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6 June 2023
Schenectady Man Pleads Guilty to Receipt and Possession of Child PornographyRead the Press Release
ALBANY, NEW YORK – Rodolpho Bogado, age 39, of Schenectady, New York, pled guilty today to receipt and possession of child pornography. United States Attorney Carla B. Freedman and Matthew Scarpino, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI), made the announcement.
Bogado admitted that from 2018 through January 2022, he used a file-sharing service to download and receive numerous video files depicting minors engaged in sexually explicit conduct. He also admitted that he possessed over 300 child pornography video and images files on his electronic devices when he was arrested on February 3, 2022.
At sentencing on October 11, 2023 before Senior United States District Judge Gary L. Sharpe, Bogado faces at least 5 years and up to 20 years in prison, and at least 5 years and up to a life term of post-imprisonment supervised release. A defendant’s sentence is imposed by a judge based on the statutes the defendant violated, the U.S. Sentencing Guidelines, and other factors. Bogado will also have to register as a sex offender upon his release from prison.
HSI is investigating this case. Assistant U.S. Attorney Rachel L. Williams is prosecuting this case as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Schenectady County Man Pleads Guilty to Stealing Precious Metals from VA Dental ClinicRead the Press Release
ALBANY, NEW YORK – Arthur Hanvey, age 65, of Delanson, New York, pled guilty today to theft of government property. United States Attorney Carla B. Freedman and Christopher Algieri, Special Agent in Charge of the Northeast Field Office for the United States Department of Veterans Affairs Office of Inspector General, made the announcement.
Hanvey admitted that, while employed as a dental technician at the Albany Stratton Veterans Affairs Medical Center between October 2017 and May 2021, he stole precious metals and noble alloys that were intended to be recycled and used to manufacture crowns, bridges, and other dental prostheses, and then sold those precious metals to a third-party refinery for a profit. Hanvey admitted to obtaining $17,574 from the scheme.
Sentencing is scheduled for October 4, 2023, before United States District Judge Anne M. Nardacci. Hanvey faces a maximum term of 10 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. 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 U.S. Department of Veterans Affairs Office of Inspector General investigated this case, which is being prosecuted by Assistant U.S. Attorney Alexander P. Wentworth-Ping.
San Rafael Resident Sentenced to Five Years in Prison for Receiving Child Pornography After Grooming Child in Texas over Two-Year PeriodRead the Press Release
SAN FRANCISCO – Robert Haeuser was sentenced to 60 months in prison for soliciting and receiving child pornography from a child victim after grooming her over the internet, announced U.S. Attorney Ismail Ramsey and Federal Bureau of Investigation Special Agent in Charge Robert K. Tripp. The sentence was handed down by the Hon. Susan Illston, United States Senior District Judge.
Haeuser, 33, of San Rafael, pleaded guilty to the charge on December 2, 2022. In 2015, he began communicating with a victim he would learn was 11 years old through the chat function of a mobile game called “Dynasty Wars.” The victim lived with her parents in Houston while Haeuser lived in Marin County. By November of 2015, Haeuser knew his victim was not yet in high school, and by October of 2016, Hauser engaged in an exchange during which he acknowledged she was not older than 12 years old and that if the world were aware of their conversations, “I would be in jail.” Haeuser and the victim eventually switched their communications to email where Haeuser repeatedly asked the victim to produce sexually explicit images and videos of herself and to send them to him by email. His instructions included telling her to pose and masturbate for him. The victim complied with Haeuser’s directions. Haeuser and the victim exchanged approximately 20,760 emails and 13,600 text messages between July 15, 2015, and October 5, 2017. In total, the victim sent Haeuser at least 29 images and 4 videos depicting herself engaged in sexually explicit conduct.
On May 3, 2022, a federal grand jury indicted Haeuser, charging him with one count of receipt of child pornography, in violation of 18 U.S.C. §§ 2252(a)(2) and (b)(1). Haeuser pleaded guilty to the charge.
In addition to the prison term, Judge Illston ordered Haeuser to serve ten years of supervised release—to begin after his prison term. Judge Illston ordered Haeuser to begin serving his prison term on August 25, 2023.
Assistant United States Attorneys Kevin Yeh and Leif Dautch are prosecuting the case with assistance from Mark DiCenzo. The prosecution is the result of an investigation by the FBI.
Repeat Drug Dealer from Mexico Sentenced to 15 Years After Being Caught with over 11 Pounds of Methamphetamine in La CrosseRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Juventino Lara Plancarte, 55, of Mexico, was sentenced today by U.S. District Judge William M. Conley to 15 years in federal prison for possessing more than 500 grams of methamphetamine with the intent to distribute and maintaining a drug trafficking place. This prison term will be followed by a 5-year term of supervised release. Plancarte also forfeited $72,000 in drug proceeds seized by police. Plancarte pleaded guilty to this charge on March 14, 2023.
On January 20, 2022, La Crosse Police stopped a car in which Plancarte was a passenger, after it engaged in suspicious activity in an area of La Crosse known for drug trafficking. During the stop, a police dog trained in drug detection signaled that he detected the possible presence of illegal controlled substances in the trunk of the car. Officers then searched the car and found nearly 11 pounds of methamphetamine in a backpack that was in the trunk. Plancarte later acknowledged that the bag and drugs were his and that he was in La Crosse to sell the methamphetamine.
There were two other men in the car with Plancarte, and following the search of the car, investigators searched a home in Hudson, Wisconsin where the three men lived. There, Hudson Police and St Croix County Sheriff’s deputies found another nearly 300 grams of methamphetamine in Plancarte’s bedroom, along with $72,000 in another room and evidence that there had been larger quantities of methamphetamine divided up and repackaged at the home at some earlier time.
Plancarte is a Mexican citizen who had recently served a 12-year federal sentence for conspiring to distribute methamphetamine in Idaho. When he was released from his sentence, he was deported back to Mexico in December 2019, but illegally returned to the United States to continue his drug trafficking activity in the Wisconsin/Minnesota area. The two other men who were in the car with Plancarte and whom he used to help drive him around and make deliveries, Armando Nieto and Emmanuel Sauceda, had no prior convictions for drug trafficking and were prosecuted on state drug charges in La Crosse and St. Croix Counties for their involvement in this case.
Judge Conley told Plancarte that the large quantity of methamphetamine combined with Plancarte’s fast return to the United States, illegally, in order to immediately pick up his drug distribution once again, warranted the 15-year sentence, especially in light of the fact that Plancarte was not deterred by serving a previous sentence of 12 years for the very same offense.
The charges against Plancarte were the result of an investigation conducted by the La Crosse Police Department, Wisconsin State Patrol, Hudson Police Department, and St. Croix County Sheriff’s Office. Assistant U.S. Attorney Robert A. Anderson prosecuted this case.
Red Lodge man admits illegal possession of short barrel, privately-made rifleRead the Press Release
BILLINGS — A Red Lodge man accused of illegally possessing a short barrel, privately-made AR-15 style semi-automatic rifle after he was suspected of violating a protective order admitted to a firearm crime today, U.S. Attorney Jesse Laslovich said.
James Faddis Kennedy, 73, pleaded guilty to possession of an unregistered firearm. Kenned faces a maximum of 10 years in prison, a $10,000 fine and three years of supervised release.
U.S. Magistrate Judge Timothy J. Cavan presided. A sentencing date will be set before U.S. District Judge Susan P. Watters. The court will determine any sentence after considering the U.S Sentencing Guidelines and other sentencing factors. Kennedy was released pending further proceedings.
The government alleged that on Oct. 19, 2022, the Red Lodge Police Department received a theft report that Kennedy had removed a “no trespassing” sign from a fence at the complainant’s residential property. The complainant had documented the incident on video and had video of Kennedy taking a gun into his house. The complainant further indicated that Kennedy was prohibited from possessing firearms because of an Order of Protection. The investigation determined that an Order of Protection was issued on July 2, 2022 and prohibited Kennedy from threatening to commit or committing violence against the complainant. The order contained a provision that said, “Respondent shall not possess the following firearms,” but listed no specific firearms. Law enforcement executed a state search warrant on Kennedy’s residence on Nov. 17, 2022. Officers found multiple firearms and gun parts, including a privately made model AR-15 style, 5.56 mm, semi-automatic rifle with no serial number. The rifle had an overall length of 30.5 inches and a barrel length of 10 inches. There is no record of the firearm in the National Firearms Registration and Transfer Record.
Assistant U.S. Attorney Zeno B. Baucus is prosecuting the case. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Red Lodge Police Department conducted the investigation.
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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Previously Deported Mexican National Sentenced to 27 Months’ Imprisonment for Covid-19 Related Fraud and Identity Theft OffensesRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that on June 2, 2023, Pedro Hernandez-Romero, age 30, a citizen of Mexico, was sentenced to 27 months’ imprisonment and a one-year term of supervised release, by United States District Court Judge Robert D. Mariani, for the crimes of aggravated identity theft, social security account number fraud and illegal reentry of a previously removed alien.
According to United States Attorney Gerard M. Karam, on July 9, 2020, Hernandez-Romero, a previously deported alien, using the name, date of birth, and social security number of a U.S. citizen, applied for and ultimately received $25,176 in Pennsylvania Pandemic Unemployment Assistance (PUA) benefits to which he was not entitled. Further investigation revealed that, using the same stolen identity, Hernandez-Romero applied for and received $1,950 in traditional unemployment benefits. At his sentencing, Hernandez-Romero was also ordered to pay $27,134.00 in restitution to the Pennsylvania Department of Labor and Industry.
This matter was investigated by Homeland Security Investigations (HSI), Internal Revenue Service Criminal Investigations (IRS-CI) and by the United States Department of Labor, Office of Inspector General, Office of Investigations. Assistant United States Attorney Jeffery St John prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Porcupine Man Indicted for Involuntary ManslaughterRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced that a federal grand jury has indicted a Porcupine, South Dakota, man for Involuntary Manslaughter and Assault Resulting in Serious Bodily Injury.
Robert Cottier, age 64, was indicted in May of 2023. He appeared before U.S. Magistrate Judge Daneta L. Wollmann on May 26, 2023, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is 10 years in custody and/or a $250,000 fine, and three years of supervised release for each assault count, and eight years in custody and/or a $250,000 fine, and three years of supervised release for involuntary manslaughter. Also $100 to the Federal Crime Victims Fund for each count and restitution may be ordered.
The Indictment alleges that on February 18, 2023, near Porcupine, Cottier killed a man by operating a motor vehicle in a grossly negligent manner. Cottier is also alleged to have assaulted four other individuals, three of which were minors.
The charge is merely an accusation and Cottier is presumed innocent until and unless proven guilty.
The investigation is being conducted by the FBI and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Anna Lindrooth is prosecuting the case.
Cottier was released on conditions pending trial. A trial date has been set for August 1, 2023.
Pharmacist Sentenced for $1M Prescription Drug Fraud SchemeRead the Press Release
A Virginia man was sentenced today to two years in prison for his role in a scheme to defraud Medicare of over $1 million in prescription drug benefits.
According to court documents, Ronald A. Beasley II, 33, of Portsmouth, was the pharmacist in charge at NH Pharma, a pharmacy located in Lake Mary, Florida. Through NH Pharma, Beasley and his co-conspirators billed Medicare for expensive compound drug creams that they never actually purchased or dispensed, instead providing Medicare patients an inexpensive compound drug cream that Medicare did not cover. In fact, NH Pharma did not buy enough of the expensive prescription drugs to fill all the prescriptions NH Pharma billed to Medicare. In total, Beasley and his co-conspirators received more than $1 million in fraudulent Medicare proceeds.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division; Special Agent in Charge David Walker of the FBI Tampa Field Office; and Special Agent in Charge Omar Pérez Aybar of the Department of Health and Human Services Office of the Inspector General (HHS-OIG), Miami Regional Office made the announcement.
The FBI and HHS-OIG investigated the case.
Trial Attorneys Reginald Cuyler Jr. and Darren C. Halverson of the Criminal Division’s Fraud Section prosecuted the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, comprised of 15 strike forces operating in 25 federal districts, has charged more than 5,000 defendants who collectively have billed federal health care programs and private insurers more than $24 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
Pennsylvania Man Sentenced on Felony Charge for Actions During Jan. 6 Capitol BreachRead the Press Release
WASHINGTON – A Pennsylvania man was sentenced for a felony charge for his actions during the breach of the U.S. Capitol on Jan. 6, 2021. His actions and the actions of others disrupted a joint session of the U.S. Congress convened to ascertain and count the electoral votes related to the 2020 Presidential election.
Jorden Robert Mink, 29, of Oakdale, Pennsylvania, was sentenced, on Jun 2, 2023, in the District of Columbia to 51 months in prison for assaulting, resisting, or impeding certain officers using a dangerous weapon, a felony, theft of government property, and aiding and abetting. In addition to the prison term U.S. District Court Judge Randolph D. Moss ordered 36 months of supervised release and restitution of $2,000.
According to court documents, on January 6, 2021, Mink used a baseball bat to shatter a window in the Capitol Building, entered the building through that broken window, and started removing property including chairs. He handed the property to individuals in the crowd on the exterior of the building. Other individuals can be seen handing out property such as a lamp and drawers through the same window after it was shattered by Mink. Mink was also seen striking an adjacent window repeatedly with a baseball bat, in an apparent attempt to shatter it.
