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Wednesday 26 April 2023
Homer Man Indicted for Illegal Transportation of Black Bears and Making False Records, Lacey Act ViolationsRead the Press Release
Anchorage – A federal grand jury in Alaska returned an indictment on April 21, 2023, charging a Homer man with unlawful transportation of four black bears and making false records in violation of the Lacey Act.
According to court documents, Travis Larson, 47, of Homer, and his company Alaska Premier Sportfishing, LLC, were named as defendants in the six-count indictment. The indictment alleges that in May 2018, Larson and Alaska Premier Sportfishing illegally transported four black bears they knew had been unlawfully harvested by four Norwegian hunters. The defendants used a 65-foot vessel, the Venturess, and a 16-foot motorboat to commit these offenses. The indictment further charges that Larson and Alaska Premier Sportfishing made and submitted false records, which stated the four bears had been transported from Nuka Island, when in truth they had been transported from Beauty Bay and Surprise Bay on the Kenai Peninsula.
Larson is charged with four counts of Unlawful Transportation of Wildlife, in violation of 16 U.S.C. § 3372(a)(2)(A); and two counts of Making False Record, in violation of 16 U.S.C. § 3372(d). If convicted, he faces a maximum of five years in prison and a $20,000 fine on each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. The defendants are scheduled for their initial court appearance May 11, 2023, before U.S. Magistrate Judge Matthew M. Scoble of the U.S. District Court for the District of Alaska.
U.S. Attorney S. Lane Tucker of the District of Alaska made the announcement.
The United States Fish Wildlife Service, National Park Service, National Oceanic and Atmospheric Administration, Alaska State Troopers are investigating the case.
Assistant U.S. Attorney Seth Brickey is prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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usao/ak/23-032
Grand Jury Returns IndictmentsRead the Press Release
MADISON, WIS. - A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments today. You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Rockford Man Charged with Drug Crimes
Vincent Phillips, 41, Rockford, Illinois, is charged in an eight-count indictment with drug crimes involving methamphetamine, fentanyl, and cocaine. The indictment alleges that on February 18, 2023, he possessed 50 grams or more of methamphetamine, fentanyl, and cocaine with intent to distribute. The indictment alleges that on three occasions between April 4 and April 20, 2023, he distributed methamphetamine. The indictment further alleges that two of the distributions involved 50 grams or more of the drug. The indictment also alleges that on April 20, 2023, Phillips possessed cocaine with intent to distribute, and that he possessed 50 grams or more of methamphetamine with intent to distribute.
If convicted, Phillips faces a mandatory minimum penalty of five years and a maximum of 40 years in prison on the four charges that allege the distribution or possession for distribution of 50 grams or more of methamphetamine. The other four charges each carry a maximum penalty of 20 years in prison.
Phillips was arrested on April 20 and is being held at the Sauk County Jail. The charges against him are the result of an investigation by the Columbia County Sheriff’s Office and the Wisconsin Department of Justice Division of Criminal Investigation. Assistant U.S. Attorney Kathryn Ginsberg is handling the prosecution.
Two Mexican Nationals Charged with Illegally Reentering U.S.
In unrelated cases, two citizens of Mexico are charged with illegally reentering the United States. Marcos Xelhua-Ponce, 30, is charged with illegally reentering the United States after having been deported. The indictment alleges that he was found in the Western District of Wisconsin on February 15, 2023. He was found in Dane County.
The second indictment charges Noe Mendoza-Caballero, 39, with reentering the United States after being removed. The indictment alleges that Mendoza-Caballero was found in the Western District of Wisconsin on March 27, 2023. He was found in Monroe County.
If convicted, Xelhua-Ponce faces a maximum penalty of two years in prison, and Mendoza-Caballero faces a maximum penalty of 20 years in prison. Immigration offenses may carry different maximum penalties based on the totality of circumstances in each case. The charges against them are the result of investigations by U.S. Immigration and Customs Enforcement, with the participation of the U.S. Marshals Service in the investigation of Xelhua-Ponce. Assistant U.S. Attorney Kathryn Ginsberg is handling the prosecution of Xelhua-Ponce and Assistant. U.S. Attorney Steven Anderson is handling the prosecution of Mendoza-Caballero.
Fort Bragg Soldier with Apparent Plot to Remove Racial Minorities from Eastern North Carolina Pleads Guilty to Possessing an Illegal Short Barrel RifleRead the Press Release
WILMINGTON, N.C. – A Fort Bragg soldier, Noah Edwin Anthony, 23, who had evidence of a preliminary self-titled “operation,” found on his electronic devices, with the goal “to physically remove as many of [black and brown people] from Hoke, Cumberland, Robeson and Scotland Counties by whatever means need be,” pleaded guilty yesterday to possessing an unregistered short-barrel rifle. Anthony faces up to ten years in prison when sentenced later this year.
According to court documents and information provided in court, Anthony attempted to enter Fort Bragg on March 3, 2022, as gate officers were conducting random vehicle inspections. The gate officer asked Anthony to step out of the vehicle and immediately located a loaded handgun in the center console. This handgun was later identified as a “Glock Like” 9mm privately made handgun, commonly called a Ghost Gun, with no serial number. Anthony was asked if the handgun was registered, and Anthony answered he didn’t have any paperwork for it. Military Police arrived and located two extended magazines, ammunition, as well as an American flag with a Swastika, instead of blue field and stars, and other Nazi type patches.
Further search of Anthony’s room on Fort Bragg resulted in disclosure of a 3D printed, FGC-9 rifle with no serial number, a lower receiver, magazines for various firearms, white supremacist literature, t-shirts and patches, as well as several electronic devices.
The FGC-9 firearm was submitted to the ATF Firearms Laboratory who confirmed that it was a short barrel rifle less than 16 inches in violation of the National Firearms Act (NFA). Additionally, the FGC-9 lacked manufacturer’s marks of identification or serial number and thus had not been registered as required under the NFA. Anthony pleaded guilty to possessing a firearm not registered in the National Firearms Registration and Transfer Record.
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 plea. The Federal Bureau of Investigation (FBI), Army Criminal Investigation Division (CID), and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) are investigating the case and Assistant U.S. Attorney Gabriel J. Diaz is prosecuting 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. 5:22-CR-217-M.
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Former Pediatrician Pleads Guilty to Possessing Child PornographyRead the Press Release
LOS ANGELES – A former pediatrician pleaded guilty today to possessing child sexual abuse material (CSAM) on dozens of DVDs and to possessing hundreds of such images on his personal computing devices.
Gary David Goulin, 62, of the Beverly Grove neighborhood of Los Angeles, pleaded guilty to one count of possession of child pornography.
According to his plea agreement, Goulin in November 2021 knowingly possessed four DVDs that contained sexually explicit material involving minors who were under the age of 12 years old. Goulin further admitted in his plea agreement to knowingly possessing an additional 57 DVDs that contained CSAM. The average run time on these DVDs was three hours and 21 minutes.
Goulin admitted that in August 2021 he used his cellphone to knowingly receive a video of CSAM. In total, Goulin possessed more than 600 images that he knew constituted child pornography, some of which showed children engaging in sadistic or masochistic conduct.
As part of his plea agreement, Goulin has agreed to register as a sex offender.
United States District Judge Maame Ewusi-Mensah Frimpong scheduled an October 13 sentencing hearing, at which time Goulin will face a statutory maximum sentence of 20 years in federal prison.
Goulin was charged in Los Angeles Superior Court with possession of child pornography and sexual exploitation of a child. That case was dismissed considering the federal charges against Goulin, which a grand jury brought via indictment in October 2022.
In November 2021, the Medical Board of California prohibited Goulin from practicing medicine.
The FBI and the Los Angeles Police Department investigated this matter.
Assistant United States Attorney Sarah S. Lee of the General Crimes Section is prosecuting this case.
Former Mayfield Resident Sentenced to 15 Years in Federal Prison for Methamphetamine DistributionRead the Press Release
Paducah, KY – A Louisville man, formerly of Mayfield, Kentucky, was sentenced yesterday to 15 years in prison followed by a 5-year term of supervised release for distributing more than 50 grams of methamphetamine. There is no parole in the federal system.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge J. Todd Scott of the DEA Louisville Field Division and Sheriff Ryan Norman of the McCracken County Sheriff’s Office, made the announcement.
According to court documents, Kristopher G. Johnson, 45, distributed approximately 1 pound of methamphetamine in McCracken County on June 18, 2021.
The case was investigated by the DEA Paducah Post of Duty Office and the McCracken County Sheriff’s Office, with assistance from the Graves County Sheriff’s Office and the Marshall County Sheriff’s Office.
Assistant U.S. Attorney Seth Hancock, of the U.S. Attorney’s Paducah Branch Office, prosecuted the case.
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Former Jackson Police Department Officer Indicted for Selling a Firearm to a Convicted FelonRead the Press Release
Jackson, Miss. – A federal grand jury in Jackson returned an indictment charging a former Jackson Police Department officer with selling a firearm to a convicted felon, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation.
According to court documents, Torrence Donnell Mayfield, 51, of Jackson, is charged with having sold a firearm to a person he knew to be a convicted felon. It is against federal law to sell a firearm to a known convicted felon.
Mayfield made his initial court appearance today before U.S. Magistrate Judge F. Keith Ball who scheduled the case for trial on May 30, 2023 in U.S. District Court in Jackson. If convicted, Mayfield faces a maximum penalty of 10 years in prison.
The FBI is investigating the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Harvard University Professor Sentenced for Lying About His Affiliation with Wuhan University of Technology; China’s Thousand Talents Program; and Filing False Tax ReturnsRead the Press Release
BOSTON – The former Chair of Harvard University’s Chemistry and Chemical Biology Department was sentenced today in federal court in Boston for lying to federal authorities about his affiliation with People’s Republic of China’s Thousand Talents Program and the Wuhan University of Technology (WUT) in Wuhan, China, as well as failing to report income he received from WUT.
Dr. Charles Lieber, 64, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to time served (two days) in prison; two years of supervised release with six months of home confinement; a fine of $50,000; and $33,600 in restitution to the IRS. The government recommended a sentence of 90 days in prison and a $150,000 fine.In December 2021, Lieber was convicted by a federal jury of two counts of making false statements to federal authorities, two counts of making and subscribing a false income tax return, and two counts of failing to file reports of foreign bank and financial accounts (FBAR) with the Internal Revenue Service (IRS).
Lieber served as the Principal Investigator of the Lieber Research Group at Harvard University, which between 2008 and 2019 conducted more than $15 million in research sponsored by various U.S. Government agencies, including the U.S. Department of Defense (“DOD”) and the National Institutes of Health (“NIH”). Unbeknownst to his employer, Harvard University, Lieber became a “Strategic Scientist” at WUT and, later, a contractual participant in China’s Thousand Talents Plan from at least 2012 through 2015. China’s Thousand Talents Plan was one of the most prominent Chinese talent recruitment plans designed to attract, recruit and cultivate high-level scientific talent in furtherance of China’s scientific development, economic prosperity and national security.
In April 2018, during an interview with federal agents from DOD (one of the agencies that sponsored a portion of Lieber’s research), among other things, Lieber falsely stated that he had never been asked to participate in the Thousand Talents Plan. Later, in January 2019, Lieber caused Harvard to falsely tell the NIH (another sponsor of Lieber’s research) that Lieber was not, and had never been, a participant in the Thousand Talents Plan. Lieber knew these statements were false because he had signed a Thousand Talents contract with WUT in 2012, performed many of the duties and responsibilities required of him under that contract, and been paid a substantial salary by WUT in exchange for his work. Specifically, the terms of Lieber’s three-year Thousand Talents contract with WUT entitled Lieber to a salary of up to $50,000 per month, living expenses of up to $150,000 and approximately n $1.5 million to conduct joint research at WUT.
In tax years 2013 and 2014, Lieber earned income from WUT in the form of salary and other payments made to him pursuant to his Thousand Talents contract, which he did not disclose to the IRS on his federal income tax returns. Together with WUT officials, Lieber also opened a bank account at a Chinese bank during a trip to Wuhan in 2012. Thereafter, between at least 2012 and 2015, WUT periodically deposited portions of Lieber’s salary into that account. U.S. taxpayers are required to report the existence of any foreign bank account that holds more than $10,000 at any time during a given year by the filing an FBAR with the IRS. According to Lieber, the balance of his Chinese bank account was approximately $200,000 in 2014 and 2015. Nonetheless, Lieber purposely failed to file FBARs for those years.United States Attorney Rachael S. Rollins; Matthew Olsen, Assistant Attorney General for National Security; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Patrick J. Hegarty, Special Agent in Charge of the Defense Criminal Investigative Service, Northeast Field Office; Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation Division for the Boston Field Office; Michael Wiest, Special Agent in Charge of the Naval Criminal Investigative Service (NCIS), Northeast Field Office; and Philip M. Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General made the announcement today. Assistant U.S. Attorney Jason A. Casey of Rollins’ National Security Unit and Assistant U.S. Attorney James R. Drabick of Rollins’ Securities, Financial & Cyber Fraud Unit prosecuted the case.
Former Arkansas State Senator Sentenced for Role in Bribery SchemeRead the Press Release
A former Arkansas state senator was sentenced yesterday to four years and two months in prison in the Western District of Missouri for accepting multiple bribes in connection with a multi-district investigation spanning the Eastern and Western Districts of Arkansas and the Western District of Missouri.
