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1 June 2023
Former Chief Financial Officer of San Francisco Seafood Company Indicted in Alleged $2+ Million Embezzlement SchemeRead the Press Release
SAN FRANCISCO - A federal grand jury has indicted Antonietta Nguyen charging her with five counts of wire fraud in connection with an alleged scheme to embezzle millions of dollars from her former employer, announced United States Attorney Ismail J. Ramsey and Federal Bureau of Investigation, Special Agent in Charge Robert K. Tripp.
According to the indictment filed May 31, 2023, and unsealed earlier today, Nguyen, 55, of Brisbane, is alleged to have stolen approximately $2.7 million from ABS Seafood, a private seafood wholesaler and importer based in San Francisco. Nguyen, a minority shareholder in the company, served as its Chief Financial Officer. In that role, Nguyen allegedly used corporate funds to pay for personal expenses that she charged to credit cards, including her own personal credit cards and a corporate card issued on behalf of the company. The indictment describes some of the illegal purchases Nguyen allegedly made; they include luxury items from such brands as Louis Vuitton, Hermes Las Vegas and Paris, Goyard, Chanel, and Neiman Marcus. In addition, the indictment alleges Nguyen used company funds to pay her state property taxes, college tuition fees for a relative, and personal travel expenses. Further, to conceal her actions, Nguyen also allegedly falsified the company’s accounting records.
The indictment charges Nguyen with five counts of wire fraud and aiding and abetting wire fraud, in violation of 18 U.S.C. §§ 1343 and 2.
An indictment merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a maximum sentence of 20 years, and a fine of $250,000, plus restitution, for each count of wire fraud. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.Nguyen was arrested this morning at her home in Brisbane and made her initial federal court appearance before United States Magistrate Judge Sallie Kim. Magistrate Judge Kim ordered Nguyen released on a $250,000 bond. Nguyen’s next federal court appearance is scheduled for July 21, 2023, for a status hearing before the Honorable Susan Illston, U.S. District Judge.
Assistant U.S. Attorney Sailaja M. Paidipaty is prosecuting the case with the assistance of Megan Pagaduan. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
dkt._1_-_indictment.pdfForeign National Charged for $1.8M Wire Fraud and Money Laundering SchemeRead the Press Release
An indictment was unsealed today in the Central District of California charging a California businessman for allegedly soliciting investments under false pretenses and using investors’ funds to support his own lavish lifestyle.
According to court documents, Amadou Kane Diallo, 44, a Senegalese national and resident of Laguna Niguel, was the CEO of two California-based companies: Virtual Advisors LLC and Liquide Inc. Diallo allegedly solicited investments in his companies from at least 11 individuals for purported business opportunities in technology, health care, real estate, home ownership, and service to the African diaspora. Diallo allegedly made various false representations, including that investor funds would be spent to further investors’ interests, or not be spent at all, and instead used as “skin in the game” to attract institutional investors. Diallo is also alleged to have lied to potential investors, claiming that he had raised hundreds of millions of dollars for another investment firm and its real estate investment fund when, in fact, he had never raised any such funds.
Diallo allegedly caused at least 11 victim-investors to pay him, Virtual Advisors, and Liquide, more than $1.8 million. Contrary to his representations to investors, Diallo allegedly used their money to fund his own extravagant lifestyle, including making rent payments on his home; paying for luxury vehicles; buying clothes and fancy dinners; joining fitness clubs and spas; and hosting lavish events for foreign government officials.
Diallo is charged with 19 counts of wire fraud and two counts of money laundering. If convicted, he faces a maximum penalty of 20 years in prison on each of the wire fraud counts and a maximum penalty of 10 years in prison on each of the money laundering counts.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Martin Estrada for the Central District of California, Assistant Director Luis M. Quesada of the FBI’s Criminal Investigative Division, and Assistant Director in Charge Donald Alway of the FBI Los Angeles Field Office made the announcement.
The FBI is investigating the case.
Trial Attorney William E. Schurmann of the Criminal Division’s Fraud Section and Special Assistant U.S. Attorney Ryan G. Adams for the Central District of California are prosecuting the case.
If you believe you are a victim of Mr. Diallo’s conduct, please contact the Fraud Section’s Victim Witness Unit toll-free at (888) 549-3945 or by email at [email protected].
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Florida Man Pleads Guilty to Role in Nationwide “Felony Lane Gang” ConspiracyRead the Press Release
ALBANY, NEW YORK – Randall Taylor, age 37, of Fort Lauderdale, Florida, pled guilty today to conspiring to commit bank fraud and to aggravated identity theft. United States Attorney Carla B. Freedman; Michael J. Driscoll, Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (FBI); and Putnam County Sheriff Kevin J. McConville made the announcement.
Taylor admitted that he was involved in a fraud scheme known as “Felony Lane Gang” between 2019 and 2020. Taylor and his co-conspirators traveled across the country breaking into cars, often targeting those parked by women at health and fitness centers, daycares, and parks. Taylor and other members of the conspiracy stole debit cards, credit cards, checkbooks, and photo identifications in these “smash-and-grab” vehicle thefts, and they used these stolen items to commit bank fraud by recruiting women to impersonate the smash-and-grab victims and cash checks in drive-through bank lanes. The recruited check cashers were almost always suffering from an addiction to controlled substances and were provided payment at least partially in drugs. Taylor admitted that the loss amount from the conspiracy that was foreseeable to him is between $40,000 and $95,000.
The charges to which Taylor pled guilty carry a minimum term of 2 years in prison and a maximum term of 30 years, a fine of up to $1.25 million, and a supervised release term of up to 5 years. Taylor will be sentenced on October 2, 2023. 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.
Taylor was one of nine men charged in a 13-count indictment for their roles in the scheme. Keyshawn Arnold, age 25, of Schenectady, New York; Gary Grier, age 37, of Fort Lauderdale; Joshua Mallory, age 37, of Fort Lauderdale; Robert Natson, age 36, of Fort Lauderdale; Terrell McDonald, age 32, of Troy, New York; Tyrone Parker, Jr., age 22, of Fort Lauderdale; and Tyrone Parker, age 40, of Fort Lauderdale, previously pled guilty.
The ninth co-defendant is Cedric Lynch a/k/a “City,” a/k/a “C,” age 37, of Orlando, Florida. He is charged with conspiracy to commit bank fraud and aggravated identity theft, and is scheduled to stand trial in federal court in Albany on July 10, 2023. The charges in the indictment as to Lynch are merely accusations, who is presumed innocent unless and until proven guilty.
This case is being investigated by the FBI Westchester Resident Agency of the New York Field Office and the Putnam County Sheriff’s Department, with assistance from the FBI Field Offices in Albany, Miami, and Salt Lake City, and Resident Agencies in Savannah, Georgia, and Portland, Maine, and from the U.S. Attorney’s Office for the District of Maine, the Saratoga County District Attorney’s Office, and the Ulster County District Attorney’s Office. Additional assistance was provided by numerous law enforcement agencies, including, within New York, the New York State Police; Columbia County Sheriff's Office; Genesee County Sheriff’s Office; Monroe County Sheriff’s Office; Saratoga County Sheriff’s Office; Warren County Sheriff’s Office; and the police departments of the Town of Bethlehem; Glens Falls; Gloversville; Greenburgh; Greece; and Watervliet; and elsewhere, Connecticut State Police; Florida Department of Law Enforcement; Georgia State Patrol; Illinois State Police; Massachusetts State Police; Broward County, FL Sheriff’s Office; Northern York County, PA Regional Police; Southern Chester County, PA Regional Police; Utah County, UT Sheriff's Office; and the police departments of Auburn, MA; Bath, ME; Biddeford, ME; Bozeman, MT; Brunswick, ME; Caernarvon Township, PA; Chester Township, PA; Cinnaminson, NJ; Darien, CT; East Norriton Township, PA; Easthampton, MA; Greenwich, CT; Lower Moreland Township, PA; Manheim Township, PA; Portland, ME; Portsmouth, NH; Saco, ME; Salisbury, MA; Sanford, ME; Scarborough, ME; Somersworth, NH; South Portland, ME; St. George, UT; Syracuse, UT; Tinicum, PA; Towamencin, PA; Tewksbury, MA; Wakefield, MA; Yarmouth, ME; and York, ME.
Assistant United States Attorneys Matthew J. McCrobie, Michael F. Perry, and Paul Tuck are prosecuting the case.
Father and Son Tobacco Company Owners Sentenced to Prison for Conspiring to Evade Federal Excise Taxes on Dominican CigarsRead the Press Release
MIAMI – Two tobacco company owners from the Dominican Republic have been sentenced to prison for their participation in a fraudulent scheme to avoid the payment of millions of dollars in excise taxes on imported tobacco products.
Remberto Antormachy Estrella Jimenez, 38, and Remberto Andres Estrella Gomez, 64, both of Santiago, were the managing members of Dominican Tobacco Products, LLC—a Florida company that imported tobacco products, including large cigars and cigarillos, from the Dominican Republic through Miami. Dominican Tobacco Products, LLC was authorized by the Alcohol and Tobacco Tax and Trade Bureau (TTB) to import tobacco products.
Previously, Estrella Jimenez admitted that he partnered with his co-defendant father, Estrella Gomez, and a California tobacco distributor named Akrum Alrahib to fraudulently lower their costs by underreporting the Federal Tobacco Excise Tax that was due and owing on cigars their companies manufactured and imported into the United States. Over the course of several years, the conspirators consistently evaded taxes by concealing the price Alrahib actually paid for the cigars.
Alrahib sent Estrella Jimenez and Estrella Gomez’s companies over $5.6 million in exchange for Dominican cigars, according to the indictment.
Estrella Jimenez and Estrella Gomez each pleaded guilty to one count of conspiracy to defraud the United States, in violation of Title 18, United States Code, Section 371. Estrella Jimenez was sentenced today to a term of imprisonment of eight months. His father, Estrella Gomez, was previously sentenced to a 14-month prison term. In addition to a term of imprisonment, both Estrella Jimenez and Estrella Gomez were ordered to serve an additional term of supervised release and jointly paid more than $1.98 million in restitution. The sentences were handed down by U.S. District Judge Robert N. Scola in Miami.
Alrahib, Estrella Jimenez’s co-conspirator, was charged in a separate case (19-cr-20165). He pleaded guilty, was sentenced to five years in prison, and was ordered to pay $7,207,970.66 in restitution by U.S. District Judge Rodney Smith in Fort Lauderdale.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Assistant Administrator Carrie May for Field Operations, Alcohol and Tobacco Tax and Trade Bureau (TTB), Acting Special Agent in Charge Kareem Carter of the IRS - Criminal Investigation (IRS-CI), Washington, D.C. Field Office, and Special Agent in Charge Anthony Salisbury of Homeland Security Investigations (HSI), Miami, made the announcement.
TTB, IRS-CI, and HSI Miami investigated this case. Assistant U.S. Attorney Christopher Browne prosecuted it.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 22-cr-20006.
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Farnhamville, Iowa, Man Sentenced to over 5 Years in Federal Prison for Possession of Child PornographyRead the Press Release
Marcus Urelius, 36, from Farnhamville, Iowa, was sentenced May 15, 2023, to 63 months in federal prison for Possession of Child Pornography.
At the hearing, evidence established that between April 2021, and January 2022, Urelius used an Internet-based, peer-to-peer (P2P) network known as “Freenet” to knowingly receive visual depictions of minors engaged in sexually explicit conduct.
Urelius was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand to 63 months’ imprisonment. He was also fined a total of $20,000 and, given his substantial net worth, ordered to pay $9,500 for the costs of his court-appointed counsel. Urelius was also ordered to pay $3,000 in restitution to the victims. Urelius must also serve a 5-year term of supervised released following the prison term. There is no parole in the federal system.
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.”
The case was investigated by the Iowa Department of Public Safety, Division of Criminal Investigation and was prosecuted by Assistant United States Attorney Kraig R. Hamit.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-3017. Follow us on Twitter @USAO_NDIA.
Fair Haven Residents Indicted for Drug Trafficking, Gun Possession OffensesRead the Press Release
Burlington, Vermont – The Office of the United States Attorney for the District of Vermont stated that on May 31, 2023, a federal grand jury returned a four-count indictment against John Muzzy, 32, of Fair Haven, Vermont, and Rebecca Ross, 39, also of Fair Haven, Vermont. The indictment charges Muzzy with three counts of distribution, and aiding and abetting the distribution of cocaine base, and one count of being a user of unlawful controlled substances in possession of a firearm. Ross is charged in one count of distribution of cocaine base. Muzzy will be arraigned on the indictment on June 2, 2023, and Ross will be arraigned on June 5, 2023. Both hearings will be before Magistrate Judge Kevin J. Doyle.
According to court records and proceedings, in September 2022, a confidential source (CS) told the Vermont Drug Task Force (VDTF) that they could buy cocaine base from Muzzy. Thereafter, on September 23, 2022 and October 27, 2022, the CS purchased cocaine base from Muzzy. The CS negotiated with Muzzy a third time to buy cocaine base, on May 3, 2023. When the CS went to Muzzy’s residence to make the purchase, the CS purchased the drugs from Ross instead of Muzzy, who told the CS that “I’m the businesswoman” when the CS said that they wanted to deal with Muzzy.