In video surveillance, Mink is seen engaging in assaultive conduct, spitting at officers guarding one of the doors and then throwing several objects at them – including a traffic cone, a large rectangular-shaped object (possibly a step or drawer), and a stick. Mink then appears armed with a long pole, which he uses to violently and repeatedly strike at the officers at the entrance, hitting their shields at least five times. After a few minutes, in an apparent reaction to smoke or pepper spray, the crowd temporarily retreats backward 15 to 25 feet, allowing the officers to exit the lower west terrace area and respond to the protestors.
Mink was arrested on January 19, 2021, in McKees Rocks, PA.
This case is being prosecuted by the U.S. Attorney’s Office for the District of Columbia and the Department of Justice National Security Division’s Counterterrorism Section. Valuable assistance was provided by the U.S. Attorney’s Office for the Western District of Pennsylvania.
The case is being investigated by the FBI’s Pittsburgh Field Office and the Washington Field Office, which identified Mink as #89 in its seeking information photos. Valuable assistance was provided by the Metropolitan Police Department and the U.S. Capitol Police.
In the 28 months since Jan. 6, 2021, more than 1,000 individuals have been arrested in nearly all 50 states for crimes related to the breach of the U.S. Capitol, including more than 320 individuals charged with assaulting or impeding law enforcement. The investigation remains ongoing.
Anyone with tips can call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov.
Ottumwa Man and Woman Convicted for Filing Hundreds of False Tax Returns and Fraudulently Obtaining Unemployment Insurance Benefits PaymentsRead the Press Release
DES MOINES, IA – An Ottumwa man and woman were convicted of conspiring to defraud the Internal Revenue Service by filing hundreds of fraudulent tax returns and of defrauding applicants out of unemployment insurance benefits and the Iowa Workforce Development out of benefits payments.
On May 22, 2023, Thein Maung, 47, pleaded guilty to 49 fraud and tax charges. On June 2, 2023, a federal jury convicted Phyo Mi, 21, of 16 fraud charges. According to court documents and evidence presented at Mi’s four-day trial, Maung and Mi ran a fraudulent tax-preparation business out of their family’s Ottumwa home. In exchange for a cash fee, Maung and Mi prepared and filed their customers’ tax returns. Maung and Mi primarily catered to immigrants and refugees who worked at meat-packing facilities in Iowa and who had little or no ability to read, write, or speak English.
Without their customers’ knowledge or approval, Maung and Mi included on their customers’ federal tax returns, schedules, and forms, fraudulent items, such as false claims for residential energy credits, business-expense deductions, or moving-expense deductions for members of the United States Armed Forces. The effect of Maung and Mi including fraudulent items on the tax documents was to increase the refunds their clients received and increase Maung and Mi’s customer base. In all, from 2018 to 2022, Maung and Mi caused over 1600 tax returns to be filed from their Ottumwa residence. The fraudulent tax returns claimed over $3.5 million in residential energy credits.
From 2018 to 2022, Maung and Mi received approximately over $200,000 in cash fees from their customers. In addition, on their customers’ returns, Maung and Mi sometimes directed portions of the fraudulent refunds be sent to financial institution accounts accessible to Maung and Mi.
Maung and Mi also offered to help customers apply for unemployment benefits from Iowa Workforce Development. Without their customers’ knowledge or approval, Maung and Mi submitted materials to Iowa Workforce Development directing that their customers’ benefits payments be sent to financial institution accounts that Maung and Mi had access to. From October 2020 through March 2021, Maung and Mi directed nearly $100,000 in fraudulent unemployment insurance benefits payments be sent from Iowa Workforce Development to their accounts, instead of to the eligible claimants.
“This guilty verdict brings Phyo Mi and Thein Maung to justice. They created and implemented this massive energy credit and false deduction scheme to fund their greed at the expense of trusting taxpayers,” said Special Agent in Charge Thomas F. Murdock of the IRS Criminal Investigation St. Louis Field Office. “This conviction should serve as notice that we will vigorously prosecute those criminals who engage in any form of tax fraud.”
Sentencings for both Maung and Mi are scheduled for September 27, 2023, in Des Moines, before Chief United States District Court Judge Stephanie M. Rose.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement.
The investigation was conducted by Internal Revenue Service Criminal Investigation and the Ottumwa Police Department. Assistant United States Attorneys Kyle Essley and Laura Roan prosecuted the case.
Operation Angel Leads to Fifth Federal Indictment for Sexual Exploitation of ChildrenRead the Press Release
Louisville, KY – Earlier this year, several law enforcement agencies worked together in an undercover operation designed to identify individuals seeking to sexually exploit minors. That effort, called “Operation Angel,” resulted in the arrest of four individuals, Justin Aubrey, 26, Steven Earnest, 35, Kevin O’Donnell, 26, and Alexander Young, 26, all of Louisville, Kentucky. A federal grand jury previously returned indictments against all four. Aubrey and Earnest were charged with attempted sex trafficking of children on March 15, 2023. Earnest was also charged with attempted online enticement. O’Donnell, and Young were charged on February 22, 2023, with attempted online enticement. Today, a federal grand jury returned a new and additional indictment against Young for online enticement, transfer of obscene material to a minor, and production of child pornography.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Kentucky Attorney General Daniel Cameron, Special Agent in Charge Robert Holman of the United States Secret Service Kentucky Field Division, Special Agent in Charge Rana Saoud of Homeland Security Investigations Nashville, Special Agent in Charge Jodi Cohen of the FBI Louisville Field Office, Chief Jacquelyn Gwinn-Villaroel of the Louisville Metro Police Department, Chief Richard Sanders of the Jeffersontown Police Department, and Chief Art Elum of the Owensboro Police Department made the announcement.
According to the latest indictment, in December 2022, Young met a girl, under the age of 16, online. He communicated with her and persuaded, induced, and enticed her to engage in sexual activity for which a person may be charged with a criminal offense, including the production of sexually explicit images which she sent to him. Young also sent the girl sexually explicit images of himself. The latest charges resulted from additional investigation following Operation Angel.
The earlier indictments charged Aubrey and Earnest after they showed up, with money, after negotiating to pay for sex with children under age 14. O’Donnell and Young were charged after showing up to engage in sexual activity with minors under the age of 16. For all these charges, law enforcement officials were acting in online, undercover roles.
All defendants remain in federal custody pending resolution of their charges.
Assistant United States Attorney Jo E. Lawless is prosecuting the cases.
Multiple federal, state, and local officials participated in Operation Angel, led by the USSS. Other law enforcement agencies included the FBI, HSI, the Kentucky Attorney General’s Office Department of Criminal Investigations, the Louisville Metro Police Department, the Jeffersontown Police Department, and the Owensboro Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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OneTaste Founder and Former Head of Sales Indicted for Forced Labor ConspiracyRead the Press Release
An indictment was unsealed this morning in federal court in Brooklyn charging Nicole Daedone, founder and former Chief Executive Officer, and Rachel Cherwitz, former Head of Sales, of OneTaste, Inc. (OneTaste), a wellness education company founded in San Francisco, California. Daedone and Cherwitz are both charged with forced labor conspiracy in connection with a years-long scheme to obtain the labor and services of a group of OneTaste members—including volunteers, contractors, and employees of OneTaste—by subjecting them to economic, sexual, emotional and psychological abuse, surveillance, indoctrination, and intimidation.
Cherwitz was arrested this morning and is expected to appear in the U.S. District Court for the Northern District of California this afternoon. Cherwitz will be arraigned in the Eastern District of New York at a later date. Daedone remains at large.
Breon Peace, United States Attorney for the Eastern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the charges.
“Under the guise of empowerment and wellness, the defendants are alleged to have sought complete control over their employees’ lives, including by driving them into debt and directing them to perform sexual acts while also withholding wages,” said U.S. Attorney Peace. “This prosecution should serve as a reminder to both employer and employee that no matter the marketing mantra, this conduct is never acceptable.”
“The defendants advertised their company as being able to help individuals recover from past trauma. In reality, they allegedly targeted their victims in order to manipulate them not only into debt but to limit their independence and create a reliance on OneTaste for basic needs. The FBI will continue to ensure that anyone willing to engage in a forced labor schemes are held accountable in the criminal justice system,” stated FBI Assistant Director-in-Charge Driscoll.
OneTaste
As alleged in the indictment and court documents, OneTaste branded itself as a sexuality-focused wellness education company founded by Nicole Daedone in 2004. From approximately 2004 through 2018, OneTaste generated revenue by providing courses, coaching and events related to so-called wellness practices, in exchange for a fee. Many OneTaste members lived in residential warehouses where they participated in courses and experimented sexually.
At various points in time, OneTaste maintained operations in, among other locations, New York City, San Francisco, Denver, Las Vegas, Boulder, Los Angeles, Austin and London. In New York City, OneTaste leased residences and hosted events in several different locations, including in Brooklyn, Harlem, Hells Kitchen, Soho and West Village neighborhoods.
Daedone served as the Chief Executive Officer and a leader of OneTaste from the company’s founding until approximately 2017. Rachel Cherwitz served as OneTaste’s Head of Sales from approximately 2009 through 2018.
The Scheme
As alleged in the indictment, between approximately 2004 and 2018, Daedone and Cherwitz deployed a series of abusive and manipulative tactics in order to obtain the labor and services of a group of OneTaste members who were volunteers, contractors, and employees of OneTaste. Daedone and Cherwitz intentionally targeted for recruitment to OneTaste individuals who had suffered prior trauma and advertised that OneTaste’s courses and teachings could heal past sexual trauma and dysfunction. If the members could not afford OneTaste’s courses—which ranged from hundreds to tens of thousands of dollars each—Daedone and Cherwitz induced the OneTaste members to incur debt, and at times directly assisted the OneTaste members in opening new credit cards, to pay for them.
Daedone and Cherwitz also undertook tactics designed to render the OneTaste members dependent on OneTaste for their shelter and basic necessities, and to limit the OneTaste members’ independence and control. Among other things, they subjected the OneTaste members to constant surveillance in communal homes and collected deeply sensitive and personal information about them which the defendants then used to render the OneTaste members emotionally, socially and psychologically dependent on OneTaste. They isolated the OneTaste members from their support networks by breaking up established relationships and assigning them to move to new locations on short notice. While employing such tactics, Daedone and Cherwitz demanded absolute commitment to Daedone, including by exalting Daedone’s teachings and ideology. As part of this ideology, Daedone and Cherwitz instructed the OneTaste members to engage in sexual acts—including acts the members found uncomfortable or repulsive— as a requirement to supposedly obtain freedom and enlightenment and demonstrate their commitment to OneTaste and Daedone.
Upon securing the allegiance of the OneTaste members through these tactics, Daedone and Cherwitz engaged in abusive employment practices. For example, Daedone, Cherwitz and other OneTaste leaders promised to pay the OneTaste members wages and commissions for work performed on behalf of OneTaste and subsequently failed to pay the OneTaste members the amounts owed, or changed the OneTaste members’ employment statuses or locations without advance notice. Daedone and Cherwitz also recruited and groomed OneTaste members to engage in sexual acts with OneTaste’s current and prospective investors, clients, employees and beneficiaries, for the financial benefit of OneTaste and, in turn, themselves.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, Daedone and Cherwitz each face a maximum sentence of 20 years’ imprisonment.
If you believe you are or may be a victim in this case, please call the FBI New York’s main line at 212-384-5000.
The government’s case is being handled by the Office’s Civil Rights Section. Assistant United States Attorneys Lauren H. Elbert, Gillian Kassner, Devon Lash and Jonathan Siegel are in charge of the prosecution, with assistance from Paralegal Specialist Anna November.
The Defendants:
NICOLE DAEDONE
Age: 56
San Diego, CaliforniaRACHEL CHERWITZ
Age: 43
Philo, CaliforniaE.D.N.Y. Docket No. 23-CR-146 (DG)
North Redington Shores Man Pleads Guilty to Murder-For-Hire and Obstruction of JusticeRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that Alexander Leszczynski (24, North Redington Beach) today pleaded guilty to an indictment charging him with murder-for-hire and obstruction of justice. Leszczynski faces a maximum penalty of 10 years in prison on each count. A sentencing date has not yet been set.
According to court documents, on or about October 7, 2020, Leszczynski filed with the Clerk of Court for Pinellas County a warranty deed purporting to transfer a parcel of property in Redington Shores, Florida from its rightful owners (Victim 1 and Victim 2) to Aura, Inc., a fictitious corporate entity that Leszczynski controlled.
In April 2022, a grand jury in the Middle District of Florida charged Leszczynski with several counts of fraud, including fraud related to the property owned by Victim 1 and Victim 2, in United States v. Alexander Leszczynski, 8:22-cr-155-MSS-SPF. He was arraigned on May 17, 2022, and ordered detained. The fraud case was eventually set for the October trial calendar with United States District Judge Mary S. Scriven. Both Victim 1 and Victim 2 were complainants against Leszczynski and could be called as witnesses against him in his fraud trial.
In August 2022, the FBI became aware that while incarcerated at the Pinellas County Jail, Leszczynski sought out a hitman to kill Victim 1 and Victim 2. Leszczynski reported to a confidential informant that he had $45,000 hidden at his residence available to pay someone to kill the victims. Leszczynski relayed to the confidential informant that his pending criminal case (fraud) would have to be dropped if the victims were dead. The confidential informant agreed to put Leszczynski in contact with the purported hitman, who was an undercover agent.
