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Tuesday 25 April 2023
Connecticut Woman Sentenced for Social Security Benefit Fraud Scheme in Stockton, East Bakersfield, Delano, and ElsewhereRead the Press Release
SACRAMENTO, Calif. — Sashana James, 32, of New London, Connecticut, was sentenced today to one year and one day in prison and ordered to pay $490,485 in restitution for her participation in a conspiracy to steal from the Social Security Administration, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between October 2016 and June 2021, James participated in a conspiracy to steal Social Security benefits intended for beneficiaries. The conspirators stole personally identifiable information (PII) of numerous Social Security beneficiaries living throughout the United States. The PII included the beneficiaries’ names, Social Security numbers, dates of birth, addresses, phone numbers, bank account numbers, and family information. Using the PII, they contacted the Social Security Administration (SSA) customer service representatives and posed as beneficiaries. They then instructed the customer service representatives to change the direct deposit account number associated with the beneficiary’s account to drop accounts, i.e., expendable accounts used to funnel or transfer proceeds of a crime. The customer service representatives – believing that the caller was the true beneficiary – changed the direct deposit account number to one of the drop account numbers supplied.
The debit cards connected to the drop accounts would be mailed to James and other conspirators. On several occasions, James withdrew the stolen Social Security benefit payments from the drop accounts and deposited at least a portion of the money into one or more bank accounts that were accessible to her co-conspirators. The loss to the SSA and the United States resulting from the conspirators’ offenses exceeds $490,000.
This case was the product of an investigation by the SSA’s Office of the Inspector General and the U.S. Postal Inspection Service. Assistant U.S. Attorney Dhruv Sharma prosecuted the case.
Colombian Military Intelligence Official Sentenced for Role in International Drug Trafficking ConspiracyRead the Press Release
ALEXANDRIA, Va. – A former Colombian military intelligence official was sentenced today to 12 years in prison for his participation in a conspiracy to distribute cocaine for importation into the United States. This defendant was the fifth to be sentenced in a multi-year investigation that lead to three indictments charging officials in the Colombian Army, Air Force, and National Police.
According to court documents, from August 2017 through April 2018, Fabian Humberto Tovar Caicedo, 41, a sergeant in Colombian Army Intelligence, helped organize a drug trafficking organization (DTO) that conspired to send multi-thousand-kilogram shipments of cocaine from Colombia to Mexico for eventual importation into the United States. Tovar Caicedo also offered various corrupt services to the DTO. He found a corrupt member of the police in the Port of Santa Marta willing to facilitate the export of cocaine in exchange for payment; he suggested buying the same phones that the U.S. Drug Enforcement Administration (DEA) uses for security; he offered to use his military training to encrypt those phones for additional security; and he attempted to sell a list of DEA cooperators to the DTO.
Tovar Caicedo and his co-conspirators plotted to send multiple shipments, starting at 1,000 kilograms of cocaine, but moving up to as many as 10,000 kilograms of cocaine per shipment. A member of the DTO traveled to Mexico to negotiate the receipt of the cocaine with a corrupt, high-ranking Mexican military official.
One of the defendant’s co-conspirators was Fabian Andres Leyton Vargas, a Colombian Air Force officer, whom the defendant met at a military training in the United States. Leyton Vargas used his position in the Colombian Ministry of Defense to identify and contact security and law enforcement officials in the Port of Santa Marta to be targeted for bribes. Once these officials received their corrupt payments, they would ensure that cocaine-laden cargo containers passed uninspected through the port. Using this method, on July 27, 2017, Leyton Vargas, along with co-defendants Antonio Aldemar Avila Acevedo and Jose Mauricio Castaneda Garzon, attempted to ship 1,773 kilograms of cocaine from Colombia to Guatemala en route to the United States. Additionally, on March 27, 2018, the same defendants conspired to ship 2,081 kilograms of cocaine from Colombia to Mexico en route to the United States. Colombian law enforcement seized both shipments before they could depart the port.
As part of this multi-year investigation targeting corruption in Colombia’s ports, a fifth defendant, Jose Maria Fragoso D’Acunti, admitted to using his former position in the Colombian National Police, along with familial and other connections, to identify and bribe security and law enforcement officials in the port of Cartagena, Colombia, to aid his organization’s cocaine trafficking. The defendant and his co-conspirators planned to traffic multi-hundred kilogram quantities of cocaine, valued at millions of United States dollars, to Europe by causing such cocaine to be secreted aboard commercial shipping containers. On November 29, 2018, in the port of Savannah, Georgia, U.S. law enforcement seized 516 kilograms of cocaine sent by Fragoso D’Acunti’s DTO from Colombia, that were destined for Belgium. The cocaine was comingled with pineapples in a shipping container. On December 15, 2018, again in the port of Savannah, Georgia, U.S. law enforcement seized an additional 205 kilograms of cocaine sent by Fragoso D’Acunti’s DTO from Colombia that were also destined for Belgium. The cocaine was comingled with limes in a shipping container. In support of the conspiracy, Fragoso D’Acunti paid 1 billion Colombian Pesos, equivalent to more than $300,000 US Dollars, in bribe money to a port security officer.
Defendants Fragoso D’Acunti, Fabian Andres Leyton Vargas, and Antonio Aldemar Avila Acevedo were sentenced to 12 years in prison. Co-conspirator José Mauricio Castaneda Garzon was sentenced to seven years and four months in prison.
These prosecutions are part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
U.S. Attorney Jessica D. Aber for the Eastern District of Virginia, Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, and Special Agent in Charge J. Todd Scott of the DEA Louisville Division made the announcement.
The DEA’s Louisville Field Division and Cartagena Resident Office investigated this case, with substantial assistance from the DEA’s Office of Special Intelligence, Document and Media Exploitation Unit, the DEA’s Special Operations Division and Special Operations Division – Bilateral Investigations Unit, as well as DEA’s offices in Cartagena, Bogota, Panama, Guatemala City, San Jose (Costa Rica), Brussels, Mexico City, Madrid, Frankfurt, London, Paris, Rome, The Hague, Vienna, Hong Kong, Islamabad, Savannah, Detroit, Tampa – PANEX, and New Orleans. The U.S. Customs and Border Protection (CBP) - National Targeting Center also provided substantial assistance. The Colombian National Police, the Belgian Federal Police, the German Zolfahndungsamt, the National Police of the Netherlands, and the Italian Guardia di Finanza also provided critical support.
Assistant U.S. Attorney Anthony T. Aminoff and Trial Attorneys Douglas Meisel and Janet Turnbull of the Department of Justice’s Narcotic and Dangerous Drug Section prosecuted case 1:20-cr-181.
Assistant U.S. Attorney Anthony T. Aminoff and Trial Attorney Teresita Mutton of the Department of Justice’s Narcotic and Dangerous Drug Section prosecuted case 1:19-cr-282.
Assistant U.S. Attorneys Anthony T. Aminoff (then with the Narcotic and Dangerous Drug Section), Katherine Rumbaugh, and David Peters prosecuted case 1:18-cr-74.
The Justice Department’s Office of International Affairs and the Judicial Attaché at the U.S. Embassy in Bogota provided substantial assistance in securing the arrest and extradition of the defendants listed above.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-181, 1:19-cr-282, and 1:18-cr-74.
Cohoes Man Pleads Guilty to Federal Drug and Obstruction of Justice ChargesRead the Press Release
ALBANY, NEW YORK – Andrew O’Connor, age 36, of Cohoes, New York pled guilty today to distributing methamphetamine in Cohoes, New York, and conspiracy to tamper with records.
United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), and, Ketty Larco-Ward, Postal Inspector in Charge of the Boston Division of the U.S. Postal Inspection Service (USPIS), made the announcement.
As part of his guilty plea today, Andrew O’Connor admitted that he distributed ounce-quantities of methamphetamine in Cohoes in March, April, and June 2022, and had a shipment of over one pound of methamphetamine sent to him around June 15, 2022. Investigators with USPIS and FBI intercepted the package and seized the methamphetamine. O’Connor also admitted that, after his arrest, he contacted a co-conspirator to make arrangements to have the co-conspirator factory reset and remote wipe several of O’Connor’s cell phones.
Sentencing is scheduled for August 23, 2023, before U.S. District Judge Anne M. Nardacci. At sentencing, O’Connor faces a minimum sentence of ten years and maximum sentence of life in prison, a fine of up to $10 million dollars, and a post-imprisonment term of supervised release of at least five years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by USPIS, and the FBI’s Capital District Safe Streets Gang Task Force, which includes FBI Special Agents and members of federal, state and local law enforcement agencies. Assistant U.S. Attorney Dustin C. Segovia is prosecuting the case.
Chalmette Resident Pleaded Guilty in Federal Court to Theft of Stolen Mail and Unlawful Possession of a Postal KeyRead the Press Release
NEW ORLEANS, LOUISIANA – KELAN PERRY GENNINGS, age 21, pleaded guilty on April 13, 2023, to a two-count superseding indictment charging him with theft or receipt of stolen mail matter, in violation of Title 18, United States Code, Section 1708 and unlawful possession of a postal key, in violation of Title 18, United States Code, Section 1704, announced U.S. Attorney Duane A. Evans.
According to court documents, GENNINGS stole U.S. Mail from a post office mailbox located at the Covington Post Office. GENNINGS also used a postal arrow key to access said mailbox. At sentencing, which is set for August 17, 2023, GENNINGS faces a maximum prison term of five years for the theft of mail and ten years for possession of the arrow key. Each count carries additional penalties of up to three (3) years supervised release, a fine of up to $250,000, and a mandatory special assessment fee of $100.
The case was investigated by the U.S. Postal Inspection Service. Assistant United States Attorney Spiro G. Latsis of the General Crimes Unit is in charge of the prosecution.
Cecil County Man Pleads Guilty to Federal Charges Related to His Repeated Sexual Abuse of a Child from the Age of Approximately Four Months to Two Years OldRead the Press Release
Baltimore, Maryland – Lawrence Aquilla Colby, IV, a/k/a “Buddy,” age 34, of Elkton, Maryland, pleaded guilty today to federal charges related to his participation in a conspiracy to sexually abuse a child, from the age of approximately four months to two years old, to producing and receiving images documenting the sexual abuse of the child, and to possession of child pornography.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; Cecil County State’s Attorney James Dellmyer; and Cecil County Sheriff Scott Adams.
At today’s plea hearing, Colby admitted that he and his co-conspirator, Summer McCroskey, sexually abused a child, starting at the time the victim was approximately four months of age through at least October 2021, when the victim was two years old, and produced videos and images of the abuse. Both Colby and McCroskey participated in the abuse. Additionally, Colby received files documenting the sexual abuse of the child, which were sent to him by McCroskey.
Colby faces a mandatory minimum of 15 years and a maximum of 30 years in federal prison for conspiracy to sexually exploit a child and for each of five counts of sexual exploitation of a child; a mandatory minimum of five years and a maximum of 20 years in federal prison for each of three counts of receipt of child pornography; and a maximum of 20 years in federal prison for possession of child pornography. U.S. District Judge Richard D. Bennett has scheduled sentencing for Colby on July 27, 2023.
Co-defendant Summer McCroskey, age 25, also of Elkton, previously pleaded guilty to her role in the conspiracy and is scheduled to be sentenced on May 18, 2023, at 11:00 a.m.
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 Attorney’s 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. For more information about Internet safety education, please visit www.justice.gov/psc and click on the “Resources” tab on the left of the page.
United States Attorney Erek L. Barron commended the FBI, the Cecil County State’s Attorney’s Office and the Cecil County Sheriff’s Office for their work in the investigation and thanked Assistant U.S. Attorneys Paul E. Budlow and Colleen E. McGuinn who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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Canadian Man Charged with Stolen Valor and Forging Military Discharge PaperworkRead the Press Release
PLATTSBURGH, NEW YORK – Randall J. Montour, age 44, a resident of Cornwall, Ontario, was arrested and charged today for violating the Stolen Valor Act of 2013 and for falsifying his military discharge certificate. United States Attorney Carla B. Freedman and United States Marshal David L. McNulty made the announcement.
Montour was charged by complaint and made his initial appearance in Plattsburgh, before United States Magistrate Judge Gary L. Favro. Montour was released pending a further court appearance.
The complaint alleges that Montour falsely altered his Certificate of Release or Discharge from Active Duty, Form DD-214, to reflect he received an honorable discharge from the United States Air Force and that he earned numerous decorations, medals, badges, citations or campaign ribbons, including the Purple Heart. The complaint further alleges that on three occasions, Montour used his altered Form DD-214 to purchase Purple Heart recipient license plates from the New York State Department of Motor Vehicles, which he then affixed to his vehicle.
Military records show, however, that Montour served in the United States Air Force from 1999 until he was court-martialed in 2000 for impersonating an officer and making threats. Montour received a bad-conduct discharge and was separated from the Air Force on June 18, 2001. He is not a Purple Heart recipient.
The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
The charges filed against Montour carry up to 1 year in jail, a fine of up to $100,000, and a term of supervised release of up to 1 year. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
The United States Marshals Service is investigating the case with assistance from the United States Air Force Office of Special Investigations (OSI), Homeland Security Investigations (HSI), U.S. Customs and Border Protection (CBP) and the New York State Department of Motor Vehicles. Assistant U.S. Attorney Douglas G. Collyer is prosecuting the case.