Pursuant to his global plea agreement, Jeremy Hutchinson, 48, of Little Rock, pleaded guilty on June 25, 2019, in the Eastern District of Arkansas to filing a false tax return; pleaded guilty on June 25, 2019, to an information filed in the Western District of Arkansas to conspiracy to commit federal program bribery; and pleaded guilty in the Western District of Missouri on July 8, 2019, to conspiracy to commit federal program bribery. On Feb. 3, Hutchison was sentenced to three years and 10 months in prison for his convictions in the Eastern District of Arkansas and Western District of Arkansas. His sentence in the Western District of Missouri will run consecutive to the previous sentence for a total of eight years in prison.
According to court documents in connection with his plea in the Western District of Missouri, Hutchinson was hired by then-chief operating officer Bontiea Goss as outside counsel for Preferred Family Healthcare Inc. (formerly known as Alternative Opportunities Inc.), a Springfield, Missouri-based healthcare charity. In exchange for payments and legal work, Hutchinson performed official acts on behalf of Preferred Family Healthcare, including holding up agency budgets and drafting and voting on legislation. Preferred Family Healthcare paid Hutchinson more than $350,000 in monthly retainer payments from May 2014 until 2017.
In 2022, Preferred Family Healthcare agreed to pay more than $8 million in forfeiture and restitution to the federal government and the state of Arkansas under the terms of a non-prosecution agreement, in which the company admitted to the criminal conduct of its former officers and employees.
Several former executives from the charity, former members of the Arkansas state legislature, and others have pleaded guilty in federal court as part of the long-running, multi-jurisdiction investigation, including the following:
- Former Chief Operating Officer Bontiea Goss, previously of Springfield, Missouri, pleaded guilty in September 2022 to her role in a conspiracy to commit bribery concerning programs receiving federal funds.
- Former Chief Financial Officer Tommy “Tom” Ray Goss, husband of Bontiea Goss, and also previously of Springfield, Missouri, pleaded guilty in September 2022 to participating in the conspiracy by embezzling funds from the charity, as well as by paying bribes and kickbacks to elected public officials in Arkansas. Tom Goss also pleaded guilty to one count of aiding and assisting in the preparation and presentation of a false tax return.
- Former Chief Executive Officer Marilyn Luann Nolan of Springfield, Missouri, pleaded guilty in November 2018 to her role in a conspiracy to embezzle and misapply the funds of a charitable organization that received federal funds.
- Former Director of Operations and Executive Vice President Robin Raveendran of Little Rock, Arkansas, pleaded guilty in June 2019 to conspiracy to commit bribery concerning programs receiving federal funds.
- Former executive and head of clinical operations Keith Fraser Noble of Rogersville, Missouri, pleaded guilty in September 2019 to concealment of a known felony.
- Former employee and head of operations and lobbying in Arkansas Milton Russell Cranford, aka Rusty, of Rogers, Arkansas, was sentenced to seven years in federal prison after pleading guilty to one count of federal program bribery.
- Political consultant Donald Andrew Jones, aka D.A. Jones, of Willingboro, New Jersey, pleaded guilty in December 2017 to his role in a conspiracy to steal from an organization that receives federal funds.
- Former Arkansas State Representative Eddie Wayne Cooper of Melbourne, Arkansas, pleaded guilty in February 2018 to conspiracy to embezzle more than $4 million from Preferred Family Healthcare.
- Former Arkansas State Senator and State Representative Henry “Hank” Wilkins IV was sentenced in January 2023 for his role in a conspiracy to commit federal program bribery and devising a scheme and artifice to defraud and deprive the citizens of the state of Arkansas of their right to honest services.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Jonathan D. Ross for the Eastern District of Arkansas, U.S. Attorney David Clay Fowlkes for the Western District of Arkansas, U.S. Attorney Teresa A. Moore for the Western District of Missouri, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, Special Agent in Charge Charles Dayoub of the FBI Kansas City Field Office, Special Agent in Charge James A. Dawson of the FBI Little Rock Field Office, and Acting Special Agent in Charge Thomas F. Murdock of the IRS Criminal Investigation (IRS-CI) St. Louis Field Office made the announcement.
The FBI, IRS-CI, the Offices of the Inspectors General from the Departments of Justice, Labor, and the Federal Deposit Insurance Corporation investigated the cases.
Senior Litigation Counsel Marco A. Palmieri, Director of Enforcement & Litigation for the Election Crimes Branch Sean F. Mulryne, and Trial Attorney Jacob Steiner of the Criminal Division’s Public Integrity Section; Assistant U.S. Attorney Stephanie Mazzanti for the Eastern District of Arkansas; Supervisory Assistant U.S. Attorney Randall Eggert and Assistant U.S. Attorney Shannon T. Kempf for the Western District of Missouri; and Assistant U.S. Attorneys Aaron L. Jennen and Steven M. Mohlhenrich for the Western District of Arkansas are prosecuting the separate criminal cases. Former Assistant U.S. Attorney Patrick Harris for the Eastern District of Arkansas and former Assistant U.S. Attorney Ben Wulff for the Western District of Arkansas provided significant assistance.
Former Apple Employee Sentenced to Prison for Conspiracy to Defraud Apple and Tax CrimesRead the Press Release
SAN JOSE – Dhirendra Prasad was sentenced to serve three years in prison and ordered to pay $19,270,683 in restitution for conspiring to defraud Apple, Inc., of millions of dollars and for related tax crimes, announced United States Attorney Ismail J. Ramsey and Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge Darren Lian. The sentence was handed down by the Hon. Beth L. Freeman, United States District Judge.
Prasad, 55, from Mountain House in San Joaquin County, was previously charged by Information with one count of conspiracy to commit mail fraud and wire fraud, in violation of 18 U.S.C. § 1349 (Count One); two counts of conspiracy to commit money laundering, in violation of 18 U.S.C. § 1956(h) (Counts Two and Three); one count of conspiracy to defraud the United States, in violation of 18 U.S.C. § 371 (Count Four); and one count of tax evasion, in violation of 26 U.S.C. § 7201 (Count Five). Prasad pleaded guilty to the first and fourth count on November 2, 2022. The remaining counts were dismissed at sentencing.
The criminal conduct in this case centered around Prasad’s employment at Apple from December 2008 through December 2018. For most of that time, he was a “buyer” in Apple’s Global Service Supply Chain. It was Prasad’s job as an Apple buyer to facilitate the process through which Apple bought parts to perform warranty repairs on older devices. Prasad exploited his position and conspired with two separate Apple vendors to defraud Apple by taking kickbacks, stealing parts, inflating invoices, and causing Apple to pay for items and services it never received – resulting in a loss to Apple of more than $17,000,000. In addition to engaging in two separate criminal conspiracies with Apple vendors, Prasad also acknowledged that he evaded tax on the proceeds of his schemes.
According to the government’s sentencing memorandum, by virtue of his position at Apple Prasad was given substantial discretion to make autonomous decisions to benefit his employer. Prasad betrayed this trust, and abused his power to enrich himself at his employer’s expense – all while accepting hundreds-of-thousands of dollars’ worth of compensation from Apple in the form of salary and bonuses. Additionally, Prasad used his insider information regarding the company’s fraud-detection techniques to design his criminal schemes to avoid detection.
In addition to the three-year prison sentence, Judge Freeman ordered Prasad to forfeit over $5,491,713 worth of assets—that already have been seized by the government—and to pay an additional forfeiture money judgment in the amount of $8,133,005. Judge Freeman also entered an order of restitution, requiring Prasad to pay $17,398,104 to Apple and $1,872,579 to the IRS, and also ordered Prasad to serve three years of supervised release, to begin after the prison term.
Assistant United States Attorneys Michael G. Pitman and Karen Beausey are prosecuting the case. The prosecution was the result of an investigation led by the Internal Revenue Service, Criminal Investigation.Final Two Members of Baltimore Drug Trafficking Organization Receive Significant Sentences in Federal Prison After Pleading Guilty to Possessing Fentanyl with Intent to Distribute and to Illegal Possession of a FirearmRead the Press Release
Baltimore, Maryland – U.S. District Judge Julie R. Rubin sentenced Jermaine Steward, age 33, of Gwynn Oak, Maryland today to nine years in federal prison, followed by four years of supervised release, after Steward pleaded guilty to federal charges for possession with intent to distribute more than 400 grams of fentanyl and for being a felon in possession of a firearm. Steward is the last defendant of the drug trafficking organization (“DTO”) to plead guilty.
Co-defendant Jamar Middleton, age 35, of Edgewood, Maryland, pleaded guilty on April 13, 2023, and was sentenced to 138 months in federal prison, followed by four years of supervised release, on the same charges.
The guilty pleas and sentences were announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Jarod Forget of the Drug Enforcement Administration - Washington Field Division; Anne Arundel County Police Chief Amal E. Awad; Chief Robert McCullough of the Baltimore County Police Department; Anne Arundel County State’s Attorney Anne Colt Leitess; and Baltimore County State’s Attorney Scott Shellenberger.
“Our comprehensive approach to preventing violence includes today’s Reentry and Resource Fair to provide resources to returning citizens to keep them from reoffending, as well as our efforts to remove guns and repeat offenders from the streets by any legal means necessary. And we are having success,” said United States Attorney Erek L. Barron. “As of today, homicides in Baltimore are down more than 18% from last year and non-fatal shootings are down more than 15%. We remain laser-focused on reducing violent crime.”
According to his guilty plea, the DEA investigated the Burton DTO operating in Baltimore. On December 15, 2021, law enforcement searched a stash house used by DTO leader Edward Burton, Steward, Middleton, and co-conspirator Jerrell Simms, and recovered approximately 431.25 grams of mixtures or substances containing fentanyl, including a bag of 6,450 gelatin capsules containing approximately 231.67 grams of fentanyl and another bag containing 644 gelatin capsules containing 113 grams of fentanyl, as well as narcotics packaging materials and other drug paraphernalia. The search of the stash house also recovered seven firearms and ammunition, including three 9mm handguns; an AR-15 style rifle; a .45-caliber handgun; a 7.62 x 39mm caliber pistol; a .40-caliber rifle; .45-caliber magazines; and 7.62 x 39mm and 9mm ammunition. Law enforcement also recovered $4,376 in cash and jewelry valued at $13,550, which constituted proceeds of drug trafficking. Additional firearms, cash and jewelry were recovered from other search locations associated with the defendants.
Edward Burton, age 38, of Jessup, Maryland, pleaded guilty on October 12, 2022, and was sentenced to 13 years in federal prison. Jerrell Simms, age 37, of Baltimore, previously pleaded guilty to possession with intent to distribute fentanyl and was sentenced to 97 months in federal prison.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This prosecution was brought as a part of the Department of Justice’s Organized Crime Drug Enforcement Task Forces (OCDETF) Co-located Strike Forces Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations against priority targets and their affiliate illicit financial networks. These prosecutor-led co-located Strike Forces capitalize on the synergy created through relationships forged by agents, analysts, and prosecutors who remain together over time, and they epitomize the model that has proven most effective in combating organized crime. The specific mission of the Baltimore OCDETF Strike Force is to reduce violent, drug-related, and gang crime in the Baltimore area and surrounding region.
United States Attorney Erek L. Barron commended the DEA, the Anne Arundel County Police Department, the Baltimore County Police Department, the Anne Arundel County State’s Attorney’s Office, and the Baltimore County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Barron thanked Assistant U.S. Attorneys Joan C. Mathias and Ariel Evans, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psn and https://www.justice.gov/usao-md/community-outreach.
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Felon Sentenced for Possession of Firearm at East St. Louis MotelRead the Press Release
BENTON, Ill. – A U.S. District Court judge sentenced a Cahokia man to 33 months in federal prison after he was caught with a firearm as a convicted felon.
Tyrone James, 47, pled guilty to one count of being a felon in possession of a firearm. In addition to imprisonment, he will serve three years of supervised release.
“The East St. Louis community has suffered from years of heartache and devastation due to gun violence, and one less felon in possession of a firearm is a positive step for the city’s revival,” said U.S. Attorney Rachelle Aud Crowe. “Illinois State Police officers in the PSEG unit have made significant progress to improve public safety in East St. Louis, and I look forward to continuing our partnership to apprehend criminals.”
“The Public Safety Enforcement Group continues to get illegal guns off the streets and out of the hands of criminals who repeatedly break the law,” said ISP Director Brendan F. Kelly. “The collaborative effort between ISP, local and federal law enforcement agencies, the public, and the justice system is helping create safer communities.”
According to court documents, law enforcement officers were investigating a shooting in East St. Louis in July 2021 and while reviewing surveillance video at a motel, James was observed exiting and returning to a room holding a handgun. PSEG investigators determined that James was not involved in the shooting, however, officers were given consent to search the motel room and recovered a .22 caliber pistol.
In an interview with police, James admitted he had a prior felony possession and was therefore not able to legally possess a firearm.
The Illinois State Police Public Safety Enforcement Group unit conducted the investigation, and Assistant U.S. Attorney John Trippi prosecuted the case.
Federal Jury Convicts Former St. Bernard Parish Assistant District Attorney and Two Associates for Defrauding First NBC BankRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that a federal jury has convicted GLENN E. DIAZ, age 72, of Arabi; PETER J. “PETE” JENEVEIN, age 58, of Panama City, Florida; and MARK S. GRELLE, age 69, of Chalmette, of federal bank fraud and money laundering charges related to defrauding First NBC Bank (“Bank”), the New Orleans-based bank that failed in April 2017. All three defendants are originally from St. Bernard Parish, and DIAZ previously worked as an assistant district attorney for St. Bernard Parish for over thirty years. Between June and December 2016, the defendants defrauded First NBC Bank out of more than $550,000.