On September 8 and 9, 2022, Leszczynski had calls with the undercover agent. Among other details, Leszczynski shared Victim 1 and Victim 2’s name, address, physical descriptions, approximate ages, and provided additional details that would allow the undercover agent to find photographs of Victim 1 and Victim 2 online. Leszczynski also negotiated price, settled on paying $30,000, and repeatedly ensured the undercover agent that he wanted Victim 1 and Victim 2 dead.
The case was investigated by the Federal Bureau of Investigation and the Pinellas County Sheriff’s Office. It is being prosecuted by Assistant United States Attorneys Shauna S. Hale and Samantha J. Newman.
North Dakota Man Sentenced for AssaultRead the Press Release
ABERDEEN - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Charles B. Kornmann has sentenced a Fort Yates, North Dakota, man convicted of Assault Resulting in Serious Bodily Injury. The sentencing took place on June 5, 2023.
Calvin Killspotted, a/k/a Sonesakda Killspotted, age 41, was sentenced to 51 months in federal prison, followed by three years of supervised release, restitution in the amount of $3,954, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Killspotted was indicted for Assault Resulting in Serious Bodily Injury by a federal grand jury in August of 2021. He pleaded guilty on May 17, 2022.
On June 3, 2021, near Little Eagle, South Dakota, within the Standing Rock Sioux Indian Reservation, Killspotted punched his dating partner and broke her jaw.
This case was investigated by the FBI, the Bureau of Indian Affairs, Office of Justice Services, Standing Rock Agency, and the Corson County Sheriff’s Office. Assistant U.S. Attorney Cameron J. Cook prosecuted the case.
Killspotted was immediately remanded to the custody of the U.S. Marshals Service.
Newberry Man Pleads Guilty to Sex Trafficking Conspiracy, Firearm Possession, and Witness TamperingRead the Press Release
COLUMBIA, SOUTH CAROLINA — Eric Rashun Jones, a/k/a “E Dolla,” a/k/a “E,” 31, of Newberry, has pleaded guilty to Human Trafficking Conspiracy, Felon in Possession of a Firearm and Ammunition, and Witness Tampering.
As to the Human Trafficking Conspiracy conviction, evidence presented in court showed that from August 2018 through November 2022, Jones worked together with at least one other person to prostitute women in the commercial sex trade by force, fraud, and coercion. He did so by physical violence: Jones broke one victim’s orbital socket and burst her ear drum; he hit another victim regularly with a closed fist. Videos recovered by FBI showed Jones directing the physical assault of women who worked for him. He also forced women to engage in sexual acts with him and others. Jones also exploited the drug addictions of victims, including by withholding the fentanyl one victim was dependent on as punishment and by paying others for commercial sex with the drugs they were dependent on. He also threatened to kill one victim and her family. Further, Jones exercised high levels of control: he managed online advertisements for the commercial sex, he controlled when and where women would work, and he determined whether and how proceeds would be divided.
As to the Felon in Possession of a Firearm and Ammunition conviction, evidence presented in court showed that Lexington County 911 received a call on June 25, 2019, from a victim who told law enforcement that Jones had forced her into prostitution, that he had confiscated proceeds, and that he had stolen her phone, money, and pistol. The Lexington County Sheriff’s Department responded and found Jones in a hotel room with two women, one of whom was partially undressed. Inside the hotel room was a Springfield 9mm handgun loaded with 6 rounds. Jones admitted to hiding the firearm under the mattress. At the time, federal law prohibited Jones from firearm possession as a result of prior felony convictions, including for Strong Arm Robbery, Common Law Robbery, and Assault & Battery 1st Degree.
As to the Witness Tampering conviction, evidence presented in court showed that between August and November 2022, while in federal custody, Jones called a woman involved with him in commercial sex and told her on a recorded jail call to “say nothing at all” to federal law enforcement, to “never say nothing,” to “tell those mother f***ers you know nothing,” and to “f*** the police, the police aint your family.” Separately, over a five-day span, Jones called that victim 40 times. Jones also told her he has “a third eye on the street,” and in a prior hearing it was alleged that Jones was a member of a street gang.
Pursuant to a plea agreement, Jones agreed to pay victims restitution and to register as a sex offender. He also agreed to forfeit jewelry, U.S. currency, a firearm, and electronics used or purchased with proceeds of criminal conduct. Jones faces a maximum penalty of Life in prison. He also faces a fine of up to $250,000 and Lifetime supervision to follow a term of imprisonment.
United States District Judge Sherri A. Lydon accepted the guilty plea and will sentence Jones after receiving and reviewing a sentencing report prepared by the U.S. Probation Office.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Federal Bureau of Investigation (FBI), Greenville Police Department, Newberry County Sheriff’s Office, Lexington County Sheriff’s Department, Simpsonville Police Department, and Anderson County Sheriff’s Office. Assistant U.S. Attorneys Elliott B. Daniels and Elle E. Klein are prosecuting the case.
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New Oxford Veterinarian Sentenced for Defrauding the U.S. Department of AgricultureRead the Press Release
HARRISBURG – The U.S. Attorney’s Office for the Middle District of Pennsylvania announced that Dr. Donald Yorlets, age 68, of New Oxford, Pennsylvania, was sentenced to 24 months of probation, including 12 months of home detention, and a $50,000 fine by U.S. District Court Judge Jennifer P. Wilson for defrauding the U.S. Department of Agriculture between 2016 and 2019 by submitting false blood samples for bovine disease testing and by issuing false Certificates of Veterinary Inspection for the animals.
According to U.S. Attorney Gerard M. Karam, federal law requires that each cow transported in interstate or international commerce be first tested for various bovine diseases, such as Bovine Tuberculosis, Brucellosis, Bovine Leucosis and Bovine Viral Diarrhea. Bovine Tuberculosis and Brucellosis are communicable diseases that can be transmitted to humans under certain circumstances. Bovine Tuberculosis is screened for by what is known as a Caudal Fold skin test. The test must be administered by a USDA accredited veterinarian and involves the injection of a tuberculin substance under the skin and checking it for a reaction 72 hours later. Testing for Brucellosis, Bovine Leucosis and Bovine Viral Diarrhea requires the drawing of blood and the submission of samples to an accredited laboratory for analysis.
Animals transported in international commerce can only be exported with an International Certificate of Veterinarian Inspection (ICVI). To lawfully issue an ICVI, a USDA accredited veterinarian must verify that each animal has been physically examined, tested for disease, vaccinated and medically treated as required by the USDA prior to shipment.
Yorlets conspired with Daniel and Benjamin Gutman, owners of a livestock exporting business known as Gutman Brothers Dairy Cattle, to avoid the disease testing requirements by falsely representing he tested every cow for Bovine Tuberculosis when, in fact, he did not. Yorlets also submitted hundreds of non-authentic, bovine blood samples to a PA Department of Agriculture testing laboratory in Harrisburg for testing and by issuing false Certificates of Veterinary Inspection for the untested animals. The false blood test results and Certificates enabled the sellers to quickly export hundreds of untested cows to Mexico, Canada, Qatar, and Puerto Rico.
The investigation began in 2017 when the Pennsylvania Veterinary Laboratory (PVL) in Harrisburg became suspicious that dozens of blood specimens submitted by Dr. Yorlets were not authentic. To confirm their suspicions the PVL sent 804 blood samples submitted by Dr. Yorlets to the USDA’s National Veterinary Services Laboratory (NVSL) in Iowa for Antibody Profile testing.
Each animal has a unique Antibody Profile in its blood. If all of the Yorlets’ blood specimens were genuine, Antibody Profile testing should have shown that all 804 blood samples had a unique Antibody Profile. However, the NVSL’s testing only found 70 unique Antibody Profiles in the 804 samples. The results confirmed that Dr. Yorlets’ repeatedly submitted the same blood samples for different animals and issued false Certificates of Veterinary Inspection for hundreds of cows that were never tested. This allowed the sellers to export the animals quickly and reduce expenses incurred in keeping the animals on domestic feeder lots.
Yorlets was a Pennsylvania licensed veterinarian since 1981. His veterinary license was suspended for six months following his guilty plea on August 31, 2020, and he was removed from the U.S. Department of Agriculture’s National Veterinary Accreditation Program.
Daniel Gutman and Benjamin Gutman, both residents of Maryland, were each sentenced to 30 months in prison for a conspiracy to defraud and commit offenses against the United States. Collectively, they were ordered to pay $1,938,646.42 in fines and forfeiture.
The case was investigated by the USDA’s Office of Inspector General and the Department of Homeland Security. Assistant United States Attorney Ravi Romel Sharma prosecuted the case.
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New Kensington Resident Pleads Guilty to Conspiracy to Commit FraudRead the Press Release
PITTSBURGH, PA - A former resident of New Kensington, PA, pleaded guilty in federal court to charges of Conspiracy to Commit Fraud and Fraud in Connection with Emergency Benefits, Acting United States Attorney Troy Rivetti announced today.
Nathan Woods, 24, currently incarcerated in Allegheny County Jail pleaded guilty to 2 counts before Senior United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that from in and around June 2020, and continuing thereafter until in and around July 2020, in the Western District of Pennsylvania, Woods knowingly and willfully did conspire to commit fraud in connection with emergency benefits, more specifically, fraud related to pandemic unemployment benefits.
Following the guilty plea today, Judge Schwab sentenced Woods to time-served. He was also ordered to pay restitution in the amount of $11,910 to the Pennsylvania Department of Labor, jointly and severally with conspirator Erick Woods.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Woods.
New Jersey Man Found Guilty of Tax EvasionRead the Press Release
A federal jury convicted a New Jersey man today of tax evasion and failing to file personal income tax returns.
According to court documents and evidence presented at trial, Jonathan D. Michael of Springfield, New Jersey, worked as a mechanic in the crane shop at the Port Newark Container Terminal. For the years 2014 through 2018, Michael provided his employer with an Employee’s Withholding Certificate (Form W-4) that falsely claimed he was exempt from any federal income tax withholding. During the same five-year period, Michael did not file personal income tax returns even though he earned approximately $1.5 million in wages, resulting in a tax loss to the IRS of over $375,000.
Michael is scheduled to be sentenced on Oct. 23, 2023, and faces a statutory maximum penalty of five years in prison for tax evasion and one year in prison for each count of willful failure to file a tax return. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Philip R. Sellinger for the District of New Jersey made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorney Michael C. Vasiliadis of the Justice Department’s Tax Division and Assistant U.S. Attorney Matthew Feldman Nikic of the District of New Jersey are prosecuting the case.
Minneapolis Man Sentenced to 10 Years in Prison for Illegal Possession of a MachinegunRead the Press Release
ST. PAUL, Minn. – A Minneapolis man has been sentenced to 120 months in prison followed by three years of supervised release on convictions for illegal possession of a machinegun and illegal possession of a firearm, announced United States Attorney Andrew M. Luger.
As proven at trial, on October 12, 2021, Marques Dwell Armstrong, Jr., 28, possessed a machinegun, namely, a loaded 9mm-caliber Glock pistol, with a high-capacity magazine, equipped with an attached machinegun conversion device, or “switch,” enabling it to be fired as a fully automatic weapon.
A jury found Armstrong guilty on February 16, 2023, of one count of illegal possession of a machinegun and one count of illegal possession of a firearm. Armstrong was sentenced yesterday in U.S. District Court by Senior Judge Donovan W. Frank to two concurrent terms of 120 months imprisonment. Armstrong also received a consecutive term of seven months imprisonment for a prior supervised-release violation.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Minneapolis Police Department.
Assistant U.S. Attorneys Benjamin Bejar and Albania Concepcion prosecuted the case.
Miami Man Sentenced to Federal Prison for Retaliatory Attack on Federal Cooperating WitnessRead the Press Release
MIAMI – Aurelio Luis Perez, a 55-year-old Miami resident, was sentenced to 30 months in federal prison for retaliating against a witness in violation of Title 18, United States Code, Section 1513(b)(2), after pleading guilty on March 24.
Perez assaulted a federal cooperating witness at a local club just several days after the victim was identified as a government witness in a federal criminal trial. Specifically, Perez followed the victim into the restroom and assaulted him while yelling, “This is for snitching” in Spanish. As a result of the assault, the witness suffered a cracked front tooth, inflammation, bruising, and lacerations to his lip. The victim did not know Perez. Perez was a close associate of another individual under investigation at the time of the attack. Perez’s associate has been convicted for his role in distributing over $230 million of adulterated HIV medication.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida; Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Special Agent in Charge Omar Pérez Aybar of the Department of Health and Human Services Office of Inspector General (HHS-OIG); and Special Agent in Charge Kyle A. Myles of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG), Atlanta Region, announced the sentence imposed by U.S. District Judge Robert N. Scola Jr.
HHS-OIG Miami and FDIC-OIG investigated the case. Assistant U.S. Attorney Timothy Abraham and Trial Attorney Alexander Thor Pogozelski of the Criminal Division’s Fraud Section prosecuted the case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 22-cr-20253.
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Member of Tulalip Tribes sentenced to nearly four years in prison for assault and robberyRead the Press Release
Seattle – A 32-year-old member of the Tulalip Tribes was sentenced today in U.S. District Court in Seattle to 46 months in prison in connection with a carjacking during which he assaulted a driver who had tried to help him, announced U.S. Attorney Nick Brown. Michael J.D. Clark Jones, was arrested in February 2022, following a high-speed chase that left his girlfriend injured, and then he injured another person in the carjacking. In sentencing Jones to 46 months in prison and three years of supervised release, Judge John C. Coughenour said he was conscious of the “dangerous theft of the vehicle” and the concerns of the Tulalip Tribes.