On May 19, 2023, VDTF executed a search warrant at the residence where Muzzy and Ross lived in Fair Haven. During the search, approximately 20 firearms and a quantity of cocaine base was seized. Muzzy was located at the property in a vehicle in which cocaine base and two firearms were found. Muzzy admitted to being a drug user and said that the cocaine base and firearms found in the vehicle were his. Ross was also arrested during execution of the search. She admitted to distributing drugs for money.U.S. Attorney Nikolas P. Kerest commended the efforts of the Vermont Drug Task Force, the Vermont State Police, the Federal Bureau of Investigation, and the Fair Haven, Vermont Police Department in the investigation of Muzzy and Ross.
Assistant U.S. Attorney Barbara A. Masterson is handling the prosecution of Muzzy and Ross. Muzzy is represented by Assistant Federal Public Defender Steven L. Barth and Ross is represented by Karen R. Shingler, Esq.
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. For more information about Project Safe Neighborhoods, please visit https://www.justice.gov/psn .
Eight Arrested in Multi-Million Dollar Pandemic Relief Fraud SchemeRead the Press Release
DETROIT - Eight residents of Michigan and California were charged for their alleged roles in a $6 million fraud scheme targeting multiple pandemic relief programs, announced United States Attorney Dawn N. Ison.
Joining in the announcement were Special Agent in Charge James A. Tarasca of the Federal Bureau of Investigation Detroit Field Office, Special Agent in Charge Irene Lidlow of the Chicago Region of the U.S. Department of Labor Office of the Inspector General and Acting Special Agent in Charge Brady Ipock of the Central Region of the U.S. Small Business Administration Office of the Inspector General.
Deangelo Jackson-Portwood, 40, of Livonia; Anton Greenwood, 37, of Detroit; Adartha Tillman, 39, of Eastpointe; Timothy Boyle, 55, of Los Angeles County, California; Tyrone Boyle, 55, of Los Angeles County, California; Christopher Lindsay, 36, of Detroit; Taurean Davis, 41, of Detroit; and Maurice Brown-Portwood, 33, of Van Buren Township, were charged in an indictment with conspiracy to commit wire fraud and aggravated identity theft.
According to the indictment, the defendants caused fraudulent unemployment insurance claims, fraudulent Paycheck Protection Program loan applications, and fraudulent Economic Injury Disaster Loan applications to be submitted for numerous individuals and business entities. Those applications are alleged to have misrepresented applicant information, including the identity of the applicant and eligibility for relief. Many of the applications were submitted in the names of identity theft victims. According to court records, the defendants received over $6 million in fraudulently obtained funds as a result of the scheme.
U.S. Attorney Ison stated: “Today’s indictment alleges a massive scheme to defraud taxpayers across a number of pandemic relief programs. The conduct as alleged is brazen and targeted programs designed to help our nation through an unprecedented public health crisis. My Office is fully committed to prosecuting all of those who lined their pockets at the expense of the public.”
"An important part of the mission of the Office of Inspector General is to investigate allegations of fraud involving unemployment insurance programs. We will continue to work with our law enforcement partners to aggressively investigate these types of allegations," said Irene Lindow, Special Agent-in-Charge, Great Lakes Region, U.S. Department of Labor Office of Inspector General.
"The defendants arrested today include the leaders of this criminal conspiracy that targeted relief programs during the pandemic," said James A. Tarasca, Special Agent in Charge of the FBI's Detroit Field Office. "The FBI and our law enforcement partners will continue this investigation until those who participated in this scheme are brought to justice."
“Providing false information to fraudulently gain access to pandemic relief funds is a theft of taxpayer funds,” said SBA OIG’s Central Region Acting Special Agent in Charge Brady Ipock. “OIG remains committed to rooting out bad actors and protecting the integrity of SBA programs. I want to thank the Department of Justice and our law enforcement partners for their dedication and pursuit of justice.”
An indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The defendants face up to twenty years in prison based on the wire fraud conspiracy charge and a consecutive two years in prison for the aggravated identity theft charge.
This case is being investigated by the Federal Bureau of Investigation, the Small Business Administration, and the Department of Labor – Office of the Inspector General.
The case is being prosecuted by Assistant United States Attorneys John K. Neal and Alyse Wu
Drug Dealer Sentenced to 70 Months for Attempted Drug Sale at Arizona Mills MallRead the Press Release
PHOENIX, Ariz. – Steve Lugo Leon, 24, of Phoenix, Arizona, was sentenced last week by United States District Judge G. Murray Snow to 70 months in prison, followed by five years of supervised release. Leon pleaded guilty to Possession with Intent to Distribute 40 Grams or More of a Mixture or Substance Containing a Detectable Amount of Fentanyl.
Leon’s co-defendant, Rafael Ivan Valenzuela Chairez, 20, of Phoenix, Arizona, was sentenced on the same day by Judge Snow to 18 months in prison, followed by three years of supervised release. Chairez pleaded guilty to Possession with Intent to Distribute a Mixture or Substance Containing a Detectable Amount of Methamphetamine.
During the investigation, DEA agents determined that, on September 15, 2021, Leon arranged to sell fentanyl pills and methamphetamine at the Arizona Mills mall in Tempe, Arizona. Gila River Police Department officers attempted to conduct a traffic stop in the mall parking lot, but Leon, the driver of a Ford F-150, attempted to flee the scene. He collided with a third-party vehicle, causing it to turn on its side. Chairez, the front-seat passenger, attempted to flee on foot and was apprehended by officers. Leon continued to drive until he crashed the truck into a light pole. Agents located 12.83 kilograms of methamphetamine and 946 grams of fentanyl pills in the truck bed.
The Drug Enforcement Administration conducted the investigation in this case with assistance from the Gila River Police Department. The United States Attorney’s Office, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-22-00362-PHX-GMS
RELEASE NUMBER: 2023-081_LEON# # #
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.Dominican Republic National Charged with Illegal ReentryRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Joel Leovaldo Dominguez, age 35, of Dominican Republic, was indicted yesterday by a federal grand jury with illegal re-entry into the United States by a previously deported alien.
According to United States Attorney Gerard M. Karam, the indictment alleges that Dominguez was previously removed from the United States on September 19, 2018, through Alexandria, Louisiana, and it is alleged that he reentered the United States without first obtaining legal permission to do so. The indictment also alleges that on May 17, 2023, Dominguez was encountered in Lebanon County, Pennsylvania.
This matter was investigated by U.S. Immigration and Customs Enforcement and Removal Operations (ERO). Assistant United States Attorney William A. Behe is prosecuting the case.
Based on his prior criminal history, Dominguez faces a maximum penalty of 10 years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found
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Dominican Man Sentenced for Illegal ReentryRead the Press Release
BOSTON – A Dominican man was sentenced today in federal court in Boston for illegally reentering the United States after deportation.
Jonathan Alcequiez-Sanchez, 35, was sentenced by U.S. Senior District Court Judge Woodlock to one year and one day in prison, followed by a period of one year supervised release. Alcequiez-Sanchez will be subject to deportation proceedings upon completion of his sentence. On Jan. 31, 2023, Alcequiez-Sanchez pleaded guilty to one count of unlawful reentry of a deported alien.
Alcequiez-Sanchez was deported from the United States on Sept. 18, 2018, after being arrested in the Bronx, N.Y. for unlawful entry. Sometime after his September 2018 removal, Alcequiez-Sanchez illegally reentered the United States.On or about Dec. 27, 2021, Alcequiez-Sanchez was convicted in Lawrence District Court of drug distribution and weapons charges for which he was sentenced to serve jail time at the Essex County House of Corrections. Alcequiez-Sanchez was taken into federal custody upon his release on Nov. 15, 2022.
Acting United States Attorney Joshua S. Levy and Todd M. Lyons, Field Office Director of the U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations in Boston made the announcement today. Assistant U.S. Attorney Luke A. Goldworm of Levy’s Major Crimes Unit prosecuted the case.
Defendant Charged in Connection with Narcotics Manufacturing and Distribution CenterRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Frank A. Tarentino III, the Special Agent in Charge of the New York Field Office of the Drug Enforcement Administration (“DEA”), and Ivan J. Arvelo, the Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), announced today the filing of a Complaint in Manhattan federal court charging JUAN EFREN PAULINO with conspiracy to distribute narcotics and distribution of narcotics. PAULINO was arrested last night in the Washington Heights neighborhood of Manhattan. Today, PAULINO was presented before United States Magistrate Judge Katharine H. Parker and detained.
U.S. Attorney Damian Williams said: “Last night’s seizure not only removed substantial quantities of deadly narcotics from the streets, but it also hit drug dealers in their pockets and potentially saved the lives of countless New Yorkers suffering from addiction. Thanks to the work of our law enforcement officers, another alleged narcotics trafficker’s operation has been disrupted.”
DEA Special Agent in Charge Frank A. Tarentino III said: “This pill mill was a ticking time bomb for New Yorkers. With the amount of fentanyl seized, potentially countless lethal doses were taken off the streets. This multi-million-dollar seizure was in a prime location for distribution as the operation was being pumped out of the basement of an apartment building near major thoroughfares. I applaud the hard work and resolve of the agents and officers who worked on this investigation.”
As alleged in the Complaint filed today in Manhattan federal court:[1]
On or about May 31, 2023, law enforcement officers executed a search of the basement of a residential building located in the Washington Heights neighborhood of Manhattan. During the course of that search, they encountered PAULINO and large quantities of illegal narcotics as well as manufacturing and distribution equipment used to press illegal narcotics into pill form. In particular, law enforcement officers encountered three commercial-grade pill presses, one commercial mixer, approximately 200,000 pills, and blocks, baggies, and buckets of powder. The following is a photograph of the various substances seized:
Although lab testing is pending for the pills and powders discovered during the search, preliminary spectrometry tests reveal that the powders have tested positive for, among other things, fentanyl, methamphetamine, and cocaine.
In post-arrest statements, PAULINO stated that he was in the basement of the building to obtain a sample of cocaine to give to someone. Additionally, a preliminary review of PAULINO’s cellphone, seized upon his arrest, reveals numerous photographs of what appear to be narcotics, including many of the same types of narcotics found during the search.
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PAULINO, 52, of New York, New York, is charged in Count One with conspiracy to distribute narcotics and in Count Two with narcotics distribution. Both Count One and Count Two carry a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison.
The statutory minimum and maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the El Dorado Task Force, which is comprised of law enforcement officers from the DEA, HSI, and the New York City Police Department, in connection with this investigation.
This case is being handled by the Office’s Narcotics Unit. Assistant U.S. Attorney Maggie Lynaugh is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
u.s._v._paulino_complaint.pdfDealer of Fake Oxycodone Sentenced to 20 Years in Federal Prison for Fentanyl DeathRead the Press Release
AUSTIN, Texas – A Cedar Park man was sentenced in a federal court in Austin last Friday to 20 years in prison for distribution of fentanyl causing death.
According to court documents, Jean Claude Meama-Kajue, 29, sold counterfeit Oxycodone containing fentanyl to a male subject in December 2020, coordinating the transaction over a social media app. Emergency Medical Service personnel found the victim unresponsive in his vehicle on Dec. 13, 2020. An autopsy revealed the cause of death to be fentanyl toxicity. Investigators discovered records from a mobile banking app established a pattern of cash transactions between the two men, including a transaction the morning of the victim’s death.
As part of the investigation, an undercover officer made four separate Oxycodone controlled-buys from Meama-Kajue between February and April 2021. Laboratory analyses determined the tablets purchased in the investigation contained fentanyl.
“Fentanyl continues to be a considerable threat to our communities, ending the lives of our neighbors, friends and loved ones who, in many cases, aren’t even aware they’re taking the drug” said U.S. Attorney Jaime Esparza of the Western District of Texas. “Thank you to our law enforcement partners for their work on this investigation, and I assure you we will continue to seek justice for fentanyl victims as long as this persists.”
“Jean Claude Meama-Kajue’s greed ended an unsuspecting victim’s life and took them away from their family and loved ones,” said Special Agent in Charge Daniel C. Comeaux of the DEA Houston Division. “We hope this hefty sentence sends a strong message to anyone treating human lives as dollar bills. We will come after anyone supplying poison to innocent lives and bring them to justice. While we know this prison sentence doesn’t bring the victim back to their family, we hope it provides some closure.”
The DEA and Pflugerville Police Department investigated the case.
Assistant U.S. Attorney Mark Marshall prosecuted the case.
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D.C. Man Pleads Guilty Assaulting a Member of Congress and Law Enforcement OfficersRead the Press Release
WASHINGTON – Kendrid Khalil Hamlin, 26, of Washington, D.C., pleaded guilty today to assault on a member of Congress and two counts of assault on a law enforcement officer stemming from an incident on February 9, 2023, in the District of Columbia. U.S. District Court Chief Judge James E. Boasberg scheduled a sentencing hearing for September 15, 2023.
According to Hamlin’s admissions in court, he willfully assaulted a member of the House of Representatives, causing personal injury. Hamlin also admitted that he assaulted a detective and a police officer with the Metropolitan Police Department that same day.
