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Wednesday 19 April 2023
Council Bluffs Man Sentenced for a Firearm OffenseRead the Press Release
COUNCIL BLUFFS, IA – A Council Bluffs man was sentenced today, April 18, 2023, to 48 months in prison following his plea of guilty to being a prohibited person in possession of a firearm.
On February 27, 2022, Jake Campbell, 38, was stopped driving a vehicle that was reported stolen. During a search of the vehicle, officers located a loaded Smith and Wesson firearm under the driver’s seat, along with other items belonging to Campbell. The firearm was reported stolen. Campbell was prohibited from possessing a firearm because he had a prior felony conviction, and he was a methamphetamine user. Campbell must serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Council Bluffs Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated 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. In May 2021, the Department of Justice 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.
Construction Company President Pleads Guilty to 25-Year Fraud on the U.S. Government and to Bribery of A Public OfficialRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that SINA MOAYEDI, the owner of a construction company, Montage, Inc., pled guilty today to a 25-year fraud on the United States Government. MOAYEDI pled guilty to three counts: conspiracy to commit wire and bank fraud, conspiracy to commit bribery of a public official, and aggravated identity theft. Under the terms of his plea agreement, MOAYEDI also admitted to obstructing justice by, among other things, deleting electronic evidence of his fraud shortly after his release on bail in this case, which resulted in his pretrial detention. MOAYEDI pled guilty before United States District Judge Jed S. Rakoff, to whom MOAYEDI’s case is assigned.
U.S. Attorney Damian Williams said: “From 1995 until 2021, Sina Moayedi defrauded the U.S. Government and various of its agencies by lying in various respects. Moayedi lied that his construction company was woman-owned; he lied about his employees’ qualifications; he lied about his company’s construction experience; and he lied about his company’s financial condition. He also repeatedly paid bribes to a State Department employee to illegally obtain inside information to help Moayedi’s company win government contracts. His frauds netted his company at least 27 lucrative government construction contracts, including contracts to build sensitive U.S. embassies and consulates. And following his arrest in this case, Moayedi obstructed justice by destroying electronic evidence of his frauds less than one month after his release on bail. Moayedi now faces the consequences of his quarter-century fraud on the federal government, which harmed the government, taxpayers, and his competitors.”
According to the filings and statements made in Manhattan federal court:
In the 1980s, MOAYEDI founded Montage, Inc. (“Montage”), a U.S.-based business that is primarily involved in worldwide Government construction projects, including embassies, military posts, consulates, and similar overseas properties owned and operated by the United States Government. In total, the U.S. Government has paid Montage more than $200 million on government contracts. Since 2014, Montage appears to have focused primarily on competing for and obtaining contracts with the State Department. During that period, the State Department awarded Montage approximately six overseas U.S. Embassy/Consulate construction project contracts totaling $100 million.
MOAYEDI defrauded the U.S. Government — including the State Department, Treasury Department, Department of Defense, and General Services Administration — by lying in various respects. In submissions to the Government (i.e., bids for contracting work), MOAYEDI mispresented his company’s ownership, his employees’ qualifications, his company’s construction experience, and his company’s financial condition.
As to ownership, MOAYEDI falsely represented, repeatedly, that Montage was a female-owned business (or a female- and minority-owned business) in order to secure unmerited advantages in the bidding process. In fact, MOAYEDI founded, owned, ran, and controlled Montage, and he made all material decisions on Montage’s behalf. As MOAYEDI revealed to a bank that inquired about Montage’s ownership status in 2016, “I am the sole owner and president of Montage and have always been.”
As to employees’ qualifications, MOAYEDI significantly overstated the qualifications of various Montage employees in order to, among other things, meet State Department and contractual requirements for minimum experience in certain key positions. For instance, MOAYEDI claimed, falsely, that certain Montage employees possessed engineering degrees, and he claimed, falsely, that certain individuals worked for Montage when, in fact, they did not.