According to records filed in the case, Jones fled from Tulalip Tribal Police at high speeds, ultimately crashing his car and leaving his girlfriend injured. Jones fled into the woods and ultimately came to the home of a woman on the Tulalip Indian Reservation. He told the woman he had been injured in a boating accident and asked her for a ride. The woman drove him a short distance to an intersection where she saw a tribal fish and wildlife truck. The woman started to get out of the car to get help from the fish and wildlife agents. Jones lunged at her and attempted to push her out of the car. The woman grabbed the door handle and steering wheel to keep from falling. Jones put the vehicle in drive and hit the gas pedal. The car accelerated across the road and hit an embankment. Jones hit the woman and tried to force her out of the moving car by punching her hand on the wheel. The door closed on the woman when it hit the embankment, and ultimately, she lost her grip and fell from the car. The force knocked the wind out of her, and she suffered back pain from the assault where Jones punched her in the shoulders, ribs, and chest.
Tribal police found the damaged car and located Jones at a home on the reservation where he was arrested. Jones told law enforcement he fled because he had just picked up 500 fentanyl pills.
In court today, Jones’ attorney said at the time of the crime Jones was “smoking 100 fentanyl pills a day.” Judge Coughenour commented that given that level of drug use, “It is amazing he is still alive.”
In asking for a 52-month sentence Assistant United States Attorney J. Tate London noted that the crime was “part of a pattern of endangering the lives of others,” and “showing little to no concern for the community.”
At a later hearing a Magistrate Judge will determine the amount of restitution Jones will pay to the victims in this case.
The case was investigated by the Tulalip Tribes Police Department with assistance from the FBI.
The case was prosecuted by Assistant United States Attorney J. Tate London. Mr. London serves as the Tribal Liaison for the U.S. Attorney’s Office, Western District of Washington.
McCurtain County Resident Sentenced for Federal Firearm CrimeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Dalton Elzie Hunter, age 29, of McCurtain, Oklahoma, was sentenced to 37 months in prison for Felon in Possession of a Firearm.
The charges arose from investigations by the Haskell County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On April 13, 2022, Hunter pleaded guilty to one count of Felon in Possession of a Firearm. According to investigators, on October 26, 2021, Haskell County Sheriff’s Office deputies conducted a traffic stop on Hunter. During the stop, deputies discovered Hunter in possession of four firearms and determined he was a convicted felon.
The Honorable Ronald A. White, Chief Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearings in Muskogee. Hunter will remain in custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Maple Grove Felon Sentenced to 30 Years in Federal Prison for Fentanyl Trafficking, Possession of a MachinegunRead the Press Release
MINNEAPOLIS – A Maple Grove felon has been sentenced to 360 months in prison for trafficking fentanyl while possessing a machinegun, announced United States Attorney Andrew M. Luger.
According to court documents, on June 4, 2022, officers with the Minneapolis Police Department received a complaint that an individual, later identified as Derrick Maurice Scott, 35, had threatened a man at a convenience store while brandishing a firearm. Two days later, officers located Scott and conducted a traffic stop of a vehicle in which Scott was a passenger. Following a search of the vehicle, officers recovered 355 fentanyl pills and a Glock 41, .45 caliber pistol equipped with an auto-sear or “switch” (a device that makes a firearm function as a fully automatic machinegun) and a high-capacity magazine. Because Scott has multiple prior felony convictions, including aggravated robbery, domestic assault, and terroristic threats, he is prohibited under federal law from possessing firearms or ammunition at any time.
On February 7, 2023, Scott was convicted by a federal jury of possession with intent to distribute fentanyl, carrying a machinegun during and in relation to a drug trafficking crime, possession of a machinegun, and possession of a firearm as a felon. Scott was sentenced today to the mandatory minimum sentence of 30 years in prison, before Senior U.S. District Judge Joan N. Ericksen.
This case was the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Minneapolis Police Department.
Assistant U.S. Attorneys Thomas M. Hollenhorst and Chelsea A. Walcker prosecuted the case.
Man admits he caused thousands in losses to IRSRead the Press Release
LAREDO, Texas – An area man has admitted he filed false tax returns for three years, announced U.S. Attorney Alamdar S. Hamdani.
Oscar Dominic Garcia admitted that between 2016 to 2018, he filed false tax returns in which he under-reported his income.
As part of his plea agreement, Garcia agreed to pay restitution in the amount of $108,113 to the IRS, representing the tax loss for the three years of false tax returns.
“Whether they are self-employed or own a large business, everyone pays taxes to keep services running. When they don’t pay, they violate the trust placed in them by their communities and the American public,” said Special Agent in Charge Ramsey E. Covington of IRS - Criminal Investigation’s (CI) Houston Field Office. “There is no ‘up-side’ to stealing from our nation. All you gain is a felony record and the ire of honest taxpayers.”
A sentencing date has not yet been set. At the time of sentencing, Garcia faces up to three years in federal prison and possible $100,000 maximum fine.
Garcia was permitted to remain on bond pending sentencing.
IRS – CI conducted the investigation. Assistant U.S. Attorney Andrew Swartz prosecuted the case.
Little Eagle Man Sentenced for AssaultRead the Press Release
ABERDEEN - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Charles B. Kornmann has sentenced a Little Eagle, South Dakota, man convicted of Assault Resulting in Serious Bodily Injury. The sentencing took place on June 5, 2023.
Raul Tomas Mata, age 22, was sentenced to 10 years in federal prison, followed by three years of supervised release, restitution in the amount of $5,150.31, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Mata was indicted for Assault Resulting in Serious Bodily Injury by a federal grand jury in July of 2022. He pleaded guilty on March 14, 2023.
On April 29, 2022, in Little Eagle, within the Standing Rock Sioux Indian Reservation, Mata fired a rifle from a vehicle towards several houses. One of the bullets Mata fired struck a three-year-old child in the abdomen, causing her serious and life-threatening bodily injury.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Bureau of Indian Affairs, Office of Justice Services, Standing Rock Agency, FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Corson County Sheriff’s Office. Assistant U.S. Attorney Cameron J. Cook prosecuted the case.
Mata was immediately remanded to the custody of the U.S. Marshals Service.
Krebs Resident Sentenced for Aggravated Sexual Assault and Sexual Abuse of A Minor in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Roy Lee Roberts, Jr., age 37, of Krebs, Oklahoma, was sentenced to life imprisonment for two counts of Aggravated Sexual Abuse in Indian Country, and 180 months imprisonment for one count of Sexual Abuse of a Minor in Indian Country. The sentences were ordered to run concurrently.
The charges arose from investigations by the Pittsburg County Sheriff’s Office and the Federal Bureau of Investigation.
On November 16, 2022, Roberts was convicted by a federal jury. During the trial, the United States presented evidence that the defendant sexually abused two minors, one under the age of twelve.
"This office is committed to prosecuting individuals who prey on innocent and vulnerable children,” said United States Attorney Christopher J. Wilson. “Because of the courage of the victims and the dedication of investigators and prosecutors in this case, Roberts is no longer free to victimize others.”
The United States Attorney’s Office for the Eastern District of Oklahoma prosecuted these cases because the defendant is a member of a federally recognized Indian tribe and the crimes occurred in Pittsburg County, within the boundaries of the Choctaw Nation Reservation and the Eastern District of Oklahoma.
The Honorable David C. Joseph, U.S. District Judge in the United States District Court for the Western District of Louisiana, sitting by designation, presided over the hearings in Muskogee. Roberts will remain in custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorney Edith A. Singer represented the United States.
Kentucky Businessmen Sentenced in Decade Long Scheme to Defraud FCCRead the Press Release
Memphis, TN – Charles A. “Chuck” Jones, 52, and Mark J. Whitaker, 51, both of Murray, Kentucky, have been convicted of federal crimes and sentenced for a decade long scheme to defraud the Federal
Communications Commission’s (FCC) E-rate program. United States Attorney Kevin Ritz announced the sentences today.According to United States Attorney Ritz and the information presented in court, the E- rate program is an FCC program that provides money to needy schools, often in rural areas of America, for internet access and telecommunications services. The program has specific rules that forbid service providers to the schools, such as Jones, from paying kickbacks to school officials and consultants. The E-rate program also requires participating service providers to charge at least a
10% copay.For approximately 10 years, Jones, owner of several Murray, Kentucky businesses, paid kickbacks to an E-rate consultant working with the Missouri and Tennessee schools involved in this case. During the conspiracy Jones, his employee Mark J. Whitaker, and the schools’ E-rate consultant, made false statements and submitted fabricated documents regarding the required copays and the program’s fair and open bidding process. Jones used the victim schools as a vehicle to fraudulently obtain money from the E-rate program. The loss to the E-rate program was approximately $6.9 million.
Jones pled guilty to conspiracy to commit wire fraud and Whitaker pled guilty to misprision on wire fraud.
United States District Judge Mark S. Norris sentenced Jones to 18 months imprisonment, three years of supervised release, and ordered him to pay $3.5 million in restitution.
Judge Norris sentenced Whitaker to one year of probation.United States Attorney Kevin Ritz said, "Protection of federal grant programs that provide needed services and equipment to our schools in West Tennessee is a top priority of this
office. When dishonest offenders conspire to defraud these programs for their own selfish gain, they not only steal tax dollars, but also hurt local schools in the process. We will continue to work with our federal partners to root out and expose such fraud against the government, to hold offenders accountable, and to recover ill-gotten gains."
Sharon R. Diskin, Acting FCC Inspector General said, "These sentences send a strong message that individuals who defraud a vital federal subsidy program, such as E-rate, will be held fully accountable for their actions. I would like to thank our partners in the United States Attorney's office for the Western District of Tennessee and the FBI for their unrelenting dedication to this case.”
This case was investigated by the Federal Communications Commission - Office of Inspector General and the Federal Bureau of Investigation.
United States Attorney Kevin Ritz thanked former Assistant United States Attorney Murre Foster and
Assistant United States Attorney Tony Arvin who prosecuted this case, as well as the law enforcement partners who investigated the case.
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Kanawha County Man Sentenced to Prison for Federal Gun Crime and Violating Supervised ReleaseRead the Press Release
CHARLESTON, W.Va. – Terrence Wilson, also known as Terrance Matthew Wilson, 34, of Dunbar, was sentenced today to seven years and six months in prison, to be followed by three years of supervised release, for possessing a stolen firearm and violating his supervised release.
According to court documents and statements made in court, on July 28, 2021, law enforcement officers executed a search warrant at Wilson’s residence and recovered a stolen, loaded Smith & Wesson .380-caliber pistol and a loaded Glock 22 pistol. Wilson admitted to possessing the firearms and further admitted that he had reasonable cause to believe the Smith & Wesson .380-caliber pistol was stolen when he purchased it.
At the time of this offense, Wilson was serving a term of federal supervised release after pleading guilty to distribution of cocaine base, also known as “crack,” in United States District Court for the Southern District of West Virginia on June 9, 2016. Today’s prison sentence includes one year and six months for committing a crime while on supervised release.
Wilson has a long criminal history that also includes prior felony convictions for possession with intent to deliver alprazolam in Kanawha County Circuit Court on May 3, 2013, and interstate travel in aid of drug trafficking in United States District Court for the Southern District of West Virginia on February 5, 2015. The court cited the extensive criminal history and called Wilson a rabid recidivist.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Metropolitan Drug Enforcement Network Team (MDENT).
Senior United States District Judge John T. Copenhaver, Jr. imposed the sentence. Assistant United States Attorney Steve Loew and former Assistant United States Attorney Nick Miller prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case Nos. 2:22-cr-3, 2:16-cr-88 and 2:21-cr-257.
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Kanawha County Man Pleads Guilty to Fentanyl CrimeRead the Press Release
CHARLESTON, W.Va. – Andre Leavell Pardue Jr., 35, of Nitro, pleaded guilty today to possession with intent to distribute fentanyl.
According to court documents and statements made in court, on June 16, 2020, law enforcement officers executed a search warrant at Pardue’s residence and found a bag of fentanyl and cash in a pair of pants in Pardue’s bedroom, a Smith & Wesson model M&P 9, 9mm pistol under Pardue’s bed, and a safe containing cash, a second bag of fentanyl and a Smith & Wesson, model M&P 40 Shield, .40-caliber pistol.
Pardue admitted to possessing the fentanyl found in his pants. Pardue further admitted that he intended to both sell and use the fentanyl found in the safe. Pardue also admitted that the cash found in his pants and the safe totaled $3,020 and was proceeds from his fentanyl sales, with a portion of the money intended for his drug supplier.
Pardue is scheduled to be sentenced on September 6, 2023, and faces a maximum penalty of 20 years in prison, at least three years of supervised release, and a $1 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Metropolitan Drug Enforcement Network Team (MDENT) and the invaluable assistance provided by the West Virginia State Police.
Senior United States District Judge David A. Faber presided over the hearing. Assistant United States Attorney Nowles Heinrich is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-124.
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Justice Department Announces Agreement in Environmental Justice Investigation of Illegal Dumping in the City of HoustonRead the Press Release
The Justice Department announced today that it has secured a settlement agreement in its environmental justice investigation into the City of Houston’s response to illegal dumping in Black and Latino neighborhoods. The agreement builds upon the city’s recently announced One Clean Houston initiative, a comprehensive plan to address pervasive illegal dumping and its negative impacts on the health, safety and quality of life of Houston residents. Today’s agreement memorializes the city’s cooperation with the Justice Department as it implements these new steps to combat illegal dumping and develops improved waste management services for residents across Houston.