The jury convicted DIAZ of bank fraud conspiracy, money laundering conspiracy, and eight counts of bank fraud. The jury was hung on 21 counts of bank fraud against DIAZ, for which the court declared a mistrial. JENEVEIN was convicted of bank fraud conspiracy, money laundering conspiracy, and 29 counts of bank fraud. GRELLE was convicted of conspiracy to commit bank fraud, conspiracy to commit money laundering, and 17 counts of bank fraud. GRELLE was acquitted on one count of bank fraud.
U.S. District Judge Jane Triche Milazzo presided over the six-day trial during which the government called twelve witnesses and presented over 450 exhibits. According to the evidence presented from at least April 2016 through December 20, 2016, DIAZ, JENEVEIN, and GRELLE conspired to defraud First NBC Bank through a series of false invoices and other fake documents for work purportedly done at a Florida warehouse owned by DIAZ.
DIAZ was a customer of First NBC Bank from 2006 through the bank’s closure in 2017. By late 2015, DIAZ had been overdrawing his checking account for purported business expenses. In reality, DIAZ was depositing these overdrafts into his personal account at another bank. In April 2016, First NBC Bank officers asked DIAZ for additional information about the use of the overdrafts. In June 2016, bank officers required that DIAZ provide invoices as proof that he was spending bank funds to improve the Florida warehouse. DIAZ used this warehouse as collateral for his First NBC Bank loans. Subsequently, bank officers rejected several of DIAZ’s checks that did not involve warehouse improvements.
In response to the Bank’s requirement, DIAZ had JENEVEIN and GRELLE provide fake invoices for warehouse improvements that were purportedly performed by GRELLE’s company, Grelle Underground Services LLC. Bank officers then approved the overdrafts based on these invoices. However, after DIAZ wrote the check to GRELLE’s company in payment of the fake invoice, GRELLE would then write a check back to DIAZ. DIAZ would then deposit this check into his personal account at JPMorgan Chase bank, to hide it from First NBC. DIAZ then used the money for personal expenditures unrelated to the warehouse including, vintage automobiles, plastic surgery, precious metals, and online shopping. In total, DIAZ, JENEVEIN, and GRELLE executed 17 round-trip transactions through GRELLE’s accounts. DIAZ and JENEVEIN also created other fake invoices and credit card itemizations claiming false business expenses as well as fabricating business names to make DIAZ’s personal expenses appear to be legitimate Florida construction expenses. The fake documents also included invoices from non-existent companies and fake invoices from real companies.
As to bank fraud conspiracy and each count of bank fraud, the defendants may face a maximum sentence of up to 30 years in prison, a maximum fine of the greater of $1,000,000 or twice the gross gain to the defendants or twice the gross loss, and up to five years of supervised release. For money laundering conspiracy, the defendants face up to 20 years in prison, a maximum fine of the greater of $500,000 or twice the value of the property involved in the transaction, and up to three years of supervised release. As to each count of conviction, the defendants face payment of a $100 mandatory special assessment fee. Judge Milazzo scheduled sentencing in this case for July 26, 2023, at 9:30 a.m.
U.S. Attorney Evans said, “This case reaffirms our office’s commitment to prosecuting white collar criminals who act as if their wealth or power puts them above the law. Glenn Diaz’s claims of owning tens of million dollars of assets and property throughout the United States and elsewhere in North America, did not give him the right to lie to a bank. As co-defendants Peter Jenevein and Mark Grelle discovered after today’s jury verdict , our office will hold anyone accountable for defrauding and conspiring to defraud a financial institution and commit money laundering through acts of deceit. I commend the First NBC trial team for its continued work prosecuting the individuals who defrauded First NBC Bank.”
“We are pleased to work with our law enforcement partners in bringing to justice those who conspire to defraud financial institutions regulated and supervised by the Federal Reserve Board,” said Stephen Donnelly, Acting Special Agent in Charge, Eastern Region, Office of Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau.
“As a former prosecutor, Mr. Diaz knew his conduct was illegal and egregious,” said FBI New Orleans Special Agent in Charge Douglas A. Williams, Jr. “Diaz and the other defendants in this case engaged in a scheme to enrich themselves. The FBI thanks its partners for their assistance in achieving justice in this case.”
This case was investigated by the Board of Governors of the Federal Reserve System, Consumer Financial Protection Bureau, Office of Inspector General, and the Federal Bureau of Investigation’s New Orleans Field Office. Assistant U.S. Attorneys Matthew R. Payne and Nicholas D. Moses of the Financial Crimes Unit, J. Ryan McLaren of the Appellate Unit , and Rachal Cassagne of the Violent Crime Unit are in charge of the prosecution.
Etowah Pain Clinic Owner Pleads Guilty in Multi-Million-Dollar Kickback and Health Care Fraud CaseRead the Press Release
BIRMINGHAM, Ala. – Another individual has been convicted in the latest in a series of cases involving multi-million-dollar health care fraud and kickback conspiracies, announced U.S. Attorney Prim F. Escalona, Federal Bureau of Investigation Special Agent in Charge Carlton L. Peeples, and U.S. Department of Health and Human Services, Office of Inspector General, Special Agent in Charge Tamala E. Miles.
David Lyle Shehi, 42, of Rainbow City, pleaded guilty yesterday before Chief U.S. District Judge L. Scott Coogler to conspiracy to pay kickbacks and commit health care fraud.
According to the information and plea agreement, Shehi owned a pain management clinic in Rainbow City called Etowah Pain. Between 2016 and 2018, Shehi conspired with others to commit health care fraud, and to receive kickbacks in exchange for his medical practice’s ordering items or services that would be billed to Medicare and other health insurance programs. One of those services was electro-diagnostic testing provided by a Huntsville-based company called QBR, or Diagnostic Referral Community. According to the plea agreement, QBR paid Shehi, through the medical practice, a per-patient fee for tests ordered from QBR and reimbursed by insurance. The payments were disguised as hourly payments for the ordering physician’s time and staff’s time, but in reality, Shehi’s practice was paid on a per-patient basis.
Also, this week, a defendant in a related case was sentenced. Today, Judge Coogler sentenced Dr. Eric Beck, 64, of Huntsville, to 15 months in prison. Beck pleaded guilty last year to health care fraud conspiracy for his role in the QBR scheme.
In February, John Alan Robson, 40, of Trussville, was indicted in a related case for health care fraud conspiracy, kickback conspiracy, and kickbacks.
The cases against Shehi, Beck, and Robson are related to several other cases that have resulted in convictions. John Hornbuckle, 53, of Huntsville, pleaded guilty to health care fraud and kickback conspiracy offenses for his role, as QBR’s CEO, in orchestrating the fraud. James Ewing Ray, 52, of Gadsden, pleaded guilty to health care fraud and kickback conspiracy for his role as a sales rep who marketed QBR’s scheme to Shehi and other medical practices and received kickbacks per test ordered.
In March 2022, a jury convicted Dr. Mark Murphy, 66, and his wife Jennifer Murphy, 66, both of Lewisburg, Tennessee, of drug distribution, fraud, and kickback crimes. The Murphys operated North Alabama Pain Services, which closed its Decatur and Madison offices in early 2017. According to court documents and evidence presented at trial, the Murphys took kickbacks from QBR of more than a million dollars. In return, Dr. Murphy ordered electro-diagnostic tests from QBR for his patients, regardless of whether there was a medical need for those tests. Dr. Murphy also pre-signed prescriptions for expensive specialty topical creams, sprays, and patches, which patients then received whether they wanted the products or not. Before the Murphys went to trial, a co-defendant, Brian Bowman, 42, of Gadsden, pleaded guilty to health care fraud conspiracy. According to Bowman’s plea agreement, Bowman marketed QBR’s electro-diagnostic testing to medical providers, and was paid a fee for each test they ordered. Bowman received nearly a million dollars in fees from QBR. Bowman also marketed high-reimbursing specialty prescription drugs to the Murphys and other providers, and received payments for the prescriptions he generated.
Mark Murphy and Jennifer Murphy each were sentenced to twenty years in prison. Hornbuckle was sentenced to eighty months in prison. Ray and Bowman are awaiting sentencing. Other co-conspirators have already been sentenced.
The maximum penalty for conspiracy to commit health care fraud and receive kickbacks is five years in prison.
The FBI and HHS-OIG investigated the case. Assistant U.S. Attorneys J.B. Ward and Don Long are prosecuting the case.
Elizabeth, LA Man Sentenced to Prison for Committing Bankruptcy Fraud and Tax EvasionRead the Press Release
LAKE CHARLES, La. - Joseph Randall Boswell, Sr., 53, of Elizabeth, Louisiana, was sentenced yesterday for committing bankruptcy fraud and tax evasion, announced United States Attorney Brandon B. Brown. United States District Judge James D. Cain, Jr. sentenced Boswell to 60 months in prison, followed by 3 years of supervised release. Judge Cain ordered that a hearing be held on June 27, 2023, to determine restitution.
Boswell was convicted of these crimes by a federal jury in Lake Charles on September 19, 2022. Evidence presented at the trial established that Boswell knowingly and fraudulently concealed property from the United States Bankruptcy Trustee and his creditors through his Chapter 7 Bankruptcy case which he filed in September 2011. Specifically, Boswell concealed monies earned from nominee business and service contracts that could have been paid to his creditors. He attempted to defraud the government by withholding information from the Bankruptcy Court regarding the amount of income he was actually making and property he had an interest in. The defendant was self-employed and withheld information from the court as to companies that he had control of through other family members. These companies were established in the names of other family members in an attempt to hide the fact that Boswell was controlling and manipulating the business activities for these companies and earning income through contracts negotiated by him.
Boswell was also convicted of attempting to evade and defeat payment of income taxes due and owing by him for the tax years 2001 through 2009. He concealed assets from the Internal Revenue Service by putting them in the names of other family members in order to avoid paying income taxes owed by him of over $597,000.
“This defendant spent years of his life finding ways to avoid paying taxes and creditors that he borrowed money from through his web of lies and deception,” said U.S. Attorney Brandon B. Brown. “The agents and attorneys handling this case worked countless hours to untangle that web of lies that he wove, and I commend them for their tireless work in bringing him to justice. The bankruptcy and tax laws which have been established in this nation must be obeyed and we will continue to hold those who choose not to do that accountable.”
“Bankruptcy laws are in place to provide debtors a fresh start when they are honestly unable to pay their debts and obligations,” said James E. Dorsey, Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “Boswell used these laws to avoid paying his creditors and taxes although he had the resources. His sentence today should be a warning to those seeking to fraudulently use bankruptcy laws to avoid paying their creditors.”
The case was investigated by the Internal Revenue Service Criminal Investigation, and the United States Trustee’s Office, and prosecuted by Assistant U.S. Attorneys Cytheria D. Jernigan and Earl M. Campbell.
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EOIR Announces Appointment of Sheila McNulty as Chief Immigration JudgeRead the Press Release
FALLS CHURCH, VA – The Executive Office for Immigration Review (EOIR) today announced the appointment of Sheila McNulty as the Chief Immigration Judge. Judge McNulty has served EOIR since 2010, including as a part of Office of the Chief Immigration Judge leadership for the past 6.5 years.
“Judge McNulty brings to this critical leadership position an incredible depth of experience and both the skills and desire to improve our immigration court system,” said EOIR Director David L. Neal. “Her understanding of what justice means to judges and to those before them provides a perfect foundation for the critical evaluation of our processes and procedures.”
As Chief Immigration Judge, Judge McNulty will be responsible for applying her knowledge of, and experience in, immigration law and procedures to manage the immigration court system. She will make management decisions regarding staffing and budget and be the lead official overseeing the corps of immigration judges nationwide.
Since March 2021, Judge McNulty has served as a Regional Deputy Chief Immigration Judge. McNulty received a Bachelor of Arts in 1984 from Miami University of Ohio and a Juris Doctor in 1991 from New England School of Law. From November 2015 to March 2021, she served as an Assistant Chief Immigration Judge, and during this time, from February 2020 to March 2021, she also served as Acting Deputy Chief Immigration Judge for the West. From October 2010 to November of 2015, she served as an Immigration Judge at the Chicago Immigration Court. From 2000 to 2010, Judge McNulty served as a Special Assistant U.S. Attorney with the former Immigration and Naturalization Service (INS) and U.S. Immigration and Customs Enforcement, in the Chicago Office of the U.S Attorney’s Office for the Northern District of Illinois. From 1991 to 2000, she served as a trial attorney for the former INS, entering on duty through the Attorney General’s Honors Program. From 1985 until 1988, Judge McNulty worked as a community activist and organizer in Cambridge, Massachusetts. Judge McNulty is a member of the Illinois Bar.
D.C. Man Pleads Guilty to Gun ChargeRead the Press Release
WASHINGTON – Rodney Burton 35, of Washington, D.C., pleaded guilty today to two counts of unlawful possession of a firearm and ammunition by a person convicted of a crime punishable by imprisonment for a term exceeding one year, announced U.S. Attorney Matthew M. Graves, Acting SAC Michael Weddel from the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Chief Robert J. Contee III, of the Metropolitan Police Department.
Burton entered the guilty plea in the United States District Court for the District of Columbia. U.S. District Court Judge Christopher R. Cooper scheduled a sentencing hearing for July 19, 2023.