British American Tobacco to Pay $629 Million in Fines for N. Korean Tobacco Sales; Charges Unsealed Against Tobacco FacilitatorsRead the Press Release
WASHINGTON – British American Tobacco (BAT) and its subsidiary, BAT Marketing Singapore (BATMS), one of the world’s largest manufacturer of tobacco products, has agreed to pay penalties totaling 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). In addition, charges were unsealed 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, and BAT entered into a deferred prosecution agreement in connection with, a criminal information charging BAT and BATMS with conspiracy to commit bank fraud and conspiracy to violate IEEPA. 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 maintained control over all relevant aspects of the North Korean business. BAT ran the payments for the tobacco sold to North Korean entities through the third-party company, resulting in approximately $415 million of U.S. dollar 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.
“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. “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.”
“British American Tobacco and its subsidiary engaged in an elaborate scheme to circumvent U.S. sanctions and sell tobacco products to North Korea in violation of U.S. law,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “With today’s action, which involves the largest settlement payment in the Department’s history, these entities have been held to account.”
“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.”
Separately, on April 25, 2023, a federal judge in the District of Columbia unsealed charges against a North Korean banker, Sim Hyon-Sop, 50, 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.
Between 2009 and 2019, the defendants engaged in a scheme to purchase leaf tobacco for North Korean-owned entities, 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 that the transactions connected to trade with North Korea. The transactions resulted in an estimated nearly $700 million in revenue for North Korean entities, and ultimately, for the government of North Korea.
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.
Additionally, today, the Department of the Treasury also announced a civil enforcement action against BAT and BATMS.
This case is part of a larger Department of Justice response to the ongoing efforts of North Korea to evade sanctions and use the U.S. financial system to engage in illicit trafficking. As alleged in the indictment, trafficking in tobacco products generates revenue for advancing North Korea’s Weapons of Mass Destruction (WMD) programs. North Korea has been developing nuclear weapons since at least 2006 and financed these activities through illicit trade, including trafficking of tobacco and counterfeit cigarettes, which North Korea has engaged in since at least 1992. North Korea counterfeit cigarette production capacity is estimated to exceed two billion packs a year. Counterfeit cigarettes are a major source of income to the North Korean regime and may be the single most lucrative item in the North Korean portfolio, as smuggled tobacco is estimated to garner revenue as much as $20 on every $1 spent in cost. North Korean tobacco sales are alleged to flow back to the North Korean government, including to slush funds designed to sustain the loyalty of a core of party elite and to underwrite weapons development programs.
If convicted, the defendants face a maximum statutory penalty of 30 years’ imprisonment for the lead charge, bank fraud. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The cases are being investigated by the FBI Phoenix Field Office. HSI Colorado partnered in the investigation on the individuals, with valuable assistance provided by the Justice Department’s Office of International Affairs.
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 are prosecuting the case. Trial Attorneys Beau Barnes and Emma Ellenrieder of the National Security Division’s Counterintelligence and Export Control Section partnered on these matters. Trial Attorney David Recker, former Assistant U.S. Attorneys Zia Faruqui and Michael Grady.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Boston Man Sentenced for Drug Trafficking ConspiracyRead the Press Release
BOSTON – A Boston man was sentenced in federal court in Boston yesterday for conspiring to distribute fentanyl and cocaine.
Josiah Watkins, 26, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 51 months in prison and four years of supervised release. Watkins previously pleaded guilty to one count of conspiracy to distribute, and possess with intent to distribute, fentanyl and cocaine.
In February 2021, an investigation into the drug trafficking activities conducted by Watkins and co-defendant London Lee revealed that Watkins and his co-defendant were actively selling cocaine, crack cocaine and fentanyl in the Boston area. Between February and April 2021, Watkins and Lee sold, or arranged the sale of, crack cocaine and fentanyl in at least 10 separate controlled purchases.
On April 7, 2023, Lee pleaded guilty to his role in the conspiracy and is scheduled to be sentenced on July 13, 2023.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Boston Police Commissioner Michael Cox made the announcement. Assistant U.S. Attorney John T. Dawley, Jr. of the Organized Crime & Gang Unit is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Barren County Felon Sentenced to 15 Years in Prison for Possessing with the Intent to Distribute Methamphetamine and Illegal Possession of FirearmsRead the Press Release
Bowling Green, KY – A Barren County, Kentucky, man was sentenced today to 15 years in federal prison for possessing with the intent to distribute methamphetamine and possession of a firearm by a convicted felon.
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 Ron Lafferty of the Barren River Drug Task Force made the announcement.
According to court documents, on November 12, 2020, Eric R. Sturgeon, 42, of Barren County, Kentucky, possessed with the intent to distribute 424.4 grams of methamphetamine. Sturgeon also possessed a SCCY CPX-1, nine-millimeter semiautomatic pistol, and a Taurus 85 Ultralite, .38 special caliber revolver. Sturgeon was prohibited from possessing a firearm because he had previously been convicted of the following felony offenses. On December 3, 2018, in Barren Circuit Court, Sturgeon was convicted of first-degree trafficking in a controlled substance, second offense and possession of a handgun by a convicted felon. On February 3, 2015, in Barren Circuit Court, Sturgeon was convicted of first-degree possession of a controlled substance, second offense. On February 3, 2015, in Barren Circuit Court, Sturgeon was convicted of manufacturing methamphetamine, first offense and first-degree possession of a controlled substance, second offense.
Additionally, on May 6, 2021, Sturgeon possessed with the intent to distribute 172 grams of methamphetamine, and he possessed a Beretta APX, nine-millimeter semiautomatic pistol. Sturgeon was prohibited from possessing this firearm because he had previously been convicted of the above stated felony offenses.
After the 15-year prison sentence, the Court ordered Sturgeon to serve 4 years of supervised release. There is no parole in the federal system.
The case was investigated by the ATF Bowling Green Field Office and the Barren River Drug Task Force.
Assistant U.S. Attorney Mark J. Yurchisin II, of the United States Attorney’s Bowling Green 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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Baltimore Man Convicted After a Four-Day Trial for Three Robberies Committed at GunpointRead the Press Release
Baltimore, Maryland – A federal jury convicted Keith Poynter, Jr., age 29, of Baltimore, Maryland, yesterday on federal charges related to a series of armed commercial robberies, all committed in one day, and for discharging his weapon during one of the robberies.
The conviction was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; Commissioner Michael Harrison of the Baltimore Police Department; and Chief Robert McCullough of the Baltimore County Police Department.
According to court documents and evidence presented during his four-day trial, Poynter conspired with others, including Benjamin Bunn, Jr. and Tiffany Gardner, to rob businesses in Baltimore City and Baltimore County. Specifically, on December 6, 2019, Poynter and another man robbed a jewelry store in the 200 block of N. Howard Street. The evidence showed that the other robber placed a machete in the door to prevent it from locking. Poynter brandished a weapon and struck a glass countertop, causing the gun to fire. Poynter then fired two more shots into another glass case and removed jewelry and other merchandise, all in the presence of store employees. Poynter and the other man then got into a silver Acura TL, which was occupied and operated by Bunn and Gardner and left the area.
According to trial testimony, a short time later, Poynter entered a jewelry store in the Security Square Mall in Baltimore County. Poynter approached a store employee, brandished a handgun and demanded jewelry. After taking the jewelry, Poynter left the store and got back into the silver Acura TL, where Bunn and Gardner waited. The group then left the area. Approximately two hours later, Poynter entered a pawn shop in the 6600 block of Reisterstown Road, brandished a firearm, demanded jewelry and threatened to shoot a customer. Poynter took jewelry and other merchandise and left the store, again entering the silver Acura TL where Bunn and Gardner waited.
Poynter faces a maximum sentence of 20 years in federal prison for the robbery conspiracy, for each count of three counts of commercial robbery and for conspiracy to use a firearm in furtherance of a crime of violence. Poynter faces a mandatory minimum of seven years and up to life in prison for each of two counts of using and brandishing a firearm during and in relation to a crime of violence; and a mandatory minimum of 10 years and up to life in federal prison for discharging a firearm during and in relation to a crime of violence. U.S. District Judge Stephanie A. Gallagher has not yet scheduled sentencing for Poynter.
Benjamin Bunn, Jr., age 37, of Baltimore, pleaded guilty to his role in the robberies a few days before trial began and is scheduled to be sentenced on July 13, 2023. Tiffany Gardner, age 27, of Baltimore, also pleaded guilty and was sentenced to five years 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.
United States Attorney Erek L. Barron commended the FBI, the Baltimore Police Department and the Baltimore County Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney John W. Sippel, Jr. and Special Assistant U.S. Attorney Mark Meehan, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psn and https://www.justice.gov/usao-md/community-outreach.
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Arizona Man Faces Federal Charges After Eastern Oregon Traffic Stop Yields 100,000 Fentanyl Pills, Two Pounds of Powdered FentanylRead the Press Release
PORTLAND, Ore.—An Arizona man is facing federal charges after he was caught transporting 100,000 counterfeit oxycodone pills containing fentanyl, two pounds of powdered fentanyl, and six pounds of cocaine on Interstate 84 in La Grande, Oregon.
Moises Rojo Velazquez, 36, of Phoenix, Arizona, has been charged by criminal complaint with possessing with intent to distribute fentanyl.
According to court documents, on April 21, 2023, an Oregon State Police (OSP) trooper initiated a traffic stop on a vehicle driven by Rojo Velazquez on Interstate 84 westbound in La Grande. The vehicle was occupied by Rojo Velazquez, a passenger, and the passenger’s 17-year-old daughter. A second trooper located a large camo bag on the rear floorboard of the vehicle. The bag was found to contain more than 100,000 counterfeit oxycodone pills containing fentanyl, two pounds of powdered fentanyl, and six pounds of cocaine.
On April 24, 2023, Rojo Velazquez made his first appearance in federal court before U.S. Magistrate Judge Stacie F. Beckerman. He was ordered detained pending further court proceedings.
This case is being investigated jointly by the U.S. Drug Enforcement Administration (DEA) and OSP. It is being prosecuted by the U.S. Attorney’s Office for the District of Oregon.
A criminal complaint is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Albuquerque Man Pleads Guilty to Conspiracy to Defraud the United StatesRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Albert Childress, Special Agent in Charge, IRS Criminal Investigation, announced today that David Wellington pled guilty to conspiracy to defraud the United States. Wellington, 64, of Albuquerque, will remain on conditions of release pending sentencing, which has not been scheduled.
According to the plea agreement and other court documents, in 2005, Wellington and his business partner, Stacy Underwood, 52, of Albuquerque, established National Business Services, LLC, a business that was involved in the promotion, sale, and creation of Limited Liability Companies under New Mexico state law. Through the LLC, Wellington and Underwood created LLCs in New Mexico for their clients, obtained Employer Identification Number (“EIN”) from the IRS, and opened bank accounts in the names of the LLCs, allowing their clients to remain anonymous. Between 2005 and 2015, Wellington and Underwood organized at least 192 LLCs in New Mexico and opened at least 114 bank accounts.
In 2006, Wellington and Underwood created three LLCs in New Mexico for Jerry Shrock, 48, of Meadowview, Virginia. Underwood was listed as the “Organizer” and National Business Services, LLC as the initial registered agent for all three. In 2011, Underwood opened a bank account for one of the LLCs and provided Shrock with online access to the bank account and a book of pre-signed checks with her signature. Between 2011 and 2015, $4,875,940 was deposited into and withdrawn from the bank account. At the time of the deposits and withdrawals, Shrock had an outstanding IRS assessment for unpaid taxes, penalties, and interest in the amount of about $1 million. Shrock never filed personal or business tax returns with the IRS reporting the income in the LLCs bank account, allowing Shrock to generate and deposit income while evading the outstanding assessment and personal and business taxes on the income.
Under the terms of his agreement, Wellington faces up to 5 years in prison followed by up to 3 years of supervised release.
Stacy Underwood pled guilty to conspiracy on Oct. 21, 2022, and remains on conditions of release pending sentencing, which has not been scheduled. Under the terms of her agreement, Underwood faces 5 years in prison followed by up to 3 years of supervised release.
Jerry Shrock pled guilty to conspiracy on Nov. 28, 2022, and remains on conditions of release pending sentencing, which has not been scheduled. Under the terms of his agreement, Shrock faces up to 5 years in prison followed by up to 3 years of supervised release.
The IRS Criminal Investigation Phoenix Field Office investigated this case. Assistant United States Attorney Jeremy Peña is prosecuting the case.
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23-85
Monday 24 April 2023
West Chester Woman Sentenced to 92 Months in Federal Prison for Drug TraffickingRead the Press Release
A woman who was trafficking ice methamphetamine was sentenced today to more than seven years in federal prison.
Mary Lavone Linnell, age 62, from West Chester, Iowa, received the prison term after a November 18, 2022 guilty plea to possession of ice methamphetamine with the intent to distribute it.
Evidence disclosed at the sentencing hearing showed that law enforcement stopped Linnell in a vehicle with approximately a quarter pound of ice methamphetamine in November 2021. Other evidence showed that, in total, she bought over two pounds of ice methamphetamine for redistribution throughout 2021. Linnell has multiple prior convictions for operating vehicles while under the influence and for possessing controlled substances. She also has convictions for distributing methamphetamine and possessing cocaine with intent to deliver it.
Linnell was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. She was sentenced to 92 months’ imprisonment and must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system. Linnell is being held in the United States Marshal’s custody until she can be transported to a federal prison.