“Houston’s illegal dumpsites have contaminated water and soil, attracted vermin and created blight in historically under-resourced neighborhoods across the city,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “I appreciate Mayor Turner’s leadership in addressing these concerns and his resolve in developing One Clean Houston. This agreement will ensure that Houston fully addresses chronic illegal dumpsites, provides access to adequate waste management services and improves quality of life in communities of color. The Justice Department will continue advancing environmental justice and ensuring that people of color across our nation live in safe, clean and healthy communities.”
“No one should have to live next to discarded tires, bags of trash, rotting carcasses, infected soils and contaminated groundwater, all caused by illegal dumping,” said U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas. “For too long now, Houston’s underserved and low-income communities have had to bear the health burdens of the inaction and misdeeds of others. My hope is that this resolution is an important step in remedying those wrongs.”
In July 2022, the Justice Department launched its investigation after it received a civil rights complaint filed on behalf of Houston residents alleging that the city discriminated against Black and Latino residents of the Trinity/Houston Gardens neighborhood in northeast Houston in violation of Title VI of the Civil Rights Act of 1964. Title VI prohibits recipients of federal funds from discriminating on the basis of race, color or national origin in their federally funded programs and activities.
The department’s ten-month investigation focused on Houston’s efforts to address illegal dumping, a persistent and pervasive problem that occurs more frequently in the city’s Black and Latino neighborhoods. In March 2023, the city announced its One Clean Houston initiative. One Clean Houston focuses on rapid cleanup, better enforcement and prevention and education. In addition to confirming the city’s commitment to One Clean Houston, the agreement establishes a three-year period of federal monitoring; data reporting obligations; enhanced community outreach with impacted neighborhoods, including engagement with residents with limited English proficiency; consideration of additional actions to combat commercial sources of illegal dumping and reduce restrictions for residents seeking to use waste depositories; and a federal civil rights training program for specified city employees.
The Civil Rights Division’s Federal Coordination and Compliance Section conducted this investigation in collaboration with the U.S. Attorney’s Office for the Southern District of Texas.
Addressing discriminatory environmental and health impacts through enforcement of the nation’s civil rights laws is a top priority of the Civil Rights Division. Today’s announcement marks the second environmental justice settlement under federal civil rights statutes. Last month, the division announced the resolution of its environmental justice investigation into the Alabama Department of Health and Lowndes County Health Department in Lowndes County, Alabama. In April 2022, the Justice Department launched its Office on Environmental Justice and its Comprehensive Environmental Justice Enforcement Strategy.
Individuals who believe their civil rights have been violated or have environmental justice concerns can file a complaint with the Civil Rights Division at www.civilrights.justice.gov/report/.
Jury Convicts Southern Oregon Man After Boobytrapped Home Injures Federal OfficerRead the Press Release
MEDFORD, Ore.—On June 2, 2023, a federal jury in Medford found a southern Oregon man guilty of multiple crimes resulting from his boobytrapping of a home that injured an FBI bomb technician.
Gregory Lee Rodvelt, 71, a former resident of Williams, Oregon, was found guilty of assaulting a federal officer and using and discharging a firearm during and in relation to a crime of violence.
According to court documents, on September 7, 2018, bomb technicians from Oregon State Police (OSP) and the FBI went to a property in Williams formerly owned by Rodvelt that he had lost in lawsuit. After Rodvelt learned that a receiver had been appointed to sell the property, he proceeded to boobytrap it.
When the bomb technicians arrived at the property, they observed a minivan blocking the gate. The technicians found steel animal traps affixed to a gate post and under the hood of the minivan. They also located homemade spike strips, which the receiver had previously run over. As the technician neared the residence, they observed a hot tub that had been placed on its side and rigged in a manner that when a gate was opened it would activate a mechanical trigger causing the spa to roll toward the person who had opened the gate.
The technicians further observed that the windows of the residence had been barred from the inside and there were security doors at the front and rear of the residence. The front door also had what appeared to be bullet holes from shots fired inside. In the garage, they found a rat trap modified to accept a shotgun shell. Though the trap was unloaded, it was connected to the main garage door so it would be tripped when the door was opened.
The technicians and two other law enforcement officers gathered near the front of the residence and used an explosive charge to breach the front door. The group carefully entered the residence, looking for traps, and found a wheelchair in the center of the front entryway. When the wheelchair was bumped, it triggered a homemade shotgun device that discharged a .410 shotgun shell that struck the FBI bomb technician below the knee. The group administered first aid to the wounded technician and transported him to a local hospital.
Assaulting a federal officer with a deadly or dangerous weapon is punishable by up to 20 years in federal prison. Using and discharging a firearm during and in relation to a crime of violence is punishable by up to life in federal prison.
Rodvelt will be sentenced at a later date by U.S. District Court Judge Michael J. McShane.
This case was investigated by the FBI with assistance from OSP and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). It was prosecuted by Judith R. Harper and Jeffrey S. Sweet, Assistant U.S. Attorneys for the District of Oregon.
Jury Convicts Federal Correctional Officer for Sexual Abuse of Two Female InmatesRead the Press Release
A federal jury convicted a federal correctional officer of five counts involving sexually abusive conduct against two female victims who were serving prison sentences. U.S. District Judge Yvonne Gonzalez Rogers presided over the trial.
John Bellhouse, 40, formerly of Pleasanton, California, was initially charged with sexual abuse of an inmate on Feb. 17, 2022. A federal grand jury issued a superseding indictment on Sept. 29, 2022, charging Bellhouse with two counts of sexual abuse and three counts of abusive sexual contact. The charges involved conduct that was alleged to have occurred against two female inmates from December 2019 to December 2020. On Monday, a jury convicted Bellhouse of all counts.
“Correctional Officer Bellhouse committed an egregious breach of trust by using the cover of the BOP facility’s Safety Office to sexually abuse individuals in his custody,” said Deputy Attorney General Lisa O. Monaco. “This guilty verdict is yet another warning that any Bureau employee who abuses their authority will be held accountable. The Department of Justice is committed to rooting out sexual assault within the BOP and continuing to prioritize cases involving sexual abuse of individuals in BOP custody.”
“The heinous crimes in this case destroyed the sense of safety and security every human being is entitled to,” said FBI Deputy Director Paul Abbate. “While he was a federal corrections officer, the defendant sexually abused two victims in his care over the course of a year, an unimaginable violation of the most basic human rights. Today’s conviction demonstrates that the FBI remains unyielding in our protection of all people no matter where the crime occurs or who commits it.”
“Bellhouse violated vulnerable women under his custody and care, and a jury held him accountable for these despicable acts. Four other FCI Dublin employees, including the former Warden and Chaplain, have been convicted of sexually abusing inmates. Our investigation of sexual abuse at FCI Dublin remains ongoing, and we will continue to aggressively pursue justice for victims of sexual abuse at the hands of BOP employees,” said Inspector General Michael E. Horowitz.
“As an officer in a federal correctional facility, Bellhouse had an obligation to ensure the safety of all the persons serving their sentences,” said U.S. Attorney Ismail J. Ramsey for the Northern District of California. “Instead, Bellhouse used the power entrusted to him to serve his own corrupt purposes. The sexual abuse of inmates will not be tolerated, and Bellhouse will now face the consequences for committing his despicable crimes.”
Bellhouse was employed as a correctional officer at the Federal Correctional Institute in Dublin, California (FCI Dublin), an all-female low security federal correctional institution. Trial evidence showed that Bellhouse sexually abused and committed abusive sexual contact against a victim beginning December 2019 through October 2020. The victim was incarcerated and serving a prison sentence at FCI Dublin under Bellhouse’s custodial, supervisory, and disciplinary authority. The trial evidence demonstrated Bellhouse engaged in oral sex with the victim in the prison Safety Warehouse and Safety Office and that Bellhouse touched the victim’s vagina and breasts in the prison Safety Office.
The trial evidence also demonstrated Bellhouse committed abusive sexual contact against a second victim between October and December of 2020. Trial evidence showed that the acts occurred in the Safety Office at the FCI Dublin Camp.
Bellhouse was convicted of two counts of sexual abuse of a ward and three counts of abusive sexual conduct. Each count of sexual abuse carries a maximum term of 15 years in prison. Each count of abusive sexual conduct carries a maximum term of two years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Judge Gonzalez Rogers scheduled Bellhouse’s sentencing hearing for Aug. 30. Bellhouse remains out of custody pending his sentencing.
The DOJ OIG and FBI investigated the case.
Assistant U.S. Attorneys Molly Priedeman and Andrew Paulson for the Northern District of California are prosecuting the case, with the assistance of Madeline Wachs, Sara Slattery, and Leeya Kekona.
Jury Convicts Federal Correctional Officer for Sexual Abuse of Two Female InmatesRead the Press Release
OAKLAND – A federal jury convicted a federal correctional officer of five counts involving sexually abusive conduct against two female victims who were serving prison sentences. United States District Judge Yvonne Gonzalez Rogers presided over the trial.
John Bellhouse, 40, formerly of Pleasanton, California, was initially charged with sexual abuse of an inmate on Feb. 17, 2022. A federal grand jury issued a superseding indictment on Sept. 29, 2022, charging Bellhouse with two counts of sexual abuse and three counts of abusive sexual contact. The charges involved conduct that was alleged to have occurred against two female inmates from December 2019 to December 2020. A jury convicted Bellhouse of all counts.
“Correctional Officer Bellhouse committed an egregious breach of trust by using the cover of the BOP facility’s Safety Office to sexually abuse individuals in his custody,” said Deputy Attorney General Lisa O. Monaco. “This guilty verdict is yet another warning that any Bureau employee who abuses their authority will be held accountable. The Department of Justice is committed to rooting out sexual assault within the BOP and continuing to prioritize cases involving sexual abuse of individuals in BOP custody.”
“As an officer in a federal correctional facility, Bellhouse had an obligation to ensure the safety of all the persons serving their sentences,” said U.S. Attorney Ismail J. Ramsey for the Northern District of California. “Instead, Bellhouse used the power entrusted to him to serve his own corrupt purposes. The sexual abuse of inmates will not be tolerated, and Bellhouse will now face the consequences for committing his despicable crimes.”
“The heinous crimes in this case destroyed the sense of safety and security every human being is entitled to,” said FBI Deputy Director Paul Abbate. “While he was a federal corrections officer, the defendant sexually abused two victims in his care over the course of a year, an unimaginable violation of the most basic human rights. Today’s conviction demonstrates that the FBI remains unyielding in our protection of all people no matter where the crime occurs or who commits it.”
"Instead of fulfilling his duty as the prison Safety Manager, Bellhouse used his position to abuse the women he was responsible for keeping safe," said FBI Special Agent in Charge Robert Tripp. "The FBI and our partners will continue to pursue allegations of abuse by Dublin FCI correctional officers and hold perpetrators accountable for their crimes."
“Bellhouse violated vulnerable women under his custody and care, and a jury held him accountable for these despicable acts. Four other FCI Dublin employees, including the former Warden and Chaplain, have been convicted of sexually abusing inmates. Our investigation of sexual abuse at FCI Dublin remains ongoing, and we will continue to aggressively pursue justice for victims of sexual abuse at the hands of BOP employees,” said Inspector General Michael E. Horowitz.
Bellhouse was employed as a Correctional Officer at the Federal Correctional Institute in Dublin, Calif. (FCI Dublin), an all-female low security federal correctional institution. Trial evidence showed that Bellhouse sexually abused and committed abusive sexual contact against a victim beginning December 2019 through October 2020. The victim was incarcerated and serving a prison sentence at FCI Dublin under Bellhouse’s custodial, supervisory, and disciplinary authority. The trial evidence demonstrated Bellhouse engaged in oral sex with the victim in the prison Safety Warehouse and Safety Office and that Bellhouse touched the victim’s vagina and breasts in the prison Safety Office.
The trial evidence also demonstrated Bellhouse committed abusive sexual contact against a second victim between October and December of 2020. Trial evidence showed that the acts occurred in the Safety Office at the FCI Dublin Camp.
Bellhouse was convicted of two counts of sexual abuse of a ward, in violation of 18 U.S.C. § 2243(b), and three counts of abusive sexual conduct, in violation of 18 U.S.C. § 2244(a)(4). Each count of sexual abuse carries a maximum term of imprisonment of 15 years. Each count of abusive sexual conduct carries a maximum term of two years imprisonment. A federal district judge will determine any sentence only after consideration of the U.S. Sentencing Guidelines and the federal statute governing imposition of a sentence, 18 U.S.C. § 3553.
Judge Gonzalez Rogers scheduled Bellhouse’s sentencing hearing for August 30, 2023. Bellhouse remains out of custody pending his sentencing.
The case is being prosecuted by Assistant U.S. Attorneys Molly Priedeman and Andrew Paulson, with the assistance of Madeline Wachs, Sara Slattery, and Leeya Kekona. The prosecution is the result of an investigation by the DOJ OIG and the FBI.
bellhouse_sup_indictment.pdfJoplin Chiropractor Indicted for Child PornographyRead the Press Release
SPRINGFIELD, Mo. – A Joplin, Mo., chiropractor has been indicted by a federal grand jury for receiving and distributing child pornography.
Eric Hedman, 39, was charged in a single-count indictment returned under seal by a federal grand jury in Springfield, Mo., on May 24, 2023. That indictment was unsealed and made public today upon Hedman’s arrest and initial court appearance.