According to the government’s evidence, on November 22, 2022, the defendant was arrested by the United States Marshals Service (USMS) on an outstanding warrant and was found to be in possession of two firearms. The defendant was in possession of a Springfield Armory XD .45 caliber handgun which contained one round in the chamber and thirteen rounds of ammunition in the magazine with a total capacity of thirteen rounds. The second recovered firearm was a Sig-Sauer P220 .45 caliber handgun with one round of ammunition in the chamber and seven rounds of ammunition in the magazine. Furthermore, on August 12, 2022 officers conducted a search of an apartment where the defendant was known to reside and recovered a black Masterpiece Arms pistols with no rounds in the chamber but with twenty-two rounds of ammunition forced into a twenty round capacity magazine.
In announcing today’s plea, U.S. Attorney Graves, Acting SAC Weddel, and Chief Contee commended the work of those who investigated the case from Project Safe Neighborhood from both the Metropolitan Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. They acknowledge the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Karla Nunez.
Finally, they commended the efforts of Assistant United States Attorney Shehzad Akhtar who investigated and prosecuted the case.
Courier who Transported Hundreds of Pounds of Ice Methamphetamine from California to Cedar Rapids Sentenced to Federal PrisonRead the Press Release
A man who drove loads of ice methamphetamine from California to Cedar Rapids, Iowa, for a drug trafficking organization was sentenced today to more than seven years in federal prison.
Albert Henry Bailey, age 53, from Cedar Rapids, received the prison term after a November 8, 2022 guilty plea to one count of conspiring to distribute methamphetamine.
Evidence at prior hearings showed that during a wiretap investigation conducted by the Drug Enforcement Administration in Cedar Rapids in late 2021 and early 2022, Bailey was discovered to be a driver for a group of individuals who were purchasing ice methamphetamine in California and selling it in eastern Iowa. Bailey traveled to California and then drove between 30 and 60 pounds of methamphetamine back to Iowa, where other individuals would sell it. In February 2022, intercepted communications over the wiretap indicated that Bailey would be transporting methamphetamine from California to Iowa. Investigators tracked Bailey’s vehicle and stopped it in York County, Nebraska. During a search of the vehicle, investigators located and seized approximately 60 pounds of ice methamphetamine.
Bailey was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Bailey was sentenced to 88 months’ imprisonment. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
Bailey is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the DEA Task Force in Cedar Rapids and the Federal Bureau of Investigation. The DEA Task Force in Cedar Rapids consists of the DEA; the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; and the Iowa Division of Narcotics Enforcement. The case was prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22‑CR‑87‑CJW‑MAR.
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Corpus Christi resident sentenced for attempting to deliver meth via the mailRead the Press Release
CORPUS CHRISTI, Texas – A 39-year-old local man has been ordered to federal prison for attempting to possess with intent to distribute 6.8 kilograms of meth, announced U.S. Attorney Alamdar S. Hamdani.
Lawrence Hyde pleaded guilty Jan. 3.
Today, U.S. District Judge Drew Tipton ordered Hyde to serve 180 months in federal prison to be immediately followed by five years of supervised release. At sentencing, the court heard that this was not the first time Hyde had received narcotics through the mail.
On July 15, 2022, authorities intercepted a package containing 6.8 kilograms of meth addressed to a residence in Corpus Christi. They removed the drugs and subsequently delivered the package.
Law enforcement conducted surveillance of the residence and witnessed Hyde take the package and depart the location, at which time they arrested him.
Hyde ultimately admitted to knowing there were narcotics in the package and intended to deliver it to another individual. The total weight was approximately 6.8 kilograms of meth with an estimated street value of $200,000
Hyde has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation with the assistance of the United States Postal Service. Assistant U.S. Attorneys Patrick Overman and John Marck prosecuted the case.
Convicted Felon Sentenced to More than 15 Years in Federal Prison for Drug TraffickingRead the Press Release
FORT SMITH – A Fort Smith man was sentenced today to a total of 183 months in prison without the possibility of parole on one count of Conspiracy to Distribute More than 50 Grams of Methamphetamine and for violating the terms and conditions of his supervised release on a similar previous conviction. The Honorable Judge P.K. Holmes, III presided over the sentencing hearing, which was held in the U.S. District Court in Fort Smith.
According to court documents, in March and April of 2022, as part of an ongoing narcotics investigation, investigators with the Drug Enforcement Administration (DEA), United States Postal Inspection Service (USPIS), the 12th/21st Judicial Drug Task Force, Sebastian County Sheriff’s Office, Fort Smith Police Department, Arkansas State Police, and Arkansas National Guard Counterdrug intercepted three separate parcels containing approximately 871 grams of methamphetamine, 2,918 pills containing a fentanyl analog, and 3,637 pills of fentanyl, respectively. Further investigation revealed that Jesus Corral, age 40, was the intended recipient of each parcel and that Corral intended to further distribute the narcotics. Corral was under post-prison release supervision at the time of the offense.
Corral was indicted by a Grand Jury in the Western District of Arkansas in July of 2022 and entered a plea of guilty in December of 2022.
U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
The Drug Enforcement Administration (DEA), United States Postal Inspection Service (USPIS), the 12th/21st Judicial Drug Task Force, Sebastian County Sheriff’s Office, Fort Smith Police Department, Arkansas State Police, and Arkansas National Guard Counterdrug participated in the investigation of this case.
Assistant U.S. Attorney Devon Still prosecuted the case on behalf of the United States.
Clay County Softball Coach Indicted for Producing Sexually Explicit Images and Videos of ChildrenRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces the arrest and the return of an indictment charging Andrew Lynn Overheul (43, Orange Park) with six counts of producing and attempting to produce child sexual abuse files. If convicted, Overheul faces a minimum mandatory 15 years, up to 180 years, in federal prison. The indictment also notifies Overheul that the United States intends to forfeit electronic devices used in the commission of the charged offenses. Overheul has been ordered detained pending a trial scheduled for the June 2023 trial term.
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 Clay County Sheriff’s Office, Homeland Security Investigations (HSI), and the Northeast Florida (NEFL) INTERCEPT Task Force. It is being prosecuted by Assistant United States Attorney Kelly S. Karase.
This case is brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Clay County Man Convicted of Unlawfully Possessing A Sawed-Off ShotgunRead the Press Release
Jacksonville, FL – United States Attorney Roger B. Handberg announces that Dylan Milton Jarvis (31, Orange Park) has been found guilty of unlawful possession of an unregistered National Firearms Act firearm (sawed-off shotgun), following a bench trial. Jarvis faces a maximum penalty of 10 years in federal prison and forfeiture of the sawed-off shotgun seized by law enforcement during their investigation. The case is set for sentencing on July 24, 2023.
According to court documents, at approximately 5:30 pm on January 11, 2022, deputies from the Clay County Sheriff’s Office (CCSO) responded to calls of shots fired near Blanding Boulevard, a heavily traveled road in Orange Park. Eyewitnesses in the area described an individual, later identified as Jarvis, carrying a shotgun and firing multiple rounds. Upon making contact with Jarvis in a parking lot, the deputies determined that Jarvis had fired three to four shells from a Harrington & Richardson, 12-gauge shotgun and then discarded the firearm. The deputies located the shotgun in the immediate vicinity of the parking lot along with multiple spent shotgun shells. During an interview with the CCSO, Jarvis admitted to illegally modifying the shotgun. Follow up investigation by the CCSO and the Bureau of Alcohol, Tobacco, Firearms and Explosives determined that Jarvis had previously sawed off the barrel and the stock of the 12-gauge shotgun. A record check confirmed that this sawed-off shotgun was not registered to Jarvis in the National Firearms Registration and Transfer Record, as required under federal law.
This case was investigated by the Clay County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives – Jacksonville Office. It is being prosecuted by Assistant United States Attorney Kevin C. Frein. Assistant United States Attorney Mai Tran is handling the forfeiture of the sawed-off shotgun.
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.
Christian County Man Sentenced to over 5 Years in Federal Prison for Methamphetamine Distribution and Federal Firearm OffensesRead the Press Release
Paducah, KY – A Christian County man was sentenced yesterday to 5 years and 6 months in federal prison followed by a 4-year term of supervised release for distributing more than 50 grams of a methamphetamine mixture and for possessing more than a dozen firearms after having previously been convicted of a felony offense. There is no parole in the federal system.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge R. Shawn Morrow of the ATF Louisville Field Division, and Sheriff Tyler DeArmond of the Christian County Sheriff’s Office made the announcement.
According to court documents, on March 24, 2022, Buddy Chambless, 39, of Hopkinsville, Kentucky, possessed with the intent to distribute over 50 grams a methamphetamine mixture. At the time of the arrest, agents located the following 13 firearms and approximately 2000 rounds of ammunition in a storage unit controlled by Chambless: a Diamondback Firearms LLC, model DB9, 9-millimeter semi-automatic pistol; a Taurus, model 85, .38 special caliber revolver; a Harrington and Richardson, model 930, .22 caliber revolver; a Sun City Machinery Co., model 320, 12-gauge slide action shotgun; a Mossberg, model 500 Turkey, 12-gauge slide action shotgun; a Winchester, model 120 Ranger, 20-gauge slide action shotgun; a Mossberg, model 500E, .410-gauge slide action shotgun; a Taurus, model Circuit Judge, 45 long colt/.410-gauge rifle; a New England Firearms, model Pardner, 20-gauge single shot break action shotgun; a Henry Repeating Rifle Company, model Golden Boy, .22 caliber lever action rifle; a Savage Arms, model Mark II, .22 caliber bolt action rifle; a Mosin-Nagant, model M91/30, 7.62x54R caliber bolt action rifle; and a Mosin-Nagant, model P-26, 7.62x54R caliber bolt action rifle.
Chambless was prohibited from possessing a firearm because he had been previously convicted of the following offense. On August 14, 2018, in Christian Circuit Court, he was convicted of first-degree trafficking in a controlled substance – greater than 2 grams of methamphetamine while armed and first-degree possession of a controlled substance while armed.
The case was investigated by the ATF Bowling Green Field Office and the Christian County Sheriff’s Office.
Assistant U.S. Attorney Leigh Ann Dycus, of the U.S. Attorney’s Paducah Branch Office, prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Canton Man Sentenced to over Five Years in Prison for Possession of a Firearm by Convicted FelonRead the Press Release
Jackson, Miss. – A Canton man was sentenced to 63 months in prison for possession of a firearm by a convicted felon, announced U.S. Attorney Darren LaMarca and Special Agent in Charge Kurt Thielhorn of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
According to court documents, on November 4, 2021, Ridgeland Police Officers were dispatched to the area of Highland Colony Parkway near Old Agency Road, after receiving numerous 911 phone calls reporting two vehicles exchanging gunfire. Officers were able to locate one of the vehicles involved on the side of I-55 South with numerous bullet holes in the back, which was driven by Tyrone Diario Lewis, 32. Near the vehicle, in the woods, officers located four firearms, which Lewis and his occupants attempted to hide. Through the investigation, law enforcement officers were able to determine that Lewis possessed the four firearms, including an AR-style pistol, which was used during the shooting. Lewis has a prior felony conviction for armed robbery. As a convicted felon, it is contrary to federal law for Lewis to possess any firearm
Lewis was indicted by a federal grand jury on April 19, 2022. He pled guilty on January 26, 2023 to possession of a firearm by a convicted felon.
The Ridgeland Police Department and the ATF investigated the case.
Assistant U.S. Attorney Adam T. Stuart prosecuted the case.
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.
Boca Raton Woman Sentenced to 18 Months in Prison for Threatening to Shoot FBI AgentsRead the Press Release
MIAMI – A federal district judge in West Palm Beach has sentenced 61-year-old Suzanne Ellen Kaye to 18 months in prison for threatening to shoot FBI agents in videos that she posted on social media. A jury found Kaye guilty in June 2022.
On January 16, 2021, FBI’s National Threats Operation Center received an online tip with information that Kaye may have been at The United States Capitol in Washington, D.C. ten days earlier (January 6) or knew of others who were there. The tip was referred to the FBI office in West Palm Beach for further investigation.
On January 28, 2021, two West Palm Beach FBI agents contacted Kaye by telephone and asked to interview her. Kaye agreed and requested that it take place at her house. On January 31, 2021, before any interview, Kaye posted three videos on social media. In each publicly available video, Kaye informed her audience that the FBI wanted to question her about her visit to Washington, D.C. on January 6. On video, Kaye announced that she would “shoot their [expletive] a--” if FBI agents showed up at her house.
FBI learned about Kaye’s social media postings on February 8, 2021, when they received a second online tip with one of the videos. Agents arrested Kaye at her home on February 17, 2021.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Jeffrey B. Veltri of the FBI, Miami Field Office, announced the sentence imposed by U.S. District Judge Robin L. Rosenberg.
FBI Miami, West Palm Beach Resident Agency investigated this case. Assistant U.S. Attorneys Mark Dispoto and Shannon O’Shea Darsch prosecuted it.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 21-cr-80039.
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Bingham Farms Physician Sentenced to 20 Years in Prison for Illegally Distributing over One Million Opioid Pills and Health Care FraudRead the Press Release
DETROIT - Bingham Farms physician David Jankowski was sentenced today to 20 years in prison based on his conviction following a jury trial of thirty charges related to the unlawful distribution of prescription drugs and for health care fraud, announced United States Attorney Dawn N. Ison. He was also ordered to forfeit over $35 million which represents the proceeds of drug-trafficking, property that facilitated the commission of the offense, and proceeds of the health care fraud conspiracy. In addition, Jankowski was also ordered to pay restitution to Medicare in the amount $5.2 million.
Joining Ison in the announcement were James A. Tarasca, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation; and Mario Pinto, Special Agent in Charge, United States Department of Health and Human Services – Office of Inspector General.