The charge of assault on a member of Congress carries a statutory maximum sentence of 10 years in prison. The charge of assault on a law enforcement officer carries a statutory maximum sentence of six months in prison. The court will determine the appropriate sentence after considering the sentencing guidelines and other factors. Because the defendant pleaded to all the counts charged in the indictment without the benefit of a plea agreement, both the defendant and the government retain the right to make legal arguments at the time of sentencing.
This case was investigated by the U.S. Capitol Police and the Metropolitan Police Department. The case is being prosecuted by Assistant U.S. Attorney Josh Gold and Special Assistant U.S. Attorney Alexander Schneider.
Culpeper Woman Pleads Guilty to Dark Web Murder-For-Hire PlotRead the Press Release
CHARLOTTESVILLE, Va. – A Culpeper, Virginia woman, who went online in an attempt to hire a hitman using bitcoin, pleaded guilty yesterday in federal court.
Annie Nicole Ritenour, 27, pleaded guilty yesterday to one count of using interstate commerce facilities in the commission of a murder-for-hire.
According to court documents, in 2021 Ritenour accessed a website on the dark web whose advertisements boasted the ability to “kill any person you want as long as it is not a president or very important person that is guarded by the military.”
On June 26, 2021, Ritenour set-up an account with the website and placed an “order” for murder-for-hire services. The order was titled, “shoot and get away.” With her order, Ritenour included a picture of the intended victim, his workplace address, and his work hours. She also included the following instructions:
I am just looking for a simple quick job. The address of the person will be best place to make the target, as it is his workplace. He works 6am to 3 pm Monday through Friday….
Ritenour also included a description of the victim’s vehicle and license plate number. After placing the order, Ritenour made three separate payments via Bitcoin to the website’s “escrow account” totaling $3,200. She was arrested before the balance of payment could be made.
At sentencing, Ritenour faces 36 to 87 months in prison.
United States Attorney Christopher R. Kavanaugh and Stanley M. Meador, Special Agent in Charge of the FBI Richmond Division, made the announcement.
The Federal Bureau of Investigation is investigating the case.
Assistant U.S. Attorney Ronald M. Huber is prosecuting the case for the United States.
Consumer Alert - COVID-19 Test Medicare ScamsRead the Press Release
CONCORD, NH – United States Attorney Jane E. Young and New Hampshire Attorney General John M. Formella announce that New Hampshire is seeing a rise in complaints from Medicare beneficiaries receiving COVID-19 tests they did not request, a signal someone may be using, and could continue to use their Medicare information fraudulently to bill the federal government, potentially impacting a recipient’s Medicare coverage or benefits.
“Stealing taxpayer-funded resources from our vulnerable neighbors will not be tolerated in the Granite State. We are actively working with our law enforcement partners to detect and disrupt this type of fraud,” said Attorney General Formella. “Signs of this illegal activity should be immediately reported, as experts warn Medicare information can be as valuable to bad actors as credit card or social security numbers.”
“Unfortunately, the pandemic provided fraudsters with many opportunities to take advantage of medical needs and services to benefit themselves,” said U.S. Attorney Young. “This new and emerging scam is directed at stealing from U.S. taxpayers, by charging Medicare for unwanted and unnecessary COVID-19 test kits. Please protect yourselves- do not ever give personal or medical information to obtain free pandemic related products, including test kits, vaccines, and other services. Medicare will not call you and offer COVID-19 related products.”
If you or a loved one are receiving unsolicited COVID-19 test kits or requests for your Medicare information, you are urged to report it to the U.S. Health and Human Services, Office of the Inspector General (www.oig.gov/fraud/report-fraud) or call 1-800-HHS-TIPS (1-800-447-8477).
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Colchester Man Indicted on Robbery ChargeRead the Press Release
Burlington, Vermont – The United States Attorney’s Office stated that Joshua Wells, 34, of Colchester, Vermont was indicted for an offense under the Hobbs Act for obstructing commerce by robbery. Wells made his initial appearance in United States District Court in Burlington on May 31, 2023. United States Magistrate Judge Kevin J. Doyle scheduled a detention hearing for June 7, 2023.
According to court records, on January 17, 2023, the South Burlington Police Department (SBPD) received a call reporting an armed robbery at the Jolley gas station located at 977 Shelburne Road in South Burlington, Vermont. Multiple SBPD officers responded to the scene and determined that a white male, who was wearing all black clothing and a black mask, flashed a gun at the store clerk, stole money and a carton of cigarettes, and fled on foot. Two days later on January 19, 2023, investigators searched Wells’ hotel room and vehicle and found the gun used in the robbery, which turned out to be a BB gun, and the distinctive black mask that Wells wore to the Jolley.
The U.S. Attorney’s Office notes that the indictment is an accusation only and that the defendant is presumed innocent until and unless proven guilty. If convicted, Wells faces a maximum of 20 years in prison. Any sentence in the case will be advised by the Federal Sentencing Guidelines.
U.S. Attorney Nikolas Kerest credited the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the South Burlington Police Department, the Colchester Police Department, the University of Vermont Police Services, and the New England State Police Intelligence Network for their work in the investigation.Assistant United States Attorney Zachary Stendig represents the government. Wells is represented by Evan Barquist, Esq. and Mary Nerino, Esq.
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. For more information about Project Safe Neighborhoods, please visit https://www.justice.gov/psn .
Clayton Resident Pleads Guilty to Federal Drug and Firearms CrimesRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Troy Michael Goforth, age 49, of Clayton, Oklahoma, entered a guilty plea on May 31, 2023, to one count of Possession with Intent to Distribute Methamphetamine, and one count of Possession of a Firearm in Furtherance of a Drug Trafficking Crime.
On September 21, 2022, Goforth led officers on a high-speed pursuit, during which Goforth was observed tossing a green duffel bag out of the car before jumping out of the vehicle and fleeing on foot. Upon apprehending and arresting Goforth, officers discovered a loaded 9mm pistol tucked into Goforth’s waist band. During a subsequent search of the nearby ditch, officers recovered the green duffel bag which contained syringes, baggies, digital scales, and over 500 grams of methamphetamine.
The charges arose from a joint investigation by members of Choctaw Nation Tribal Police, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Federal Bureau of Investigation.
The Honorable Gerald L. Jackson, U.S. Magistrate Judge in the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report. At the close of sentencing, Goforth was remanded to the custody of the U.S. Marshal pending sentencing.
Assistant United States Attorney Joshua Satter represented the United States.
Chesapeake Man Sentenced for Production of Child PornographyRead the Press Release
NORFOLK, Va. – A Chesapeake man was sentenced today to 36 years in prison for production of child sexual abuse material (CSAM).
According to court documents, Jonathan Wilson, 35, was identified as the result of parallel investigations by Homeland Security Investigations (HSI) and the Chesapeake Police Department. In early 2022, HSI identified Wilson after Belgian authorities reported he was distributing CSAM to a citizen in Belgium. Chesapeake Police found Wilson after Kik, a social media platform, reported he was uploading CSAM to his account. HSI and Chesapeake Police joined forces and executed a search warrant at Wilson’s residence in Chesapeake. Wilson was found to have been sexually abusing and filming the abuse of a toddler over a period of two years, from when the child was two years old to when she was four years old. Wilson was immediately arrested by Chesapeake Police and later by HSI.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Derek W. Gordon, Special Agent in Charge of HSI Washington, D.C.; and Mark G. Solesky, Chief of Chesapeake Police, made the announcement after sentencing by Chief U.S. District Judge Mark S. Davis.
Assistant U.S. Attorney Elizabeth Yusi prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:22-cr-45.
Browning felon sentenced to prison for illegal possession of firearmRead the Press Release
GREAT FALLS — A Browning man with felony convictions was sentenced today to 35 months in prison, to be followed by three years of supervised release, for illegally possessing guns, U.S. Attorney Jesse Laslovich said.
Kyle Lynn Brown, 49, pleaded guilty in January to prohibited person in possession of a firearm.
Chief U.S. District Judge Brian M. Morris presided.
In court documents, the government alleged that beginning in 2022, law enforcement began receiving information that Brown was possessing firearms and dealing drugs on the Blackfeet Indian Reservation. In May 2022, law enforcement stopped Brown and found him in possession of a .40-caliber handgun. In July 2022, law enforcement stopped Brown again and found him in possession of a small amount of methamphetamine and a loaded handgun. Brown had a prior federal felony drug conviction and was prohibited from possessing firearms.
Assistant U.S. Attorney Jessica A. Betley prosecuted the case. The FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives, Blackfeet Law Enforcement Services and Montana Highway Patrol conducted the investigation.
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Birmingham Man Pleads Guilty to Car Theft SchemeRead the Press Release
BIRMINGHAM, Ala. – A Birmingham man pleaded guilty to a scheme involving the theft and interstate shipment of at least $1.6 million in stolen cars, announced U.S. Attorney Prim F. Escalona and Homeland Security Investigations Acting Special Agent in Charge Travis Pickard.
Dexter Sherrod Pearce, 34, pleaded guilty this week to conspiracy and interstate transportation of stolen motor vehicles. As part of his plea, Pearce admitted that from May 2020 until August 2022, he and others stole and transported from one state to another at least 24 cars valued at over $1.6 million.
Pearce admitted as part of his plea that he and others stole cars from automobile dealerships and individuals in other states and transported them to the Northern District of Alabama to sell. The conspirators also stole cars in Alabama and transported them to other states to sell. To conceal that the cars were stolen and to facilitate the sale of the stolen cars, Pearce and others caused vehicle identification numbers to be altered, obtained false bills of sale and tag applications, and used the false documents to obtain bogus car titles and registrations.
According to the plea agreement, Pearce has agreed to pay restitution to the victims of his crimes and forfeit $227,615.00, representing the money he made during the conspiracy.
“The theft and interstate transportation of stolen vehicles has been a persistent problem in many parts of this country, and we are grateful for the work of HSI in unraveling this scheme,” said U.S. Attorney Escalona.
“Organized criminal activity, such as this, is extremely costly to victims and the economy as a whole,” said Acting Special Agent in Charge Travis Pickard, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “Every day, HSI and our law enforcement partners, are working to disrupt these criminal organizations and bring those who look to profit from these stolen goods to justice.”
The maximum penalty for conspiracy is five years in prison and a $250,000 fine. The maximum penalty for interstate transportation of stolen cars is ten years in prison and a $250,000 fine.
The Department of Homeland Security is investigating the case. Assistant United States Attorneys George Martin and Catherine Crosby are prosecuting the case.
Bangor Man Sentenced to 5 Years for Conspiring to Distribute MethamphetamineRead the Press Release
PORTLAND, Maine: A Bangor man was sentenced today in U.S. District Court in Portland for conspiring to distribute 50 grams or more of a mixture or substance containing methamphetamine.
U.S. District Judge Nancy Torresen sentenced Oliver Terilli, 25, to 60 months of imprisonment followed by four years of supervised release. Terilli pleaded guilty on September 7, 2022.
According to court records, in July 2021, Terilli and co-conspirators sold approximately 1,000 grams of methamphetamine to an undercover officer working with the U.S. Drug Enforcement Administration (DEA). Following the sale, DEA agents arrested Terilli and two co-conspirators on drug trafficking charges. DEA agents also recovered nearly 500 grams of additional methamphetamine that Terilli and a co-conspirator were receiving as part of the transaction.
In a series of communications leading up to the methamphetamine sale, Terilli offered to sell firearms along with the methamphetamine to the undercover officer. Terilli identified the firearms as including submachine guns and AK-47s. In July 2021, Terilli was the driver in a one-vehicle accident on I-95 near Clinton. Maine State Police troopers responded and seized multiple firearms from the vehicle, including an AK-47 rifle, two 9 mm pistols, a .380 caliber pistol and a 12-gauge shotgun. Terilli was arrested on state charges of operating under the influence and possession of a loaded firearm in a vehicle and was later released on bail. After his release, Terilli reestablished communication with the DEA undercover officer and completed the methamphetamine sale.
Co-conspirators Antonio Mazzola and Jeremy Hemingway have pleaded guilty and will be sentenced after the completion of presentence investigation reports by the U.S. Probation Office. A federal district judge will determine any sentences after considering the U.S. Sentencing Guidelines and other statutory factors.
DEA’s Tactical Diversion Squad investigated the case, with assistance from the Maine State Police.
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Baltimore Man Pleads Guilty to Federal Charge in Connection with Scheme to Obtain More Than $550,000 in Fraudulent COVID-19 Cares Act LoansRead the Press Release
Baltimore, Maryland – Lawrence A. Walker, age 63, of Baltimore, Maryland, pleaded guilty yesterday to conspiracy to commit wire fraud, for fraudulently obtaining more than $262,000 through the Paycheck Protection Program (“PPP”), intended to provide financial assistance to small businesses under the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Robert McCullough of the Baltimore County Police Department.
According to the plea agreement, from March 2021 through December 2021, Walker and a co-conspirator engaged in a scheme to fraudulently obtain a PPP loan for Walker’s business, Nutscola Street Promotions, LLC (“Nutscola”). Walker was the owner and resident agent, but Nutscola had no employees at the time and was not in operation.