Hedman, who operated his own practice at Hedman Chiropractic at the time of the alleged offense, is charged with one count of receiving and distributing child pornography between Jan. 1 and Dec. 12, 2022.
The charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Southwest Missouri Cybercrimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Johnsonburg woman sentenced to 27 months in jail for embezzlementRead the Press Release
ERIE, Pa. - A resident of Johnsonburg, Pennsylvania, has been sentenced in federal court to 27 months in jail followed by 2 years of supervised release and order to pay restitution in the amount of $765,172.95 on her conviction of wire fraud, Acting United States Attorney Troy Rivetti announced today.
Senior United States District Judge David S. Cercone imposed the sentence on Melissa Bittler, 43, 112 Cushing Avenue, Johnsonburg, Pennsylvania.
According to information presented to the court, over a five-year period Bittler embezzled over $765,000 from the construction company in Johnsonburg where she was employed as the office manager and bookkeeper. Among numerous and consistent personal expenditures with stolen money, Bittler bought and renovated her house and purchased a Honda Pilot with the embezzled company money.
Prior to imposing sentence, Judge Cercone noted the enormity of the amount stolen by Bittler and the significant negative impact on the small business that was victimized.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
Acting United States Attorney Rivetti commended the Federal Bureau of Investigation and the Johnsonburg Borough Police Department for the investigation leading to the successful prosecution of Bittler.
Jeannette Resident Pleads Guilty to Federal Firearms LawsRead the Press Release
PITTSBURGH - A resident of Jeannette, Pennsylvania, pleaded guilty in federal court to a charge of violating federal firearms laws, Acting United States Attorney Troy Rivetti announced today.
Kenyetta Jones, 27, of Jeannette, PA pleaded guilty to one count before United States District Judge W. Scott Hardy.
In connection with the guilty plea, the court was advised that on February 22, 2019, the defendant knowingly possessed a firearm and ammunition as a previously convicted felon. Federal law prohibits an individual who has been convicted of a felony from possessing a firearm or ammunition.
Judge Hardy scheduled sentencing for October 11, 2023 at 11:00 a.m. The law provides for a maximum total sentence of not more than ten (10) years in prison, a fine of $250,000.00, and a term of supervised release of not more than 3 years. 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 revoked the defendant’s bond and remanded him to the custody of the United States Marshals Service.
Assistant United States Attorney Carl J. Spindler is prosecuting this case on behalf of the government.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives, along with the Department of Homeland Security conducted the investigation that led to the prosecution of Kenyetta Jones.
Illinois Woman Sentenced for Stealing $439,000 from BankRead the Press Release
ST. LOUIS – U.S. District Judge Ronnie L. White on Tuesday sentenced a former bank branch manager who embezzled about $439,000 from her employer to a term of imprisonment of 27 months.
Samantha J. Cherry, 35, from Morrisonville, Illinois was a manager at a UMB Bank branch in St. Louis at the time. Between January 2021 and March 2022, Cherry took cash directly from the vault and moved currency from other cash supplies into her cash drawer totals. Cherry admitted to the theft after being questioned by bank personnel.
Cherry pleaded guilty in March 2023 to one felony count of theft or embezzlement by a bank officer.
The FBI investigated the case. Assistant U.S. Attorney Jennifer Roy is prosecuting the case.
Hostage-Taking Co-Conspirators Will Serve a Combined 32 Years in PrisonRead the Press Release
TUCSON, Ariz. – Olegario Lares-De La Rosa, 30, of Mexico, was sentenced last Friday by United States District Judge Jennifer G. Zipps to 18 years in prison. Lares-De La Rosa was convicted of Conspiracy to Commit Hostage Taking, Conspiracy to Transport Illegal Aliens for Profit, Transportation of Illegal Aliens and Felon in Possession of a Firearm and Ammunition, after a jury trial in February 2023.
Ivan Heriberto Borboa-Ruiz, 28, of Mexico, Lares-De La Rosa’s co-conspirator, was sentenced last Thursday to 14 years in prison after he pleaded guilty to Conspiracy to Commit Hostage Taking and Illegal Alien in Possession of a Firearm and Ammunition.
On April 6, 2022, Homeland Security Investigations received a tip from an individual in New York who reported that his two cousins were being held captive and that their captors had demanded a $16,000 ransom for their release. The two victim cousins were undocumented non-citizens who were part of a group of six individuals abducted in the desert by three armed men after the group crossed illegally into the United States. One of the victims was kicked in the head when he refused to cooperate. The armed captors confiscated all of their cellphones and then transported the six captives to a house where they were held for multiple days in a room where the door was screwed shut each night to prevent escape. The two victim cousins were the final hostages to have the ransom paid.
Borboa-Ruiz made the phone calls arranging for the ransom and hostage exchange. On April 8, 2022, Borboa-Ruiz arrived at the location of the money exchange in Tucson, Arizona and met with two undercover agents. Borboa-Ruiz, who was armed with a loaded 9mm pistol, received and counted the $16,000 in cash twice to confirm the ransom had been paid, made a phone call stating “they were good,” and that the two victims could be released. Lares-De La Rosa was parked a short distance away with the two victims. Shortly after the money exchange, Lares-De La Rosa directed them to get out of the car. The victims walked single file to the vehicle where the ransom had been paid. As the two victims reached the undercover vehicle, Borboa-Ruiz was immediately arrested by law enforcement.
While agents were arresting Borboa-Ruiz, Lares-De La Rosa sped away, leading agents on a high-speed vehicle chase. During the pursuit, Lares-De La Rosa threw a loaded 9mm pistol out of the window and bailed out of the vehicle. He then fled into a residential neighborhood, concealing himself in several private backyards before being arrested.
Homeland Security Investigations conducted the investigation in this case, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Marana Police Department. Assistant United States Attorney, Serra M. Tsethlikai, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-22-0974-TUC-JGZ
RELEASE NUMBER: 2023-087_Lares-De La Rosa# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Fort Dodge Man Pleads Guilty to Meth ConspiracyRead the Press Release
A man who conspired to, and distributed, methamphetamine pled guilty June 6, 2023, in federal court in Sioux City.
Phillip Pringle, 53, from Fort Dodge, Iowa, was convicted of conspiracy to distribute methamphetamine, distribution of methamphetamine, and aiding and abetting another in the distribution of methamphetamine.
At the plea hearing, Pringle admitted that between January 2015 and December 2019, he and others distributed several pounds of methamphetamine in the Fort Dodge area. In October 2019 and two occasions in 2020, Pringle was the source of methamphetamine for an individual selling methamphetamine to an undercover officer. On October 19, 2021, Pringle failed to appear for a pre-trial release revocation hearing and an arrest warrant for him was issued. On February 14, 2023, Pringle was arrested by the United States Marshals Service. From about October 19, 2021, to about February 14, 2023, Pringle was a federal fugitive.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Pringle remains in custody of the United States Marshal pending sentencing. Pringle faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, and at least four years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Iowa Division of Narcotics Enforcement, Fort Dodge Police Department, Webster County Sheriff’s Office, and Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-3022. Follow us on Twitter @USAO_NDIA.
Former U.S. Postal Service Employee Pleads Guilty to Using Her Position to Obtain the Personal Information of Victims as Part of a Conspiracy to Commit Bank Fraud and Wire FraudRead the Press Release
Baltimore, Maryland – Breanna Lee Cartledge, age 28, of Clinton, Maryland, pleaded guilty today to conspiracy to commit bank fraud and wire fraud, in connection with a scheme to defraud financial institutions by creating fake checks using information Cartledge intercepted as a Clerk with the U.S. Postal Service (USPS).
The guilty plea was announced by Erek L. Barron, United States Attorney for the District of Maryland and Acting Special Agent in Charge Peter Brown of the U.S. Postal Service – Office of Inspector General (USPS-OIG).
According to her guilty plea, Cartledge utilized her position as a USPS employee to wrongfully access USPS money orders and individual mail to illegally obtain the personal information of victim individuals and businesses, which she and her co-conspirators used without the victims’ authorization.
For example, after a co-conspirator texted Cartledge requesting pictures of checks, Cartledge sent the co-conspirator images of at least nine separate money orders or checks that contained personal identifying information with the intent that the information be used to create fake checks to steal from victim accounts.
As detailed in the plea agreement, on May 28, 2020, Cartledge negotiated a counterfeit check fraudulently drawn for $4,900 from the account of a victim, but the transaction was reversed by the bank. Cartledge admitted that she abused her position as a USPS Clerk to facilitate the commission or concealment of the offense.
Cartledge faces a maximum sentence of 30 years in federal prison for conspiracy to commit bank fraud and wire fraud. U.S. District Judge Lydia K. Griggsby has scheduled sentencing for October 19, 2023, at 2:00 p.m.
U.S. Attorney Erek L. Barron commended the USPS-OIG for its work in the investigation. Mr. Barron also thanked Assistant United States Attorneys G. Michael Morgan and Darren Gardner, 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 and https://www.justice.gov/usao-md/community-outreach.
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Former Keshena resident sentenced to 14 years in federal prison for voluntary manslaughter and related crimes on the Menominee IndianRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin announced that on June 3, 2023, Duane A. Waupoose, Jr. (Age 29), was sentenced to a total of 14 years in federal prison following his convictions at trial for voluntary manslaughter, assault with a dangerous weapon, and use of a firearm during a crime of violence. The convictions related to an armed assault which resulted in the death of a man on the Menominee Indian Reservation. Waupoose and the victim were enrolled members of the Menominee Indian Tribe of Wisconsin and formerly resided on the reservation. Senior United States District Judge William C. Griesbach also imposed a 60-month term of supervised release to be served upon Waupoose’s release from prison.
The evidence presented at trial showed that around midnight on January 31, 2021, the defendant and others were approached by a group looking to fight another person. A fight broke out in the driveway of a home in the School View area of the Menominee Indian Reservation, and Waupoose received minor injuries after being shot. Waupoose then disarmed the man who shot him and pursued him down the driveway and into the street, striking the man with the shotgun.
The evidence also showed that after the man subsequently fled, Waupoose caught up with him approximately 40 yards down the road and repeatedly struck him on the face and head, causing serious injuries which eventually resulted in his death.
At the sentencing hearing, Judge Griesbach commented, “A life was lost, and it was lost without justification . . . there is no justification for the brutal beating Mr. Waupoose delivered.” Judge Greisbach further noted that the serious nature of the crime, the lasting impact on the victim’s family, and the need to deter others from engaging in similar conduct warranted a lengthy sentence.
The Menominee Tribal Police Department and Federal Bureau of Investigation investigated the case. Assistant United States Attorneys Andrew J. Maier and Peter J. Smyczek prosecuted the case in United States District Court.
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Former Erie man pleads guilty to sexual exploitation of children chargesRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, pleaded guilty in federal court to charges of violating federal laws relating to the sexual exploitation of children, Acting United States Attorney Troy Rivetti announced today.
Charles Freemont Black, IV, 39, pleaded guilty to two counts before Senior United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Black received and possessed computer images and movies depicting minors engaging in sexually explicit conduct.
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 Cercone scheduled sentencing for October 16, 2023, at 1:00 p.m. The law provides for a total sentence of 30 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Department of Homeland Security Investigations and the Pennsylvania State Police conducted the investigation that led to the prosecution of Black.
Five Defendants Arrested for Daytime Armed Robberies of Manhattan Jewelry StoresRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Michael J. Driscoll, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Keechant L. Sewell, the Commissioner of the New York City Police Department (“NYPD”), announced today the unsealing of two Complaints charging five defendants with the armed robberies of two Manhattan jewelry stores on the mornings of January 3, 2023, and May 20, 2023, in which approximately $2 million of jewelry was stolen at gunpoint. The five defendants were arrested this morning in New York and New Jersey. FRANK DIPIETRO, VINCENT CERCHIO, VINCENT SPAGNUOLO, and MICHAEL SELLICK were charged by Complaint in connection with the January 3, 2023, robbery of a jewelry store on Madison Avenue in Midtown Manhattan. SAMUEL SORCE was charged by Complaint in connection with the May 20, 2023, robbery of a jewelry store on Elizabeth Street in lower Manhattan. DIPIETRO, CERCHIO, SPAGNUOLO, SELLICK, and SORCE will be presented in Manhattan federal court later today before U.S. Magistrate Judge Sarah Netburn.
U.S. Attorney Damian Williams said: “These five defendants allegedly carried out brazen and dangerous daylight robberies of jewelry stores in Manhattan, stealing about $2 million in jewelry at gunpoint. Dressed as construction workers, the defendants allegedly sought to blend into the busy streets around them before pointing guns at the jewelry stores’ employees and carrying out about $2 million in stolen diamonds and other valuable pieces. Thanks to the career prosecutors from my Office and our partners at the NYPD and the FBI, the defendants’ alleged armed robbery spree has been shut down.”
FBI Assistant Director in Charge Michael J. Driscoll said: “The defendants allegedly brazenly robbed Manhattan jewelry stores of approximately $2 million worth of merchandise at gunpoint. Violent robberies, especially those with firearms, will not be tolerated by the FBI and our partners in law enforcement. The arrests today should serve as a warning to anyone willing to engage in armed robberies – you will face the consequences.”
NYPD Commissioner Keechant L. Sewell said: “The swift arrests in this case reaffirm the NYPD’s steadfast commitment, with its law enforcement partners, to hold everyone accused of violent acts accountable. The charges these defendants face reflect a callous disregard for life, and they will now be held accountable. I thank and commend the U.S. Attorney for the Southern District, the New York Field Office of the FBI, and everyone who worked to achieve justice in this case.”