As to Montage’s construction experience, MOAYEDI submitted bids to the Government in which he repeatedly falsified Montage’s purported construction experience in order to burnish its alleged credentials. To ensure that the U.S. Government did not uncover these lies, MOAYEDI “backstopped” these fabricated prior projects by creating fraudulent email accounts and personas, so that someone else appeared to be “vouching” that Montage had performed this prior work. This required creating online web domains (the “Fabricated Domains”), so that Montage’s purported references appeared legitimate. These Fabricated Domains were extremely similar to, but one character or word different from, the legitimate web domain associated with the actual entity. MOAYEDI purchased the necessary online infrastructure to create these Fabricated Domains.
As to financial condition, MOAYEDI paid a Certified Public Accountant to prepare at least four different sets of books and records, each of which was provided to a different recipient (e.g., one fraudulent set for the U.S. Government, another fraudulent set for the bank, another fraudulent set for a company that sold construction bonds, etc.).
In furtherance of his fraud on the U.S. Government, MOAYEDI also used the identities of at least 10 individuals, including some of his relatives.
In addition, between 2014 and 2020, MOAYEDI repeatedly paid cash bribes and kickbacks to an engineer in the State Department’s Overseas Building Operations division, May Salehi, in exchange for confidential inside information relating to several State Department construction projects, including projects in Ecuador, Spain, and Bermuda. For instance, in late 2016 and early 2017, MOAYEDI paid approximately $60,000 in cash to Salehi after Salehi provided confidential inside bidding information to MOAYEDI about the relationship between Montage’s original bid and his competitors’ bids — information that allowed Montage to raise its bid by nearly $1 million yet remain the lowest bidder on a construction project that was ultimately awarded to Montage.
MOAYEDI also defrauded his primary bank (“Bank-1”) through various misrepresentations. MOAYEDI and Montage had a multi-million-dollar line of credit at Bank-1, which they maintained through misrepresentations about Montage’s ownership and the value, progress, status, and existence of construction projects that Montage was performing for the United States Government. For instance, in or about both 2014 and 2019, MOAYEDI made material misrepresentations to Bank-1 in support of an annual extension of Montage’s line of credit, including misrepresentations about purportedly lucrative “classified” government construction projects which, in fact, did not exist.
MOAYEDI also obstructed justice in multiple respects. These include: (i) in September 2021, shortly after his release on bail in this case, MOAYEDI destroyed electronic evidence of his fraud on the U.S. Government by deleting at least seven Fabricated Domains, which (as noted) he had used to help inflate Montage’s purported construction experience in bids for U.S. Government construction projects; (ii) shortly after the execution of search warrants at Montage’s offices in September 2020, MOAYEDI attempted to witness tamper by, among other things, pressuring a co-conspirator to lie in order to impede the Government’s ongoing criminal investigation; and (iii) during a civil lawsuit between the State Department and Montage, MOAYEDI lied during a sworn deposition in 2019 by claiming to be the Vice President of Montage and by falsely claiming that a Hispanic woman had been the President of Montage “ever since” 2002.
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MOAYEDI, 67, of Chevy Chase, Maryland, pled guilty to three counts: one count of conspiracy to commit wire and bank fraud, which carries a maximum sentence of five years in prison; one count of conspiracy to commit bribery of a public official, which carries a maximum sentence of five years in prison; and one count of aggravated identity theft, which carries a mandatory prison term of two years, which must run consecutively to any other prison term.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as MOAYEDI’s sentence will be determined by Judge Rakoff.
MOAYEDI is scheduled to be sentenced by Judge Rakoff on August 10, 2023, at 4:00 p.m. Under the terms of his plea agreement, MOAYEDI also agreed to pay restitution of $6,588,679.63 and forfeiture of $17,795,098.50.
May Salehi was previously sentenced to one year in prison, three years of supervised release, a fine of $500,000, and forfeiture of $60,000.