As detailed in the plea agreement, on March 21, 2021, Walker and his co-conspirator submitted a PPP loan application that contained multiple misrepresentations, including that Nutscola had 13 employees and an average monthly payroll of $104,900.87. Walker and his co-conspirator fabricated a tax form and a February 2020 bank statement purportedly from Nutscola’s business account which were submitted in support of the loan application. Walker opened the Nutscola bank account on March 6, 2021, as part of the fraud scheme.
Based on the false representations and fraudulent documentation, the PPP loan was funded and approximately $262,252 in loan proceeds was distributed to the Nutscola bank account. After receiving the loan proceeds, Walker provided his co-conspirator with a kickback for his work in obtaining the loan—two checks totaling $78,000, which was approximately 30% of the loan amount.
Walker and his co-conspirator knew that, under the PPP rules, interest and principal on a PPP loan were eligible for forgiveness, if the business spent the loan proceeds on permissible items within a designated period of time and used a certain portion of the loan toward payroll expenses. To make it appear that the PPP loan funds were being used for legitimate purposes, on March 30, 2021, Walker signed an agreement with a payroll processor to provide payments using the PPP funds to purported employees of Nutscola, including Walker, his brother, and various other friends and associates. Use of the payroll services also created documentation that could be used to substantiate a request for the PPP loan to be forgiven.
According to the plea agreement, a total of $159,000 in sham payroll payments were made using funds traceable to the PPP loan obtained by Walker and Nutscola. None of the purported employees were actually employed by Nutscola and several of the purported employees provided the funds directly back to Walker. Walker used the loan proceeds to purchase a Mercedes-Benz automobile valued at more than $76,000 and to lease and fully furnish a luxury apartment in downtown Baltimore that overlooked Camden Yards baseball stadium. Neither use of the funds was permissible under PPP rules.
On December 31, 2021, Walker’s co-conspirator also fraudulently applied for an Economic Injury Disaster Loan (EIDL) under the CARES Act on behalf of Walker and Nutscola. The fraudulent EIDL loan did not close.
On April 26, 2022, law enforcement executed a federal search warrant at Walker’s residence and seized multiple electronic devices, including Walker’s phone, as well as over $30,000 in cash hidden in a garbage bag inside a heater in Walker’s bedroom. The $30,000 in cash constituted fraudulently obtained PPP funds.
Walker has made no payments in connection with the PPP loan obtained for Nutscola, and the entire PPP loan amount of $262,252 remains outstanding. As part of his plea agreement, Walker must forfeit the cash seized during the search, the Mercedes-Benz, and pay a money judgment of $262,252. Walker must also pay restitution of $262,252.
Walker faces a maximum sentence of 20 years in federal prison for the wire fraud conspiracy. U.S. District Judge Richard D. Bennett has scheduled sentencing for October 31, 2023.
The District of Maryland Strike Force is one of three strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud, including fraud relating to the CARES Act. The CARES Act was designed to provide emergency financial assistance to Americans suffering the economic effects caused by the COVID-19 pandemic. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.
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.United States Attorney Erek L. Barron commended the FBI and the Baltimore County Police Department for their work in the investigation and thanked the Small Business Administration Office of Inspector General for its assistance. Mr. Barron thanked Assistant U.S. Attorney Paul A. Riley, who is prosecuting the case. He also recognized the assistance of the Maryland COVID-19 Strike Force Paralegal Specialist Joanna B.N. Huber.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao/md.
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Austin Man Pleads Guilty in Deadly Fentanyl Overdose CaseRead the Press Release
AUSTIN, Texas – An Austin man pleaded guilty in a federal court in Austin on Tuesday to distribution of fentanyl causing death.
According to court documents, David Lee Jr., 46, was identified as a supplier of counterfeit oxycodone tablets and other counterfeit prescription pills in the investigation of the overdose death of an 18-year-old Coupland male. As part of the investigation, a Williamson County Sheriff’s Office investigator purchased eight oxycodone tablets from Lee. A laboratory analysis determined the tablets contained fentanyl, tramadol and florofentanyl. Lee himself initiated a subsequent sale of 1,000 oxycodone tablets to the investigator. The lab analysis from that controlled-buy revealed the tablets contained fentanyl. Other controlled-buys were made from one of Lee’s co-conspirators, Virginia Zepeda.
Lee faces a penalty of 20 years to life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Jaime Esparza of the Western District of Texas and Special Agent in Charge Daniel C. Comeaux of the Drug Enforcement Administration Houston Division made the announcement.
The Drug Enforcement Administration, Williamson County Sheriff’s Office and Guadalupe County Sheriff’s Office are investigating the case.
Assistant U.S. Attorney Mark Marshall is prosecuting the case.
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Asheville Man Is Sentenced to Prison for Federal Firearms OffenseRead the Press Release
ASHEVILLE, N.C. – Today, U.S. District Judge Martin Reidinger sentenced Danquon Shermaine Brown, 32, of Asheville, to 33 months in prison followed by three years of supervised release for a firearms offense, announced Dena J. King, U.S. Attorney for the Western District of North Carolina
Bennie Mims, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief Carla Neadeau of the Cherokee Indian Police Department join U.S. Attorney King in making the announcement.
According to court documents filed in the case and the sentencing hearing, in 2014, Brown was convicted in federal court in the Western District of North Carolina of possession with intent to distribute cocaine base and was sentenced to 60 months in prison. Brown’s federal conviction prohibits him from possessing a firearm or ammunition.
Court records show that in February 2022, officers with the Cherokee Indian Police Department (CIPD) received information that Brown, who at the time was staying at Harrah’s Cherokee Hotel and Casino in Cherokee, had outstanding arrest warrants in Buncombe County. On February 16, 2022, Brown checked out of the hotel. On the same day, CIPD officers arrested Brown after they stopped his vehicle near Highway 19 in Cherokee. Over the course of the arrest, CIPD officers recovered from Brown a handgun which was loaded with 12 rounds of ammunition.
On March 1, 2023, Brown pleaded guilty to one count of felon in possession of a firearm and ammunition. He is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons.
In making today’s announcement, U.S. Attorney King thanked the Cherokee Indian Police Department and the ATF for their assistance with the investigation.
Assistant U.S. Attorney John Pritchard of the U.S. Attorney’s Office in Asheville prosecuted the case.
19-Year-Old Woman Charged for Assaulting TSA OfficersRead the Press Release
PHOENIX, Ariz. – Ma’Kiah Cherae Coleman, 19, of Glendale, Arizona, was indicted on May 17, 2023, by a federal grand jury in Phoenix. The six-count indictment included three counts of assault on Transportation Security Administration (TSA) officers and three counts of Interference with Airport Security Screening Personnel.
The indictment alleges that, at approximately 6:00 a.m. on April 25, 2023, at Sky Harbor International Airport in Phoenix, Arizona, Coleman interfered with TSA officers who were conducting security screenings at Security Checkpoint D of Terminal 4. The indictment further alleges that during her interference with TSA officers, Coleman inflicted bodily injury on two TSA officers; specifically, she grabbed one officer by the hair, forcing the officer’s head down against a table, and hitting the officer in the head multiple times, and elbowed the other TSA officer in the head. Coleman also is alleged to have bit the hair of a third TSA officer who had come to the aid of the other two officers who were struggling with Coleman during the altercation.
Each conviction for Assault on a Federal Officer resulting in Bodily Injury carries a maximum penalty of 20 years in prison, a fine of up to $250,000, and up to three years of supervised release. Assault on a Federal Officer with contact and during the commission of another felony carries a maximum penalty of eight years in prison, a fine of up to $250,000, and up to three years of supervised release. Each conviction for Interference with Airport Security Screening Personnel carries a maximum penalty of 10 years in prison, a fine of up to $250,000, and up to three years of supervised release.
An indictment is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt. Coleman has been released from detention on personal recognizance with conditions pending trial.
The Federal Bureau of Investigation investigated this case with assistance from the Phoenix Police Department. Assistant United States Attorney Glenn McCormick, U.S. Attorney’s Office, District of Arizona, Phoenix, is handling the prosecution.
CASE NUMBER: 23-00780-PHX-DLR
RELEASE NUMBER: 2023-080_M. Coleman# # #
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.
31 May 2023
Woman Facing Federal Charges for Stealing a Nursing License in Order to Fraudulently Work as a Nurse in Indianapolis Nursing HomesRead the Press Release
INDIANAPOLIS- A federal grand jury has returned an indictment charging Rochelle Perry, 49, of Indianapolis, Indiana, with five counts of Social Security number fraud, three counts of aggravated identity theft, and one count of Social Security disability benefits fraud. The indictment was unsealed today, following Perry’s arrest and initial appearance.
As alleged in the indictment, between February 26, 2020, and March 23, 2022, Perry submitted five fraudulent applications for employment to Indianapolis area nursing homes and assisted living facilities. Perry used a stolen Social Security number on all five of the applications. She was receiving Social Security disability insurance benefits under her true Social Security number, and she knew that those benefits would be reduced or eliminated if the Social Security Administration found out she had a job. Additionally, Perry knew that she might not be able to pass an employment background check if she applied to a health care facility using her true Social Security number.
In some of the job applications, Perry also used a stolen Licensed Practical Nurse (“LPN”) license number to trick the employers into believing she was an LPN. Perry has never received any type of nursing license in the state of Indiana.
Of the five job applications, four were for LPN positions. Perry applied for these positions despite not having a nursing license. She worked as an LPN at one facility from January 21, 2021, to April 27, 2021, and at a second facility from May 10, 2021, to November 23, 2021. At a third facility, she worked as a Memory Care Program Coordinator from February 26, 2020, to April 16, 2020.
Between December 3, 2019, and December 2, 2022, Perry received approximately $54,991.30 in Social Security disability benefits under her true Social Security number. On two separate occasions, in August 2021 and October 2022, Perry submitted Work Activity Reports to the Social Security Administration. In those reports, Perry declared, under penalty of perjury, that she had not earned any income since May 2019. Perry did not disclose that she had been earning wages at health care facilities.
The FBI, Social Security Administration, Office of Inspector General, Indiana Attorney General’s Office – Medicaid Fraud Control Unit, and IMPD investigated this case. If convicted on all counts, Rochelle faces up to 5 years in federal prison. A federal district court judge will determine the actual sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Myers thanked Assistant United States Attorney Matthew B. Miller, who is prosecuting this case.
An indictment or criminal complaint are merely allegations, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Wolf Point woman admits murder charge in death of childRead the Press Release
GREAT FALLS — A Wolf Point woman suspected in the death of a child on the Fort Peck Indian Reservation admitted to a murder charge today, U.S. Attorney Jesse Laslovich said.
Heather Dawn Smith, aka Heather Dawn Yellow Owl, 32, appeared for arraignment on a superseding information charging her with second degree murder and pleaded guilty to the crime. Smith faces a maximum of life in prison, a $250,000 fine and five years of supervised release.
Chief U.S. District Judge Brian M. Morris presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for Nov. 1. Smith was detained pending further proceedings.
The government alleged in court documents that on Nov. 8, 2020 in Wolf Point, Smith beat the victim, a two-year-old child identified as Jane Doe. When Smith checked on the victim on Nov. 12, the child was unresponsive. The child was transported to the hospital in Wolf Point, where she was pronounced dead. The cause of death was multiple blunt force injuries.
Assistant U.S. Attorneys Lori Harper Suek and Ryan G. Weldon are prosecuting the case. The FBI, Fort Peck Tribes Criminal Investigation and Wolf Point Police Department conducted the investigation.
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Washington Parish Man Sentenced for Federal Gun and Drug ChargesRead the Press Release
NEW ORLEANS, LOUISIANA – JONATHAN LEWIS, age 39, a resident of Bogalusa, Louisiana, was sentenced on May 25, 2023, to serve three concurrent sentences of 60 months in federal prison followed by three years of supervised release after pleading guilty to two counts of distribution of cocaine (Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C)) and one count of being a felon in possession of a firearm (Title 18, United States Code, Sections 922(g)(1) and 924(a)(8)), announced U.S. Attorney Duane A. Evans.
LEWIS was also ordered to pay a mandatory special assessment fee of $100.00 per count.
According to court records, law enforcement officials made two controlled and video recorded purchases of drugs from LEWIS. When they arrested LEWIS, he possessed a firearm that was contained in a satchel. A search of social media sites revealed pictures of LEWIS with the same satchel and firearm dancing in the background of a rap video.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Washington Parish Sheriff’s Office, and the Bogalusa Police Department. The prosecution was handled by Assistant United States Attorney Maurice E. Landrieu, Jr. of the Narcotics Unit.
WMATA Senior Program Manager Sentenced for Carrying Out Procurement SchemeRead the Press Release
WASHINGTON – A former senior manager for the Washington Metropolitan Area Transit Authority (WMATA) was sentenced today to 18 months in prison for carrying out a scheme in which he and others manipulated the agency’s procurement process in favor of a company that was paid more than $1.3 million for items and services over a period of more than nine years.
Scottie Borders, 61, of Arlington, Virginia, pleaded guilty in September 2022, in the U.S. District Court for the District of Columbia, to conspiracy to commit wire fraud. In addition to the prison term, U.S. District Court Judge Christopher R. Cooper ordered 24 months of supervised release and restitution of $430,177.