The case was prosecuted by Special Assistant United States Attorney Devra T. Hake and investigated by the Drug Enforcement Administration, Johnson County Drug Task Force, Cedar Rapids Police Department, and the Muscatine County Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 22-CR-61.
Virginia Man Pleads Guilty to Trafficking TurtlesRead the Press Release
Stanlee Fazi, 41, of Louisa, Virginia, pleaded guilty in federal court in Alexandria to trafficking turtles in violation of the Lacey Act. Sentencing is scheduled for July 26.
Fazi admitted that between July 31, 2017, and June 29, 2020, he illegally collected eastern box turtles from the wild and sold them on at least 27 occasions to buyers in California, Colorado, Florida, Maryland, New Jersey, Ohio, Texas and Wisconsin. Fazi received approximately $12,700 using Facebook Marketplace for these sales. Many of Fazi’s purchasers, in turn, smuggled the turtles from the United States to Hong Kong and China for the illegal pet trade. Fazi acknowledged binding the turtles in socks and shipping them by FedEx from Fredericksburg.
The federal Lacey Act is the nation’s oldest wildlife trafficking statute and prohibits, among other things, transporting or selling wildlife in interstate commerce if the wildlife were illegally taken or possessed under state laws. The Commonwealth of Virginia also prohibits taking turtles from the wild or selling them. The maximum sentence under the Lacey Act is five years in prison and a $250,000 fine.
The eastern box turtle (Terrapene carolina carolina) is a subspecies of the common box turtle (Terrapene carolina). The eastern box turtle is native to forested regions of the eastern United States, including Virginia, with some isolated populations in the Midwest. The turtles typically reach a length of up to six inches and can live more than 100 years. The turtles have a domed carapace, which can display radiated lines or spots. Turtles with colorful markings are particularly prized in the domestic and foreign pet trade market.
The U.S. Fish and Wildlife Service Offices of Law Enforcement in Baltimore and Vero Beach, Florida, conducted the investigation as part of Operation Middleman. The operation focused on the trafficking of reptiles from the United States to China.
The government is represented by Senior Trial Attorney Ryan Connors of the Environment and Natural Resource Division’s Environmental Crimes Section and Assistant U.S. Attorney Gordon Kromberg for the Eastern District of Virginia.
Veterans Affairs Medical Center Employee Pleads Guilty to Child Pornography OffensesRead the Press Release
BOSTON – A Royalston man pleaded guilty today in federal court in Springfield to child pornography charges.
Kevin A. Divoll, 51 pleaded guilty to one count of distribution of child pornography and one count of possession of child pornography. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for July 19, 2023. Divoll was arrested and charged in August 2022.
Divoll, a former employee of the Veterans Affairs (VA) Medical Center in Leeds, was identified as the owner and user of a device distributing child pornography over the VA Medical Center’s public Wi-Fi from May 2022 through July 2022. During a search of his residence on Aug. 4, 2022, Divoll was found to be in possession of child pornography that involved a prepubescent minor and a minor who had not attained 12 years of age.
The charge of distribution of child pornography provides for a mandatory minimum sentence of five years and up to 20 years in prison, at least five years of supervised release and a fine of up to $250,000. The charge of possession of child pornography involving an image of child pornography involving a prepubescent minor or a minor who had not attained 12 years of age provides for a sentence of up to 20 years in prison, at least five years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael Rollins and Christopher Algieri, Special Agent in Charge of the U.S. Department of Veterans Affairs Office of Inspector General, Northeast Field Office, made the announcement. Significant assistance was provided by the Leeds VA Medical Center Police. Assistant U.S. Attorney Catherine G. Curley of Rollins’ Springfield Branch Office is prosecuting the case.
Unlicensed Vancouver, Washington, tax preparer pleads guilty to aiding and assisting with preparing false tax returnsRead the Press Release
Seattle – The owner of a Vancouver, Washington business that sought to assist immigrants with a variety of services has pleaded guilty to tax fraud charges, announced U.S. Attorney Nick Brown. Saul Valdez was an unlicensed tax preparer who led his immigrant customers to believe he was filling out their tax forms correctly. Instead, from 2016 through 2018, Valdez inserted a variety of false deductions and expenses on tax returns, lowering the customers’ tax obligations. Valdez faces up to three years in prison when sentenced by U.S. District Judge Benjamin H. Settle on August 28, 2023.
“Mr. Valdez operated a business providing services to primarily non-English speaking clients, who had little understanding of the U.S. tax system,” said U.S. Attorney Nick Brown. “Rather than truly assist them, his false deductions, expenses and credits put them at risk of owing back taxes and penalties, not to mention the stress of contact from the IRS.”
According to the plea agreement, Valdez operated Conexion Latina, and used programs such as TaxAct and TurboTax to prepare clients’ taxes. For tax year 2017, Valdez admits claiming false and fraudulent expenses, donations, and credits on 36 different tax returns. The tax loss on those 36 returns is $54,045. That is the amount of restitution Valdez has agreed to pay.
Using statistical sampling of 50 of some 2000 returns prepared by Valdez from 2016 through 2018, Valdez admits that the total tax loss for his fraud is $1,293,921.
Aiding and Assisting in the Preparation and Presentation of a False and Fraudulent Return is punishable by up to three years in prison.
Prosecutors have agreed to cap their sentencing recommendation at 30 months in prison.
The case is being investigated by Internal Revenue Service Criminal Investigations (IRS-CI).
The case is being prosecuted by Assistant United States Attorney Kristine Foerster.
United States Settles Claims for Improper Inpatient Rehabilitation Admissions for over $1.7 MillionRead the Press Release
LAFAYETTE, La. - United States Attorney Brandon B. Brown announced that Lafayette Physical Rehabilitation Hospital and its management company, Acadiana Management Group, LLC have agreed to pay $1.2 million, and Dr. Carolyn Smith agreed to pay $575,000 to resolve allegations that they violated the False Claims Act by submitting claims to Medicare for medically unnecessary inpatient rehabilitation services.
“This settlement demonstrates our commitment to ensuring that those who participate in federal healthcare programs follow the rules,” said U.S. Attorney Brandon B. Brown. “Billing for non-covered rehabilitation hospital stays results in a misuse of federal dollars. The financial viability of our Medicare program must be protected for current and future generations.”
The United States alleged that from January 1, 2010 through December 31, 2016, Dr. Smith admitted certain patients to Lafayette Physical Rehabilitation Hospital for whom inpatient rehabilitation treatment was not medically reasonable or necessary. Dr. Smith repeatedly admitted these patients, often by putting improper pressure on the patients, and falsely certified that the patients met the applicable criteria for inpatient admission. However, the patients did not satisfy the criteria and did not need impatient rehabilitation services.
“The Department Health and Human Services, Office of Inspector General (HHS-OIG) will continue to aggressively investigate health care providers who submit Medicare claims for medically unnecessary services,” said HHS-OIG Special Agent in Charge Jason Meadows. “Inpatient rehabilitation services are expensive, and Medicare dollars should be reserved for patients who need those services - not hospitals and physicians seeking to make easy money through improper billing.”
This civil settlement includes the resolution of claims brought under the qui tam or whistle blower provisions of the False Claims Act. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The whistleblowers, Tamara Boyd and Nancy Morrill, former employees of LPRH, will receive over 20% of the settlement amount.
The settlement was the result of a coordinated effort by the United States Attorney’s Office for the Western District of Louisiana and HHS-OIG. Assistant U.S. Attorney Melissa Theriot and First Assistant U.S. Attorney Jerry Edwards handled the litigation, along with HHS-OIG Special Agent Rita Bergeron. Special Agent Bergeron and Assistant U.S. Attorney Karen King handled the investigation.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
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U.S. Attorney’s Office, Joined by State and Local Agencies, to Host One-Stop Reentry Resource Fair at the War Memorial in Baltimore on Wednesday, April 26, 2023Read the Press Release
Baltimore, Maryland – April is Second Chance Awareness Month. To recognize the importance of second chances, on Wednesday, April 26, 2023, the U.S. Attorney’s Office for the District of Maryland, the U.S. Probation and Pretrial Services Office, the Maryland Division of Parole and Probation, and the Mayor’s Office of Neighborhood Safety and Engagement (MONSE), will sponsor a one-stop reentry resource fair that will be held from 10:00 a.m. to 2:00 p.m. at the Baltimore War Memorial, 101 N. Gay Street, Baltimore, MD. More than 40 organizations, including at least 20 employers, will be on-site offering support, assistance and resources to returning citizens and justice-involved persons, including in the areas of employment, job training, educational opportunities, health services, transitional housing and more.
This reentry resource and job fair is a component of the U.S. Attorney’s Office’s violent crime reduction strategy. In addition to the office’s enforcement efforts to remove violent criminals with guns from our communities, the U.S. Attorney’s Office has initiated a number of outreach, intervention and prevention efforts to support and invest in communities plagued by violence, such as this reentry resource fair.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Two now face life for drug trafficking in local parking lotRead the Press Release
McALLEN, Texas – Two Mission men have pleaded guilty for their roles in a cocaine trafficking conspiracy, announced U.S. Attorney Alamdar S. Hamdani.
In October 2022, Eddie Perez, 29, was supposed to deliver narcotics to another individual on behalf of his friend Juan Alberto Mendez Jr., 28.
Authorities were conducting surveillance at a Best Buy parking lot in McAllen They saw vehicles approach, after which Perez removed bags containing bricks of cocaine from the trunk of his vehicle.
Mendez was parked in another vehicle observing the transaction.
Law enforcement approached and arrested Perez and Mendez immediately. They seized a total of 20 kilograms of cocaine.
Both admitted to conspiracy to possess with intent to distribute 20 kilograms of cocaine.
U.S. District Judge Marina Garcia Marmolejo accepted the pleas and set sentencing for July 24. At that time, both face a minimum of 1o years and up to life in prison as well as a possible $10 million maximum fine.
Mendez was permitted to remain on bond pending sentencing and Perez has been and will remain in custody pending sentencing.
The Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorney Laura Garcia prosecuted the case.
The United States Attorney’s Office for the Southern District of Indiana Commemorates National Crime Victims’ Rights Week April 23–29, 2023Read the Press Release
INDIANA- The United States Attorney’s Office for the Southern District of Indiana is commemorating National Crime Victims’ Rights Week from April 23–29, 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.
“Survivors’ voices must be heard. The United States Attorney’s Office for the Southern District of Indiana is committed to listening to victims and supporting them at every step of the criminal justice process and beyond,” said U.S. Attorney Zachary A. Myers. “National Crime Victims’ Rights Week is an opportunity for all of us involved in law enforcement to reaffirm our dedication to providing resources, connections, and support to victims of all crimes.”
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.”
During NCVRW 2023, the USAO SDIN will share information about victims’ rights and resources and underscore the importance of listening to survivors’ voices in every space where decisions are made that could impact them by holding a roundtable with Domestic Violence Service Providers in the district. The USAO SDIN is also honoring agents from the Federal Bureau of Investigation and Indianapolis Metropolitan Police Department for their tireless advocacy on behalf of communities that have been affected by crime.
On October 21, 2022, Attorney General Merrick B. Garland released revised Attorney General Guidelines for Victim and Witness Assistance. The revised guidelines updated, for the first time in a decade, when and how Department of Justice employees work with victims and witnesses of crime to ensure that their voices are heard and that they are protected during criminal justice proceedings. The guidelines apply to all department employees engaged in the investigative, prosecutorial, correctional, and parole functions within the criminal justice system.
For more information about how to support all victims of crime, visit OVC’s website at ovc.ojp.gov.
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The United States Attorney’s Office for the Southern District of Indiana Commemorates National Crime Victims’ Rights Week April 23–29, 2023Read the Press Release
INDIANA- The United States Attorney’s Office for the Southern District of Indiana is commemorating National Crime Victims’ Rights Week from April 23–29, 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.
“Survivors’ voices must be heard. The United States Attorney’s Office for the Southern District of Indiana is committed to listening to victims and supporting them at every step of the criminal justice process and beyond,” said U.S. Attorney Zachary A. Myers. “National Crime Victims’ Rights Week is an opportunity for all of us involved in law enforcement to reaffirm our dedication to providing resources, connections, and support to victims of all crimes.”
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.”
During NCVRW 2023, the USAO SDIN will share information about victims’ rights and resources and underscore the importance of listening to survivors’ voices in every space where decisions are made that could impact them by holding a roundtable with Domestic Violence Service Providers in the district. The USAO SDIN is also honoring agents from the Federal Bureau of Investigation and Indianapolis Metropolitan Police Department for their tireless advocacy on behalf of communities that have been affected by crime.
On October 21, 2022, Attorney General Merrick B. Garland released revised Attorney General Guidelines for Victim and Witness Assistance. The revised guidelines updated, for the first time in a decade, when and how Department of Justice employees work with victims and witnesses of crime to ensure that their voices are heard and that they are protected during criminal justice proceedings. The guidelines apply to all department employees engaged in the investigative, prosecutorial, correctional, and parole functions within the criminal justice system.
For more information about how to support all victims of crime, visit OVC’s website at ovc.ojp.gov.
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Thai Woman Sentenced for Her Role in International Sex Trafficking ConspiracyRead the Press Release
ST. PAUL, Minn. – Sumalee Intarathong also known as Alice Spencer Warren has been sentenced for her role in a large-scale international Thai sex trafficking organization, announced United States Attorney Andrew M. Luger.