According to the allegations in the Complaints and other publicly filed documents:[1]
On the morning of January 3, 2023, DIPIETRO, CERCHIO, SPAGNUOLO, and SELLICK traveled to Midtown Manhattan together in multiple vehicles. At approximately 10:20 a.m., an employee of a Midtown Manhattan jewelry store was preparing to place pieces of jewelry into the store’s street-level display case when DIPIETRO and SELLICK, dressed in construction vests, entered the building from Madison Avenue. As shown in the image below, DIPIETRO pointed a gun at the employee and said “give it to me,” before SELLICK said, “turn around and get in the closet.”
DIPIETRO and SELLICK fled the store with at least three pieces of high-end diamond jewelry, including an approximately 73-carat necklace (first picture below), an approximately six-carat ring (second picture below), and an approximately 17-carat pair of earrings (third picture below). DIPIETRO, SELLICK, CERCHIO, and SPAGNUOLO then fled Midtown Manhattan. Surveillance footage from the area of the robbery indicates that the defendants, including DIPIETRO and CERCHIO, had prepared for the robbery by “casing” the scene the day before.
On the morning of May 20, 2023, employees of a jewelry store on Elizabeth Street in Manhattan had just opened for business when DIPIETRO and SELLICK — again masked and wearing construction vests — entered the store’s street-level front door. As shown in the image below, SELLICK pointed a gun at the store’s employees and ordered them to the ground, while DIPIETRO gathered jewelry. After DIPIETRO and SELLICK fled the store with the stolen goods, they first got in a getaway car driven by SORCE — who was also dressed like a construction worker — before switching to a second getaway car driven by SPAGNUOLO.
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CERCHIO, 69, of Howard Beach, New York, DIPIETRO, 65, of Red Bank, New Jersey, SELLICK, 67, of Franklin Square, New York, SORCE, 25, of Florham Park, New Jersey, and SPAGNUOLO, 65, of Monmouth Beach, New Jersey, are each charged with one count of Hobbs Act robbery and one count of conspiracy to commit Hobbs Act robbery, each of which carry a maximum sentence of 20 years in prison, and one count of brandishing a firearm during and in connection with a crime of violence, which carries a mandatory minimum sentence of seven years in prison to be imposed in addition to any sentence imposed for the underlying Hobbs Act robbery.
The minimum and maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants would be determined by a judge.
Mr. Williams praised the outstanding investigative work of the NYPD. Mr. Williams also thanked the FBI for its assistance in this matter.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorneys Alexandra S. Messiter and Justin Horton are in charge of the prosecution.
The charges contained in the Complaints are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaints and the description of the Complaints set forth herein constitute only allegations, and every fact described should be treated as an allegation.
u.s._v._sorce_complaint.pdf u.s._v._dipietro_et_al_complaint.pdfFive Charged in Theft of California Benefits for Low Income FamiliesRead the Press Release
NEWS RELEASE SUMMARY – June 6, 2023
SAN DIEGO – Five men were arrested and charged in connection with the theft of tens of thousands of dollars in public-assistance benefits from low-income families that need the funds to pay for food, housing and other necessities.
The defendants were arrested by a U.S. Secret Service-led task force as part of a three-day effort to crack down on this devastating and growing fraud in which California benefits are drained from recipients’ accounts almost immediately after the funds are dispersed by the state, typically early in the month. According to federal complaints, the defendants accomplished this by placing illegal devices known as skimmers on ATMs or a retailer's card-swiping machine to copy account information from state-issued Electronic Benefit Transfer (EBT) cards used by the recipients.
Two defendants – Constantin Irimia and Devonte Linell Pipkins - appeared in federal court this morning. Irimia was ordered detained; Pipkins was ordered released on a $35,000 bond secured by real property. The other defendants - Radu Grosu, Gabriel Ionita, and Richard Calin – are scheduled to appear in court Friday for detention hearings.
Ionita and Calin are codefendants; the other defendants are charged individually. All are charged with use of unauthorized access device fraud, which criminalizes the misuse of electronic account information contained on EBT cards issued to public assistance recipients in California and across the country. Three of the men were also found to be in possession of skimming devices, pinhole cameras, and tools for inserting the skimming devices into ATMs.
One victim, a local single mother of four whose EBT account was drained in early June, said she learned that her benefits had been stolen when she went to the store later that day and found that the money she had been counting on to buy diapers and pay rent was gone.
“This kind of crime is extremely hard on people who can least afford to lose their benefits,” said U.S. Attorney Randy Grossman. “We are committed to working with all of our federal, state and local agency partners to identify perpetrators of EBT theft and relentlessly pursue justice for the victims.” Grossman thanked the prosecution team, the U.S. Secret Service and task force members for their excellent work on these cases.
“This type of fraud hurts everyday Americans who rely on government support to feed and care for their families,” said Jason Reynolds, Special Agent in Charge of the U.S. Secret Service’s San Diego Field Office. “The Secret Service is committed to protecting our nation’s financial systems from abuse, and we will continue to work alongside our law enforcement partners to ensure that those involved are held accountable.”
“The San Diego Police Department is a proud member of the USSS So-Cal Cyber Fraud Task Force and has been for over 20 years,” said San Diego Police Chief David Nisleit. “This operation targeted those taking advantage of San Diego residents who rely on public assistance for everyday needs. We are committed to this task force partnership and will continue to support any and all efforts to suppress fraud in any form throughout our city.”
“Shutting down this type of systematic fraud that steals food from the tables of families is a priority for the District Attorney’s Office,” said San Diego County District Attorney Summer Stephan. “Our office continues to be committed to providing assistance to this task force of state and federal partners who are working together to protect the most vulnerable in our community.”
According to charging documents, here’s how the fraud works:
Benefits are distributed via electronic transfers to the state-issued EBT cards. The benefits are automatically distributed to the recipient’s EBT card on a designated day of the month - typically, in California, the first five days. The user can make cash withdrawals and payments using the card. To access their benefits to purchase eligible food items, the recipient swipes the card through a point-of-sale terminal, or inserts it into an ATM, which record the card number, date, time, and amount of the transaction. The recipient then enters his/her unique Personal Identification Number (PIN) into a keypad to complete the transaction.
According to a complaint, the U.S. Secret Service has gathered evidence indicating that members of what appear to be one or more criminal enterprises are stealing California EBT account information by installing skimmers on point-of-sale terminals, often at large-volume retailers like Walmart, in communities with higher concentrations of public benefit recipients. The skimmed data is then often re-encoded onto the magnetic strips of cards that members of the conspiracy use to make unauthorized withdrawals and purchases.
These re-encoded cards are sometimes referred to as “cloned” cards. Cloned cards can be a blank white plastic card, or another debit, credit, or gift card. Cloned cards may have names or numbers embossed on the physical face of the card. A common feature of cloned cards is that the account number encoded on the card’s magnetic strip will not match the number embossed on the card’s face. To facilitate the use of the stolen EBT benefits, members of the scheme will commonly put stickers bearing the account’s PIN on the physical cards, or access devices, that are swiped at a point-of-sale terminal, along with the account balance.
As outlined in the affidavits supporting the five arrests, individuals engaged in stealing EBT benefits have targeted point-of-sale terminals at large-volume stores in National City, Sherman Heights, and El Cajon to skim and thereby steal the EBT account information of local victims.
According to the California Department of Social Services (CalDSS), almost $40 million has been stolen using compromised EBT account information since August 2022. Most of the stolen funds were obtained through unauthorized ATM withdrawals from victims’ CalWORKs benefits. CalWORKS provides cash to eligible families with one or more children in the home. Families that apply and qualify for ongoing CalWORKS assistance receive money each month to help pay for housing, food, and other necessary expenses. CalWORKS, along with CalFresh, is distributed by CalDSS through the California Advantage EBT card.
U.S. Attorney Grossman thanked the many law enforcement partners whose work and dedication made this operation a success: The U.S. Secret Service, San Diego District Attorney’s Office, San Diego Police Department, San Diego Sheriff’s Department, U.S. Department of Agriculture’s Office of Inspector General, California Department of Social Services, Homeland Security Investigations, National City Police Department, El Cajon Police Department, Los Angeles District Attorney’s Office, and the United States Attorney’s Office for the Central District of California.
If you or someone you know has had your EBT benefits stolen, San Diego County’s Department of Health & Human Services Agency requires that the theft be reported within 10 days. More information for San Diego County victims is available at: https://www.sandiegocounty.gov/content/sdc/hhsa/programs/ssp/ebt_fraud.html.
DEFENDANT Case Number Age Hometown
Constantin Irimia 23mj01955-JLB 40 Iasi City, Romania
Devonte Linell Pipkins 23mj01963-JLB 25 Ecorse, Michigan
Gabriel Ionita 23mj01973-WVG 35 Bucharest, Romania
Richard Calin 23mj01973-WVG 23 Bucharest, Romania
Radu Grosu 23mj02000-WVG 35 Rockville, Maryland
SUMMARY OF CHARGES
Use of Unauthorized Access Devices – Title 18, U.S.C., Section 1029(a)(2) (All Defendants)
Maximum penalty: Ten years in prison and $250,000 fine
Possession of Access Device-Making Equipment – Title 18, U.S.C., Section 1029(a)(4) (Irimia, Ionita, Calin)
Maximum penalty: Fifteen years in prison and $250,000 fine
AGENCY
U.S. Secret Service’s Southern California Cyber Fraud Task Force
San Diego District Attorney’s Office
San Diego Police Department
San Diego Sheriff’s Department
U.S. Department of Agriculture’s Office of Inspector General
California Department of Social Services
Homeland Security Investigations
National City Police Department
El Cajon Police Department
Los Angeles District Attorney’s Office
United States Attorney’s Office for the Central District of California
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Felon admits to manufacturing and selling automatic weapons to the Mexican cartelRead the Press Release
LAREDO, Texas – A 37-year-old Laredo resident has pleaded guilty to possession of a machine gun, possession of a firearm by a convicted felon and conspiracy to possess intent to distribute cocaine, announced U.S. Attorney Alamdar S. Hamdani.
Jaime Jesus Esquivel produced and illegally exporting fully automatic firearms to Mexico for the use of drug cartels.
As part of the undercover investigation, law enforcement conducted four controlled purchases of cocaine or multiple AR-type fully automatic rifles. The rifles were ghost guns, a common term for privately made firearms that are absent any manufacture marks of identification.
Esquivel assembled and manufactured these weapons for distribution. He made them from various components of Colt model M4 parts and a 3D printed polymer AR-Type drop-in auto-sear or machine gun conversion device (MGCD). An MGCD is any part designed and intended solely and exclusively for use in converting a weapon into a machine gun.
Law enforcement executed two federal search warrants on locations in Laredo and seized completed and privately manufactured AR-type lower receivers, various firearm parts, firearm manufacturing tools/jigs, 950 rounds of assorted ammunition, a 7.62mm rifle, a 12-gauge shotgun and one privately manufactured short barrel fully automatic rifle that lacked any serial numbers or industry markings as well as meth and cocaine and a 3D printer.
“Selling fully automatic rifles to Mexican cartels so they can carry out their deadly and heartless goals puts the lives of families on both sides the border in serious danger,” said Hamdani. “Esquivel manufactured and assembled fully automatic AR-Type rifles for distribution to Mexico’s cartels, placing his and the cartels’ profits above the lives of his neighbors. As a result, he now faces the potential of a very lengthy term in federal prison.”
U.S. District Marina Garcia Marmolejo will impose sentencing at a later date. At that time, Esquivel faces up to 10 years for possession of a machine gun, a maximum of 20 years for possession of a firearm by a convicted felon as well and 20 years for conspiracy to possess intent to distribute cocaine and total fines of up to $1.5 million.
Esquivel has been and will remain in custody pending sentencing.
The Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives and Laredo Police Department conducted the investigation.
Assistant U.S. Attorney Brandon Scott Bowling is prosecuting the case as part of the joint federal, state and local Project Safe Neighborhoods (PSN) Program. In May 2021, Attorney General Merrick B. Garland announced a new effort to reduce violent crime, including the gun violence that is often at its core. Integral to that effort was the reinvigoration of PSN, a two-decade old, evidence-based and community-oriented program focused on reducing violent crime. The updated PSN approach, outlined in the department’s Comprehensive Strategy for Reducing Violent Crime is guided by four key principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence, setting focused and strategic enforcement priorities and measuring the results of our efforts. The fundamental goal is to reduce violent crime, not simply to increase the number of arrests or prosecutions.
Faribault Couple Plead Guilty to Their Roles in $250 Million Feeding Our Future Fraud SchemeRead the Press Release
MINNEAPOLIS – Mohamed Ali Hussein and Lul Bashir Ali have pleaded guilty to their roles in the $250 million fraud scheme that exploited a federally-funded child nutrition program during the COVID-19 pandemic, announced U.S. Attorney Andrew M. Luger.
According to the defendants’ guilty pleas and court documents, Hussein, 53, and Ali, 57, both of Faribault, admitted that between June 2020 and January 2022, they knowingly and willfully conspired with others to participate in a fraudulent scheme to obtain and misappropriate millions of dollars in federal child nutrition program funds that were intended as reimbursements for the cost of serving meals to underprivileged children.