The sentenced was announced by U.S. Attorney Matthew Graves, Washington Metropolitan Area Transit Authority (Metro) Inspector General Rene Febles, and Special Agent in Charge Wayne A. Jacobs, of the FBI’s Washington Field Office Criminal Division.
According to the statement of offense submitted to the Court and admitted by Borders, Borders worked full-time as a Senior Program Manager for WMATA. In this capacity, he was involved in the selection, award, and administration of WMATA contracts with various vendors, contractors, and suppliers.
The charge involves payments to a firm identified in the court documents as “Company 1.” This company, based in Millville, New Jersey, was a producer and supplier of traffic signs and safety products to various individuals, entities, and government agencies, including WMATA. As detailed in court documents, from approximately January 2011 through September 2020, in the District of Columbia, and elsewhere, Borders and others engaged in a scheme to unlawfully enrich themselves by securing the selection, award, and administration of contracts, bids, and purchase agreements between “Company 1” and WMATA for various traffic signs and safety products based on materially false representations made to WMATA, via wire, concerning the nature of the contracts, bids, and purchase agreements involving “Company 1” and others.
Borders was the primary point of contact for all business conducted between WMATA and “Company 1.” He abused his position at WMATA, and his understanding of the contracting and procurement process, to manipulate bids for items and services in favor of the company by using materially false and fraudulent representations made to WMATA via wire by Borders and his co-conspirators.
For example, Borders and his co-conspirators falsified price quotes and bids on behalf of companies that either did not submit bids to do business with WMATA or did not know that their information was being used in connection with specific WMATA bids. Borders also provided individuals at “Company 1” with information about potential competitors’ bids. The purported quotes and fraudulent bid proposals were made up to ensure that the company secured the lucrative WMATA purchase orders and contracts at issue. Additionally, Borders added unnecessary items to purchase orders that he submitted to WMATA on behalf of the company.
Ultimately, WMATA paid “Company 1” for such invoices and orders secured and submitted through Borders. Borders also procured purchase orders on behalf of WMATA, for equipment from the company that Borders knew was unnecessary, substandard, and/or never actually provided to WMATA.
During the relevant period, WMATA paid the company more than $1.3 million for various services and items, including poles, decals, bus stop signs, flags, and tools. In exchange for facilitating these fraudulent bids and orders on behalf of WMATA, Borders was provided with items of value, including NFL tickets, by individuals affiliated with the company.
This investigation was conducted by the FBI’s Washington Field Office and the Washington Metropolitan Area Transit Authority, Office of Inspector General. The prosecution is being handled by Assistant U.S. Attorneys Leslie A. Goemaat and Anne P. McNamara of the U.S. Attorney’s Office for the District of Columbia.
Utah Woman Sentenced to 12 Months Imprisonment for Wire Fraud and Ordered to Pay over $88,000 in RestitutionRead the Press Release
Salt Lake City, Utah – A Utah woman was sentenced today to one year imprisonment for devising a scheme to defraud Kemper Personal Insurance, for personal payment following a massive house fire in 2021.
According to court documents, April Kristina Tinnes, 49, of Tooele, Utah, pleaded guilty to wire fraud for devising a scheme to defraud Kemper Personal Insurance between January 2021 and May 2021. Tinnes made false and fraudulent representations regarding a fire she deliberately set on January 16, 2021, to her residence in Tooele. Tinnes was not living at the residence but renting a home nearby. The purpose of the scheme was to obtain payment of insurance proceeds on a policy written by Kemper Personal Insurance for the residence, which had been renewed in late 2020. In furtherance of the scheme, Tinnes caused a sworn video-recorded deposition examination taken by Kemper counsel documenting Tinnes’ false statements in support of her claim, to be transmitted via wire communications in interstate commerce to Kemper investigators. In addition to her 12 months’ imprisonment, Tinnes was ordered to serve three years of supervised release after her prison sentence and ordered to pay over $88,000 in restitution, which she paid in full.
“This case sends a firm and important message that those who commit arson for financial gain will be prosecuted and brought to justice,” said Assistant U.S. Attorney, Mark Hirata, for the District of Utah.
“ATF Forensic Auditors and Certified Fire Investigators work in tandem to provide a financial analysis as well as an origin and cause determination in arson-for-profit investigations, said ATF Special Agent in Charge Brent Beavers. “Arson-for-profit schemes, such as this, not only have financial and economic repercussions but also present a serious threat to public safety.”
U.S. Attorney, Trina A. Higgins, of the District of Utah made the announcement.
The case was investigated jointly by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Tooele City Police Department and Tooele City Fire Department.
Assistant U.S. Attorney, Mark Y. Hirata of the District of Utah prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
United States Files Civil Action to Collect Unpaid Civil Penalties and Reclamation Fee DebtsRead the Press Release
WASHINGTON – The Justice Department today announced the filing of a civil action against James C. Justice III and 13 coal companies he owns or operates seeking to collect unpaid civil penalties previously assessed by the Department of the Interior (DOI) Office of Surface Mining Reclamation and Enforcement (OSMRE), as well as Abandoned Mine Land (AML) reclamation fee and audit debts.
“Our environmental laws serve to protect communities against adverse effects of industrial activities including surface coal mining operations,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “Through this suit, the Justice Department seeks to deliver accountability for defendants’ repeated violations of the law and to recover the penalties they owe as a result of those violations.”
“Over a five-year period, defendants engaged in over 130 violations of federal law, thereby posing health and safety risks to the public and the environment,” said U.S. Attorney Christopher R. Kavanaugh for the Western District of Virginia. “After given notice, they then failed to remedy those violations and were ordered over 50 times to cease mining activities until their violations were abated. Today, the filing of this complaint continues the process of holding defendants accountable for jeopardizing the health and safety of the public and our environment.”
Pursuant to the Surface Mining Control and Reclamation Act (SMCRA), when a permittee violates SMCRA or their applicable permit, OSMRE issues a notice of violation (NOV) for non-imminently dangerous violations. The NOV sets a deadline for abating the violation. If the permittee fails to abate the violation by the NOV’s deadline, OSMRE issues a cessation order to halt mining until the violation is abated. If the permittee still fails to abate the violation within 30 days of the cessation order, OSMRE can take certain actions, including assessing civil penalties. If the violation creates an imminent danger to the health or safety of the public, OSMRE issues a second type of cessation order, called an Imminent Harm Cessation Order (IHCO), in lieu of an NOV, which requires cessation of active mining until the violation is abated. Separately, a director, officer or agent of a corporate permittee can be subject to individual civil penalties for willfully and knowingly authorizing, ordering or carrying out a permit violation or failure to comply with certain OSMRE orders.
From 2018 to 2022, OSMRE cited the defendants for over 130 violations and issued the companies over 50 cessation orders. The underlying violations pose health and safety risks or threaten environmental harm. In addition, defendants failed to pay required AML fees, which fund the reclamation of coal mining sites abandoned or left in an inadequate reclamation status. According to today’s filing, the total amount of the penalties and AML fees, plus interest, penalties and administrative expenses, owed by the defendants is approximately $7.6 million.
Assistant U.S. Attorney Krista Consiglio Frith for the Western District of Virginia and Trial Attorneys Sally J. Sullivan and Clare Boronow of the Environment and Natural Resources Division are handling this matter.
United States Files Civil Action to Collect Unpaid Civil Penalties and Reclamation Fee DebtsRead the Press Release
The Justice Department today announced the filing of a civil action against James C. Justice III and 13 coal companies he owns or operates seeking to collect unpaid civil penalties previously assessed by the Department of the Interior (DOI) Office of Surface Mining Reclamation and Enforcement (OSMRE), as well as Abandoned Mine Land (AML) reclamation fee and audit debts.
“Our environmental laws serve to protect communities against adverse effects of industrial activities including surface coal mining operations,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “Through this suit, the Justice Department seeks to deliver accountability for defendants’ repeated violations of the law and to recover the penalties they owe as a result of those violations.”
“Over a five-year period, defendants engaged in over 130 violations of federal law, thereby posing health and safety risks to the public and the environment,” said U.S. Attorney Christopher R. Kavanaugh for the Western District of Virginia. “After given notice, they then failed to remedy those violations and were ordered over 50 times to cease mining activities until their violations were abated. Today, the filing of this complaint continues the process of holding defendants accountable for jeopardizing the health and safety of the public and our environment.”
Pursuant to the Surface Mining Control and Reclamation Act (SMCRA), when a permittee violates SMCRA or their applicable permit, OSMRE issues a notice of violation (NOV) for non-imminently dangerous violations. The NOV sets a deadline for abating the violation. If the permittee fails to abate the violation by the NOV’s deadline, OSMRE issues a cessation order to halt mining until the violation is abated. If the permittee still fails to abate the violation within 30 days of the cessation order, OSMRE can take certain actions, including assessing civil penalties. If the violation creates an imminent danger to the health or safety of the public, OSMRE issues a second type of cessation order, called an Imminent Harm Cessation Order (IHCO), in lieu of an NOV, which requires cessation of active mining until the violation is abated. Separately, a director, officer or agent of a corporate permittee can be subject to individual civil penalties for willfully and knowingly authorizing, ordering or carrying out a permit violation or failure to comply with certain OSMRE orders.
From 2018 to 2022, OSMRE cited the defendants for over 130 violations and issued the companies over 50 cessation orders. The underlying violations pose health and safety risks or threaten environmental harm. In addition, defendants failed to pay required AML fees, which fund the reclamation of coal mining sites abandoned or left in an inadequate reclamation status. According to today’s filing, the total amount of the penalties and AML fees, plus interest, penalties and administrative expenses, owed by the defendants is approximately $7.6 million.
Assistant U.S. Attorney Krista Consiglio Frith for the Western District of Virginia and Trial Attorneys Sally J. Sullivan and Clare Boronow of the Environment and Natural Resources Division are handling this matter.
Two Nigerian Nationals Previously Extradited from the United Kingdom Plead Guilty to International Fraud Scheme that Defrauded Elderly U.S. VictimsRead the Press Release
Two Nigerian nationals who were extradited to the United States from the United Kingdom pleaded guilty to operating a transnational inheritance fraud scheme.
According to court documents, Jerry Chucks Ozor, 43, and Iheanyichukwu Jonathan Abraham, 44, were part of a group of fraudsters that sent personalized letters to elderly victims in the United States, falsely claiming that the sender was a representative of a bank in Spain and that the recipient was entitled to receive a multimillion-dollar inheritance left for the recipient by a family member who had died years before in Spain. Victims were told that before they could receive their purported inheritance, they were required to send money for delivery fees, taxes, and payments to avoid questioning from government authorities. Victims sent money to the defendants through a complex web of U.S.-based former victims. The defendants convinced these former victims to receive money from new victims and then forward the fraud proceeds to others (thereby serving as so-called “money mules”). In pleading guilty, the defendants admitted to defrauding over $6 million from more than 400 victims, many of whom were elderly or otherwise vulnerable.
“The Justice Department’s Consumer Protection Branch will pursue, prosecute, and secure the convictions of transnational criminals responsible for defrauding U.S. consumers, wherever they are located. I thank the United Kingdom’s National Crime Agency for its extensive efforts in helping to ensure that these defendants are held accountable here in the United States,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Justice Department and U.S. law enforcement will continue to work closely with law enforcement partners across the globe to bring to justice criminals who attempt to defraud U.S. victims from outside the United States.”
“The U.S. Postal Inspection Service (USPIS) has a long tradition of protecting American citizens from these types of schemes and bringing those responsible to justice,” said Postal Inspector in Charge Juan A. Vargas of the USPIS Miami Division. “These guilty pleas are a testament to the dedicated partnership between the Department of Justice’s Consumer Protection Branch, Homeland Security Investigations (HSI), and the U.S. Postal Inspection Service to protect our citizens from these scams.”
“These guilty pleas are a result of the unwavering commitment and countless hours spent by HSI and our law enforcement partners to ensure that this investigation led the extradition of the two Nigerian nationals,” said Special Agent in Charge Scott Brown of HSI Arizona. “Operating a transnational inheritance fraud scheme that targets the elderly is not only morally reprehensible, it also undermines the financial systems we use and depend upon. I thank everyone who worked on this case. These two defendants are one step closer to facing much-deserved prison time.”
On May 18, Ozor pleaded guilty to conspiracy to commit mail and wire fraud. Abraham pleaded guilty to conspiracy to commit mail and wire fraud earlier today. Ozor is scheduled to be sentenced by U.S. District Judge Kathleen M. Williams on July 27. Judge Williams will sentence Abraham on Aug. 9. Both defendants face a maximum penalty of 20 years in prison.
The Consumer Protection Branch, USPIS, and HSI are investigating the case.
Senior Trial Attorney Phil Toomajian and Trial Attorneys Josh Rothman and Brianna Gardner of the Civil Division’s Consumer Protection Branch are prosecuting the case. The Justice Department’s Office of International Affairs, the U.S. Attorney’s Office for the Southern District of Florida, Europol, and authorities from the U.K., Spain, and Portugal all provided critical assistance.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Justice Department hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish and other languages are available.
More information about the department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. The Justice Department provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which can be reached at www.ovc.gov.