According to court documents, the criminal organization conspired to make money by compelling hundreds of women from Bangkok, Thailand, to engage in commercial sex acts in various cities across the United States. Before her arrest in Belgium on August 5, 2016, Intarathong, 62, served as a visa broker for the sex trafficking organization. Each trafficked victim was “owned” by Intarathong and her co-conspirators, until the victim could repay an exorbitant “bondage debt” of between $40,000 and $60,000. Intarathong and other co-conspirators arranged for victims to travel from Thailand to the United States and placed the victims in a house of prostitution somewhere in the United States.
According to court documents, Intarathong and other co-conspirators in the organization engaged in widespread visa fraud to facilitate the international transportation of the victims. Members of the criminal organization assisted the victims in obtaining fraudulent visitor visas and travel documents. As a part of obtaining visa documents, members of the criminal conspiracy gathered personal information from the victims, including the location of the victims’ families in Thailand. This information was later used to threaten victims who became non-compliant or tried to flee the organization in the United States.
One of Intarathong’s victims wrote to the Court: “I am a victim of human trafficking and suffered psychologically because I was afraid that I would be arrested or the traffickers would come hurt or kill me. I was so scared even after the defendants in my case were arrested because I knew them directly. I did not dare go outside and was not able to sleep for a long time.” That victim had to engaged in commercial sex acts with “about seven to eleven customers per day” until she paid off her bondage debt.
According to court documents, the organization dealt primarily in cash and engaged in rampant and sophisticated money laundering in order to promote and conceal illegal profits. Throughout the course of the conspiracy the criminal organization has moved tens of millions of dollars in illegal proceeds from the United States to Thailand and elsewhere.
Intarathong was arrested in Belgium in August 2016 and remained in custody there until she was extradited to the United States in February 2021. On November 29, 2022, she pleaded guilty to one count of conspiracy to commit sex trafficking and one count of conspiracy to engage in money laundering. Intarathong, the last of the 38 defendants sentenced in the trafficking scheme, was sentenced today before Senior Judge Donovan W. Frank to time served since her arrest in 2016 and $500,000 in restitution to the victims. In addition, Intarathong agreed to be removed from the United States to Belgium or Thailand and will be turned over to Immigration and Customs Enforcement to carry out the Court’s order.
This case was the result of an investigation conducted by Homeland Security Investigations, Criminal Investigation Division of the IRS, Diplomatic Security Service, St. Paul Police Department, Anoka County Sheriff’s Office, and Cook County (Illinois) Sheriff’s Office, with the support of the International Organized Crime Intelligence and Operations Center (IOC-2). The Justice Department’s Office of International Affairs provided critical assistance in securing the defendant’s extradition from Belgium.
Assistant U.S. Attorneys Melinda A. Williams and Laura M. Provinzino prosecuted the case with the assistance of the DOJ Civil Rights Division’s Human Trafficking Prosecution Unit and the Money Laundering and Asset Recovery Section.
Ten charged with conspiring to make straw purchases of firearms allegedly bought with stolen credit card informationRead the Press Release
CINCINNATI – Federal agents arrested nine individuals for crimes relating to a conspiracy to buy firearms online and have them shipped to Cincinnati-area federal firearms licensees (FFLs). It is alleged that more than 70 firearms were bought with stolen credit card information and picked up, or attempted to be picked up, at local FFLs via straw purchases that hid the identity of the true buyer. Several of the defendants are also charged with COVID-relief crimes totaling more than $120,000 in alleged loss.
A total of 10 defendants were charged in two related indictments returned on April 12. The indictments were unsealed on April 21.
One defendant, Roderico Allen, 26, of Cincinnati, remains a fugitive. Law enforcement authorities ask anyone with information related to Allen’s whereabouts to call the ATF at 513-684-3354.
“These cases allege conspiracies that endangered our communities through straw firearms purchases, and several defendants are also alleged to have exploited pandemic relief,” said U.S. Attorney Kenneth L. Parker. “The U.S. Attorney’s Office will not waver in our determination to prosecute those who illegally purchase firearms and those who defrauded relief programs meant to help struggling Americans during the pandemic. Straw purchasers are as much a part of the problem of violence we are seeing on our streets as those who pull the trigger.”
Jones et al.
In one indictment, six individuals are charged with conspiring to make false statements during the purchase of a firearm from an FFL.
According to the indictment, from April 2022 through at least July 2022, the six conspired to make false statements to an FFL about the identity of the true buyer of the firearms, including on ATF Form 4473, which a buyer must fill out when purchasing a firearm.
Members of the conspiracy allegedly used stolen credit card information to buy firearms online from out-of-state FFLs, including Guns.com. The firearms were then shipped to Cincinnati-area FFLs for pickup. Members of the conspiracy allegedly bought the firearms in the names of other members of the conspiracy, who then falsely represented to local FFLs that they were the true buyers of the firearms and were not obtaining the firearms for anyone else.
It is alleged that the conspirators had 60 firearms shipped to the Southern District of Ohio and succeeded in obtaining at least 38 of those firearms.
The 23-count indictment charges:
Name
Age
City of Residence
Zephaniah Jones
20
Cincinnati
Nehemiah Jones
23
Atlanta, GA
Jerin Johnson, Sr.
35
Cincinnati
Cedric Conyers
34
Cincinnati
Aneesah Williams
27
Cincinnati
Mykia Melton
25
Cincinnati
Zephaniah Jones is also charged with three counts of unauthorized use of an access device and three counts of aggravated identity theft relating to his alleged use of stolen credit card numbers to buy firearms.
Four defendants – Zephaniah Jones, Nehemiah Jones, Mykia Melton and Jerin Johnson, Sr. – are also accused of fraudulently obtaining a total of five Small Business Administration Paycheck Protection Program (PPP) loans during the COVID-19 pandemic:
- It is alleged that Zephaniah Jones fraudulently applied for and obtained more than $20,000 in PPP loans. Zephaniah Jones allegedly falsely stated he was the sole owner of Jones Lawncare LLC, a business he allegedly falsely claimed was in operation in February 2020 and had $99,000 in gross income in 2020.
- Co-defendant Nehemiah Jones allegedly obtained two fraudulent PPP loans by falsely claiming to own a business called “massage on air” and falsely representing that the business earned $98,000 in gross income in 2020. Nehemiah Jones received two PPP loans totaling more than $40,000.
- Mykia Melton allegedly received nearly $21,000 in PPP loans by falsely claiming she owned a clothing and accessories wholesaler called “Kia’s Drip.” It is alleged she falsely claimed the business had $100,000 in gross income in 2020.
- Jerin Johnson, Sr. allegedly falsely claimed his handyman and contracting business grossed nearly $98,000 in income in 2020. He allegedly received a $20,000 PPP loan.
Allen et al.
The four defendants included in the second indictment are also charged with conspiring to make false statements during the purchase of a firearm from an FFL.
According to that indictment, from May 2022 through at least June 2022, the four defendants engaged in a conspiracy using the same fraud scheme as the Jones defendants. These defendants allegedly caused 14 firearms to be shipped to the Southern District of Ohio and obtained nine of them.
The individuals charged in this 10-count indictment include:
Name
Age
City of Residence
*Roderico Allen
26
Cincinnati
Tyler Sneed
25
Cincinnati
Kazyra Robertson
24
Cincinnati
Jaidah Jones
22
Columbus
*Fugitive
Roderico Allen is also charged with aggravated identity theft and unauthorized use of an access device relating to his alleged use of a stolen credit card number in May 2022.
Jaidah Jones is also charged with PPP fraud. She allegedly received approximately $20,000 after falsely claiming to own a shoe store, stating the shoe store earned $200,000 in gross income in 2020.
Conspiring to make false statements during the purchase of a firearm is a crime punishable by up to five years’ imprisonment, and making such false statements is punishable by up to 10 years’ imprisonment. Unauthorized use of an access device is a crime punishable by up to 10 years’ imprisonment. A conviction for aggravated identity theft requires a mandatory two-year prison term in addition to any other sentences imposed. Making false statements to an agency of the United States is punishable by up to five years in prison.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Daryl S. McCormick, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF); Angie Salazar, Special Agent in Charge for Homeland Security Investigations (HSI) Detroit Field Office; Cincinnati Police Chief Teresa A. Theetge; and Hamilton County Sheriff Charmaine McGuffey announced the charges. Assistant United States Attorney Julie D. Garcia is representing the United States in this case.
An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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Tax Preparation Company Operator Sentenced to Prison for FraudRead the Press Release
PITTSBURGH, PA – A tax preparer has been sentenced in federal court to 30 months’ imprisonment and one year of supervised release on his conviction of tax fraud, Acting United States Attorney Troy Rivetti announced today.
United States District Judge Cathy Bissoon imposed the sentence on Brian A. VanDusen, age 52, of Youngstown, Ohio.
According to information presented to the court, VanDusen operated a tax preparation company called “Easy Tax Refund” located in the Warner Center, in downtown Pittsburgh. Between 2014 and 2018, VanDusen and tax preparers employed at his company prepared and transmitted hundreds of false federal income tax returns which falsified Schedule C profit and loss income from a business, resulting in illegal tax refunds. Losses to the IRS totaled $994,824.00.
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
Acting United States Attorney Rivetti commended the Internal Revenue Service - Criminal Investigation Division for the investigation leading to the successful prosecution of VanDusen.
Tangipahoa Parish Man Sentenced in Jungle Life Mafia Street Gang Federal ProsecutionRead the Press Release
NEW ORLEANS, LOUISIANA – TERRELL HAYNES. a/k/a "Redman," age 44, was sentenced on April 18, 2023, to 145 months imprisonment, 5 years of supervised release, and a $300 mandatory special assessment fee by U.S. District Judge Jay C. Zainey, announced U.S. Attorney Duane A. Evans. HAYNES previously pled guilty to conspiring to distribute 400 grams or more of fentanyl, 50 grams or more of methamphetamine, and 1 kilogram or more of heroin. He also pled guilty to distribution of methamphetamine and possessing a firearm as a convicted felon.
According to court documents, Drug Enforcement Administration (“DEA”) agents began investigating the drug trafficking activities of the Jungle Life Mafia street gang in Tangipahoa Parish, Louisiana in 2019. The investigation spanned two years and included surveillance and six controlled buys of narcotics, including fentanyl, heroin, and methamphetamine, from HAYNES. The execution of a search warrant at HAYNES’s residence led to the seizure of a Taurus Model Millennium PT111 G2, nine-millimeter pistol and $8,146 in U.S. currency.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This case is also part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the federal Drug Enforcement Administration, Hammond Police Department, Tangipahoa Parish Sheriff’s Office, Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, 21st Judicial District Attorney’s Office, St. Tammany Parish District Attorney’s Office, Jefferson Parish Sheriff’s Office, and the U.S. Marshals Service. The prosecution is being handled by Assistant United States Attorney J. Benjamin Myers of the Narcotics Unit.
St. Mary’s Man Charged with Illegal Moose Guiding and Wire FraudRead the Press Release
ANCHORAGE – A federal Grand Jury in Anchorage, Alaska returned an indictment on Friday, April 21, 2023, charging Michael Mikhail Beans of Saint Mary's Alaska with two (2) felony counts for violations of the Lacey Act and nineteen (19) felony counts for wire fraud in connection with the sale of the illegal moose hunts.
From October of 2021 to the present Beans collected over $59,000 from hunting parties, over thirty hunters in total, for moose hunts to be conducted in Alaska in September of 2022 and September of 2023.
According to court documents, Beans, 34, was charged by the grand jury for Lacey Act violations for guiding two hunters for bull moose when not licensed as a Big Game Guide or Transporter by the State of Alaska. The Lacey Act makes it illegal to transport and illegally sold wildlife in interstate commerce.
Beans was also charged with wire fraud in connection with booking guided moose hunts, receiving over $59,000 in electronic payments from clients, and then canceling the hunts without providing a refund.
If convicted Beans faces up to five (5) year imprisonment and a fine of $250,000.
An arraignment date has not been set. 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 and Special Agent In-Charge Jeff Mihan made the announcement.
The investigation is being handled by the U.S. Fish and Wildlife Service and Alaska Wildlife Troopers Investigations Unit.
Assistant U.S. Attorneys Ainsley McNerney and Steve Skrocki are 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.
St. Louis Woman Sentenced to Prison for Loan FraudRead the Press Release
BENTON, Ill. – A U.S. District judge sentenced a St. Louis woman to 12 months and one day in prison after she admitted to visiting Metro East credit unions and using fake identification documents to take out loans.
Toneka D. Prince, 20, pled guilty to one count of falsely obtaining property owned by a financial institution and one count of aggravated identity theft. Prince was ordered to pay $9,800 in restitution, and after completing her prison sentence, she will serve two years of supervised release.
“Stealing identities, taking out loans in someone else’s name and defrauding a financial institution are all serious crimes, and luckily, the defendant was apprehended,” said U.S. Attorney Rachelle Aud Crowe. “I appreciate our federal and local law enforcement partners for their efforts to bring Ms. Prince to justice.”
“This type of fraudulent activity can be devastating to hardworking citizens and their families, and we appreciate our partnership with the U.S. Attorney’s Office to hold individuals accountable for their actions,” said USSS Resident Agent in Charge Stephen Webster. “The U.S. Secret Service remains committed to identifying, investigating, and pursuing those who attempt to enrich themselves through fraudulent means.”