Jankowski, age 63, was sentenced by United States District Court Judge Bernard Friedman. The charges on which he was convicted stemmed from the operation of Summit Medical Group, a purported medical clinic formerly located in Dearborn Heights and Southfield, Michigan and owned by Jankowski. Federal agents first executed search and arrest warrants against Jankowski and Summit in June 2017. According to court records, Jankowski gave the Summit Medical Group the false appearance of a legitimate medical center, when in reality Summit was a pill mill supplying narcotics to drug-seeking customers.
In July 2022, a jury found Jankowski guilty of thirty criminal counts, including conspiracies to unlawfully distribute controlled substances and health care fraud, the unlawful distribution of controlled substances, and multiple counts of health care fraud.
According to the evidence presented at trial, Jankowski wrote medically unnecessary prescriptions for drugs like Oxycontin, Oxycodone, morphine, hydrocodone, and Xanax. Jankowski persuaded one patient to receive unnecessary shoulder surgery in return for prescribing medically unnecessary controlled substances. He also prescribed controlled substances after receiving cash from patient recruiters who brought their own patients to his practice. Trial testimony demonstrated that Jankowski issued or authorized the issuance of more than 1 million opioid pills to individuals outside the course of professional medical practice and for no legitimate medical purpose in exchange for compensation.
During the trial, the jury heard testimony that Jankowski sent out an unlicensed medical school graduate to perform home visits to Medicare beneficiaries and issue them prescriptions for controlled substances with had been pre-signed by Jankowski. Jankowski, who was not present during the visit, directed that the fraudulent claims to Medicare be submitted as if he himself had performed the service.
Jankowski induced patients into his practice by providing medically unnecessary controlled substances that were subsequently diverted to the illicit street market. In return, Jankowski submitted false and fraudulent claims to Michigan auto insurance companies, private health care insurers, as well as Medicare and Medicaid. Based upon this fraudulent scheme, Jankowski received more than $35 million from insurance companies and approximately $5 million from Medicare and Medicaid.
“Michigan communities have seen devastating losses relating to opioid overdoses in the last five years,” stated U.S. Attorney Ison. “Doctors who illegally dispense powerful prescription drugs bear some of the responsibility for this harm to our community. We hope prosecutions like this one will stop medical professionals from abusing their positions by dealing drugs and stealing from insurance companies and taxpayers. .”
“By prescribing medically unnecessary prescription medications and defrauding health insurance programs, this defendant put vulnerable patients at risk and contributed to the high cost of medical care for all of us,” said James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Field Office. “Today’s sentence should serve as a warning to any medical professional willing to engage in this type of health care fraud that agents from the FBI and the U.S. Department of Health and Human Services – Office of Inspector General will work diligently and collaboratively to bring them to justice.”
“Medical providers who prescribe powerful controlled substances without regard for medical necessity and submit fraudulent claims for unnecessary services, place their patients at risk and waste valuable taxpayer dollars,” said Special Agent in Charge Mario M. Pinto. “We will continue to work diligently with our law enforcement partners to ensure that individuals who endanger patients through their prescribing practices and commit fraud against our federal health care programs are held accountable.”
The investigation was conducted by the FBI and the Department of Health and Human Services – Office of Inspector General.
The case was prosecuted by Assistant United States Attorneys Regina R. McCullough, Wayne F. Pratt, Philip A. Ross, Jessica Nathan and Peter Schneider.
Bank robbers sentenced - trade masks, hoodies and firearms for prison jumpsuitsRead the Press Release
GALVESTON, Texas – Three individuals have been sent to prison for their roles in bank robberies that occurred in Brazoria and Wharton, announced U.S. Attorney Alamdar S. Hamdani.
Tony Wayne Mitchell, 46, and Kevin McCoy, 33, both of Houston, and Mikell Phillips, 41, Dallas, all pleaded guilty between March 2022 and September 2022. Each admitted to conspiracy to commit bank robbery by force or violence. Mitchell also admitted to brandishing a firearm in relation to a crime of violence.
Today, U.S. District Jeffery V. Brown handed Mitchell a 60-month term of imprisonment, while McCoy and Phillips received 48 and 54 months, respectively, for the robbery conspiracy. Mitchell also received 84 months for the firearms conviction which must be served consecutively to the other sentence imposed. His total 144-months prison term will be immediately followed by five years of supervised release while the other two will be on supervised release for three years.
“While one of them held a gun, four men robbed banks in small, rural towns and terrorized the employees,” said Hamdani. “One of the robbers died while trying to flee, but the other three, with today’s sentence, will face the long arm of justice.”
Mitchell, McCoy and Phillips were members of a four-man armed robbery crew who targeted bank branches situated in small rural towns surrounding Houston. Between 2018 and 2019, the crew robbed two banks in Brazoria and Wharton. During each crime, two or three men entered the banks brandishing firearms while wearing masks and hoodies. One man would vault the teller counter while they gathered the cash and put employees in offices, supply closets or the bank vault. They then exited the banks on foot.
A Crime Stoppers tip and prescription eyeglasses led authorities to the men.
Phillips was involved with only one robbery. He was the only person who did not enter the bank during the heist but did attempt to dispose of monies from the Wharton bank robbery.
The fourth member of the crew died in a car crash during his attempt to flee from law enforcement.
Mitchell, McCoy and Phillips have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
FBI Texas City conducted the investigation with the assistance of police departments in Brazoria and Wharton. Assistant U.S. Attorney Kenneth Cusick prosecuted the case.
Austin Man Sentenced for Possession of Child Sexual Abuse MaterialRead the Press Release
AUSTIN, Texas – An Austin man was sentenced in a federal court in Austin Tuesday to five years in prison for possession of child pornography.
According to court documents, Tucker Smith, 31, had searched for, accessed, viewed, downloaded, possessed, stored, and distributed child sexual abuse material (CSAM) since approximately 2018. Smith stated that he maintained between 15 and 20 gigabytes of CSAM depicting minors ranging from two to three years old to 15-16 years old. Investigators seized and submitted approximately 904 images and 3,402 videos of suspected CSAM to the National Center for Missing and Exploited Children (NCMEC).
“This sentencing sends the message that we will continue to pursue and prosecute the predators who engage in the heinous and indefensible act of possessing child sexual abuse material,” said U.S. Attorney Jaime Esparza of the Western District of Texas. “Thank you to our partners at the FBI for their investigation and helping us seek justice for the dozens upon dozens of child victims exploited in this case.”
“The FBI remains steadfast in our commitment to protect children from those who seek to exploit their innocence,” said Special Agent in Charge Oliver E. Rich Jr. of the FBI San Antonio Division. “These types of cases serve as a reminder of the important role the public plays in keeping our children and communities safe by immediately reporting potential public safety threats to law enforcement.”
The FBI investigated the case.
Assistant U.S. Attorney Matt Devlin prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Apopka Woman Sentenced for Role in Construction-Related Wire Fraud and Tax Fraud ConspiracyRead the Press Release
Tampa, Florida – U.S. District Judge Kathryn Kimball Mizelle has sentenced Mayra Velasquez (35, Apopka) to three years and five months in federal prison for conspiracy to commit wire fraud and conspiracy to defraud the United States and the Internal Revenue Service. The Court also entered an order of forfeiture in the amount of $600,752, and an order for the forfeiture of three properties in Polk County, all as part of the proceeds of the conspiracies. Velasquez had pleaded guilty on March 9, 2022.
According to court documents, Velasquez owned and managed a construction company which purported to supply construction services and labor for construction contractors and subcontractors. In order to comply with Florida law, Velasquez’s company was required to secure and maintain adequate worker’s compensation insurance coverage. Velasquez’s company had agreements with contractors and subcontractors to use workers purported to be Velasquez’s employees at construction sites and these workers were often undocumented aliens who were actually working for and under the daily supervision and direction of the contractors. Velasquez or others then regularly received “payroll checks” from contractors that they cashed at various financial institutions to pay Velasquez’s purported “employees” and other related expenses.
During the time period charged, Velasquez falsely and fraudulently represented in insurance applications that her company had a very limited payroll and a very limited number of employees who worked on construction jobsites. Velasquez also falsely and fraudulently sent wire communications to numerous contractors representing that her company’s employees had full worker’s compensation coverage.
In reality, Velasquez’s company received and cashed more than $7 million in checks from various construction contractors for these purported “employees.” These payroll figures far exceeded the very limited payroll figures that Velasquez had reported to her worker’s compensation insurance company. As a result, these employees, in reality the employees of other entities, performed work on jobsites without adequate insurance coverage. In addition, the insurance companies that dealt with Velasquez’s company lost premiums they would have charged had they been aware of the true number of workers their policies were thus being manipulated to cover. The loss to those insurers was almost $750,000 in insurance premiums that were not paid.
As a result of these misrepresentations, Velasquez’s company also disclaimed responsibility for ensuring that jobsite workers were legally authorized to work in the United States and evaded laws that required the payment of state and federal payroll taxes on behalf of these workers. Velasquez’s company did not collect or remit any such payroll taxes to the United States. In addition, the contractors who actually paid these workers’ wages and used their services were also able to avoid responsibility for those taxes as well. The amount of those unpaid payroll taxes totaled more than $1.769 million.
“Velasquez engaged in a scheme which benefitted her at the expense of every U.S. Taxpayer,” said IRS CI Special Agent in Charge Brian Payne. “This scheme is all too common in the construction industry and IRS CI is working hard to ensure all employers operate on an even playing field and according to the law.”
Florida Chief Financial Officer Jimmy Patronis said, “Workers’ compensation fraud will not be tolerated in Florida. It puts businesses and injured workers in jeopardy and drives up insurance costs for honest business owners who properly protect their employees.”
“This fraudster was responsible for a scheme to evade worker’s compensation premiums and avoid paying employment taxes, resulting in illicit profits and proceeds in the millions of dollars,” said Homeland Security Investigations (HSI) Tampa Assistant Special Agent in Charge John Dumas. “HSI is proud to partner with the Internal Revenue Service – Criminal Investigation and the State of Florida Department of Financial Services to hold criminals accountable for taking advantage of government, private industry, and America’s workforce.”
This case was investigated by the Internal Revenue Service - Criminal Investigation and the Florida Department of Financial Services Division of Investigative and Forensic Services Bureau of Insurance Fraud, with assistance from Homeland Security Investigations (HSI). It is part of a lengthy investigation by those agencies into the use of shell companies and “ghost” employees in the construction industry. It was prosecuted by Assistant United States Attorney Jay L. Hoffer.
Albany Man Pleads Guilty in Capital Region Cocaine ConspiracyRead the Press Release
ALBANY, NEW YORK – Ilvin Figueroa Batista, age 32, of Albany, pled guilty today to conspiring to distribute cocaine in the Capital Region. United States Attorney Carla B. Freedman and Ketty Larco-Ward, Inspector in Charge of the Boston Division of the United States Postal Inspection Service (USPIS), made the announcement.
Batista admitted that between June 2021 and December 2021, in Albany and Rensselaer Counties, he conspired with others to receive cocaine shipped from Puerto Rico to distribute in the Capital Region. Batista’s role in the conspiracy was to receive cocaine from Puerto Rico shipped via U.S. mail and turn it over to other members of the conspiracy, who processed the cocaine and sold it.
Sentencing is scheduled for August 14, 2023 in front of Senior United States District Judge Gary L. Sharpe. Batista faces a maximum sentence of 20 years in prison, a fine of up to $1 million, and a term of supervised release of at least 3 years and up to life. Batista also agreed to forfeit $2,300 in cash seized when he was arrested.
Three coconspirators previously pled guilty for their roles in the conspiracy, which involved the receipt and distribution of more than 5 kilograms of cocaine in the Capital Region:
- Jan Lopez-Colon, age 28, of Troy, New York;
- Jesus Baez, age 32, of Loudonville, New York; and
- Sam Calderon, age 20, of Troy.
USPIS and its Capital Region Task Force, led by the USPIS and including the Albany Police Department, the Albany County Sheriff’s Office, and the Schenectady Police Department, as well as the U.S. Drug Enforcement Administration, investigated the case. Assistant U.S. Attorney Benjamin S. Clark is prosecuting the case.
Tuesday 25 April 2023
Washington Man Charged with Three Counts of Assault on Flight to Anchorage, AlaskaRead the Press Release
ANCHORAGE – A federal grand jury in Alaska returned an indictment today charging a Washington man with three counts of assault in the special aircraft jurisdiction of the United States.
Adam David Seymour was arrested on Wednesday, April 5, 2023, and was originally charged by complaint. The Complaint charged that on April 5, 2023, while aboard Alaska Airlines Flight 49 inbound to Anchorage, Alaska from Seattle, Washington, Adam David Seymour of Seattle, Washington, 37, assaulted a female passenger intending to make sexual contact, and assaulted two male passengers. According to court documents, flight crew had to remove Seymour from his seat and restrain him in the jump seat at the front of the airplane for the remainder of the flight.
On April 19, 2023, the grand jury indicted Seymour with one count of assault in the special aircraft jurisdiction of the United States, with the intent to commit abusive sexual contact, and two counts of assault in the special aircraft jurisdiction of the United States. If convicted he faces a maximum penalty of 10 years in prison on the count of assault with intent to commit abusive sexual contact, and 6 months in prison on the two assault counts. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney S. Lane Tucker of the District of Alaska made the announcement.
The Federal Bureau of Investigation is investigating the case.