Three-Month Campaign to Reduce Violent Crime Results in Seizure of 165 Firearms and 29 Prosecutions for Gun, Drug and Violent CrimesRead the Press Release
NEWS RELEASE SUMMARY – May 31, 2023
SAN DIEGO – Law enforcement officials today announced that a three-month campaign to reduce violent crime in San Diego County has resulted in the seizure of 165 firearms - including 82 privately-made weapons known as “ghost guns” - and the prosecution of 29 people.
The Privately Made Firearm Crime Reduction Project, which ran from February to May, was initiated to address gun violence and the proliferation of ghost guns in San Diego. The Bureau of Alcohol, Tobacco, Firearms and explosives (ATF) and the San Diego Police Department used data analytics to determine areas where there was an increase in gun violence and where crime guns were being recovered. ATF and SDPD employed an intelligence-led policing effort throughout the 90-day initiative to determine where to place resources to have the greatest impact.
This partnership used a multitude of investigative techniques including undercover operations, surveillance, scouring social media accounts, and using confidential informants and undercover federal agents. Law enforcement personnel risked their lives during nearly 88 operations to get these guns out of the hands of criminals and make communities safer. These operations included undercover operations, search warrants, and arrests warrants. Those primarily targeted were individuals involved in the illegal possession, manufacture and sale of firearms, particularly ghost guns bearing no serial numbers or identifying marks who were selling them to people prohibited from owning guns.
Authorities reported results of the operation at a news conference today, where ATF agents displayed 81 firearms items seized during the operation. Those weapons included machine guns; Glock Switches – which are machinegun conversion devices; short-barrel rifles; pistols and silencers. A substantial number of seized weapons were fully automatic. In addition to the firearms, investigators also recovered approximately 66 pounds of methamphetamine, 1.4 kilograms of powder fentanyl, 4,300 fentanyl pills, and 2.25 kilograms of cocaine.
To date, 22 defendants are charged in federal court and an additional seven in state court with various gun and drug crimes; four other state cases are pending. Federal gun charges include Dealing in Firearms without a License; Possession of a Machine Gun; Felon in Possession of a Firearm; Assault of a Federal Agent; Possession of a Firearm in Furtherance of a Violent Crime and Possession of a Firearm in Furtherance of Drug Trafficking. Drug charges include distribution of fentanyl, methamphetamine, and cocaine.
Last year alone, there were approximately 20,000 suspected ghost guns reported to ATF as having been recovered by law enforcement in criminal investigations – a ten-fold increase from 2016. Because ghost guns lack the serial numbers marked on other firearms, law enforcement has an exceedingly difficult time tracing a ghost gun found at a crime scene back to an individual purchaser.
On a local level, the San Diego Association of Governments, the regional clearinghouse for crime data, received a federal grant through the Department of Justice to enhance its tracking of crimes that involve firearms around the region. This would include the use of a firearm in violent crime and providing information regarding where these crimes are occurring, tracking calls for service related to the use of firearms, and interviewing arrestees regarding their use of firearms and ghost guns.
SANDAG has reported that ghost guns have been a significant and growing challenge around San Diego County in recent years. According to SANDAG, there was a 401 percent increase in ghost guns recovered by local law enforcement agencies in San Diego County from 2019 to 2021.
In the City of San Diego, the police department reports that about one-quarter of the guns recovered at crime scenes and during investigations during 2021 were privately manufactured and lacked serial numbers.
Preliminary numbers indicate that San Diego County law enforcement seized fewer ghost guns in 2022, but the overall rate of ghost gun seizures is still significantly higher than a few years ago.
“Our number one priority is keeping our residents safe, and gun crimes are a direct threat to that safety,” said U.S. Attorney Randy Grossman. “Every illegal gun that is removed from criminal hands makes us safer, and for that reason, this operation was a tremendous success.” Grossman thanked the prosecution team for their dedication to these cases; and especially agents and officers from ATF and San Diego Police Department who put their lives on the line during this very successful operation.
“The Privately Made Firearms Crime Reduction Project was conducted so ATF could leverage its federal resources to attack gun crime in San Diego,” said ATF Los Angeles Field Division Special Agent in Charge Christopher Bombardiere. “ATF collaborated with its our partners and successfully focused their efforts on violent individuals who were making and selling extremely powerful firearms without a license. In 90 days, ATF seized 165 firearms with almost half being privately made firearms and about a third being unregistered National Firearms Act (NFA) weapons. Those consisted of machine guns, machine gun conversion devices, short-barreled rifles, and silencers. This initiative and other ongoing investigations will continue to make our community safer.”
“The proliferation of drugs and firearms in our communities is an issue the San Diego Police Department is laser-focused on,” said San Diego Police Department Chief David Nisleit. “As one of the first in the nation to have a dedicated team for ghost gun investigations in the City of San Diego, SDPD is proud to have been a part of such a successful operation that gets drugs, firearms and the criminals that sell and manufacture them off our streets. The efforts by all involved demonstrate the seriousness and effectiveness of our collaborative work to combat this issue.”
In 2021, the San Diego Police Department established a dedicated team to address the proliferation of personally manufactured firearms, or “ghost guns,” in San Diego. One of the first of its kind in the nation, the Ghost Gun Apprehension Team has been tasked with investigating unlawful ghost gun manufacturing and sales cases. The team serves as a resource to patrol, area station detectives and specialized units when ghost guns are discovered during an arrest or investigation.
“The District Attorney’s Office is committed to continuing to work with our state and federal partners on targeted operations like this one that make our neighborhoods safer,” said San Diego County District Attorney Summer Stephan. “In addition to the illegal guns seized, thousands of fentanyl-laced pills and dozens of pounds of meth were recovered, keeping these illegal and dangerous drugs off the streets and preventing potentially fatal overdoses.”
In this operation, examples of federal cases include these allegations which are contained in charging documents:
- Christian Ferrari, a 22-year-old active-duty U.S. Marine stationed at Camp Pendleton, was charged with illegally selling ghost guns to undercover ATF agents in several transactions. These guns included 12 AR-type rifles. The agents also placed an order for an additional 10 rifles and explained they were for an associate who would be taking the firearms into Mexico. Ferrari responded, “alright, perfect,” and quoted the agents $10,000 for those 10 rifles. (23-mj-01618)
- Giovanni Diaz was convicted of robbery in 2022. In March 2023, Diaz began selling fentanyl pills and guns to an ATF undercover agent. Over the course of two weeks, Diaz sold 1,400 fentanyl pills and three ghost guns to the agent. (23-cr-000872)
- Jonathan Manuel Flores was charged with assaulting a federal officer with a Glock 9 mm pistol and brandishing a firearm in furtherance of a crime of violence. According to a federal complaint, on February 17, 2023, ATF agents conducted an undercover operation in San Diego to purchase a machine gun, specifically a Glock pistol with a full auto conversion device, commonly known as a “Glock Switch,” for $2,400. During the undercover operation the defendant insisted that the gun deal take place in their car. The undercover agent got into the back seat of the parked car as requested. As the undercover agent finished counting the cash, the defendant allegedly pulled back the slide on his pistol to make it ready to shoot and pushed the muzzle into the undercover agent’s ribcage. He then said, “Get the f---- out of the car dog before I smoke you” while grabbing the cash from the agent’s hand. The agent quickly exited the vehicle and the sedan took off. (23-cr-0512)
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Three Albuquerque Men Charged for Shootings Targeting the Residences of Elected OfficialsRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, Kenneth A. Polite, Jr., Assistant Attorney General of the Justice Department’s Criminal Division, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced today that an indictment was unsealed today charging Solomon Peña and his accomplices, Demetrio Trujillo and Jose Trujillo, for a shooting spree targeting the homes of four elected officials. A federal grand jury indicted all three defendants on May 24, 2023.
Solomon Peña, 40, is charged with conspiracy, four counts of interference with federally protected activities, and four counts of using and carrying a firearm during and in relation to a crime of violence. If convicted, Peña faces up to life in prison. Peña is currently in state custody on related charges.
Jose Trujillo, 22, is charged with conspiracy, four counts of interference with federally protected activities, and four counts of using and carrying a firearm during and in relation to a crime of violence, possession with intent to distribute 40 grams and more of fentanyl and using and carrying a firearm during and in relation to a drug trafficking crime. An arraignment hearing is scheduled for June 8. If convicted, Jose faces up to life in prison.
Demetrio Trujillo, 41, is charged with conspiracy, four counts of interference with federally protected activities, and four counts of using and carrying a firearm during and in relation to a crime of violence. An initial appearance has been scheduled for June 1. If convicted, Demetrio faces up to life in prison.
According to the indictment, Peña ran for District 14 of the New Mexico House of Representatives during the November 2022 mid-term elections. Following his electoral defeat in November 2022, Peña allegedly organized the shootings on the homes of two Bernalillo County commissioners and two New Mexico state legislators. The shootings were carried out between Dec. 4, 2022, and Jan. 3, with assistance from his co-defendants.
“In America, the integrity of our voting system is sacrosanct,” said U.S. Attorney Alexander M.M. Uballez. “These charges strike at the heart of our democracy. Voters, candidates and election officials must be free to exercise their rights and do their jobs safely and free from fear, intimidation or influence, and with confidence that law enforcement and prosecuting offices will lead the charge when someone tries to silence the will of the people. To those who try to sow division, chaos, and fear into our democratic process, these charges should send a message that we are unified, organized, and undaunted.”
“There is no room in our democracy for politically motivated violence, especially when it is used to undermine election results,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “As alleged, Solomon Peña orchestrated four shootings at the homes of elected officials, in part because of their refusal to overturn his election defeat. Such violent actions target not only the homes and families of elected officials, but also our election system as a whole. The department will not hesitate to hold individuals accountable for acts of politically motivated violence.”
"Solomon Pena and the other defendants carried out the hatred in their hearts by targeting a group of the community’s public officials.” said Raul Bujanda, FBI Special Agent in Charge. “These charges illustrate that the FBI will relentlessly work with our law enforcement partners to actively investigate and pursue prosecution of those individuals who threaten and harm our elected officials.”
“APD worked tirelessly with our federal partners to bring those responsible for these heinous crimes to justice,” said Chief Harold Medina. “Thankfully no one was physically harmed by these politically motivated shootings, but I hope these indictments bring some sense of relief to all those impacted, through the emotional toll they’ve had to endure.”
“ATF is dedicated to combatting the senseless firearm violence that plagues our nation,” said Brendan Iber, Special Agent in Charge of ATF’s Phoenix Field Division. “We will always work with our law enforcement partners to identify and remove those violent offenders from our communities.”
An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty.
The FBI Albuquerque Field Office investigated this case with the Albuquerque Police Department and the assistant of the Bureau of Alcohol, Tobacco, Firearms and Explosives. Senior Litigation Counsel Victor R. Salgado of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys Jeremy Peña and Patrick E. Cordova for the District of New Mexico are prosecuting the case.
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Thompson Man Sentenced to 8 Years in Federal Prison for Meth ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine was sentenced May 30, 2023, in federal court in Sioux City.
Joey Post, 35, from Thompson, Iowa, pled guilty on February 1, 2023, to conspiracy to distribute methamphetamine. Evidence at the plea and sentencing hearings showed that from July 2020 through May 2022, Post and others distributed over 10 pounds of methamphetamine. This included distribution to an individual working with law enforcement on several occasions in Swea City, Iowa. While on pretrial release for the instant federal charges, Post fled the area without notifying the United States Probation Office and was later arrested in Minnesota.
Sentencing was held before United States District Court Chief Judge Leonard T. Strand. Post was sentenced to eight years’ imprisonment and must serve a three-year term of supervised release following imprisonment. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Patrick T. Greenwood and was investigated by the Iowa Department of Narcotics Enforcement, Kossuth County Sheriff’s Office, and Iowa DCI Laboratory.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-3029. Follow us on Twitter @USAO_NDIA.
The United States and Montgomery County Based Pharmacy and Pharmacist Reach a Consent Decree over Allegations of Illegally Dispensed Controlled SubstancesRead the Press Release
Greenbelt, Maryland - U.S. District Judge Peter J. Messitte approved the United States’ consent decree with Abtin Youssefi-Rashti, a Montgomery County based pharmacist, and Upton Care Pharmacy, Inc. (“Upton Care”), resolving the United States’ civil allegations that Youssefi-Rashti and Upton Care violated the Controlled Substances Act (“CSA”) in illegally dispensing controlled substances. Under the consent decree, in addition to paying a $100,000 civil monetary penalty, Youssefi-Rashti agrees to surrender his pharmacist’s license to the Maryland Board of Pharmacy and not to reapply for three years. Additionally, Upton Care agreed to voluntarily surrender its DEA registration to dispense controlled substances for cause.
The consent decree was announced by United States Attorney for the District of Maryland Erek L. Barron and Special Agent in Charge Jarod A. Forget of the Drug Enforcement Administration – Washington Field Division.
“Under the Controlled Substances Act, pharmacists have a responsibility to ensure the legitimacy of the prescriptions they fill,” said U.S. Attorney Erek L. Barron. “The U.S. Attorney’s Office intends to use all tools at its disposal—criminal and civil—to hold responsible those at every step in the supply chain who violate the CSA and fan the flames of the present opioid epidemic.”