According to court documents, Prince engaged in a scheme to defraud a credit union using identification documents of two victims in her attempts to take out loans. The identity-theft victims’ information would first be used to fill out a loan application line. Once the loan was approved, Prince would enter the credit union and pretend to be the victim in order to collect the money.
One June 24, 2022, Prince visited the First Community Credit in Glen Carbon to collect the cash from the approved loan. She presented a fake Illinois driver’s license with a victim’s real identifiable information and successfully obtained a cash loan of $9,800. She was not authorized to use the individual’s identity.
On June 28, 2022, she went to the First Community Credit Union in Fairview Heights and signed one victim’s name on a loan application for $9,900. In the application, Prince used a fake temporary Illinois driver’s license and fake Spire gas bill with the victim’s real social security number and date of birth included. Once again, she was not authorized to use the victim’s identity.
Law enforcement officers apprehended Prince at the credit union in Fairview Heights.
U.S. Secret Service led the investigation with contributions from the Glen Carbon and O’Fallon police departments. Assistant U.S. Attorney Peter T. Reed prosecuted the case.
Springfield, Vermont Man Sentenced to 7 Years in Prison for Robbing Two Banks and Three Convenience StoresRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Samuel Colby, 40, of Springfield, Vermont, was sentenced to serve 7 years in prison after pleading guilty to having committed two bank robberies and the robberies of three convenience stores in January of 2022. United States District Judge William K. Sessions III also ordered Colby to serve a three-year term of supervised release after his release from prison.
According to court records, during the early-morning hours of January 6, 2022, Colby robbed the Circle K convenience store in Springfield, Vermont of both cash and cigarettes by displaying what the clerk believed to be a black handgun, but which was actually a BB gun. On the evening of January 6, 2022, Colby robbed the Allen Brothers convenience store in Westminster, Vermont of both cash and cigarettes by displaying what the clerk believed to be a black handgun in his waistband, but which was actually a BB gun. On January 8, 2022, Colby robbed the 802 Credit Union in Springfield, Vermont of cash by presenting a demand note to the teller stating he had a gun and would shoot someone if he did not receive $2,000 in cash. Colby’s demand note was written on a torn piece of distinctive stationery. On January 10, 2022, Colby robbed the People’s United Bank in Springfield, Vermont of cash by displaying what the teller believed to be a black handgun, but which was actually a BB gun. On January 13, 2022, Springfield Police encountered Colby outside the 802 Credit Union in Springfield, where he was identified by witnesses as the robber during the robbery five days prior. Springfield Police approached Colby, spoke with him, seized Colby’s vehicle, and applied for a State of Vermont search warrant which was granted the next day. Inside the vehicle, officers located a black BB gun consistent in appearance with a functional semi-automatic pistol. The search of Colby’s vehicle was interrupted by reports of another robbery occurring at the Family Dollar store in Springfield. On the afternoon of January 14, 2022, Colby robbed the Family Dollar by demanding cash from the cashier and displaying a black baton-like object. Colby was located and arrested shortly after the robbery. Law enforcement thereafter obtained a State of Vermont search warrant for Colby’s residence, and during that search, located clothing items consistent with those worn during the robberies, cigarettes believed to have been stolen during the robberies, and the top portion of a torn piece of stationery that matched the demand note Colby had used.
United States Attorney Nikolas P. Kerest commended the collaborative investigatory efforts of the Springfield Police Department, the Vermont State Police, and the Federal Bureau of Investigation. He also commended the assistance of the Vermont Forensic Laboratory, who provided crucial assistance analyzing evidence in the case.
U.S. Attorney Kerest stated: “Samuel Colby committed multiple bank robberies and convenience store robberies in southeastern Vermont over the course of eight days. In addition to traumatizing victims, these types of crime sprees are dangerous and disruptive for our communities. Thanks to the coordinated and diligent work of the Springfield Police Department, the Vermont State Police, and the Federal Bureau of Investigation, Colby was arrested and brought to justice. Our office will continue to work closely with local, state, and federal law enforcement partners to protect the safety of Vermonters.”
Assistant United States Attorneys Wendy Fuller and Jonathan Ophardt handled the prosecution. Natasha Sen, Esq. represented Colby.
South Texan admits to importing crystal methRead the Press Release
McALLEN, Texas – A 39-year-old Edinburg woman has pleaded guilty to importing 24 kilograms of crystal meth into the United States from Mexico, announced U.S. Attorney Alamdar S. Hamdani.
On April 17, 2022, Nelly Guerra attempted to make entry into the United States through the Donna Port of Entry. During inspection, authorities discovered 15 packages concealed within the side panels of the vehicle.
The investigation revealed the substance was meth with a purity level of 90%.
U.S. District Judge Hinojosa will impose sentencing July 26. At that time, Guerra faces a mandatory minimum of 10 years and up to life in federal prison.
She has been and will remain in custody pending sentencing.
Homeland Security Investigations conducted the investigation with the assistance of the Drug Enforcement Administration and Customs and Border Protection. Assistant U.S. Attorney Devin V. Walker is prosecuting the case.
South Los Angeles Woman Pleads Guilty to Scheming with Others to Use Stolen Identities to Fraudulently Obtain COVID Jobless BenefitsRead the Press Release
LOS ANGELES – The final defendant in a conspiracy – led by a woman serving a life sentence for murder – that used stolen identities of California prison inmates and others to fraudulently obtain at least $993,181 in state unemployment insurance (UI) benefits pleaded guilty today to a federal criminal charge.
Mykara Destiny Robinson, 24, of Los Angeles, who was charged under the incorrect name of “Mykara Destiny Robertson,” pleaded guilty today to one count of bank fraud.
Robinson is the 13th and final defendant to plead guilty in this case, whose lead defendants are Natalie Le Demola, 38, originally of Corona and who currently is serving a life prison sentence after she was convicted in 2005 of first-degree murder, and Carleisha Neosha Plummer, 33, of Los Angeles, a close prison associate of Demola’s until her parole in July 2020.
The case’s other defendants are:
- Khanshanda Eugenea King, 32, of Los Angeles;
- Cleshay Johnson, II, 29, of Los Angeles;
- James Antonio Johnson, 32, of Los Angeles;
- Felicite Aleisha King, 42, of Los Angeles;
- Shafequah Lynete Mitchell, 34, of Los Angeles;
- Loresha Shamone Davis, 32, of Moreno Valley;
- Porsha Latrice Johnson, 33, of Lynwood;
- Donisha Lashawn Pace, 39, of South Los Angeles;
- Dominique Charmone Martin, 38, of Yucaipa; and
- Amber Jane Wade, 35 of Palmdale.
Demola, Plummer, and other co-conspirators “would acquire the personal identifying information (PII), such as the names, dates of birth, and Social Security numbers, of individuals, including identity theft victims, who were not eligible for UI benefits, including pandemic benefits, because they were employed, retired, or incarcerated,” according to a 39-count indictment returned in May 2022.
Members of the conspiracy then used the information to make fraudulent online applications for UI benefits from the California Employment Development Department (EDD). Once the applications were approved, members of the conspiracy received EDD-funded debit cards that allowed them to withdraw money from ATMs across Southern California.
According to Robinson’s plea agreement, the conspiracy began in June 2020 and Robinson joined it two months later. Robinson and other members of the conspiracy assumed the identities of California prison inmates and used EDD debit cards issued in their names to make fraudulent cash withdrawals of UI benefits, including pandemic benefits, from Bank of America ATMs in Los Angeles County.
As to Robinson specifically, from August 2020 to October 2020, Robinson and her co-conspirators used 10 debit cards to withdraw a total of approximately $68,742 in fraudulently obtained EDD funds from ATMs in Southern California. But, in total during the scheme, Robinson and other co-conspirators withdrew at least $993,181 in EDD funds from approximately 151 fraudulent accounts.
United States District Judge John F. Walter scheduled a July 3 sentencing hearing for Robinson, at which time she will face a statutory maximum sentence of 30 years in federal prison.
Demola pleaded guilty on March 7 to one count of conspiracy to commit wire fraud and bank fraud, three counts of bank fraud, and one count of aggravated identity theft. She faces a statutory maximum sentence of 30 years on the conspiracy and bank fraud counts, and a mandatory two-year consecutive sentence for the aggravated identity theft count, at her July 10 sentencing hearing.
Plummer pleaded guilty on April 17 to one count of conspiracy to commit wire fraud and bank fraud, and one count of aggravated identity theft. She faces up to 32 years in federal prison at her July 14 sentencing hearing.
The case’s other defendants have pleaded guilty to conspiracy to commit wire and bank fraud, bank fraud, and/or aggravated identity theft based on their respective roles within the scheme. Most defendants will face a statutory maximum sentence of 30 years in federal prison.
The investigation into this scheme was conducted by the Los Angeles El Camino Real Financial Crimes Task Force, a multi-agency task force led by Homeland Security Investigations that includes federal and state investigators who are focused on financial crimes in Southern California. The California Employment Development Department, the California Department of Corrections and Rehabilitation, the United States Department of Labor – Office of Inspector General, the Inglewood Police Department, and the United States Marshals Service participated in this investigation.
Assistant United States Attorney David C. Lachman of the Terrorism and Export Crimes Section and Assistant United States Attorney Nisha Chandran of the Cyber and Intellectual Property Crimes Section are prosecuting this case.
Anyone with information about allegations of fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at (866) 720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Sex Offender Sentenced to 25 Years in Federal Prison for Child Pornography OffenseRead the Press Release
TEXARKANA – A Hot Springs man was sentenced today to 300 months in prison without the possibility of parole on one count of Transportation of Child Pornography. The Honorable Chief Judge Susan O. Hickey presided over the sentencing hearing, which was held in the U.S. District Court in Texarkana, Arkansas.
According to court documents, in early 2022, the Federal Bureau of Investigation (FBI) received information from the National Center for Missing and Exploited Children that an individual in Hot Springs had posted numerous images of child sexual abuse material (CSAM) to the social media platform Snapchat. The subsequent investigation determined that all the CSAM posts were made by the same user, who was identified as Brandon Joshua Napier, age 33. At the time, Napier had previously been convicted of Possessing or Viewing Child Pornography and was consequently required to register as a Sex Offender while residing in Garland County.
Napier was indicted by a Grand Jury in the Western District of Arkansas in June 2022 and entered a plea of guilty in September 2022.
U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
The Federal Bureau of Investigation, the Arkansas Department of Community Corrections, and the Hot Springs Police Department participated in the investigation of the case.
Assistant U.S. Attorney Carly Marshall and Assistant U.S. Attorney Devon Still prosecuted the case on behalf of the United States.
This case was prosecuted 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.
Several convicted in family-run illegal gambling businessesRead the Press Release
LAREDO, Texas – A total of seven local residents have been convicted of conspiring to conduct illegal gambling in Webb and Zapata counties, announced U.S. Attorney Alamdar S. Hamdani.
Hilda Diana Guerra-Villarrea, 74, Raul Rene Villarreal, 51, and Alma Urania Garcia, 33, all of Zapata, pleaded guilty today to conspiring to conduct and conducting illegal gambling at locations in Webb and Zapata counties.
Four others - Rodolfo Ricardo Villarreal Jr., 37, Juan Vasco, 52, and Ruben Samuel Villarreal, 28, all from Zapata and Maria Mendieta, 42, Bruni - entered their pleas to the same charges in 2022.
The investigation revealed a complex conspiracy which began in 2019. As part of the scheme, various members of the Villarreal family conspired to operate a family-run illegal gambling business at multiple establishments in Webb and Zapata Counties near the city of Laredo. This included the Lucky Spins (Red Barn) in Bruni, Desert Diamond in Falcon and Golden Amusement in Zapata.
Members of the family and their close associates owned and operated the establishments and illegally made cash payouts to customers.
As part of her plea today, Guerra-Villarreal agreed to the forfeiture of an estimated $2.6 million in the form of land, buildings and gambling machines.
U.S. District Judge Diana Saldana will impose sentencing for all at a later date. At those hearings, each faces up to five years in prison and a possible $250,000 fine.
All seven have been permitted to remain on bond pending that hearing.
Homeland Security Investigations investigated the case with assistance from the Laredo Police Department, Texas Department of Public Safety and Webb County District Attorney’s Office.
Assistant U.S. Attorney Francisco J. Rodriguez, Mary Ellen Smyth, Gerard Cantu and Matthew Isaac are prosecuting the case.
Second man pleads guilty to importing methRead the Press Release
McALLEN, Texas – A 50-year-old Alton resident has admitted he aided and abetted another man to bring meth into the country, announced U.S. Attorney Alamdar S. Hamdani.
On April 22, 2021, Argelio Chavero drove a Chevrolet Trailblazer into Mexico from the United States with Agustin Romero Jr. in the passenger seat.
They returned two days later. Chavero entered the country through the Hidalgo port of entry pedestrian lane. At the same time, Chavero was driving the Trailblazer which was loaded with narcotics.
Upon entry, authorities referred him and the vehicle to secondary inspection where they discovered anomalies in the fuel tank area. A physical search resulted in the seizure of 33 packages of meth and marijuana.
The weight of the meth was approximately 12 kilograms and had an estimated street value of approximately $70,000.
Further investigation led to the identification of Chavero.
Romero, 40, a U.S. citizen residing in Reynosa, Tamaulipas, Mexico, previously pleaded guilty for his role. At that time, he admitted he received payment from Chavero to drive the vehicle.