Mr. Williams praised the exceptional investigative work of the State Department, Office of Inspector General; Special Agents from the United States Attorney’s Office for the Southern District of New York; and the Internal Revenue Service.
The Office’s Complex Frauds and Cybercrime Unit is handling this criminal case. Assistant U.S. Attorneys Michael D. Neff and Louis A. Pellegrino are in charge of the prosecution.
Charleston Man Pleads Guilty to COVID-19 Relief Fraud SchemeRead the Press Release
CHARLESTON, W.Va. – Aalik Wilsher, 26, of Charleston, pleaded guilty today to receipt of stolen money, admitting to a scheme to defraud the Paycheck Protection Program (PPP) of $20,459.33 in COVID-19 relief loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).
According to court documents and statements made in court, on April 14, 2021, Wilsher applied for a PPP loan for his purported business, “Aalik Wilsher.” Wilsher admitted that he falsely certified that “Aalik Wilsher” was established in 2019 and was in operation on February 15, 2020. Wilsher further admitted to submitting a false IRS Form 1040, Schedule C, to state that “Aalik Wilsher” had earned $97,587 in gross income during 2019.
The CARES Act, enacted in March 2020, offered emergency financial assistance to Americans suffering from the economic effects caused by the COVID-19 pandemic. This assistance included forgivable loans to small businesses for job retention and certain other expenses through the Paycheck Protection Program. Businesses applying for PPP loans had to certify that the business was in operation on February 15, 2020, and were required to provide documentation showing their prior gross income from either 2019 or 2020.
Wilsher’s fraudulent PPP loan application was approved and $20,330 was electronically deposited from a financial institution in Florida to Wilsher’s bank account in Charleston, West Virginia, on April 30, 2021.
Wilsher later applied to have the fraudulent PPP loan and $129.33 in accrued interest forgiven. Wilsher admitted that he had not spent the loan proceeds on permissible business expenses. The SBA forgave Wilsher’s fraudulent PPP loan on December 13, 2021.
Wilsher is scheduled to be sentenced on July 5, 2023, and faces a maximum penalty of 10 years in prison, three years of supervised release, and a $250,000 fine. Wilsher also owes $20,459.33 in restitution.
United States Attorney Will Thompson made the announcement and commended the investigative work of the West Virginia State Police-Bureau of Criminal Investigations (BCI) and the West Virginia State Auditor’s Office (WVSAO) Public Integrity and Fraud Unit (PIFU).
United States District Judge Joseph R. Goodwin presided over the hearing. Assistant United States Attorney Jonathan T. Storage is prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:23-cr-51.
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Carthage Man Sentenced to 24 Years for Child Sexual ExploitationRead the Press Release
SPRINGFIELD, Mo. – A Carthage, Mo., man has been sentenced in federal court for sexually exploiting a child from Michigan whom he met online.
Charles Ward Kuentzel, 27, was sentenced by U.S. District Judge Stephen R. Bough on Tuesday, April 18, to 24 years and five months in federal prison without parole. The court also sentenced Kuentzel to 20 years of supervised release following incarceration. Kuentzel will be required to register as a sex offender upon his release from prison and will be subject to federal and state sex offender registration requirements, which may apply throughout his life.
On Sept. 12, 2022, Kuenzel pleaded guilty to one count of the sexual exploitation of a child. Kuentzel admitted that he used a child victim to produce child pornography from Sept. 1, 2020, to April 21, 2021.
The mother of the child victim, identified in court documents as Jane Doe 1, contacted law enforcement in Michigan because her daughter was in an inappropriate online relationship with an adult man. The child victim told investigators she met Kuentzel in a public Discord game server, through which they communicated. FBI agents in in the Detroit division were able to identify Kuentzel in the online chats, in which Kuentzel and the child victim sent one another sexually explicit images of themselves. Kuentzel engaged in video chats and sexual conversations with the victim.