Special Agent in Charge Jarod A. Forget stated, “Pharmacists have a crucial role in correctly dispensing controlled substances, safeguarding patients and preventing drug diversion. It’s essential to pay attention to warning signs to prevent the opioid epidemic from getting worse. DEA is dedicated to investigating those who ignore the signs and to ensuring the community is safe.”
The government alleges that between 2018 and when Upton Care closed its doors in 2022, Youssefi-Rashti and Upton Care knowingly filled fraudulent prescriptions for controlled substances, ignoring red flags indicating that the prescriptions were not legitimate. For example, the government alleges that Youssefi-Rashti dispensed controlled substances to more than 300 people that traveled more than 180 miles from their homes to Upton Care. Additionally, Youssefi-Rashti dispensed prescriptions for both opioids and stimulants—a dangerous and potentially lethal combination—to the same patient concurrently. Youssefi-Rashti also regularly filled prescriptions for controlled substances that were paid for with cash even though the patient had insurance available to pay for the patient’s prescriptions. Although the Centers for Disease Control and Prevention generally recommends that primary care clinicians should avoid daily dosages of opioids over 90 morphine milligram equivalents (“MME”), Youssefi-Rashti routinely dispensed prescriptions to patients causing their MME levels to be many times that amount—and upwards of 1800 daily MME. The government alleges that Upton Care is liable for these deficiencies.
As part of the Consent Decree, Youssefi-Rashti and Upton Care are required to identify certain red flags—including when filling a prescription would cause the patient to take more than 90 daily MME; and when the patient pays in cash despite having insurance available to pay for the prescription. Before filling prescriptions bearing those red flags, the consent decree requires Youssefi-Rashti and Upton Care to document in detail any indications of abuse or diversion and the steps they took to ensure that the prescription was valid and was issued for a legitimate medical purpose, and that the prescription would not be abused or diverted for illegitimate purposes. Additionally, under the consent decree, Youssefi-Rashti and Upton Care are prohibited from filling certain prescriptions, including a combination of an opioid and a stimulant, and prescriptions for buprenorphine without naloxone without reliable documentation from the prescriber that the patient is pregnant, a nursing mother, or has had an actual adverse reaction to naloxone.
Under the consent decree, if the DEA determines that Youssefi-Rashti or Upton Care have violated any provision of the consent decree or if Youssefi-Rashti or Upton Care do not implement the corrective action the DEA orders, the DEA can order Youssefi-Rashti and Upton Care to cease ordering, distributing, or dispensing controlled substances immediately.
The consent decree is not an admission of liability by Youssefi-Rashti or Upton Care, nor a concession by the United States that its claims are not well founded.
The Court’s approval of this consent decree should remind pharmacists and pharmacies of their corresponding responsibility to confirm the legitimacy of the prescriptions that they fill and that that the Department of Justice intends to use all tools at its disposal—both criminal and civil—to combat the controlled substances epidemic which continues to plague our country, including here in Maryland.
U.S. Attorney Erek L. Barron commended the DEA Washington Division’s Office of Diversion Control and Diversion Investigator Samantha A. Merriss for their work in the investigation, along with the Montgomery County Police Department and the FBI’s Baltimore Field Office. Mr. Barron thanked Assistant United States Attorney Alan C. Lazerow, who handled the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to report fraud, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/report-fraud.
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Suburban Houstonian sentenced for having over 35,000 child pornography filesRead the Press Release
GALVESTON, Texas – A 33-year-old Alvin resident has been ordered to federal prison following his conviction of distribution, receipt and possession of child pornography, announced U.S. Attorney Alamdar S. Hamdani.
Michael Crisp Jr. pleaded guilty March 31, 2022.
Today, Judge Jeffrey V. Brown ordered Crisp to serve 210 months for distributing and receiving child pornography and 120 months for possessing it. They will run concurrently for a total 210-month-term of imprisonment. Before imposing the sentence, Judge Brown emphasized that child pornography is not a victimless crime and that he received more victim impact statements in this case than in any previous case before him.
Crips was further ordered to pay a total of $136,500 in restitution to 42 identified victims and must serve 10 years on supervised release following completion of his prison term. During that time, he will have to comply with numerous requirements designed to restrict his access to children and the internet. Crisp will also be ordered to register as a sex offender.
“Crisp hoarded and traded files of child rape, suffering and trauma as if they were some kind of collectors’ item - to the order of tens of thousands,” said Hamdani. “Today’s sentence underscores that consumers of child pornography can and will be held to account for how they fuel demand for more and more images of children suffering unspeakable sexual abuse.”
“Cases that involve the sexual exploitation of children are some of the toughest cases our agents work,” said Special Agent in Charge James Smith of the FBI Houston Field Office. “Crisp took pleasure from thousands of images and videos depicting the sadistic sexual exploitation, torture and abuse of children, including infants and toddlers. By choosing to receive and disseminate such graphic imagery, Crisp repeatedly re-victimized the victims. While today’s sentence removes one sexual predator from children’s lives, the FBI’s work continues as there are many more like Crisp still out there.”
Crisp first came to the attention of law enforcement after he imported a nine-minute video into his cloud storage account of an adult woman sexually abusing a toddler. During the investigation, authorities found over 29,000 images and 6,500 videos of child pornography on multiple devices. The images depicted young children in bondage and included children under the age of five. In addition to possessing child pornography, Crisp utilized messaging applications to trade child sexual abuse material with others.
Previously released on bond, Crisp was taken into custody following the sentencing today where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation with the assistance of the Pearland Police Department. Assistant U.S. Attorney Stephanie Bauman is prosecuting the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
Stilwell Resident Sentenced for Second Degree Murder in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announces that Darrell James Hummingbird, age 39, of Stilwell, Oklahoma, was sentenced today to 262 months in prison for Second Degree Murder in Indian Country.
The charges arose from investigations by the Stilwell Police Department, the Oklahoma State Bureau of Investigation, and the Federal Bureau of Investigation.
On July 18, 2022, Hummingbird pleaded guilty to Second Degree Murder in Indian Country. According to court documents, on April 26, 2021, the victim was beaten to death in his Stilwell apartment with a metal baseball bat. Hummingbird attempted to cover up the crime, but investigators recovered incriminating DNA evidence from the murder weapon and Hummingbird’s shoes.
The United States Attorney’s Office for the Eastern District of Oklahoma prosecuted this case because the defendant is a member of a federally recognized Indian tribe and the crime occurred in Indian County, within the boundaries of the Cherokee Nation Reservation and within 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 hearing in Muskogee. Hummingbird 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 Kevin Gross represented the United States.
Spokane Resident Pleads Guilty to Fraudulently Obtaining More than $360,000 in COVID- 19 Relief FundingRead the Press Release
Spokane, Washington – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced today that Marisa Beck, age 40, of Spokane, pled guilty to fraudulently obtaining more than $360,000 in COVID-19 relief funding intended for endangered small businesses. United States District Judge Mary K. Dimke accepted Ms. Beck’s guilty plea and set sentencing for September 27, 2023, at 11 a.m., in Spokane. This conviction is the eighth felony conviction announced by the Eastern Washington COVID-19 Fraud Strike Force, which launched in 2022.
On March 27, 2020, the President signed into law the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act provided a number of programs through which eligible small businesses could request and obtain relief funding intended to mitigate the economic impacts of the pandemic for small and local businesses. One such program, the Paycheck Protection Program (PPP), provided forgivable loans to eligible small businesses to retain jobs and maintain payroll during the pandemic. Another program, the Economic Injury Disaster Loan (EIDL) program, provided low-interest bridge funding for small businesses placed at risk during the pandemic.
“COVID-19 relief programs quickly ran out of money due to the number of businesses that requested funding, meaning that struggling, deserving small businesses were not able to obtain critically needed funding to keep their businesses afloat during the shutdowns and disruptions caused by the COVID pandemic,” said U.S. Attorney Waldref. “We created the Eastern Washington COVID-19 Fraud Strike Force because it is critical to the strength and safety of our communities that we all work together to combat pandemic-related fraud and bring much-needed accountability to these programs. The Strike Force works to ensure that limited resources are used to protect our local small businesses and the critical jobs and services that they provide for the community.”
In February 2022, U.S. Attorney Waldref and the U.S. Attorney’s Office began working with federal law enforcement agencies to create and launch a COVID-19 Fraud Strike Force that would leverage partnerships between different agencies to aggressively investigate and prosecute fraud against COVID-19 relief programs in Eastern Washington. The Strike Force consists of agency representatives from the U.S. Attorney’s Office, Small Business Administration (SBA) Office of Inspector General (OIG), Federal Bureau of Investigation (FBI), U.S. Department of the Treasury Inspector General for Tax Administration (TIGTA), U.S. Secret Service, U.S. Homeland Security Investigations (HSI), U.S. Department of Veterans Affairs OIG, General Services Administration OIG, Internal Revenue Service, Department of Energy OIG, Department of Homeland Security (DHS) OIG, Department of Labor OIG, Air Force Office of Special Investigations, and others. Cases investigated and prosecuted by the Strike Force have resulted in numerous indictments and convictions, and have recovered millions of dollars in penalties and restitution for the public.
In the plea agreement accepted by the court, and in information disclosed during court proceedings, Ms. Beck admitted to fraudulently obtaining $368,829 in PPP and EIDL funding for three purported businesses: Cyra Solar LLC, Beck N’ Call Landscape, LLC, and Value in People Consulting, LLC. Ms. Beck admitted that these entities were not eligible for CARES Act funding because Beck N’ Call Landscape and Cyra Solar were not active businesses as of February 2020, and because she submitted false and fraudulent payroll, revenue, and other information associated with the three purported businesses in order to fraudulently obtain CARES Act funding.
“I commend the stellar investigative work on these cases performed by the Strike Force and especially in this case by VA OIG,” said U.S. Attorney Waldref. “We will continue to work with our law enforcement partners to strengthen our communities by protecting our small and local businesses.”
The charges to which Beck pled carries a maximum sentence of up to 5 years in federal prison. The cases were investigated by the Eastern Washington COVID Fraud Strike Force, and in particular by the U.S. Department of Veterans Affairs Office of Inspector General, Spokane Resident Office, with investigative assistance and support from the Federal Bureau of Investigation, Spokane Resident Agency, the Small Business Administration Office of Inspector General, Western Regional Office, and the Internal Revenue Service, Criminal Investigative Division, Seattle Field Office. Assistant United States Attorneys Dan Fruchter and Tyler H.L. Tornabene are prosecuting this case on behalf of the United States.
Case No. 2:23-cr-00055-MKD
Spokane Man Sentenced to 17 Years for Receipt of Child Pornography While on Federal SupervisionRead the Press Release
Spokane, WA – On May 30, 2023, U.S. Senior District Court Judge Rossana Malouf Peterson sentenced Christopher Gary Carlson, 50, of Spokane, Washington, to 180 months in federal prison for Receipt of Child Pornography, followed by an additional 24 months in prison for violating a previously imposed term of supervised release. Judge Peterson also ordered Carlson to pay $24,000 in restitution to his victims and to a lifetime of federal supervision upon release from prison.
According to information disclosed in court proceedings, this was Carlson’s third time being sentenced for child pornography crimes. His first conviction was in 2007, for which he was ordered to serve 12 months and a day in a state prison. His second child pornography conviction was in 2014, for which Judge Peterson sentenced Carlson to 10 years in prison and a lifetime of supervised release. Undeterred by these prior terms of incarceration, Carlson used a smartphone to download and view child pornography just a month after his recent release from federal prison. The smartphone was discovered in July 2022, when a U.S. Probation Officer conducted a home visit at Carlson’s residence. When the FBI obtained a federal warrant to search the phone, FBI agents located 198 images and 63 videos of child pornography on Carlson’s device.
“Today’s 17-year sentence sends a powerful reminder to Mr. Carlson and others like him: Crimes that exploit the most vulnerable among us cannot, and will not, be tolerated,” stated United States Attorney Vanessa R. Waldref. “Time and again, Mr. Carlson returned to the internet to view and collect depictions of a child’s most horrific experiences. Yet, just as swiftly as Mr. Carlson collected these images and videos depicting this incredible harm, U.S. Probation and the FBI responded, preventing Mr. Carlson from victimizing hundreds if not thousands more minor children.”
United States Attorney Waldref continued, “As a result of the seamless partnership between the FBI and the United States Attorney’s Office, Mr. Carlson was again brought to justice, and our communities are safer and stronger, especially for young children. I’m especially grateful for the incredible work by Assistant United States Attorney Ann Wick. Cases such as this demonstrate AUSA Wick’s relentless dedication to pursuing justice.”
This case was investigated by the Spokane Resident Office of the Federal Bureau of Investigation and prosecuted by Ann T. Wick, Assistant United States Attorney for the Eastern District of Washington.
2:22-CR-096-RMP
2:13-CR-135-RMP
Southern California Man Pleads Guilty to Kickback Scheme to Defraud Williams SonomaRead the Press Release
SAN FRANCISCO – Kourosh Mirmehdi pleaded guilty in federal court today to charges related to his role in a multi-million-dollar fraudulent kickback scheme, announced United States Attorney Ismail J. Ramsey and Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge Darren Lian. The plea was accepted by the Hon. Richard Seeborg, U.S. District Judge.