U.S. District Judge Marina G. Marmolejo accepted the plea today. U.S. District Judge Ricardo H. Hinojosa will impose sentencing for Romero and Chavero May 25 and July 26, respectively. At that time, Romero and Chavero both face a mandatory minimum of 10 years and up to life in prison and a possible $250,000 maximum fine.
Both have been and will remain in custody pending that hearing.
Homeland Security Investigations conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorneys Colton Turner and Eliza Rodriguez are prosecuting the case.
Schuele Boy Pleads Guilty to Racketeering ConspiracyRead the Press Release
BUFFALO, N.Y. – U.S. Attorney Trini E. Ross announced today that Roderick Arrington, a/k/a Ra-Ra, 41, of Buffalo, NY, pleaded guilty before Chief U.S. District Judge Elizabeth A. Wolford to racketeering conspiracy, which carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorneys Jeremiah E. Lenihan and Timothy C. Lynch, who handled the case, stated that Roderick was a member of the Schuele Boys Gang, which operated in the Schuele Street area of the East Side of Buffalo, was responsible for multiple acts of violence and the distribution of illegal narcotics including cocaine, crack cocaine, and marijuana. The Government states that one of those acts of violence was the murder of Quincy Balance a/k/a Shooter, at the intersection of Northland and Stevens on the East Side of Buffalo on August 30, 2012. The Schuele Boys believed Balance was involved in the shooting murder of one of their associates on nearby Carl Street four days earlier. During his plea, Arrington denied being involved in the murder of Quincy Balance.
The plea is the result of an investigation by the FBI Safe Streets Task Force, under the direction of Special Agent-in-Charge Matthew Miraglia; the Buffalo Police Department, under the direction of Commissioner Joseph Gramaglia; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank A. Tarentino III, New York Field Division; and the New York State Police, under the direction of Major Eugene Staniszewski.
Sentencing is scheduled for August 29, 2023, before Judge Wolford.
Salinas Man Indicted and Arrested for Child ExploitationRead the Press Release
SAN JUAN, Puerto Rico – On April 20, 2023, a federal grand jury returned an indictment charging Alexander Joel Rivera-Santos, 25, of Salinas, Puerto Rico, with possession and transportation of child sexual abuse material, announced W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico. The arrest follows an investigation by Homeland Security Investigations (HSI) with the assistance of the Puerto Rico Police Bureau (PRPB) and the U.S. Attorney’s Office for the District of Puerto Rico.
According to the indictment, from May 2021 through June 2022, Rivera-Santos knowingly possessed images of child pornography, including child pornography of a minor who had not attained 12 years of age, in violation of 18 U.S.C. § 2252A. As such, Rivera-Santos faces a mandatory minimum sentence of 5 years and a maximum of 20 years of imprisonment, if convicted.
“The U.S. Attorney’s Office will continue to work with its law enforcement partners to aggressively investigate and prosecute persons who use technology to victimize children who are victims of child exploitation crimes,” said U.S. Attorney Muldrow.
“Our HSI San Juan agents are collaborating relentlessly with agents from all over the nation to identify and prosecute with solid evidence all those who have the intent to damage the innocence of our children. They can try to hide in chat rooms or cyber spaces, but rest assured, we will find them,” said Rebecca C. González, Acting Special Agent in Charge of HSI San Juan.
Rivera-Santos had his initial appearance before U.S. Magistrate Judge Marcos López and was ordered to remain temporarily detained at the Guaynabo Metropolitan Detention Center pending further proceedings.
Assistant United States Attorney Emelina Agrait-Barreto, of the Child Exploitation and Immigration Unit, is in charge of the prosecution of this case.
HSI is the principal investigative arm of DHS and a vital U.S. asset in combatting transnational crimes and threats. One of HSI’s top priorities is to protect the public from crimes of victimization, and HSI’s child exploitation investigations program is a central component of this mission. HSI is recognized as a global leader in this investigative discipline, and is committed to utilizing its vast authorities, international footprint and strong government and non-government partnerships to identify and rescue child victims, identify and apprehend offenders, prevent transnational child sexual abuse and help make the internet a safer place for children.
For more information about HSI’s efforts to protect children from online sexual abuse, visit https://www.ice.gov/topics/iGuardians.
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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Russian Woman Pleads Guilty to Smuggling Animal DNARead the Press Release
ALEXANDRIA, Va. – A Russian national residing in Leesburg pleaded guilty today to smuggling animal DNA into the United States at Washington Dulles International Airport.
According to court documents, on August 19, 2022, Polina Perelman arrived at Dulles Airport from Russia. On her Customs Declaration, Perelman denied that she was importing any animals, animal products, or cell cultures. However, during an inspection of her luggage customs officers found a Styrofoam cooler labeled “Research Samples,” containing 19 small vials and tubes packed in dry ice. When asked about the vials and tubes, Perelman said that they contained cell lines and DNA samples that she planned to have sequenced in the United States for her research in Russia. Perelman said that the samples were suspended in a freezing/transport medium containing fetal bovine serum, which also contained dimethyl sulfoxide and Alpha Minimum Essential Medium to help preserve the samples.
Further, according to court documents, Perelman said that she was a researcher at the Institute of Molecular & Cellular Biology in Novosibirsk, Russia, and does genetic sequencing of animal and reptile DNA to study evolution. Perelman admitted that she failed to declare her possession of wildlife products and cell cultures because she was concerned that customs officials might think that the vials contained a disease agent, and that if she declared the samples, customs officials would seize the samples and ask her unwanted questions.
According to court documents, of the 19 samples that Perelman attempted to introduce into the United States, two contained biological material derived from Siberian crane and dhole, endangered species under U.S. law and protected by an international treaty known as the Convention on International Trade in Endangered Species (CITES).
Perelman is scheduled to be sentenced on August 24, 2023. She faces a maximum penalty of 20 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Derek W. Gordon, Special Agent in Charge of U.S. Homeland Security Investigations (HSI) Washington, D.C.; and Edward Grace, Assistant Director of Law Enforcement for the U.S. Fish and Wildlife Service, made the announcement after U.S. District Judge Patricia T. Giles accepted the plea.
Assistant U.S. Attorneys Cristina Stam and Gordon Kromberg are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:23-cr-55.
Roswell escrow manager set to plead guiltyRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico announced today that Christopher Adam Jensen-Tanner is set to plead guilty to wire fraud and engaging in monetary transaction in property derived from specified unlawful activity on April 26, 2023 at 2:30 pm. Christopher Adam Jensen-Tanner, 44, of Roswell, is not in custody.
Jensen-Tanner used his position and access as owner and president of Roswell Escrow Services, Inc. (RES) to fraudulently redirect customer funds for his personal benefit.
If you were a client of Jensen-Tanner and/or RES and believe you are a victim, please contact the FBI tipline at 1-800-CALL-FBI (1-800-225-5324) or login at tips.fbi.gov to notify the Federal Bureau of Investigation.
If you are a victim or potential victim and would like to attend the plea hearing on April 26, 2023 at 2:30 pm, please contact Victim Specialist Jacquie Gutierrez at (575) 522-2304 before the date of the hearing for more information.
The Roswell Division of the FBI and IRS Criminal Investigation investigated this case with assistance from the Securities and Financial Institutions Divisions of the New Mexico Regulation and Licensing Department. Assistant United States Attorneys Ryan Ellison and Richard Williams are prosecuting the case.
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Roma man admits to trafficking $33 million in marijuanaRead the Press Release
McALLEN, Texas – A 34-year-old local man has been convicted of drug trafficking after trying to escape drug house through an attic vent, announced U.S. Attorney Alamdar S. Hamdani.
Adan Ontiveros Jr. pleaded guilty to conspiring to possess with the intent to distribute nearly 2,500 kilograms of marijuana.
On July 16, 2020, law enforcement was conducting surveillance at a suspected drug house in Roma. There, they saw a man - Ontiveros - attempting to discretely exit the residence. He was trying to escape via an attic vent. However, authorities quickly took him into custody.
They obtained a search warrant and ultimately discovered several hundred bundles of marijuana. The total weight was 2,477 kilograms with an approximate value of more than $33 million.
He admitted he was aware there was marijuana inside the stash house.
U.S. District Judge Richardo Hinojosa will impose sentencing July 27. At that time, Ontiveros faces up to life in prison as well as a maximum $10 million possible fine.
The Texas Department of Public Safety and the Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorneys Matthew Phelps and Roberto Lopez Jr. are prosecuting the case.
Rapper “Desiigner” Charged with Indecent Exposure on an AircraftRead the Press Release
MINNEAPOLIS – A California man has been charged in a federal criminal complaint with indecent exposure on an aircraft, announced U.S. Attorney Andrew M. Luger.
According to a law enforcement affidavit, on April 17, 2023, Sidney Royel Selby III, 25, also known as “Desiigner,” was traveling on Delta Flight 120 from Tokyo, Japan, to Minneapolis-St. Paul International Airport. While the flight was in the air, Selby, who was seated in the Delta One cabin, exposed his genitals multiple times. During one of the exposures, he masturbated. A flight attendant handed Selby an FAA violation card, which is a notice that states a passenger’s behavior “appears to be in violation of federal law.” At the request of flight attendants, Selby moved to the rear of the plane and was seated near two travel companions who agreed to monitor him. When Flight 120 arrived in Minneapolis, Selby was detained and interviewed by an FBI agent.
Selby is charged with one count of indecent exposure on an aircraft. The alleged offense is a misdemeanor punishable by no more than 90 days imprisonment and a $500 fine. Selby will make his initial appearance before a Magistrate Judge in U.S. District Court at a later date.
This case is the result of an investigation conducted by the FBI, with assistance from U.S. Customs and Border Protection and the Minneapolis-St. Paul Airport Police.
Assistant U.S. Attorneys Matthew D. Forbes and Laura M. Provinzino are prosecuting the case.
A complaint is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Queens Meat and Poultry Distributor Resolves Claims for Repeated Violations of Federal Food Safety LawsRead the Press Release
Breon Peace, United States Attorney for the Eastern District of New York, announced today that the United States has entered into a consent decree barring USA Halal Foods, Inc., also known as As-Salaam Halal and Fine Foods Wholesale Distributors (USA Halal Foods), and its President, Kashiif Saeed (Saeed), from offering for sale or transporting any misbranded meat or poultry products to the general public.
“Consumers deserve confidence that the food they purchase is properly inspected and safe to eat,” stated United States Attorney Peace. “We have, and will continue, to enforce food safety laws that hold food distributors accountable to the required standards and protect the public from misbranded products.”
The consent decree, approved April 18, 2023 by United States District Judge LaShann DeArcy Hall, requires USA Halal Foods and Saeed to keep records that fully and accurately disclose the offer for sale or transportation or other transactions of meat and poultry products.
The decree also provides for escalating monetary fines if USA Halal Foods violates the Federal Meat Inspection Act (FMIA) and the Poultry Products Inspection Act (PPIA).
The court-ordered relief resolves a lawsuit filed on April 11, 2023. According to the complaint, the government’s claims arose from several investigations conducted by the Food Safety and Inspection Service of the United States Department of Agriculture (FSIS). These investigations revealed that between 2017 and 2022, USA Halal Foods and Saeed repeatedly offered for sale or transportation goat, lamb, beef and chicken products that were misbranded and not federally inspected and passed, and failed to keep and maintain records that fully and accurately disclosed all transactions.
The FMIA and PPIA prohibit the sale, transportation, offer for sale or transportation, or receipt for transportation, in commerce, of meat or meat and poultry products that are misbranded or that have not been inspected and passed by FSIS when inspection is required. Meat and poultry products are “misbranded” under the FMIA and PPIA if, among other things, the products fail to bear a label showing the name and place of business of the manufacturer, packer, or distributor, an accurate statement of the quantity of the contents in terms of weight, measure, or numerical count, and the inspection legend. Businesses that engage in buying, selling, or transporting meat or poultry products must also keep records that fully and accurately disclose their business transactions and afford FSIS access to such records.
This case is being handled by Assistant United States Attorney Kevin Yim from the Office’s Civil Division.
In March 2022, the United States Attorney’s Office for the Eastern District of New York announced a Consumer Protection Team in the Office’s Civil Division. The Consumer Protection Team pursues all appropriate measures to stop culpable entities and individuals that engage in conduct threatening the health, safety, economic security, or dignity of potentially vulnerable individuals. For more information on the U.S. Attorney’s Office, or to report suspected consumer fraud, please visit https://www.justice.gov/usao-edny.
The Defendants:
USA HALAL FOODS, INC.
KASHIIF SAEED
E.D.N.Y. Docket No. 23-CV-2689 (LDH)
Prohibited Person Sentenced to Seven Years for Possessing a Gun and AmmunitionRead the Press Release
WASHINGTON - Decondi Mayo, 46, of Washington, D.C., was sentenced today to 84 months in prison for unlawful possession of a firearm and ammunition, announced U.S. Attorney Matthew M. Graves, Acting Special Agent in Charge Michael Weddel, of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and Robert J. Contee III, Chief of the Metropolitan Police Department (MPD).
Decondi Mayo pleaded guilty in September 2022, in the United States District Court, to unlawful possession of a firearm and ammunition by a person convicted of a crime punishable by imprisonment for a term exceeding one year. In addition to the seven year prison term, U.S. District Court Judge Paul Friedman ordered three years of supervised release.