Officers executed a search warrant at Kuentzel’s residence on Aug. 26, 2021, and seized his cell phone and microSD card. Numerous images of the child victim, including child pornography, were found on the cell phone and the microSD card.
During the forensic examination, investigators also found several sexually explicit images of another child victim, identified in court documents as Jane Doe 2. She told investigators she was 14 years old when she met Kuentzel on Omegle, and they communicated through the Snapchat and Kik applications. Kuentzel requested nude images from Jane Doe 2, which she provided. Today’s sentence encompasses this criminal behavior with a sentencing enhancement for Kuentzel’s pattern of illegal sexual conduct.
This case was prosecuted by Assistant U.S. Attorney Stephanie L. Wan. It was investigated by the FBI, the Southwest Missouri Cyber Crimes Task Force, and the Canton, Mich., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Cape Girardeau Felon Admits New Gun CrimeRead the Press Release
CAPE GIRARDEAU – A felon on probation for a gun crime pleaded guilty Wednesday and admitted being caught with another firearm in December.
Trenier Roosevelt Jackson, 22, of Cape Girardeau, Missouri, pleaded guilty in U.S. District Court in Cape Girardeau to a felony charge of being a felon in possession of a firearm. He admitted being the passenger in a speeding vehicle pulled over by Cape Girardeau police on Dec. 1, 2022. After the vehicle stopped, Jackson immediately got out and walked away. The officer asked Jackson to return, but he ran away again when the driver said he had a gun and officers said they would search for weapons.
Jackson dropped a bag containing a stolen Sig Sauer 9mm pistol and multiple forms of identification as he ran. He was arrested a short distance away. At the time, Jackson was on probation after having been convicted of unlawful use of a weapon and resisting arrest.
Jackson is scheduled to be sentenced by U.S. District Judge Stephen N. Limbaugh, Jr. on July 27. The charge carries a potential penalty of up to 15 years in federal prison, a $250,000 fine or both.
The Cape Girardeau Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Assistant U.S. Attorney Timothy Willis is prosecuting the case.
Canton Woman Sentenced to Prison for Defrauding HUD Section 8 Housing ProgramRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that DONNA CARNEY, 67, of Canton, was sentenced today by U.S. Circuit Judge Sarah A. L. Merriam in Bridgeport to one month of imprisonment, followed by three years of supervised release, for defrauding a U.S. Department of Housing and Urban Development (“HUD”) program.
According to court documents and statements made in court, in approximately 1995, Carney began receiving Section 8 tenant-based rental assistance under HUD’s housing choice voucher program. From approximately 2004 to 2019, Carney failed to report to HUD that she was married to her landlord and therefore had an interest in the home in which she lived, failed to report certain others living in her home, and falsely claimed that unauthorized residents were live-in aides.
Judge Merriam ordered Carney to pay $33,594.
On October 12, 2022, Carney pleaded guilty to theft of government property.
Carney, who is released on a $50,000 bond, is required to report to prison on June 29.
This investigation was conducted by the U.S. Department of Housing and Urban Development – Office of Inspector General for Investigations and the Canton Police Department. The case was prosecuted by Assistant U.S. Attorney Heather Cherry.
California Man Sentenced for Federal Drug Trafficking Violations in East TexasRead the Press Release
TYLER, Texas - A Bakersfield, CA man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Pablo Antonio Sandoval, 24, pleaded guilty on August 8, 2022, to possession with intent to distribute methamphetamine and was sentenced to 170 months in federal prison by U.S. District Judge Jeremy D. Kernodle on April 18, 2023.
According to information presented in court, in October 2021, Sandoval supplied more than 500 grams of methamphetamine to drug dealers in Cherokee County, Texas, which he sourced from suppliers in California. Sandoval was indicted by a federal grand jury in the Eastern District of Texas in April 2022.
This case was investigated by the Homeland Security Investigations, Cherokee County Sheriff’s Office, Drug Enforcement Administration, and Jacksonville Police Department. This case was prosecuted by Assistant U.S. Attorney Lucas Machicek.