Assistant U.S. Attorney Ainsley McNerney is prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Violent Felon Sentenced to 5 Years for Illegal Re-entry into U.S.Read the Press Release
A violent felon was sentenced today to five years in federal prison for immigration violations, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Gustavo Adolfo Ramirez-Leos, a 30-year-old citizen of Mexico, pleaded guilty in January to illegal re-entry after removal from the United States. He was sentenced Tuesday by U.S. District Judge Ada Brown, who handed down a sentence longer than the guidelines due to his history of violence.
In plea papers, Mr. Ramirez-Leos – who had been deported or instructed to depart the U.S. on six prior occasions – admitted to being in north Texas without authorization.
According to records introduced into evidence at sentencing, during his time in the U.S., Mr. Ramirez-Leos committed at least eight crimes, including burglary, theft, and family violence.
Prior to his second deportation in 2013, Mr. Ramirez-Leos attacked his pregnant girlfriend, choking her and then throwing her to the ground and stomping on her back while yelling, “I will kill you and the baby.” He also attacked the victim’s roommate, who attempted to intervene.
Seven years later, in 2020, after returning to the U.S., he attacked his own sister, punching her in the face and neck, pointing a BB gun at her head, and dragging her by the hair.
(Following both altercations, Mr. Ramirez-Leos pleaded guilty to state charges of assault causing bodily injury to a family member and was sentenced, respectively, to 180 days and 120 days in jail.)
Upon completion of his sentence in the immigration case, Mr. Ramirez-Leos will once again face deportation.
Immigration & Customs Enforcement conducted the investigation. Assistant U.S. Attorney Dimitri Rocha prosecuted the case.
United States Obtains $629 Million Settlement with British American Tobacco to Resolve Illegal Sales to North Korea, Charges Facilitators in Illicit Tobacco TradeRead the Press Release
British American Tobacco (BAT) and its subsidiary, BAT Marketing Singapore (BATMS), one of the world’s largest manufacturers of tobacco products based in the United Kingdom, has agreed to pay combined penalties of more than $629 million to resolve bank fraud and sanctions violations charges with U.S. authorities, arising out of the companies’ scheme to do business in North Korea through a third-party company in Singapore, in violation of the bank fraud statute and the International Emergency Economic Powers Act (IEEPA). Separately, charges were unsealed today in the District of Columbia against a North Korean banker and Chinese facilitators for their roles in facilitating the illicit sale of tobacco products in North Korea.
According to court documents, BATMS pleaded guilty to a criminal information filed in the District of Columbia charging BAT and BATMS with conspiracy to commit bank fraud and conspiracy to violate IEEPA. BAT entered into a deferred prosecution agreement (DPA) related to the same charges.
Specifically, in 2007, BAT spun off its North Korea sales to a third-party company, issuing a press statement that it was no longer involved in North Korea tobacco sales. In reality, BAT continued to do business in North Korea through the third-party company and BATMS maintained control over all relevant aspects of the North Korean business. Between 2007 and 2017, BAT and BATMS ran the payments for the tobacco sold to North Korean entities through the third-party company, resulting in approximately $418 million of U.S. dollar cash and correspondent banking transactions from North Korea to the third-party company in Singapore – money that was then passed on to BATMS and BAT. To make these payments, North Korean purchasers used front companies so that U.S. banks – which processed the transactions – would not know about the connection to North Korea. Pursuant to the DPA and plea agreement, BAT and BATMS will pay a total of $629 million in penalties and fines.
“British American Tobacco and its subsidiary engaged in an elaborate scheme to circumvent U.S. sanctions and sell tobacco products to North Korea, allowing funds to illegally flow into the coffers of the Democratic People’s Republic of Korea (DPRK),” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Today’s action, which involves the largest North Korean sanctions penalty in the history of the Justice Department, should serve as a clear warning to companies everywhere about the costs and consequences of violating U.S. sanctions.”
Today, the Department of the Treasury also announced a civil enforcement action against BAT and BATMS.
“Companies that seek to profit from circumventing sanctions by obscuring their involvement will be discovered and will pay a price,” said Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian E. Nelson. “For years, BAT partnered with North Korea to establish and operate a cigarette manufacturing business and relied on financial facilitators linked to North Korea’s weapons of mass destruction proliferation network in the process of enriching itself. Firms that deal with blocked persons, even indirectly, will be held accountable for actions which undermine the integrity of the U.S. financial system.”
Separately today, a federal court in the District of Columbia unsealed charges against a North Korean banker, Sim Hyon-Sop, 39, and Chinese facilitators, Qin Guoming, 60, and Han Linlin, 41, both of Liaoning Province, in connection with a multi-year scheme to facilitate the sale of tobacco to North Korea.
“The United States is steadfast in its commitment to enforcing sanctions and withholding revenue for dictator Kim Jong-un,” said U.S. Attorney Matthew M. Graves for the District of Columbia. “The charges unsealed today illustrate that the Department of Justice will hold North Korean facilitators accountable for their illegal efforts to prop up the North Korean regime and assist it in obtaining funds to develop nuclear weapons.”
According to court documents, between 2009 and 2019, the defendants engaged in a scheme to purchase leaf tobacco for North Korean state-owned cigarette manufacturers and used front companies and false documentation to cause U.S. financial institutions to process at least 310 transactions worth approximately $74 million that they otherwise would have frozen, blocked, investigated or declined, had they known the transactions were connected to trade with North Korea. The transactions resulted in an estimated up to nearly $700 million in revenue for the North Korean manufacturers, one of which was owned by the North Korean military.
As alleged in the indictment, cigarette trafficking, including in counterfeit cigarettes, generates significant revenue for advancing North Korea’s Weapons of Mass Destruction (WMD) programs, including its nuclear weapons, which North Korea has been developing since at least 2006. Counterfeit cigarettes are a major source of income to the North Korean regime, as smuggled tobacco products are estimated to garner revenue of up to $20 on every $1 spent in cost.
In conjunction with today’s announcement, the U.S. Department of State is announcing a reward of $5 million for defendant Sim, and a reward of $500,000 for defendants Qin and Han, for information leading to the capture of these three charged defendants. On April 24, the Department of the Treasury designated defendant Sim as a Specially Designated National, preventing him from accessing the U.S. banking system.
“The FBI remains steadfast in its commitment to investigate North Korea’s evasion of sanctions placed on its government,” said Assistant Director Suzanne Turner of the FBI’s Counterintelligence Division. “This illegal conduct and the levied penalties show how serious of an offense it is to assist the North Korean regime to the detriment of the international community. To those contemplating similar actions, be forewarned: the full force of the FBI and its federal law enforcement partners will find you.”
If convicted, the defendants face a maximum statutory penalty of 30 years in prison for bank fraud. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI Phoenix Field Office handled both investigations, and HSI Colorado partnered in the investigation on the individuals. The Justice Department’s Office of International Affairs provided valuable assistance.
Assistant U.S. Attorney Karen P. Seifert, with assistance from Assistant U.S. Attorney Steven Wasserman, Paralegal Specialists Brian Rickers and Paralegal Specialist Jorge Casillas for the District of Columbia, is prosecuting the cases. Trial Attorneys Beau Barnes and Emma Ellenrieder of the National Security Division’s Counterintelligence and Export Control Section partnered on these matters.
This case is part of a larger Justice Department strategy for countering nation-state threats, including the ongoing efforts of North Korea to evade sanctions and use the U.S. financial system to engage in illicit trafficking. Trial Attorney David Recker, former Assistant U.S. Attorney Michael Grady, and former FBI Special Agent David F. Williams, former FBI Special Agent Joy Gallante and former FBI Intelligence Analyst Nick Carlsen all participated in prior phases of the multi-year investigation.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
United States Attorney's Office Releases 2023 First Quarter Immigration Enforcement StatisticsRead the Press Release
PHOENIX, Ariz. – Today, the United States Attorney’s Office announced its immigration enforcement statistics for January 1, 2023, to March 31, 2023. These cases are prosecuted in partnership with the Tucson and Yuma Sectors of the Customs and Border Protection’s U.S. Border Patrol, along with Homeland Security Investigations, and assistance from other federal, state, and county agencies. In the three-month period ending March 31, 2023, the United States brought criminal charges in Arizona against more than 1,700 individuals who illegally entered or re-entered the United States. In its ongoing effort to deter unlawful immigration, the United States also filed 335 cases against individuals responsible for smuggling undocumented noncitizens to and within the District of Arizona.
Reducing migrant smuggling and mitigating the risk to communities impacted by these offenses continues to be a priority for the Office and its law enforcement partners. Some of these prosecutions are directed against leaders and coordinators of alien smuggling organizations. Other prosecutions are aimed at deterring young adult drivers, often recruited over social media platforms, from engaging in this dangerous activity. Prosecutions against young drivers include three cases brought against juvenile smugglers during this time period.
These statistics represent United States Attorney’s Office prosecutions only. The numbers do not include individuals apprehended by immigration enforcement officials and subjected solely to administrative process.
RELEASE NUMBER: 2023-060_2023 First Quarter Immigration Enforcement Statistics
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.United States Attorney's Office Observes National Crime Victims' Rights WeekRead the Press Release
LAS VEGAS – This year, National Crime Victims’ Rights Week is observed from April 23 to 29, 2023.
According to a report from the Bureau of Justice Statistics, in 2021, there were more than 4.6 million violent victimizations and 11.7 million property crimes, the latest year for which such information is available.
“Every April, we join our neighbors, law enforcement partners, and victim service providers in observing National Crime Victims’ Rights Week to pay tribute to victims of crime and to the dedicated professionals who advocate on their behalf,” said United States Attorney Jason M. Frierson for the District of Nevada. “This week, the U.S. Attorney’s Office reaffirms its unwavering commitment to seeking justice for all victims; and we thank the countless advocates throughout Nevada and the nation for ensuring victims are informed, have a voice, and receive the services and support needed to heal.”
The federal Office for Victims of Crime (OVC) leads communities throughout the country in their annual observances of National Crime Victims’ Rights Week by raising awareness of victims' rights and honoring crime victims and those who advocate on their behalf. This year’s theme is “Survivor Voices: Elevate. Engage. Effect Change.” Partner organizations are committed to engaging with victims of crime; learning from their lived experiences; amplifying their voices; and fostering an environment where they are heard, believed, and supported.
For additional information about this year’s National Crime Victims’ Rights Week: https://ovc.ojp.gov/ncvrw2023/overview.
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U.S. Attorney, Vermont Attorney General, and Rutland Area NAACP to Co-Host Orange County Hate-Free Vermont ForumRead the Press Release
Burlington, Vermont - The United States Attorney’s Office, the Vermont Attorney General’s Office, and the Rutland Area NAACP will be co-hosting a Hate-Free Vermont Forum for the Orange County community in Randolph on May 8, 2023, from 5:30 pm to 7:30 pm. This forum will be the fourth held in an ongoing series that started in 2019; recent Hate-Free Vermont Forums have taken place in Franklin County (2023), Rutland, and Bennington (2022).
“The Forum aims to bring policymakers, stakeholders, and community members together for productive and difficult conversations that will work to reduce animus, discord, and misunderstandings,” said co-facilitator Etan Nasreddin-Longo. “Many community members have told us they do not feel comfortable reporting bias incidents to the police or feel that is not an effective option. What additional options for reporting and addressing harm and conflict already exist in your community, and what new or improved options would you like to see?”
Participants are welcome to share what they want their government officials to know about their experiences, and to ask questions of their government officials about bias and discrimination. The Forum will be hosted in Randolph, but everyone from the Orange County community is invited.
When: Monday, May 8, 2023, 5:30pm-7:30pm
Where: The Forum will be hosted in person and remotely.
* Physical location: Randolph Union Middle/High School – Cafeteria,
15 Forest St, Randolph, VT 05060
* Remote registration link: bit.ly/HateFreeRandolph
Who: All are welcome.Registration is required for remote attendance.
U.S. Attorney Charges Convicted Sex Offender on Probation with Sexual Exploitation of A Minor and Making Extortionate Interstate CommunicationsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today the arrest of CAMERON MCEWEN, a 21-year-old convicted sexual offender, in Middletown, New York. The Complaint charges that MCEWEN persuaded a 16-year-old girl living in Alaska (“Victim-1”) to engage in sexually explicit activity, take photos and videos of herself doing so, and transmit the photos and videos, via Snapchat, to MCEWEN. MCEWEN threatened to hack into Victim-1’s cell phone and Snapchat account if she did not comply with his demands. MCEWEN was presented yesterday before U.S. Magistrate Judge Paul E. Davison in White Plains federal court and detained without bail.
U.S. Attorney Damian Williams said: “Cameron McEwen was on probation following a previous conviction for rape when he allegedly continued to commit sexually abusive and vile crimes, including with a minor victim. This case underlines the urgent need for law enforcement to continue its efforts to protect children from those who prey on them, and this Office is committed to safeguarding children from these predators.”
According to the criminal Complaint filed yesterday in White Plains Federal Court:[1]
In April 2023, MCEWEN knowingly used a social media platform to communicate with and entice Victim-1, as well as send extortionate interstate threats to Victim-1.
MCEWEN, using Snapchat display names “X,” “Cam,” and “fendii.kashout,” and posing as multiple different people, initially connected on Snapchat with an 18-year-old individual, who he offered to pay for sexually explicit images and videos. When that individual sent MCEWEN the requested content, he threatened to leak the images and videos to the individual’s family and friends and harm her if she did not find another person to send MCEWEN sexually explicit material.
The individual sought out Victim-1, who connected with MCEWEN on Snapchat. MCEWEN then began sending Victim-1 messages threatening to hack Victim-1’s Snapchat account and cell phone if she did not send him sexually explicit photos and videos.