According to the defendants’ guilty pleas and court documents, in April and September 2020, Ali and Hussein enrolled their companies, Lido Restaurant and Somali American Faribault Education (SAFE), respectively, in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future. After enrolling, Hussein and Ali began submitting fraudulently inflated invoices for reimbursement in which they claimed to be serving meals to thousands of children a day. In support of these fraudulent claims, they prepared and submitted fake paperwork, including falsely inflated meal counts.
According to the defendants’ guilty pleas and court documents, Lido Restaurant also participated in the program as a vendor. Lido Restaurant had a contract to prepare meals to be served by Hussein’s SAFE site. Ali and Hussein submitted fraudulent claims that sought reimbursement for far more meals and food than Ali’s company actually prepared. As part of the scheme, Hussein also paid more than $100,000 in kickbacks to Feeding Our Future personnel in exchange for the nonprofit’s sponsorship of Lido Restaurant and SAFE.
In total, Hussein’s company claimed to have served more than 1.2 million meals to children between February and November 2021 and obtained approximately $2.1 million in Federal Child Nutrition Program funds. Ali’s company claimed to have served more than 700,000 meals to children between June 2020 and April 2021 and obtained approximately $2.9 million in Federal Child Nutrition Program funds.
Hussein and Ali pleaded guilty today before Judge Nancy E. Brasel to one count each of conspiracy to commit wire fraud. They agreed to pay restitution in the amount of $5,037,649 and to forfeit to the United States real property and a vehicle. Sentencing hearings will be scheduled at a later time.
This case is the result of an investigation conducted by the FBI, IRS – Criminal Investigations, and the U.S. Postal Inspection Service.
Assistant U.S. Attorneys Joseph H. Thompson, Matthew S. Ebert, Harry M. Jacobs, and Chelsea A. Walcker are prosecuting the case. Assistant U.S. Attorney Craig Baune is handling the seizure and forfeiture of assets.
Eleventh Circuit Affirms Convictions and Sentence of Fort Myers Business Owner for COVID-Relief and Mortgage FraudRead the Press Release
Atlanta, Georgia – The United States Court of Appeals for the Eleventh Circuit in Atlanta has affirmed the convictions and sentence of Casey David Crowther (37, Fort Myers) in one of the first federal appeals involving a fraudulent COVID-relief loan (11th Cir. Case No. 21-12255). In March 2021, a federal jury in Fort Myers had found Crowther guilty of bank fraud, making a false statement to a lending institution, and two counts of money laundering in connection with his Paycheck Protection Program loan scheme. (Before trial, Crowther had pleaded guilty to other bank-fraud and false-statement charges related to a separate scheme in which Crowther had created fake bank statements to justify a loan for a nearly $1.3 million waterfront house in St. James City, Florida.) United States District Judge John E. Steele sentenced Crowther to 37 months in prison and three years of supervised release. Crowther appealed his convictions on the PPP charges and his sentence. Among other things, he argued that he was permitted to use PPP funds for any purpose—notwithstanding unambiguous restrictions in the loan documents that he signed—so long as he intended to repay the loan. The Eleventh Circuit rejected Crowther’s arguments and affirmed his convictions and sentence.
Congress created the Paycheck Protection Program to facilitate up to $349 billion in low-interest, potentially forgivable loans for qualified businesses struggling to make payroll or pay operating expenses in the early days of the COVID-19 pandemic. PPP loans were provided by private lenders and guaranteed by the Small Business Association and could be used only for payroll and certain other expenses necessary to maintain business operations during the pandemic (primarily payroll). In April 2020, Crowther obtained a $2.1 million PPP loan by stating that he intended to use the money for payroll, rent, and utilities for his company, Target Roofing and Sheet Metal, Inc. According to the evidence presented at trial, he instructed his bank to deposit the funds into a secret account separate from his company’s main operating account. He quickly used the account for personal use, spending nearly $700,000 on a 40-foot pleasure boat and $55,000 on a horse. He also used PPP funds to pay down personal credit-card debt, a loan owed to an old business partner, and his company’s line of credit (which were not permitted uses). When Crowther’s bank warned him that he was likely to be audited, he attempted to conceal his fraud by falsely “hiring” family members and dozens of fictitious employees to inflate his company’s apparent payroll. He hid the true purpose of certain wire transfers (saying that the boat payment was an “equipment purchase” and the horse payment was for “roofing material”). All the while, taxpayers continued to fund the low-interest loan that had been intended to protect Crowther’s business and employees.
This case was investigated by the United States Secret Service. It was prosecuted in U.S. District Court by Assistant United States Attorneys Trent Reichling and Michael V. Leeman. The appeal was handled by Assistant United States Attorney Sean Siekkinen.
El Departamento de Justicia anuncia un acuerdo en una investigación de justicia medioambiental de vertido ilegal en la Ciudad de HoustonRead the Press Release
El Departamento de Justicia anunció hoy que ha llegado a un acuerdo conciliatorio en su investigación de justicia medioambiental de la respuesta de la Ciudad de Houston ante el vertido ilegal en barrios negros y latinos. El acuerdo fortalece la iniciativa municipal One Clean Houston que se anunció hace poco, el cual consiste en un plan integral para abordar el vertido ilegal generalizado y sus efectos negativos en la salud, seguridad y calidad de vida de los residentes de Houston. El acuerdo de hoy conmemora la cooperación de la Ciudad con el Departamento de Justicia en la implementación de estas nuevas medidas para combatir el vertido ilegal y el desarrollo de mejores servicios de gestión de residuos para los residentes por todo Houston.
«Los vertederos ilícitos de Houston han contaminado el agua y la tierra, han atraído parásitos y han creado una lacra en barrios con recursos insuficientes por toda la ciudad», afirmó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «Aprecio el liderazgo del alcalde Turner en abordar estas preocupaciones y su determinación en lo que se refiere al desarrollo de One Clean Houston. Este acuerdo garantizará que Houston aborde plenamente los vertederos ilegales crónicos, que brinde acceso a servicios adecuados de gestión de residuos y que mejore la calidad de vida en las comunidades de color. El Departamento de Justicia seguirá promoviendo la justicia medioambiental, con el fin de asegurar que las personas de color por todo nuestro país vivan en comunidades seguras, limpias y sanas».
«Nadie debería verse obligado a vivir al lado de llantas botadas, bolsas de basura, cadáveres de animales medio podridos, suelos infectados y aguas freáticas contaminadas», declaró Almadar S. Hamdani, el Fiscal Federal para el Distrito Sur de Texas. «Durante demasiado tiempo, las comunidades marginadas de bajos ingresos de Houston han tenido que soportar las cargas sanitarias de la falta de acción y las fechorías de otros. Espero que esta resolución sea un verdadero paso hacia la corrección de estas injusticias».
En julio del 2022, el Departamento de Justicia lanzó su investigación después de recibir una queja de derechos civiles, presentada en nombre de residentes de Houston que alegan que la Ciudad había discriminado a residentes negros y latinos del barrio de Trinity-Houston Gardens, en el noroeste de Houston, en contra del Título VI de la ley de Derechos Civiles de 1964. El Título VI prohíbe que los beneficiarios de fondos federales discriminen por motivos de raza, color de piel o nacionalidad de origen en sus programas y actividades promovidos con fondos federales.
La investigación del Departamento, que duró diez meses, se enfocó en los esfuerzos de Houston por abordar el vertido ilegal, un problema perenne y generalizado que ocurre con mayor frecuencia en los barrios negros y latinos de la Ciudad. En marzo del 2023, la Ciudad anunció su iniciativa One Clean Houston. One Clean Houston se enfoca en la limpieza rápida, mejor aplicación de la ley y prevención y la educación. Además de confirmar el compromiso de la Ciudad con One Clean Houston, el acuerdo establece un período de tres años de supervisión federal; obligaciones de declaración de datos; mejor proyección comunitaria con los barrios afectados, lo que incluye la interacción con residentes cuyo dominio del inglés es limitado; la consideración de medidas adicionales para combatir las fuentes comerciales del vertido ilegal y reducir las restricciones para residentes que deseen usar depósitos de residuos; y un programa de capacitación en los derechos civiles federales para ciertos empleados municipales.
La Sección Federal de Coordinación y Cumplimiento de la División de Derechos Civiles realizó esta investigación con el apoyo de la Fiscalía Federal para el Distrito Sur de Texas.
Una de las prioridades principales de la División de Derechos Civiles es abordar los impactos discriminatorios en los ámbitos del medioambiente y la salud mediante la aplicación de las leyes nacionales de derechos civiles. El anuncio de hoy representa el segundo acuerdo de justicia medioambiental bajo las leyes de derechos civiles federales. El mes pasado, la División anunció la resolución de su investigación de justicia medioambiental del Departamento de Salud de Alabama y el Departamento de Salud del Condado de Lowndes en el Condado de Lowndes, Alabama. En abril del 2022, el Departamento de Justicia lanzó su Oficina para la Justicia Medioambiental y su Estrategia Integral de Aplicación de la Justicia Medioambiental.
Aquellos individuos que creen que sus derechos civiles han sido vulnerados o que tienen alguna inquietud relacionada con la justicia medioambiental pueden presentar una demanda ante la División de Derechos Civiles en www.civilrights.justice.gov/report/.
Drug Trafficker with Stolen Law Enforcement Gun Sentenced to 10 Years in Federal PrisonRead the Press Release
A Fort Worth drug trafficker with eight firearms – including one stolen from Tarrant County law enforcement – was sentenced to 10 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Juan Carlos Perez, 20, was charged in November 2022. He pleaded guilty in February to conspiracy to possess with intent to distribute controlled substances and was sentenced Friday by U.S. District Judge Reed C. O’Connor.
In plea papers, Mr. Perez admitted he conspired to deal methamphetamine, including methamphetamine-laced counterfeit pills.
According to court documents, law enforcement recovered eight firearms, including two AM-15s and two 9mm Glock pistols, from Mr. Perez’s apartment. One of the Glock pistols had previously been reported stolen from a Tarrant County Detention Officer.
On his phone, law enforcement discovered multiple photos and videos of firearms, narcotics, and large quantities U.S. currency.
The Bureau of Alcohol, Tobacco, Firearms, & Explosives’ Dallas Field Office and the Fort Worth Police Department conducted the investigation. Assistant U.S. Attorney Levi Thomas prosecuted the case.
Dark Web Traffickers of Heroin, Methamphetamine, and Cocaine ProsecutedRead the Press Release
SACRAMENTO, Calif. — U.S. Attorney Phillip A. Talbert announces a sentencing and a guilty plea in two cases the United States Attorney’s Office is prosecuting involving drug trafficking on the dark web.
Sentence: United States v. Ian Hoffmann, No. 2:21-cr-017-JAM
Ian Hoffmann, 44, of Bell Canyon, was sentenced today to 10 years in prison for conspiring to distribute methamphetamine, heroin, and cocaine. According to court documents, Hoffmann ran multiple narcotics vendor accounts on various dark web marketplaces, including “CaliCartel” and “BuxomBrunette” on the Dream marketplace, “Playground” on the Silk Road 3.1 marketplace, and “GambinoCrimeFamily” on the Wall Street Market marketplace. Hoffmann was a prolific dark web drug trafficker, completing more than 2,000 drug sales in a six-month period between October 2018 and April 2019 alone. Hoffmann accepted cryptocurrency in exchange for his narcotics and sent the drugs he sold using the U.S. Postal Service.
Federal law enforcement agents surveilled Hoffmann as he mailed dozens of packages suspected to contain narcotics on various dates in 2019. Agents subsequently executed a search warrant at Hoffmann’s residence and seized approximately 5 pounds of heroin, 14 pounds of cocaine, 40 pounds of methamphetamine, two loaded firearms, three boxes of ammunition, a bulletproof vest, more than a quarter of a million dollars in cash, a money-counting machine, several scales, and packaging materials.
Plea Agreement: United States v. Gabriel Alva, No. 2:21-cr-178-JAM
Gabriel Alva, 31, of Winnetka, pleaded guilty today to conspiracy to distribute heroin, cocaine, and methamphetamine; and to possessing a firearm in furtherance of this drug trafficking offense. According to court documents, Alva and his co-conspirators ran multiple drug vendor accounts on various dark web contraband marketplaces, including “Diablow” on the Silk Road 3.1 marketplace, “RaiseAppeals” on the Dream marketplace, and “RaisedByDiablow” on the Nightmare marketplace. Alva’s dark web vendor pages offered crystal methamphetamine, heroin, cocaine, and other narcotics for sale. Alva accepted payment in cryptocurrency for the narcotics and converted approximately $1.3 million worth of various cryptocurrencies into cash. In May 2019, law enforcement agents seized nearly 2 kilograms of heroin, more than 2 kilograms of cocaine, and nearly 24 kilograms of methamphetamine from Alva’s residence. Agents also seized a Remington shotgun and a Smith & Wesson assault rifle, which Alva admitted that he possessed to further his dark web drug trafficking operation.
These cases are the product of investigations by the Northern California Illicit Digital Economy (NCIDE) Task Force, which includes agents from Homeland Security Investigations, the Federal Bureau of Investigation, the U.S. Postal Inspection Service, the U.S. Postal Service Office of Inspector General, the Internal Revenue Service - Criminal Investigation, and the Drug Enforcement Administration. The NCIDE Task Force is a federal task force focused on targeting all forms of illicit dark web and cryptocurrency activity in the Eastern District of California and beyond. Assistant U.S. Attorney Sam Stefanki is prosecuting both cases.
Alva is scheduled to be sentenced by U.S. District Judge John A. Mendez on Sept. 26, 2023. Alva faces a maximum statutory penalty of life in prison and a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.