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Businessman Pleads Guilty to Bribing City of Atlanta and DeKalb County Officials to Obtain ContractsRead the Press Release
The former executive vice president of PRAD Group Inc. pleaded guilty to paying bribes to two City of Atlanta officials in exchange for steering city business worth millions of dollars to his company, to paying bribes to a former DeKalb County, Georgia, official in an attempt to obtain county contracts, and to evading over $1.5 million in taxes.
According to court documents, Lohrasb “Jeff” Jafari, 72, of Alpharetta, Georgia, oversaw PRAD Group’s finances. From 1984 to 2018, PRAD Group was an architectural, design, and construction management firm headquartered in Atlanta that performed services for the City of Atlanta and DeKalb County.
From January 2003 to February 2017, Adam Smith was the Chief Procurement Officer (CPO) for the City of Atlanta and supervised the city’s purchasing activities and its expenditure of billions of dollars of public money. From April 2011 to May 2016, Jo Ann Macrina served as the City of Atlanta’s Commissioner of the Department of Watershed Management, a cabinet-level position from which she managed the city’s drinking water and wastewater systems and was responsible for an annual budget exceeding $500 million.
Jafari gave Smith and Macrina cash and other items of value to obtain business with the City of Atlanta. In exchange for those payments, Smith and Macrina conspired with Jafari to ensure that PRAD Group received city business worth millions of dollars, including by agreeing to replace two evaluators on the selection team for the city’s architectural and engineering contract and to re-score an evaluation so that Jafari’s company would be awarded a contract.
During Smith’s tenure as the CPO, the City of Atlanta awarded contracts worth millions of dollars to PRAD Group and joint venture projects of which PRAD Group was a partner. For years, Jafari met privately with Smith on multiple occasions, frequently at local restaurants. During these meetings, Jafari and Smith discussed City of Atlanta procurement projects, bids, and solicitations, often while Jafari was actively seeking additional work and/or assistance with ongoing city projects. After most of the meetings, Jafari paid Smith $1,000 in cash in the bathroom of the restaurant. In return for these bribe payments, Jafari expected Smith to use his position and power to assist Jafari with contracting and procurement with the City of Atlanta. From at least 2014 to January 2017, Jafari paid Smith more than $40,000 in cash with the intent to influence Smith in his role as the city’s CPO.
In February 2017, Jafari became aware of the federal investigation into his bribe payments to Smith. In response, Jafari confronted Smith at City Hall to convince Smith to lie to the FBI by instructing Smith to deny taking bribe money from him.
From at least 2013 through May 2016, Macrina met with Jafari to discuss City of Atlanta procurement projects, bids, and solicitations, often while Jafari was actively seeking contracts, projects, and work with the City of Atlanta. To obtain city work, Jafari promised Macrina a lucrative job with PRAD Group and, directly or through a PRAD Group employee, gave Macrina $10,000 in cash, jewelry, a room at a luxury hotel and luxury shopping trip in Dubai, and landscaping work at her home. Shortly after the City of Atlanta fired her, Macrina began working for Jafari and PRAD Group. Between June and September 2016, Jafari and/or PRAD Group paid Macrina $30,000 in four separate payments.
On April 8 and Aug. 21, 2014, the FBI conducted two undercover operations using a confidential source (who at the time was a high-ranking DeKalb County official). During the surreptitiously recorded meetings, the confidential source met with Jafari at local restaurants, where Jafari sought assistance from the confidential source to obtain work in DeKalb County. After the meetings, Jafari directed the confidential source to the bathroom of the restaurants where Jafari paid the confidential source between $1,000 and $1,500 in cash.
From 2014 to 2016, Jafari neither filed personal tax returns, nor paid any income taxes to the IRS. During those years, Jafari withdrew large amounts of cash from corporate bank accounts and took money from the PRAD Group’s corporate accounts to pay for various personal expenses, including several luxury vehicles. Jafari evaded the payment of at least $1.5 million in taxes.