CAMERON MCEWEN, a/k/a “X,” a/k/a “Cam,” a/k/a “dzys.world,” a/k/a “itsbeendrippy,” a/k/a “fendii,” a/k/a “fendii.kashout,” was convicted in Orange County Court on January 13, 2022, of rape in the second degree and was on New York State probation when he committed the alleged offenses charged herein.
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CAMERON MCEWEN, 21, of Middletown, New York, is charged with one count of sexual exploitation of a minor, which carries a maximum sentence of 50 years in prison, and one count of making extortionate interstate communications, which carries a maximum sentence of two years in prison.
The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Mr. Williams praised the outstanding investigative work of Federal Bureau of Investigation (“FBI”) agents in both Alaska and New York, the New York State Police Troop F, and the Middletown Police Department. He also thanked the Ketchikan Police Department for its participation and support in this ongoing investigation.
Mr. Williams stated that the investigation is ongoing and requests that any individuals with information concerning CAMERON MCEWEN and any individuals who may have encountered someone using the Snapchat user names “X,” “Cam,” “dzys.wlrd,” “itzbeendrippy,” “fendii,” and “fendii_kashout,” please contact the FBI at 1-800-CALL-FBI and reference this case.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Kathryn Wheelock and Marcia S. Cohen and are in charge of the prosecution.
The allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein are only allegations, and every fact described should be treated as an allegation.
Two Plaquemines Parish Men Plead Guilty to Federal Drug Trafficking ConspiracyRead the Press Release
NEW ORLEANS, LOUISIANA – DARON WILLIAMS, age 47, and JOSHUA MACKEY, age 37, residents of Plaquemines Parish, Louisiana, pled guilty on April 24, 2023, before U.S. District Judge Susie Morgan, announced U.S. Attorney Duane A. Evans.
WILLIAMS 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, as well as possession with intent to distribute methamphetamine in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C).
MACKEY pled guilty to conspiracy to distribute and possess with intent to distribute a quantity of cocaine hydrochloride and a quantity of cocaine base (“crack”), in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(C), and 846, and being a felon in possession of a firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2).
According to court documents, a DEA investigation revealed that WILLIAMS and MACKEY were involved in a narcotics distribution conspiracy with several other co-conspirators between June 8, 2020, and June 5, 2021. As part of the conspiracy, WILLIAMS regularly distributed quantities of methamphetamine. Agents surveilled WILLIAMS as he conducted a hand-to-hand methamphetamine transaction prior to their making a traffic stop and seizing a quantity of methamphetamine from WILLIAMS.
Court documents further revealed that MACKEY regularly distributed quantities of cocaine and crack cocaine. Agents executed a search warrant at MACKEY’s residence and seized quantities of cocaine, methamphetamine, and crack cocaine, as well as an illegal firearm.
For each drug offense, WILLIAMS and MACKEY face up to twenty years imprisonment, a fine of up to $1,000,000.00, at least three years of supervised release following any term of imprisonment, and a mandatory $100 special assessment fee. For being a felon in possession of a firearm, MACKEY faces a maximum of 10 years imprisonment, up to a $250,000 fine, up to 3 years of supervised release following any term of imprisonment, and a $100 mandatory special assessment fee.
This case was investigated by the Drug Enforcement Administration and Plaquemines Parish Sheriff’s Office. The prosecution is being handled by Assistant United States Attorney J. Benjamin Myers of the Narcotics Unit.
Two Marion County Kentucky Women Sentenced for Elder Fraud SchemeRead the Press Release
Louisville, KY – Two Marion County women were sentenced yesterday for their roles in an over $500,000 elder fraud scheme. Donna Jean Bradshaw, 57, of Lebanon, Kentucky, was sentenced to 48 months of imprisonment, followed by 48 months of supervised release. She was also ordered to pay restitution of $582,635. Tammy Lynn Gilbert, 49, of Bradfordsville, Kentucky, was sentenced to 5 years of supervised release, including 12 months of home incarceration, and was ordered to pay $10,000 in restitution and a $1,000 fine.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky and Special Agent in Charge Jodi Cohen of the FBI Louisville Field Office made the announcement.
According to court documents, between March 2013 and June 2016, Bradshaw, aided by Gilbert, engaged in multiple schemes to commit bank fraud and wire fraud. Bradshaw, with Gilbert’s aid, engaged in various means to defraud an elderly victim of funds, including creating a fictitious United States Occupational Safety and Health Administration mortgage loan reimbursement program and fabricating documents from a Louisville law firm to create the appearance of a fictitious inheritance.
Bradshaw pleaded guilty to two counts of bank fraud and eight counts of wire fraud on January 25, 2023. Gilbert pleaded guilty to two counts of bank fraud and eight counts of wire fraud on June 25, 2020.
The case was investigated by the FBI Louisville Field Office.
Assistant U.S. Attorneys David Weiser and Corrine Keel prosecuted the case.
This case was investigated and prosecuted as part of the National Elder Justice Task Force and the Kentucky Elder Justice Task Force. The Department of Justice’s mission of its Elder Justice Initiative is to support and coordinate the Department’s enforcement and programmatic efforts to combat elder abuse, neglect and financial fraud and scams that target our nation’s older adults. In response to the growing need and targeting areas of greatest concern, the Department of Justice initially stood up 10 task forces made up of 11 federal districts to combat a variety of elder abuse, including elder financial exploitation. Kentucky’s federal districts make up two of the 11 districts under the Initiative. Kentucky’s task force is comprised of investigators, prosecutors, and others at the local, state, and federal level with a common objective of protecting seniors across Kentucky.
In October, the Department announced that as part of its continuing efforts to protect older adults and bring perpetrators of fraud schemes to justice it is expanding the Transnational Elder Fraud Strike Force, adding 14 new U.S. Attorney’s Offices. Expansion of the Strike Force will help to coordinate the Department’s ongoing efforts to combat largest and most harmful fraud schemes that target or disproportionately impact older adults.
To report elder fraud, for non-life-threatening emergencies, call the National Elder Fraud Hotline at 1-833-FRAUD-11 (or 833-372-8311).
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Two Arrested for Allegedly Using Stolen Identities to Rent Apartments Used for Drug TraffickingRead the Press Release
BOSTON – A Taunton man and Boston woman have been indicted by a federal grand jury in Boston for their alleged involvement in a conspiracy to fraudulently rent two apartments under stolen identities to be utilized for drug trafficking activities.
Terrence Pyrtle, a/k/a “Big T,” a/k/a “T,” a/k/a “big_t558,” 40, was indicted on one count of conspiracy to distribute and possess with intent to distribute 500 grams and more of cocaine, 400 grams and more of fentanyl, 100 grams and more of fentanyl analogue, and methamphetamine; one count of possession with intent to distribute 500 grams and more of cocaine, 400 grams and more of fentanyl, 100 grams and more of fentanyl analogue, and methamphetamine; one count of possession with intent to distribute 400 grams and more of fentanyl and 100 grams and more of fentanyl analogue; one count of conspiracy to commit access device fraud and aggravated identity theft; four counts of access device fraud; and four counts of aggravated identity theft. Following an initial appearance on April 20, 2023 before U.S. District Court Magistrate Judge Jennifer C. Boal, Pyrtle was detained pending a hearing set for April 27, 2023.
Ashley Roostaie, a/k/a “Lola,” a/k/a “dropdeadlola,” 36, was indicted on one count of conspiracy to commit access device fraud and aggravated identity theft; four counts of access device fraud; and four counts of aggravated identity theft. Roostaie was released on conditions following an initial appearance before Magistrate Judge Boal on April 20, 2023.
According to the charging document, Pyrtle and Roostaie utilized the personal identification information (including Social Security number) of another individual to apply for and enter into lease agreements for two apartments in Braintree and Somerville, respectively. As part of their conspiracy, Pyrtle and Roostaie allegedly created an email account under the name of the individual’s identity that they had submitted in connection with the apartments as well as transmitted a purported driver’s license containing the individual’s name and some of their personal identification information, but depicting a different individual’s photograph. By placing the apartment leases under another individual’s personal identification information, Roostaie and Pyrtle were able to conceal their connection to and use of the apartments, which Pyrtle allegedly used to participate in a drug conspiracy involving distribution quantities of cocaine, fentanyl, fentanyl analogue and methamphetamine.
It is further alleged that Pyrtle and Roostaie used another individual’s personal identification information (including Social Security number) to obtain and use a prepaid debit card to make certain payments associated with each of the apartments.
The charge of conspiracy to distribute and possess with intent to distribute 500 grams and more of cocaine, 400 grams and more of fentanyl, 100 grams and more of fentanyl analogue, and methamphetamine provides for a sentence of at least 10 years and up to life in prison, at least five years and up to a lifetime of supervised release and a fine of up to $10 million. The charges of possession with intent to distribute 500 grams and more of cocaine, 400 grams and more of fentanyl, 100 grams and more of fentanyl analogue, and methamphetamine each provide for a sentence of at least 10 years and up to life in prison, at least five years and up to a lifetime of supervised release and a fine of up to $10 million. The charge of conspiracy to commit access device fraud and aggravated identity theft provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of up to $250,000. The charge of access device fraud provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of up to $250,000. The charge of aggravated identity theft provides for a mandatory two-year prison term consecutive to any term of imprisonment received on a predicate, substantive count, up to a one-year term of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and John E. Mawn, Jr., Interim Colonel of the Massachusetts State Police made the announcement today. Valuable assistance was provided by the Boston, Brockton, East Bridgewater, Bridgewater and Westport Police Departments and the Bristol County and Suffolk County Sheriff’s Departments. Assistant U.S. Attorney Kaitlin R. O’Donnell of Rollins’ Organized Crime & Gang Unit is prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Twelfth Defendant Charged in International Money Laundering Conspiracy Apprehended in New YorkRead the Press Release
BOSTON – A New York man was arrested today for his alleged involvement in a sophisticated international money laundering and drug trafficking organization involving cocaine and MDMA (ecstasy).
Qing Hua Sun, a/k/a “Ben,” 48, of Brooklyn, N.Y., was charged with one count of conspiracy to commit money laundering. Sun was arrested in Brooklyn today and was released on conditions following an initial appearance in the Eastern District of New York. He will appear in federal court in Boston on May 30, 2023.
Today’s arrest marks the 12th defendant charged in connection with the conspiracy. In October 2022, a federal grand jury in Boston returned an indictment charging 11 individuals from Massachusetts, Rhode Island, New York and California for their alleged involvement in a sophisticated international money laundering and drug trafficking organization led by Jin Hua Zhang.
According to the charging documents, Zhang’s network was first detected in the greater Boston area, but leaders and members of the organization were later identified throughout the United States and overseas. During the investigation, Zhang allegedly directed his co-defendant couriers, and others, to deliver to undercover agents hundreds of thousands of dollars in cash and millions of dollars in wire transfers and bank deposits. In exchange, Zhang allegedly sought to obtain cryptocurrency, which he believed would enable his organization to transfer illicit funds without detection by banks’ security teams or law enforcement.
Over the course of several lengthy recorded meetings, Zhang, Sun, and others allegedly discussed efforts to launder funds from drug trafficking and other frauds by converting the funds to cryptocurrency for a fee. According to court documents, Zhang and Sun’s laundering operation included funds derived from fraud operations based in Cambodia, which Sun was responsible for cultivating. In total, Zhang, Sun, and other members of the money laundering conspiracy allegedly sought to launder at least $25 million.
It is alleged that, to date, funds have been traced from the Zhang Organization to Hong Kong and elsewhere in China, India, Cambodia and Brazil, among other locations. Additionally, a portion of the funds Zhang, Sun and their associates sought to launder, was seized.
The charge of money laundering conspiracy provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $500,000, or twice the amount involved, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorneys Christopher Pohl, Brian A. Fogerty and Meghan Cleary of Rollins’ Criminal Division are prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Trafficker sent to prison for smuggling cocaine in tractor trailer differentialRead the Press Release
BROWNSVILLE, TEXAS – A 28-year-old San Benito resident has been ordered to federal prison after being convicted of possession with intent to distribute cocaine and conspiracy to do so, announced U.S. Attorney Alamdar S. Hamdani.
A federal jury convicted Baltazar Reyes-Herrera Jan. 20, following a two-day-trial and approximately seven hours of deliberation.
Today, U.S. District Judge Fernando Rodriguez Jr. ordered Reyes-Herrera to serve 100 months in federal prison to be immediately followed by four years of supervised release. At the hearing, the court heard additional evidence that Reyes-Herrera was taking 18 bundles of cocaine to Mississippi for payment of $10,000 and bringing the currency back for the sale of the 19.52 kilograms of cocaine. In handing down the sentence, the court noted the amount of cocaine and the harm it brings to individuals in the United States.
On Oct. 19, 2020, Reyes-Herrera arrived at the Sarita checkpoint close to midnight driving a tractor trailer. He told authorities he was driving to Houston to pick up a truck from an auction. Following a K-9 alert, law enforcement crawled underneath the tractor and observed handprints on the bolts that hold the rear differential in place. Reyes-Herrera denied knowledge of the 18 bundles of cocaine concealed in the hollow differential.
The estimated street value of the drugs is $500,000.
According to evidenced present at trial, Reyes-Herrera purchased truck insurance two hours prior to arriving at the checkpoint. He did not have valid travel logs for the trip and did not possess a valid commercial license.
Reyes-Herrera will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in
Three Individuals Sentenced for Soliciting Millions of Dollars in Contributions to Scam PACsRead the Press Release
Three individuals were sentenced for orchestrating and implementing a scheme to solicit millions of dollars in contributions to two political action committees (PACs) based on false and misleading representations that the funds would be used to support presidential candidates during and after the 2016 election cycle.