In his plea agreement, Mirmehdi, 63, of Irvine, Calif., admitted he conspired with two co-defendants to divert and steal millions of dollars in commercial real estate broker commission rebates. Mirmehdi worked for a global logistics company that assisted Williams Sonoma, Inc. (WSI) in securing commercial warehouse space. WSI is a home-goods retailer headquartered in San Francisco that operates brands such as Williams Sonoma, Pottery Barn, and West Elm. As an employee of the global logistics company, Mirmehdi assisted commercial real estate brokers in locating warehouses for WSI to lease. Mirmehdi also assisted in negotiating the lease terms for WSI. As part of the negotiations, WSI often was entitled to receive millions of dollars in broker rebates after entering into commercial leasing agreements. Mirmehdi admitted that, beginning around 2020, he was involved in a conspiracy to divert and steal those rebates.
Mirmehdi acknowledged that the scheme involved duping commercial real estate brokers into sending rebates to a co-conspirator’s shell company, rather than to WSI. Mirmehdi and his co-conspirators—one of whom was employed by WSI—falsely represented to commercial real estate brokers that the co-conspirator’s company was connected to WSI. In fact, the company had nothing to do with WSI and was merely a shell company owned by a co-conspirator. Mirmehdi split the diverted payments with his co-conspirators. In total, the scheme to defraud garnered approximately $4.1 million, with more than $1.35 million going to Mirmehdi.
Mirmehdi was indicted by a federal grand jury on April 11, 2023. He was charged with one count of wire fraud conspiracy, in violation of 18 U.S.C. § 1349; four counts of wire fraud, in violation of 18 U.S.C. § 1343; and one count of money laundering conspiracy, in violation of 18 U.S.C § 1956(h). Under the plea agreement, Mirmehdi pleaded guilty to the wire fraud conspiracy and the money laundering conspiracy counts. If Mirmehdi complies with his plea agreement, the remaining counts will be dismissed at sentencing.
Mirmehdi is currently released on bond. His next appearance is November 14, 2023. Mirmehdi now faces a statutory maximum of 20 years in prison for each of the wire fraud and money laundering conspiracy counts, as well as a $250,000 fine for the wire fraud conspiracy count and a $500,000 fine for the money laundering conspiracy count. As part of any sentence the court also may order Mirmehdi to serve an additional term of supervised release and to pay restitution, if appropriate. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Charges against Mirmehdi’s three co-defendants remain pending.
Assistant U.S. Attorneys Ross Weingarten and Christiaan Highsmith are prosecuting the case with the assistance of Elizabeth Kim. The prosecution is the result of an investigation by the IRS-CI.South Carolina Man Sentenced on Federal Carjacking ChargeRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that defendant WILLIAM NELSON, age 21, a resident of South Carolina, was sentenced t by U.S. District Court Judge Jay C. Zainey to 180 months of imprisonment, 3 years of supervised release, and a $100 mandatory special assessment fee after previously pleading guilty to a one-count indictment for carjacking, a violation of Title 18, United States Code, Section 2119.
NELSON and his co-defendant committed a carjacking on January 2, 2022, in the 1000 block of Carondelet Street. NELSON and his co-defendant took the car from the victims using force and intimidation then fled in the stolen vehicle. During the course of a police chase in which NELSON and his co-defendant hit several vehicles and crashed the stolen vehicle, NELSON fled on foot. NELSON was arrested after surrendering to police .
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.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation, Louisiana State Police, and the New Orleans Police Department. The case is being prosecuted by Assistant United States Attorney Inga Petrovich of the Violent Crime Unit.
Smuggling over $2M in fentanyl and other narcotics lands women in prisonRead the Press Release
CORPUS CHRISTI, Texas – Two Houston women have been sent to prison following their convictions of conspiring to possess with intent to distribute fentanyl, heroin and cocaine, announced U.S. Attorney Alamdar S. Hamdani.
Clarissa Hernandez, 24, admitted her role in the conspiracy June 2, 2022, while her co-conspirator, Sarah Morales, 24, pleaded guilty April 28, 2022.
Today, U.S. District Judge David S. Morales ordered Hernandez to serve 120 months in federal prison to be immediately followed by five years of supervised release. At the hearing, the court heard additional evidence that detailed the conspiracy, which included the women purchasing firearms in Houston and exporting them to Mexico.
Morales was also previously sentenced to a 120-month term of imprisonment to be immediately followed by five years of supervised release. In handing down the sentence, the court noted the complex and seriousness nature of the criminal activity.
On Feb. 11, 2022, Hernandez attempted to drive through a Border Patrol (BP) checkpoint, at which time a K-9 alerted to her vehicle. A search revealed 15 bundles of cocaine and 32,500 pills of disguised fentanyl concealed in the front and rear bumpers of her Chevrolet sedan.
Soon after, Morales also attempted to pass through the checkpoint. During a search, authorities discovered 12 bundles of cocaine, three bundles of heroin and one bundle of fentanyl concealed in the front and rear bumpers of her Ford sport utility vehicle.
At the time of their pleas, they admitted they had conspired together to smuggle a total of 25.36 kilograms of cocaine, 4.94 kilograms of fentanyl and 255 grams of heroin.
The drugs have a combined estimated street value of approximately $2.25 million.
Hernandez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation with the assistance of BP. Assistant U.S. Attorney John Marck prosecuted the case.
#OnePillCanKill
Smuggler sentenced after leaving one dead in brushRead the Press Release
CORPUS CHRISTI – A 26-year-old Mexican citizen illegally in the United States has been ordered to federal prison for transporting illegal aliens, announced U.S. Attorney Alamdar S. Hamdani.
Jose Carols Arroyo-Secundino pleaded guilty Dec. 28, 2022.
Today, U.S. District Judge Nelva Gonzales Ramos ordered Arroyo-Secundino to serve 48 months in federal prison. Not a U.S. citizen, Arroyo-Secundino is expected to face removal proceedings following his imprisonment. At the hearing, the court heard additional evidence regarding the reckless nature of the offense that described the hazardous nature of transporting aliens through the brush in South Texas. In handing down the sentence, the court noted Arroyo-Secundino’s lack of criminal history.
On Sept. 11, 2022, law enforcement apprehended Arroyo-Secundino after observing him guide approximately 13 illegal aliens through the brush. After his arrest, a subsequent search of his cell phone led to the discovery of videos depicting a person dying. The videos linked Arroyo-Secundino to a deceased person found in the brush on July 16, 2022. The footage confirmed Arroyo-Secundino guided the group and directed others to leave the victim in the brush.
The investigation also revealed the number associated with the cell phone was used to contact the victim’s brother to demand $2,000 in exchange for the GPS coordinates of the body. The information was turned over to law enforcement who ultimately located the deceased person.
Arroyo will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Border Patrol conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorney Amanda L. Gould prosecuted the case.
Roseville Man Indicted for Receiving and Possessing Child PornographyRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment last week against Timothy James Durel, 57, of Roseville, charging him with receipt of child pornography and possession of child pornography, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between July 2013 and March 2021, Durel received visual depictions of children engaged in sexually explicit conduct. He also possessed child pornography between about July 2012 and February 2021.
This case is the product of an investigation by Homeland Security Investigations. Assistant U.S. Attorney Roger Yang is prosecuting the case.
If convicted, Durel faces a maximum statutory penalty of 20 years in prison and a fine of up to $250,000 for receipt of child pornography, and a maximum statutory penalty of 10 years in prison and a fine of up to $250,000 for possession of child pornography. Any sentence, however, would 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. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Richfield Felon Pleads Guilty to Possessing a Glock with Full Auto SwitchRead the Press Release
ST. PAUL, Minn. – A Richfield man has pleaded guilty to illegally possessing a firearm with an attached “switch,” making it a fully automatic weapon, announced U.S. Attorney Andrew M. Luger.
According to court documents, on October 14, 2022, law enforcement attempted to arrest Vatthana Andy Sengsouriya, 28, on an outstanding warrant. When officers tried to take Sengsouriya into custody in the parking lot of the Eden Prairie Home Depot, he fled in his vehicle. Officers pursued Sengsouriya and were able to stop his vehicle with a Pursuit Intervention Technique (PIT) maneuver, but Sengsouriya fled his vehicle on foot and ran into the woods. After a brief foot chase, law enforcement apprehended Sengsouriya and took him into custody. Officers searched a cross-body bag Sengsouriya was wearing and found 115 grams of cocaine, some of which was packaged into smaller bags meant for distribution, and a Glock Model 21 .45 caliber pistol with a switch attached to it, which transformed the handgun into a fully automatic weapon.
Sengsouriya pleaded guilty yesterday in U.S. District Court before Judge Kate M. Menendez to one count of possession of a firearm as a felon. A sentencing hearing will be scheduled at a later date.
This case is the result of an investigation conducted by the DEA, the Hennepin County Sheriff’s Office, the Eden Prairie Police Department, and the Southwest Hennepin Drug Task Force.
Assistant U.S. Attorneys Albania Concepcion and Lauren O. Roso are prosecuting the case.
Red Lake Man Pleads Guilty in Drunk Driving Manslaughter CaseRead the Press Release
MINNEAPOLIS – A Red Lake man has pleaded guilty to involuntary manslaughter resulting from a drunk driving crash, announced U.S. Attorney Andrew M. Luger.
According to court documents, on the morning of November 6, 2021, Gerald Wayne Johnson, 27, was driving a vehicle while intoxicated with a passenger in the front seat. Johnson was driving above 90 miles per hour on a public road which had a posted speed limit of 20 miles per hour. While speeding and driving recklessly, Johnson lost control and crashed the vehicle into a nearby tree. Johnson’s passenger died from her injuries caused by the crash. Johnson’s blood was drawn, and his blood alcohol content was determined to be .224.
Johnson pleaded guilty today in U.S. District Court before Senior Judge Michael J. Davis to one count of involuntary manslaughter. A sentencing hearing will be scheduled at a later time.
This case is the result of an investigation conducted by the FBI, the Red Lake Police Department, and the Minnesota State Patrol.
Assistant U.S. Attorney Joseph S. Teirab is prosecuting the case.
Real Estate Agent Sentenced to 20 Years in Prison for Conspiring to Sexually Exploit ChildrenRead the Press Release
DETROIT – A real estate agent was sentenced to 20 years in federal prison for conspiring to sexually exploit children, United States Attorney Dawn N. Ison announced today.
Ison was joined in the announcement by Angie M. Salazar, Special Agent in Charge of Homeland Security Investigations (HSI), Detroit Field Office.
Dennis Michael Putman, age 60, of Warren, Michigan, was sentenced by United States District Judge Sean F. Cox. As part of his guilty plea, Putman had admitted that he used the WhatsApp messaging application to conspire with another individual to produce sexually explicit images of minors, with his co-conspirator producing and sending to him at least one video of a minor engaged in sexually explicit conduct.
Law enforcement officers discovered this offense when searching Putman’s residence as part of a drug investigation. Putman cooperated regarding his role in the drug offense and directed officers to look at his WhatsApp account for drug-related messages. In the application, officers found sexually explicit conversations with his co-conspirator regarding the exploitation of children and a sexually explicit video of a minor.
An investigation later determined that these conversations continued for nearly two months, with Putman frequently demanding that his co-conspirator produce sexually explicit images of young minors that frequently were in her care. Putman—who was employed as a real estate agent—secured his drug-addicted and impoverished co-conspirator’s involvement in part by frequently paying her small sums of money.
“This defendant took advantage of his co-conspirator’s drug addiction and mental health issues to cause the exploitation of children. This sentence reflects his role in this disturbing crime,” U.S. Attorney Ison said.
“Predators who seek to exploit children, whether by themselves or through others, will be caught and brought to justice,” said HSI Detroit Special Agent in Charge Angie M. Salazar. “I’m proud of the law enforcement partners and prosecutors who helped remove this threat to our communities.”
This case was investigated by the County of Macomb Enforcement Team (COMET) and Homeland Security Investigations and was prosecuted by Assistant United States Attorney Christopher Rawsthorne.
Raleigh County Man Sentenced to Prison for Federal Gun CrimeRead the Press Release
BECKLEY, W.Va. – Gregory Kincaid, 31, of Cool Ridge, was sentenced today to two years and nine months in prison, to be followed by three years of supervised release, for being a felon in possession of a firearm.
According to court documents and statements made in court, on April 7, 2022, law enforcement officers were executing a search warrant at a Cool Ridge residence when Kincaid arrived at the residence in a vehicle. After officers approached the vehicle, Kincaid admitted that he possessed a Smith & Wesson, model M&P Shield, 9mm pistol. Kincaid told officers he had stolen the firearm from his father and had brought it to the residence being searched to sell or trade for money or controlled substances.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Kincaid knew he was prohibited from possessing a firearm because of his prior felony conviction for third-offense driving revoked for DUI in Raleigh County Circuit Court on November 25, 2020.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Beckley/Raleigh County Drug and Violent Crime Unit, and the Raleigh County Sheriff’s Department.
United States District Judge Frank W. Volk imposed the sentence. Assistant United States Attorney Andrew D. Isabell prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:22-cr-192.
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