Jafari pleaded guilty to one count each of conspiratorial bribery, substantive bribery, and tax evasion. He is scheduled to be sentenced on July 19 and faces a statutory maximum of five years in prison for conspiracy to commit bribery, 10 years for substantive bribery, and five years for tax evasion. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
In January 2018, Smith was sentenced to two years and three months in prison after pleading guilty to conspiratorial bribery. In February 2023, Macrina was sentenced to four years and six months in prison after being convicted at trial of conspiratorial and substantive bribery.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, and Special Agent in Charge James E. Dorsey of the IRS Criminal Investigation (IRS-CI) Atlanta Field Office made the announcement.
The FBI Atlanta Field Office and IRS-CI are investigating the case.
Trial Attorney Jolee Porter of the Criminal Division’s Public Integrity Section, Trial Attorney Todd Ellinwood of the Tax Division, and Assistant U.S. Attorneys Jeffrey W. Davis and Nathan P. Kitchens for the Northern District of Georgia are prosecuting the case.
Businessman Jeff Jafari pleads guilty to bribing City of Atlanta and DeKalb County officials to obtain contractsRead the Press Release
ATLANTA - Lohrasb “Jeff” Jafari, the former Executive Vice President of PRAD Group, Inc., has pleaded guilty to paying bribe money to two City of Atlanta officials in exchange for steering city business worth millions of dollars to his company, to paying bribes to a former Dekalb County official in an attempt to obtain county contracts, and to evading more than $1.5 million in taxes.
“Contractors and the public deserve a fair and impartial government procurement process,” said U.S. Attorney Ryan K. Buchanan. “For years, Jeff Jafari corrupted, and attempted to corrupt, those processes in the City of Atlanta and DeKalb County by paying tens of thousands of dollars in bribe payments to several high-ranking government officials. Not surprisingly, after illegally obtaining city contracts he never paid a dime of personal income tax on millions of dollars he earned.”
“Jafari tried to buy his way around a process that is meant to be fair to all contract applicants, and in doing so contributed to the public’s distrust in government,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “Today's plea is the direct result of the FBI and our partners continuous hard work and commitment to end public corruption in the city of Atlanta”
“Jafari bribed city government officials to avoid fair competition in bidding for government contracts,” said James E. Dorsey, Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “Greed consumed Mr. Jafari, after being awarded the government contracts, he willfully failed to file tax returns reporting the income and pay the appropriate taxes undermining the American tax system.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: From 1984 to 2018, PRAD Group was an architectural, design, and construction management firm headquartered in Atlanta, Georgia, that performed services for the City of Atlanta and DeKalb County, Georgia. Jafari served as PRAD Group’s Executive Vice President and oversaw PRAD Group’s finances.
From January 2003 to February 2017, Adam Smith served as the Chief Procurement Officer for the City of Atlanta. From that position, Smith supervised the City of Atlanta’s purchasing activities and its expenditure of billions of dollars of public money. From April 2011 to May 2016, Jo Ann Macrina served as the City of Atlanta’s Commissioner of the Department of Watershed Management. As Watershed’s Commissioner, Macrina held a cabinet-level position from which she managed the City’s drinking water and wastewater systems and was responsible for an annual budget exceeding $500 million.
Jafari gave Smith and Macrina cash and other items of value to obtain business with the City of Atlanta. In exchange for those payments, Smith and Macrina conspired with Jafari to ensure that PRAD Group received City business worth millions of dollars, including conspiring to replace two evaluators on the selection team for the City’s Architectural and Engineering contract and to re-score an evaluation so that Jafari’s company would be awarded a contract.