On April 24, Matthew Nelson Tunstall, 36, of Los Angeles, was sentenced to 10 years in prison. Tunstall previously pleaded guilty to one count of conspiracy to commit wire fraud and to cause false statements to the Federal Election Commission and one count of money laundering.
Robert Reyes Jr., 40, of San Juan Bautista, California, was sentenced today to seven years in prison. Reyes previously pleaded guilty to one count of conspiracy to commit wire fraud and to cause false statements to the Federal Election Commission and one count of money laundering.
Kyle George Davies, 31, of Austin, Texas, was sentenced today to five years of probation. Davies previously pleaded guilty to one count of conspiracy to commit wire fraud and to cause false statements to the Federal Election Commission.
According to court documents, from 2016 through at least April 2017, Tunstall, Reyes, and Davies operated two PACs – Liberty Action Group PAC and Progressive Priorities PAC – that solicited contributions from the public via robocalls and radio and internet advertisements. The two PACs represented that the contributions would be used to support the presidential nominees of the two major political parties, respectively. Instead, the co-conspirators used the funds to enrich themselves and to fund additional fraudulent solicitations. Specifically, the two PACs raised approximately $4 million in contributions during the 2016 election cycle and subsequent months.
To conceal the origin and nature of the proceeds, Tunstall and Reyes instructed a third-party vendor to withdraw approximately $353,000 from the two PACs in excess of the payments for services rendered, then deposit the excess payments into accounts held by shell companies that they controlled.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division and Special Agent in Charge Oliver E. Rich Jr. of the FBI San Antonio Field Office made the announcement.
The FBI San Antonio Field Office, Austin Resident Agency investigated the case.
Trial Attorneys Michael N. Lang and Celia Choy of the Criminal Division’s Public Integrity Section (PIN) prosecuted the case. Former PIN Trial Attorney Rebecca Schuman also contributed significantly to the investigation.
Texas Man Sentenced for Role in Scamming Seniors in Rhode Island and Elsewhere in Online Romance ScamsRead the Press Release
PROVIDENCE – A Texas man who participated in a conspiracy that fraudulently used the identities and images of two United States military Generals, and others, to defraud seniors in at least eleven states, including Rhode Island, of at least $1.5 million through online romance scams, was sentenced today to more than three years in federal prison, announced United States Attorney Zachary A. Cunha.
Fola Alabi, 52, of Richmond, Texas, previously admitted to a federal judge that he created companies and opened bank accounts that were used to launder the proceeds realized from the romance scams. According to court filings, the funds laundered by Alabi were often wired overseas to China and India.
According to information presented to the court, a member of the conspiracy befriended unsuspecting seniors online, often fraudulently posing as a General in the U.S. military who was serving overseas. The conspirator feigned a personal, and sometimes romantic, interest in his victims, and convinced them to send substantial sums of money, usually in the form of bank checks or cash, to addresses and companies in Texas that were controlled by Alabi. Alabi received the money and either deposited it or directed that it be deposited into one of several bank accounts that he controlled. He quickly withdrew or transferred the funds to other accounts, including some that were overseas, and used the funds to pay the mortgage of his house.
Among Alabi’s victims is a Rhode Island widow who was contacted by a member of the conspiracy falsely claiming to be a “General Miller,” a four-star General, who convinced the victim to provide $60,000 to finance shipment of his personal belongings to the United States. At the fraudster’s direction, a check was made payable a company created by Alabi and mailed to Alabi’s Texas residence. The victim was prepared to send an additional significant sum of money to the purported “General Miller,” when it was determined by her bank and the Westerly Police Department that she was likely the victim of fraud.
In brief victim impact statements delivered to the court, the two actual U.S. military Generals whose identities were used as part of the scheme acknowledged that they continue to be victimized by online romance scams through the use of their likeness and identities. One of the Generals urged seniors to be diligent and to be aware of the significant potential of being scammed.
Alabi, arrested in May 2022, pleaded guilty on January 13, 2023, to conspiracy and money laundering. He was sentenced today by U.S. District Court Judge William E. Smith to thirty-seven months in federal prison to be followed by three years of federal supervised release; pay restitution to identified victims of the romance scams totaling $1,495,421; and to forfeit funds contained in a bank account that he controlled containing $31,773, and to forfeit his Texas residence which was valued at the time of his arrest at $560,000.
The case was prosecuted by Assistant United States Attorneys Ly T. Chin and Sara Miron Bloom.
The matter was investigated by the United States Postal Inspection Service, FBI, United States Secret Service, and Homeland Security Investigations.
United States Attorney Cunha thanks the Westerly, RI, and Prescott Valley, AZ, Police Departments; Texas Department of Public Safety; West Virginia State Police; the Santa Clara, CA, County District Attorney’s Office; and Defense Criminal Investigative Service for their assistance in the investigation of this matter.
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Taunton Man Sentenced to Twenty-Five Years in Prison for Sexually Exploiting Toddler in His CareRead the Press Release
BOSTON – A Taunton man was sentenced today in federal court in Boston for sexually exploiting an 18-month-old toddler in his care and for distributing child sexual abuse material (CSAM).
Cody Mercure, 25, was sentenced by U.S. District Court Judge Leo T. Sorokin to 25 years in prison and 15 years of supervised release. In January 2023, Mercure pleaded guilty to one count of sexual exploitation of children and one count of distribution of child pornography.
“It is challenging to find the words that capture just how abhorrent and destructive this conduct was. This man sexually exploited an innocent 18-month-old child – a defenseless toddler who, at the time, was still in diapers – and recorded the abuse to watch again and again for his own sick gratification,” said United States Attorney Rachael S. Rollins. “Cases of child exploitation are among the most difficult yet most important prosecutions our office handles. My office remains relentless in our work to ensure the safety of our children, remove dangerous predators like Mr. Mercure from our communities, and seek justice for victims.”
“Mercure committed monstrous acts against a child and caused irrevocable pain in the lives of so many. We hope that today’s sentence offers resolution and peace for the victim and their family in this incredibly difficult time,” said Michael Krol, Acting Special Agent in Charge for Homeland Security Investigations in New England. “HSI works every day to uncover the abuse and exploitation of children and seek justice for those who cannot advocate for themselves.”
On Feb. 19, 2021, Mercure sexually abused a toddler in his care and video-recorded the abuse. Mercure also distributed numerous files of CSAM over the internet using a messaging application. On Jan. 16, 2021, Mercure distributed CSAM depicting the sexual abuse of a prepubescent child to another user of the messaging application. Hundreds of images and videos depicting child pornography were stored on both of Mercure’s phones which were seized at the time of his arrest and in a cloud storage account. In April 2021, Mercure was arrested on related state charges, and he has been in custody since.
U.S. Attorney Rollins and HSI Acting SAC Krol made the announcement today. Valuable assistance was also provided by the Rhode Island State Police and the Taunton Police Department. Assistant U.S. Attorney Elianna J. Nuzum of Rollins’ Major Crimes Unit is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Southern Arizona Human Smuggling Coordinator Pleads GuiltyRead the Press Release
TUCSON, Ariz. – Tyler Myers, 25, of Sierra Vista, Arizona, pleaded guilty in federal court on April 3, 2023, in connection with his role as the coordinator for a human smuggling organization operating in the Tucson and Sierra Vista, Arizona area. Specifically, Myers pleaded guilty to Conspiracy to Transport Illegal Aliens for Profit.
Between 2018 and 2022, Myers conspired to transport undocumented non-citizens for profit on at least 13 occasions. Myers utilized social media applications Snapchat and Telegram to recruit drivers and also to manage, supervise, and coordinate the smuggling, often in real time.
United States Border Patrol agents and Cochise County Sheriff’s officers arrested at least 44 undocumented non-citizens whose transportation in southern Arizona was connected to Myers’ role in the conspiracy.
A conviction for Conspiracy to Transport Illegal Aliens for Profit carries a maximum penalty of 10 years in prison, a maximum fine of $250,000, or both.
Sentencing is set before United States District Judge Scott H. Rash on June 12, 2023.
The investigation in this case was conducted by Customs and Border Protection’s United States Border Patrol. The United States Attorney’s Office, District of Arizona, Tucson, is handling the prosecution.
CASE NUMBER: CR-22-1144-TUC-SHR-EJM
RELEASE NUMBER: 2023-061_Myers# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit Justice.gov/AZ
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.South Carolina Return Preparer Pleads Guilty to Filing False Tax ReturnsRead the Press Release
COLUMBIA, SOUTH CAROLINA – Jeffrey Harmon, of Lexington, pleaded guilty after his jury trial had begun to two counts of filing false tax returns.
According to court documents and evidence presented at trial, Harmon owned and operated TFL Worldwide, a tax preparation business through which he willfully prepared and filed returns for clients that claimed fraudulent deductions relating to, among other things, rent, utilities, meals, gifts, dues, and depreciation.
In his plea, Harmon admitted to filing a false 2012 tax return for himself and to aiding and assisting in the preparation of a 2016 tax return claiming false deductions for rent and depreciation for one of his clients. Harmon agreed that the total tax loss from his criminal conduct was approximately $320,000.
Harmon faces a maximum penalty of three years in prison for each false return count. He also faces a period of court-ordered supervision, monetary penalties, and restitution. United States District Judge Mary Geiger Lewis accepted Harmon’s guilty plea and will determine any sentence after considering a sentencing report prepared by the United States Probation Office.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, U.S. Attorney Adair F. Boroughs for the District of South Carolina, and Special Agent in Charge Donald Trey Eakins of IRS-Criminal Investigation, Charlotte Field Office, made the announcement.
IRS-Criminal Investigation investigated the case.
Assistant U.S. Attorneys Winston Holliday and Elle Klein for the District of South Carolina and Trial Attorney Wilson Stamm of the Justice Department’s Tax Division prosecuted the case.
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Shiprock Woman Charged with Involuntary Manslaughter and AssaultRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced today that Courtney Frank made an initial appearance in federal court on an indictment charging her with involuntary manslaughter and assault resulting in serious bodily injury. Frank, 19, of Shiprock, and an enrolled member of Navajo Nation, will remain in custody pending a preliminary and detention hearing scheduled for April 27.
According to the indictment, on Sept. 28, 2022, Frank operated a motor vehicle without due caution and circumspection and with a wanton and reckless disregard for human life when she knew and should have known that her conduct imperiled the lives of others. Frank, who was driving drunk, crashed her car head-on into a car driven by a mother and son, killing the mother and injuring the son.
A complaint is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Frank faces up to 10 years in prison.
The Farmington Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Nation Police Department and the New Mexico State Police. Assistant United States Attorney Zachary C. Jones is prosecuting the case.
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Schenectady Man Pleads Guilty to Failing to Register as a Sex OffenderRead the Press Release
ALBANY, NEW YORK – Craig Foley, age 57, of Schenectady, New York, pled guilty today to failing to update his sex offender registration. United States Attorney Carla B. Freedman and United States Marshal David L. McNulty made the announcement.
Foley pled guilty to violating the federal Sex Offender Registration and Notification Act (“SORNA”), which requires a convicted sex offender to register, and keep that registration current, wherever he resides. As part of his guilty plea, Foley admitted that he was previously convicted of Sexual Abuse in the Third Degree in Utica City Court, and because of that conviction was required to register as a sex offender. Foley further admitted that he moved from Pennsylvania to New York in or about November 2020 and, from then until he was arrested in this case, failed to register as a sex offender in New York or update his registration to reflect his place of residence.
Sentencing is scheduled for August 23, 2023 before District Court Judge Anne M. Nardacci. Foley faces a maximum sentence of 10 years in prison, a maximum fine of $250,000, and a term of supervised release of between five years and life to begin after he is released from prison. A defendant’s sentence is imposed by a judge based on the statute the defendant violated, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the United States Marshal Service and is being prosecuted by Assistant U.S. Attorney Michael D. Gadarian.
This case was prosecuted as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state, and local resources to 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 https://www.justice.gov/psc.
Sanostee Man Charged with Assault in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced today that Melvin C. Smith was arraigned on an indictment charging him with assault resulting in serious bodily injury and two counts of assault with a dangerous weapon. Smith, 62, of Sanostee, and an enrolled member of the Navajo Nation, will remain on conditions of release pending trial, which has not been scheduled.
A federal grand jury indicted Smith on April 11. According to the indictment, on Oct. 6, 2022, Smith assaulted two victims, identified as John and Jane Doe, with a long wooden stick with the intent to cause bodily harm to both John and Jane Doe, doing so within the exterior boundaries of the Navajo Nation.
An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Smith faces up to 10 years in prison.
The Farmington Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Police Department. Assistant United States Attorney Zachary C. Jones is prosecuting the case.
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Roseville Man Pleads Guilty to Distributing Child Pornography Using AppRead the Press Release
SACRAMENTO, Calif. — Pablo Ramos, 50, of Roseville, pleaded guilty today to two counts of distribution of child pornography, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Sept. 1 and Sept. 3, 2020, Ramos used Kik Messenger to distribute multiple files containing child pornography.
This case is the product of an investigation by the Federal Bureau of Investigation and the Sacramento Internet Crimes Against Children (ICAC) Task Force. Assistant U.S. Attorneys Kristin F. Scott and Rosanne L. Rust are prosecuting the case.
Ramos is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on Aug. 8, 2023. For each count of conviction, Ramos faces a maximum statutory penalty of 20 years in prison, a $250,000 fine, and potentially a lifetime of supervised release. He will also be required to register as a sex offender. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.