According to the government’s evidence, on January 29, 2021, at approximately 3 p.m., members of the Metropolitan Police Department (MPD) Crime Suppression Team were on patrol in the 2200 block of Bryan Place, S.E., Washington, DC. The officers observed the defendant reaching into the passenger side window of a blue Nissan Maxima with Maryland paper tags. The defendant looked in the officers’ direction as they pulled into the block and he immediately separated himself from the vehicle and continued to look back over his shoulder at officers. Shortly thereafter, the defendant walked up concrete steps toward a boarded up and uninhabitable home located at 2212 Bryan Place, SE. Officers parked, exited their vehicles, and observed the defendant continually pressing his right arm against the right side of his jacket as if he was attempting to secure an object on the front of his person. An officer then observed the defendant discard a pistol from his front waistband area. The defendant was subsequently arrested and found with a magazine with ten live rounds. The recovered firearm that the defendant tossed was a 9mm Glock 26 with one round of ammunition in the chamber and sixteen rounds in the magazine.
In announcing the sentence, 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 acknowledged 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 U.S. Attorney Shehzad Akhtar, former Assistant United States Attorney Brandon Regan, former Assistant United States Attorney Kaitlin Ann Vaillancourt and Special Assistant U.S. Attorney Kristina Cervi who investigated and prosecuted the case.
Physician and pharmacy settle claims for unnecessary medicationsRead the Press Release
HOUSTON – A 61-year-old doctor and a compounding pharmacy he operates paid the United States $7,963,246 to resolve claims they improperly billed the Department of Labor, Office of Workers’ Compensation Program (DOL-OWCP), announced U.S. Attorney Alamdar S. Hamdani.
Dr. Ajay Kumar Aggarwal and Medley Compounding Pharmacy LLC knowingly and willfully submitted, or caused the submission of, false claims to DOL-OWCP. The claims for payment were for compounding creams, gels and pain patches that were neither medically necessary nor medically beneficial to the patients. The investigation revealed DOL-OWCP beneficiaries were receiving excessive and unnecessary medication through the U.S. mail.
“It is particularly egregious when providers who participate in federally funded programs like OWCP violate their responsibility to the public to provide legitimate, necessary and safe treatment,” said Hamdani. “We are not going to stand by when such people take advantage of federal employee health insurance programs and dispense unnecessary medications and services to the federal workforce. The significant penalty announced today is an example of that effort.”
Aggarwal owned and operated A.A. Texas Anesthesiology Back Pain Center where he allegedly wrote and issued prescriptions for compound pain medications to injured federal employees with federal worker’s compensation benefits. Medley filled the prescriptions.
Aggarwal’s wife owned Medley on paper. Medley began billing DOL in 2013, a year after it opened.
The investigation began when an individual employed at Medley filed a qui tam aka whistleblower lawsuit under seal Oct. 10, 2017. During his term of employment, the whistleblower allegedly witnessed patients being sent unnecessary, unwanted medications through the United States mail despite the fact they did not need and could not benefit from the medications. In a few instances, patients did not see, or ever meet, Aggarwal. Medley employees were allegedly instructed to auto-fill medications on a monthly basis and to use pre-printed prescription pads to submit the prescriptions to DOL-OWCP without consideration of medical need.
“This settlement is a testament to the dedication and determination of the investigative and legal teams,” said Special Agent in Charge Jonathan Ulrich, U.S. Postal Service - Office of Inspector General (USPS-OIG). “USPS-OIG, along with our law enforcement partners, will continue to vigorously investigate these types of cases in order to root out fraud, waste and abuse.”
“Protecting the integrity of the programs administered by OWCP is an important part of the mission of DOL-OIG. We will continue to work with OWCP and the Department of Justice to vigorously pursue allegations of fraud involving these programs,” said Special Agent-in-Charge Steven Grell, Central Region, DOL-OIG.
Under the False Claims Act, a private party known as a relator can file an action on behalf of the United States and receive a portion of the recovery. In this case, the relator will receive a total of $1,353,752.
DOL-OIG and USPS-OIG conducted the investigation. Assistant U.S. Attorney Jill O. Venezia handled the matter.
Passaic County Man Charged with Shooting Gun During Two Pharmacy RobberiesRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man was arrested in connection with two armed robberies of pharmacies for prescription medication, U.S. Attorney Philip R. Sellinger announced today.
Antonio Rivera, 46, of Paterson, New Jersey, is charged by complaint with one count of interference with commerce by robbery, one count of attempted interference with commerce by robbery, and one count of using, carrying, and discharging a firearm during and in relation to a crime of violence. Rivera made his initial appearance before U.S. Magistrate Judge André M. Espinosa in Newark federal court and was detained.
According to the complaint and statements made in court:
In February and April 2023, Rivera robbed and attempted to rob two pharmacies in Paterson and Passaic, New Jersey. During these robberies, Rivera fired his gun and pointed it at numerous victims. Ballistics evidence shows that the same firearm was used in both robberies.
On Feb. 8, 2023, Rivera robbed a Paterson pharmacy at gunpoint, shooting one time and demanding Percocet, Morphine, and Oxycodone pills. One pharmacy employee placed mediation bottles inside Rivera’s backpack. Rivera discharged another round, after which another pharmacy employee gave Rivera cash from the cash register.
On April 5, 2023, Rivera attempted to rob a Passaic pharmacy at gunpoint, raising a handgun to a pharmacy employee’s head and demanding that the employee put money from the cash register in a bag. When the employee refused, Rivera demanded pills while pointing the handgun at other pharmacy employees and fired a shot before fleeing the pharmacy through the rear.
The interference with commerce by robbery and attempted interference with commerce by robbery counts each carry a maximum potential penalty of 20 years in prison. The discharging of a firearm during a crime of violence count carries a maximum of life in prison and mandatory minimum sentence of 10 years in prison, which must run consecutive to any other prison term. Each count also carries a potential $250,000 fine.
U.S. Attorney Sellinger credited the FBI Newark Violent Incident Crimes Task Force, Garrett Mountain Resident Agency, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the charges. U.S. Attorney Sellinger also thanked Passaic County Sheriff’s Department, under the direction of Sheriff Richard H. Berdnik; the Paterson Police Department, under the direction of Interim Officer in Charge, Maj. Frederick P. Fife; members of the Passaic Police Department, under the direction of Chief Luis A. Guzman; the Clifton Police Department, under the direction of Chief Thomas Rinaldi; and the Bergen County Prosecutor’s Office, under the direction of Prosecutor Mark Musella, for their assistance.
The government is represented by Assistant U.S. Attorney Sophie Kaiser of the General Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
rivera.complaint.pdfParker, PA Man Pleads Guilty to Possessing Child Sex Abuse MaterialsRead the Press Release
ERIE, Pa. – A resident of Parker, Pennsylvania pleaded guilty in federal court to a charge of violating federal laws relating to the sexual exploitation of children, Acting United States Attorney Troy Rivetti announced today.
Thomas Robert Hawk, 41, pleaded guilty to one count before United States District Judge Susan Paradise Baxter.
In connection with the guilty plea, the court was advised that from August 2021 to May 2022, Hawk possessed and accessed with intent to view visual images and videos in individual digital files depicting prepubescent minors engaging in sexually explicit conduct. As part of his plea agreement, Hawk agreed that he had violated the conditions of his federal supervised release which he was serving for a prior federal conviction for receiving child sexual abuse material. Hawk also agreed as part of his guilty plea to a sentence of 11 years' imprisonment to be followed by ten years of supervised release.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Judge Baxter scheduled sentencing for Aug. 8, 2023, at 1:30 p.m. The law provides for a total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal
Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court ordered that Hawk remained detained.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and United States Probation conducted the investigation that led to the prosecution of Hawk.
Owner of Temporary Employment Agency Pleads Guilty to Tax Fraud and Workers Compensation Insurance FraudRead the Press Release
BOSTON – A Dorchester woman has pleaded guilty in federal court in Boston to tax and fraud offenses in connection with her operation of a temporary employment agency.
Dam Ngoc Luong, 69, pleaded guilty on April 18, 2023 to two counts of filing false corporate and individual tax returns, three counts of failure to collect and pay over employee taxes and one count of mail fraud. United States Senior District Judge Rya W. Zobel scheduled sentencing for July 13, 2023.
From at least 2015 through 2019, Luong owned and operated Four Seasons Temp, Inc., an agency providing temporary workers for client businesses. A temporary employment agency is responsible for paying wages to the employees, processing employee payroll, collecting and paying all employee payroll taxes and maintaining workers’ compensation insurance to protect employees who suffer work-related injuries. The agency collects payments from the client businesses to cover the agency’s expenses and a profit for the agency.When collecting payments from business clients of her temporary employment agency, however, Luong cashed most checks rather than deposit the funds into her business account. Then, on annual corporate tax returns, Luong reported to the IRS only the amounts deposited to the business account and failed to pay federal taxes on more than $14 million of the company’s income. Additionally, because Luong created Four Seasons as an S-corporation, the net business income and expenses flowed through to her Form 1040 individual tax returns. As a result, Luong failed to report more than $3 million in pass-through income and failed to pay $885,000 in personal income taxes.
As the owner of the company, Luong also had an obligation to withhold taxes from wages paid to the employees. Despite this obligation, Luong paid more than $12 million of employee wages in cash “under the table.” She failed to withhold taxes from the cash wages and failed to pay more than $3 million in employment taxes she owed to the IRS.
Finally, Luong defrauded the insurance carrier she engaged to provide workers’ compensation insurance coverage for employees, by concealing the cash wages paid to her employees. By concealing the wages she paid, Luong paid lower workers’ compensation insurance premiums and defrauded the insurance carrier of $155,000 in premiums she should have paid.
The charges of filing false tax returns each provide for a sentence of up to three years in prison, one year of supervised release, a fine of $250,000 and restitution to the IRS. The charges of failure to collect and pay over employee taxes each provide for a sentence of up to five years in prison, three years of supervised release, a fine of $250,000 and restitution to the IRS. The charge of mail fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins and Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston made the announcement today. Assistant U.S. Attorney Victor A. Wild of Rollins’ Securities, Financial & Cyber Fraud Unit is prosecuting the case.
Ohio Man Charged for Attempting to Burn Down a Church that Planned to Host Drag Show EventsRead the Press Release
A federal indictment was returned charging an Ohio man with a violation of the Church Arson Prevention Act for using Molotov cocktails against the Community Church of Chesterland, in Chesterland, Ohio, in an attempt to burn the church to the ground. He was also indicted on one count of using fire to commit a federal felony, one count of malicious use of explosive materials and one count of possessing a destructive device.
According to court documents, Aimenn D. Penny, 20, of Alliance, attempted to burn the church to the ground after learning the church was holding multiple drag show events the following weekend. Penny was initially arrested and charged with federal offenses on March 31.
If convicted, Penny faces a maximum penalty of up to 20 years in prison for the violation of the Church Arson Prevention Act. Penny also faces a mandatory minimum of five years and up to 20 years in prison for the malicious use of explosive materials charge and up to 10 years in prison for the possession of a destructive device charge. In addition, if convicted of using fire to commit a federal felony, Penny faces a 10-year mandatory prison sentence that will run consecutively with any other prison term imposed.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, First Assistant U.S. Attorney Michelle M. Baeppler for the Northern District of Ohio and Special Agent in Charge Gregory Nelsen of the FBI Cleveland Field Office made the announcement.
The FBI Cleveland Field Office is investigating the case.
Assistant U.S. Attorneys Brian Deckert and Matthew W. Shepherd for the Northern District of Ohio and Trial Attorneys Jacob Warren and Justin Sher of the National Security Division’s Counterterrorism Section are prosecuting the case with assistance from Trial Attorney Eric Peffley of the Civil Rights Division’s Criminal Section.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Ohio Man Charged for Attempting to Burn Down a Church that Planned to Host Drag Show EventsRead the Press Release
WASHINGTON – A federal indictment was returned charging an Ohio man with a violation of the Church Arson Prevention Act for using Molotov cocktails against the Community Church of Chesterland, in Chesterland, Ohio, in an attempt to burn the church to the ground. He was also indicted on one count of using fire to commit a federal felony, one count of malicious use of explosive materials and one count of possessing a destructive device.
According to court documents, Aimenn D. Penny, 20, of Alliance, attempted to burn the church to the ground after learning the church was holding multiple drag show events the following weekend. Penny was initially arrested and charged with
federal offenses on March 31.If convicted, Penny faces a maximum penalty of up to 20 years in prison for the violation of the Church Arson Prevention Act. Penny also faces a mandatory minimum of five years and up to 20 years in prison for the malicious use of explosive materials charge and up to 10 years in prison for the possession of a destructive device charge. In addition, if convicted of using fire to commit a federal felony, Penny faces a 10-year mandatory prison sentence that will run consecutively with any other prison term imposed.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, First Assistant U.S. Attorney Michelle M. Baeppler for the Northern District of Ohio and Special Agent in Charge Gregory Nelsen of the FBI Cleveland Field Office made the announcement.
