and Hillsboro Police Department with assistance from Homeland Security Investigations (HSI). It was prosecuted by the U.S. Attorney’s Office for the District of Oregon.
District Man Pleads Guilty to Sexually Assaulting 11-Year OldRead the Press Release
WASHINGTON - Dwayne L. Curtis, Sr., 61, of Washington, D.C., pleaded guilty today to sexually assaulting an 11-year old girl in January of 2021, announced U.S. Attorney Matthew M. Graves and Interim Chief Ashan Benedict, of the Metropolitan Police Department.
Curtis, Sr. pleaded guilty to one count of first degree child sexual abuse, in the Superior Court of the District of Columbia, before the Honorable Michael K. O’Keefe who scheduled sentencing for August 11, 2023.
Curtis admitted that between January 12 and January 14, 2021, he twice engaged the child in a sex act at his home in Northwest Washington, D.C. As part of his guilty plea, the parties agreed that Curtis should be sentenced to 180 months in prison, with half of that time suspended. They also agreed that, upon his release from prison, he will be on supervised probation for five years, and will have to register as a sex offender for the rest of his life. The sentence is pending the court’s approval.
In announcing the plea, U.S. Attorney Graves and Interim Chief Benedict commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the work of those who handled the case at the U.S. Attorney’s Office, including Victim/Witness Advocate Veronica Vaughan; paralegal Garcia Clarke; former paralegal Brenda Williams; and Assistant U.S. Attorney Peter V. Taylor, who prosecuted the matter.
District Man Arrested in Shooting Death of 62-year-old manRead the Press Release
WASHINGTON – Demarcus Barnett, 20, of Washington, D.C., was arrested yesterday for second degree murder while armed, stemming from the shooting death of 62-year-old Lasanta Qumar McGill, on June 8, 2023, in the Westminster neighborhood, U.S. Attorney Matthew M. Graves and Interim Chief Ashan Benedict, of the Metropolitan Police Department announced.
Mr. Barnett was arraigned today in Superior Court in the District of Columbia, where he entered a not guilty plea. The court found probable cause that the defendant committed the murder and held him without bond pending a preliminary hearing on June 20, 2023 at 9:30 a.m. before Judge Raffinan.
An arrest on a complaint is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
In announcing the arrest, U.S. Attorney Graves commended the work of those investigating the case from the Metropolitan Police Department (MPD) and the U.S. Attorney’s Office.
District Man Arraigned on Two Counts of Second Degree Sexual Abuse of a Patient or ClientRead the Press Release
WASHINGTON – Dyrell Muhammad, also known as Dyrell Gamble, 56, of Washington, D.C., was arraigned today on two counts of second degree sexual abuse arising from events that occurred in August 2021, announced U.S. Attorney Matthew Graves and Interim Chief Ashan Benedict, of the Metropolitan Police Department.
On May 25, 2023, Muhammad was indicted by a grand jury in the Superior Court of the District of Columbia on two counts of second degree sexual abuse of a patient or client. He faces a maximum of five years on each count if convicted of the charges.
According to the government’s evidence, in August 2021, Muhammad was working at RAP, Inc., a residential substance use and mental health treatment program located in Washington, D.C. On or about August 4, 2021, Muhammad approached a program client in an elevator. He grasped the client’s hand and placed her hand on his penis through his clothing. Muhammad then exposed his penis and placed the client’s hand on his naked, exposed penis. The indictment also charges that Muhammad sexually abused a second client, on or about August 9, 2021. On August 25, 2022, Muhammad was arrested in connection with this case and was subsequently released pending trial.
In August 2001, Muhammad was convicted of first degree murder while armed and associated firearms charges for a murder he committed in October 1998. He was sentenced to a term of imprisonment totaling 35 years to life. In October 2020, after serving 22 years of that sentence, Muhammad was released by a Superior Court judge, pursuant to the COVID-19 Response Supplemental Emergency Amendment Act of 2020, and placed on five years’ supervised probation.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws, and every defendant is presumed innocent until, and unless, proven guilty.
In announcing the charges, U.S. Attorney Graves and Interim Chief Benedict commended the work of those investigating the case from the Metropolitan Police Department’s Sexual Assault Unit. They acknowledged the efforts of those who are working on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Tracey Hawkins; Paralegal Specialists Garcia Clarke, ReShawn Johnson, Cynthia Muhammad, and Michelle Wicker; and Special Agent Sean Ricardi. Finally, they commended the work of former Assistant U.S. Attorney Courtney Lee, along with Assistant U.S. Attorney Kristin Sourbeer, who is investigating and prosecuting the case.
Dominican National Sentenced to Eight Months for Unlawfully Reentering the United StatesRead the Press Release
St. Thomas, VI – United States Attorney Delia L. Smith announced today that Kelvin Bautista Valdez, 35, of the Dominican Republic, was sentenced to eight months of imprisonment by Chief District Judge Robert A. Molloy, on his conviction of Illegal Reentry into the United States of a Removed Alien.
According to court documents, on November 30, 2022, while conducting training operations in Brewers Bay, Customs and Border Patrol Officers observed a vessel that they recognized from a previous smuggling operation involving undocumented migrants. Officers later discovered Valdez among a group of undocumented migrants gathered at the shoreline awaiting transport to Puerto Rico. A record check revealed that Valdez had previously entered the United States and was removed on two prior occasions. When interviewed, Valdez stated that he paid smugglers $26,000.00 cash for his transport to the United States.
The case was investigated by United States Customs and Border Protection and Homeland Security Investigations and prosecuted by Assistant United States Attorneys Kyle Payne and Natasha L. Baker.