The FBI Cleveland Field Office is investigating the case. Assistant U.S. Attorneys Brian Deckert and Matthew W. Shepherd for the Northern District of Ohio and Trial Attorneys Jacob Warren and Justin Sher of the National Security Division’s Counterterrorism Section are prosecuting the case with assistance from Trial Attorney Eric Peffley of the Civil Rights Division’s Criminal Section.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
North Korean Foreign Trade Bank Representative Charged in Crypto Laundering ConspiraciesRead the Press Release
Two federal indictments were unsealed today in the District of Columbia charging a North Korean Foreign Trade Bank (FTB) representative for his role in separate money laundering conspiracies designed to generate revenue for the Democratic People’s Republic of Korea through the use of cryptocurrency.
“The charges announced today respond to innovative attempts by North Korean operatives to evade sanctions by exploiting the technological features of virtual assets to facilitate payments and profits, and targeting virtual currency companies for theft,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “We will continue to work to disrupt and deter North Korean actors and those who aid them by following the money on the blockchain and shining a light on their conduct.”
According to court documents, Sim Hyon Sop (Sim), 39, is charged with allegedly conspiring with over-the-counter (OTC) cryptocurrency traders to use stolen funds to buy goods for North Korea and for conspiring with North Korean IT workers to generate revenue through illegal employment at blockchain development companies in the United States.
The first indictment involves a conspiracy between Sim and three OTC traders to launder stolen funds from virtual currency exchange hacks to make payments in U.S. dollars for goods on behalf of the North Korean government. The second involves a conspiracy between Sim and various North Korean IT workers to launder proceeds of illegal IT development work, where the IT workers gained employment at U.S. blockchain development companies using fake identities, and then laundered their ill-gotten gains through Sim for the benefit of the North Korean regime, and in contravention of sanctions imposed against North Korea by the Department of the Treasury’s Office of Foreign Assets Control (OFAC) and the United Nations. Those sanctions were imposed to impede the development of North Korea’s ballistic missiles, weapons production, and research and development programs.
“Today’s indictments reveal North Korea’s continued use of various means to circumvent U.S. sanctions,” said U.S. Attorney Matthew M. Graves for the District of Columbia. “We can and will ‘follow the money,’ be it through cryptocurrency or the traditional banking system, to bring appropriate charges against those who would help to fund this corrupt regime.”
According to court documents, North Korean national Sim, Chinese national Wu Huihu (Wu), Hong Kong British National (Overseas) Cheng Hung Man (Cheng), and the user of the online moniker live:jammychen0150 (“Jammy Chen”) conspired to launder stolen cryptocurrency and then used those funds to purchase goods through Hong Kong-based front companies on behalf of North Korea. Sim directed these payments, which were made in U.S. dollars, through “Jammy Chen.” “Jammy Chen” then recruited Wu and Cheng, both of whom were OTC traders, to find sham front companies and facilitate the payments to avoid U.S. sanctions against North Korea.
“As criminals engage in new methods of exploiting and laundering cryptocurrency, the FBI will continue to relentlessly pursue them and bring them to justice,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “These individuals used their illicit criminal activity to aid the Democratic People's Republic of Korea. Today’s indictment demonstrates the power of strong investigative work and collaboration amongst partners in holding state operatives accountable.”
Sim also allegedly conspired to launder funds generated by North Korean IT workers who obtained illegal employment in the tech and crypto industry. These IT workers used fake personas to get jobs, including jobs at U.S.-based companies, and then asked to be paid in cryptocurrencies, such as stablecoins like USD Tether (USDT) and USD Coin (USDC), which are pegged to the U.S. dollar. After receiving payment, they funneled their earnings back to North Korea through Sim.
According to court documents, the Reconnaissance General Bureau (RGB) is North Korea’s primary intelligence and clandestine operations unit, known to have a cyber capability that has come to be known within the cybersecurity community as both Lazarus Group and Advanced Persistent Threat 38 (APT38). APT38 is a financially motivated North Korean regime-backed group responsible for conducting destructive cyber-attacks since at least 2014 to generate revenue for its ballistic missile and WMD programs. Specifically, these North Korean hackers have worked in concert to conduct cyber-attacks against victims located in the United States and around the world, including hacks against financial institutions and virtual asset service providers. North Korean actors have gained unauthorized access to these victim networks as part of their fraudulent scheme through a variety of means, including through spear-phishing messages designed to induce victims to download and execute malicious software developed by the hackers.
Since 2017, as part of its cyber campaign, North Korean hackers have also executed virtual currency-related thefts to generate revenue for the regime, including through the hacking of virtual asset services providers, such as virtual currency exchanges. A portion of the proceeds from those virtual currency theft and fraud schemes was sent to virtual currency address 1G3Qj4Y4trA8S64zHFsaD5GtiSwX19qwFv, which Sim and his OTC trader coconspirators used to fund payments for goods for North Korea.
To generate revenue for the regime, North Korea also deploys IT workers to obtain illegal employment in the cryptocurrency industry. According to court documents, North Koreans apply for jobs in remote IT development work without disclosing that they are North Korean. These IT workers bypass security and due diligence checks through the false or fraudulent use of identity documents and other obfuscation strategies, such as virtual private networks to hide their true location from online payment facilitators and hiring platforms. The IT workers request payment for their services in virtual currency and then send their earnings back to North Korea via, among other methods, FTB representatives such as Sim.
A third indictment also unsealed today in the District of Columbia separately charges Wu with operating an unlicensed money transmitting business. According to court documents, Wu operated as an OTC trader on a U.S.-based virtual currency exchange and conducted over 1,500 trades for U.S. customers without obtaining the necessary licenses.
The FBI Chicago Field Office and FBI’s Virtual Assets Unit (VAU) are investigating the cases.
The charge of conspiring to launder monetary instruments is punishable by a maximum of 20 years in prison. The charge of operating an unlicensed money transmitting business is punishable by a maximum of five years in prison.
Trial Attorney Jessica Peck of the Justice Department’s National Cryptocurrency Enforcement Team (NCET) and Computer Crime and Intellectual Property Section, Assistant U.S. Attorneys Steven Wasserman and Christopher Tortorice for the District of Columbia, and Trial Attorney Emma Ellenrieder of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the cases. Paralegal Specialists Brian Rickers and Angela De Falco and Legal Assistant Jessica McCormick provided valuable assistance. Significant assistance was also provided by the U.S. Attorney’s Office for the Central District of California, FBI Los Angeles Field Office, Criminal Division’s Money Laundering and Asset Recovery Section, former Special Agent Chris Janczewski of the IRS Criminal Investigation, and former FBI analyst Nick Carlsen.
The NCET was created in October 2021 to combat the growing illicit use of cryptocurrencies and digital assets. Under the supervision of the Criminal Division, the NCET conducts and supports investigations into individuals and entities that enable the use of digital assets to commit and facilitate a variety of crimes, with a particular focus on virtual currency exchanges, mixing and tumbling services, and infrastructure providers. The NCET also sets strategic priorities regarding digital asset technologies, identifies areas for increased investigative and prosecutorial focus, and leads the department’s efforts to collaborate with domestic and foreign government agencies as well as the private sector to aggressively investigate and prosecute crimes involving cryptocurrency and digital assets.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
North Korean Foreign Trade Bank Rep Charged for Role in Two Crypto Laundering ConspiraciesRead the Press Release
WASHINGTON – Two federal indictments, unsealed today in the District of Columbia, charge a North Korean Foreign Trade Bank (“FTB”) representative for his role in money laundering conspiracies designed to generate revenue for the Democratic People’s Republic of Korea, through the use of cryptocurrency. A third indictment charges one of the co-conspirators in a separate scheme.
The indictments were announced by U.S. Attorney Matthew M. Graves, Assistant Attorney General of the Criminal Division Kenneth A. Polite, Jr., and Special Agent in Charge Robert W. “Wes” Wheeler, Jr. of the FBI’s Chicago Field Office.
Sim Hyon Sop (“Sim”), 39, a North Korean national, is charged with conspiring with three over-the-counter (“OTC”) traders, Wu HuiHui (“Wu”), 34, a Chinese national living in Jinan, Shandong, China; Cheng Hung Man (“Cheng”), 59, a Hong Kong British National (Overseas) living in Hong Kong, and an unknown user of the online moniker “live:jammychen0150” (“Chen”), to launder stolen cryptocurrency and use the funds to purchase goods through Hong Kong-based front companies for the benefit of North Korea. Sim directed these payments, which were made in U.S. dollars, through Chen. Chen then recruited Wu and Cheng, both of whom were OTC traders, to find sham front companies and facilitate the payments to avoid U.S. sanctions against North Korea.
The second indictment alleges a conspiracy between Sim and various North Korean IT workers to launder proceeds of illegal IT development work. The IT workers gained employment at U.S. crypto companies using fake identities and then laundered their ill-gotten gains through Sim for the benefit of the North Korean regime, and in contravention of sanctions imposed against North Korea by the Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) and the United Nations. Those sanctions were imposed to impede the development of North Korea’s ballistic missiles, weapons production, and research and development programs.
“Today’s indictments reveal North Korea’s continued use of various means to circumvent U.S. sanctions,” said U.S. Attorney Graves. “We can and will ‘follow the money,’ be it through cryptocurrency or the traditional banking system, to bring appropriate charges against those who would help to fund this corrupt regime.”
“The charges announced today highlight the ways in which North Korean operatives have innovated their approach to evading sanctions by exploiting the technological features of virtual assets to facilitate payments and profits, and targeting virtual currency companies for theft,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “We will continue to work to disrupt and deter North Korean actors and those who aid them by following the money on the blockchain and shining a light on their conduct.”
“The growing popularity of virtual currencies has provided new and unique opportunities for criminals to engage in illicit transactions, but what has not changed is our commitment to investigating these crimes,” said Special Agent in Charge Wheeler. “I am proud of the work that the FBI and partners have accomplished in support of today's indictment.”
Since 2017, as part of its cyber campaign, North Korean hackers have executed virtual currency-related thefts to generate revenue for the regime, including through the hacking of virtual asset services providers, such as virtual currency exchanges. A portion of the proceeds from those virtual currency theft and fraud schemes was sent to virtual currency address 1G3Qj4Y4trA8S64zHFsaD5GtiSwX19qwFv, which Sim and his OTC trader coconspirators used to fund payments for goods for North Korea.
To generate revenue for the regime, North Korea also deploys IT workers to obtain illegal employment in the cryptocurrency industry. According to court documents, North Koreans apply for jobs in remote IT development work without disclosing that they are North Korean in order to circumvent sanctions. These IT workers bypass security and due diligence checks by using fake, or fraudulently obtained, identity documents and other obfuscation strategies to hide their true location from online payment facilitators and hiring platforms. The IT workers request payment for their services in virtual currency and then send their earnings back to North Korea via, among other methods, FTB representatives like Sim.
]A third indictment unsealed today in the District of Columbia separately charges Wu with operating an unlicensed money transmitting business. According to that indictment, Wu operated as an OTC trader on a U.S.-based virtual currency exchange without a license and conducted over 1,500 trades for U.S. customers, totaling over $800,000.
A concurrent action was taken today by the Department of the Treasury, sanctioning Sim, Wu, and Cheng.
The charge of conspiring to launder monetary instruments is punishable by a maximum of 20 years in prison. The charge of operating an unlicensed money transmitting business is punishable by a maximum of 5 years in prison.
The investigation was conducted by the FBI’s Chicago Field Office. The case is being prosecuted by Trial Attorney Jessica Peck of the Justice Department’s National Cryptocurrency Enforcement Team (NCET), Assistant U.S. Attorneys Steven Wasserman and Christopher Tortorice of the U.S. Attorney’s Office for the District of Columbia, and Trial Attorney Emma Ellenrieder of the National Security Division’s Counterintelligence and Export Control Section. Paralegal Specialists Brian Rickers and Angela De Falco and Legal Assistant Jessica McCormick provided valuable assistance. Significant assistance was also provided by the U.S. Attorney’s Office for the Central District of California, FBI’s Los Angeles Field Office, former IRS-Criminal Investigation Special Agent Chris Janczewski, and former FBI analyst Nick Carlsen.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
New Orleans Woman Sentenced to Probation for Federal FraudRead the Press Release
NEW ORLEANS - ERIKA JAMES (“JAMES”), age 49, from New Orleans, Louisiana, was sentenced to five years’ probation following a sentencing hearing on Wednesday, April 12, 2023, before Judge Sarah S. Vance, announced United States Attorney Duane A. Evans
According to court documents, JAMES was a Denial Specialist at Company 1, a Federally Qualified Health Center and AIDS Service Organization. From March 2020 through April 2021, JAMES created fraudulent invoices with falsified supporting documents, such as explanation of benefits documents from insurance companies. JAMES endorsed checks that were issued to patients that were in higher amounts than the usual range of the refund amount. JAMES made claims in the system that made it appear that patients came into Company 1 and paid out of pocket for services. JAMES would have the Finance Department issue the patient refund check, and would then deposit the refund check into her personal bank account.
JAMES filed additional claims with the Louisiana Health Access Program (“LAHAP”) in December 2020 and told LAHAP to mail the checks to her residence. The checks that were sent to JAMES’s residence were made out to Company 1. JAMES then proceeded to deposit those checks into her personal bank account.
JAMES faced a possible maximum sentence of ten years’ imprisonment, up to three years of supervised release, up to a $250,000 fine, and a mandatory $100 special assessment fee.
U.S. Attorney Evans praised the work of the United States Department of Health and Human Services – Office of Inspector General. Assistant U.S. Attorneys J. Ryan McLaren of the Appellate Unit and Kathryn McHugh of the Financial Crimes Unit were in charge of the prosecution.