During Smith’s tenure as the Chief Procurement Officer, the City of Atlanta awarded contracts worth millions of dollars to PRAD Group and joint venture projects of which PRAD Group was a partner. For years, Jafari met privately with Smith on multiple occasions, frequently at local restaurants. During these meetings, Jafari and Smith discussed City of Atlanta procurement projects, bids, and solicitations. Often at the time of these meetings, Jafari was actively seeking additional work and/or assistance with ongoing City projects. Jafari paid Smith $1,000 in cash in the bathroom of the restaurant after most of the meetings. In return for these bribe payments, Jafari expected Smith to use his position and power to assist Jafari with contracting/procurement with the City of Atlanta. From at least 2014 to January 2017, Jafari paid Smith more than $40,000 in cash with the intent to influence Smith in his role as the City of Atlanta’s Chief Procurement Officer.
In February 2017, Jafari became aware of the federal investigation into his bribe payments to Smith and confronted Smith at City Hall. Jafari insisted that Smith lie to the FBI by denying that Smith took bribe money from him.
From at least 2013 through May 2016, Macrina met with Jafari to discuss City of Atlanta procurement projects, bids, and solicitations. Often at the time of these meetings, Jafari was actively seeking contracts, projects, and work with the City of Atlanta. To obtain city work, Jafari promised Macrina a lucrative job with PRAD Group and, directly or through a PRAD Group employee, gave Macrina $10,000 in cash, jewelry, a room at a luxury hotel in Dubai, a luxury shopping trip in Dubai, and landscaping work at her home. Shortly after the City of Atlanta fired her, Macrina began working for Jafari and PRAD Group. Between June and September 2016, Jafari and/or PRAD Group paid Macrina $30,000 in four separate payments.
On April 8 and August 21, 2014, the FBI conducted undercover operations using a confidential source (who at the time was a high-ranking DeKalb County official). During two surreptitiously recorded meetings, the confidential source met with Jafari at local restaurants, where Jafari sought assistance from the confidential source to obtain work in DeKalb County. After the meetings, Jafari directed the confidential source to the bathroom of the restaurants where Jafari paid the confidential source between $1,000 and $1,500 in cash.
From 2014 to 2016, Jafari neither filed personal tax returns, nor paid any income taxes to the IRS. During those years, Jafari withdrew large amounts of cash from corporate bank accounts and used money from the PRAD Group’s accounts to pay for various personal expenses, including several luxury vehicles. Jafari evaded the payment of at least $1.5 million in taxes.
Lohrasb “Jeff” Jafari, 72, of Alpharetta, Georgia, pleaded guilty to one count each of conspiratorial bribery, substantive bribery, and tax evasion. Sentencing is scheduled for July 19, 2023, at 11:00 a.m., before U.S. District Judge Steve C. Jones.
The Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation are investigating the case.
Assistant U.S. Attorneys Jeffrey W. Davis and Nathan P. Kitchens, Trial Attorney Jolee Porter of the Justice Department’s Public Integrity Section, and Trial Attorney Todd Ellinwood of the Justice Department’s Tax Division, are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Bridgeport Man Sentenced to 5 Years in Federal Prison for Role in Heroin Trafficking RingRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that WILFREDO ROSADO-RODRIGUEZ, also known as “Turtle,” 40, of Bridgeport, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 60 months of imprisonment, followed by four years of supervised release, for his role in a large-scale heroin trafficking ring.
According to court documents and statements made in court, Rosado-Rodriguez was a close associate of Ivan Rosario, also known as “Ghost,” who headed a Bridgeport-based heroin trafficking organization that, between approximately April 2015 and March 2017, received at least 30 kilograms of heroin that had been transported from Mexico to Bridgeport hidden inside motorcycles equipped with secret compartments. The organization then distributed the drug in the Bridgeport area.
Rosado-Rodriguez’s primary role was transporting the organization’s cash proceeds to money launderers. In October 2015, law enforcement stopped a car Rosado-Rodriguez was driving and seized approximately $120,000 in suspected drug proceeds that he was couriering to New York.
On March 16, 2017, a grand jury in Hartford returned an indictment charging Rosario, Rosado-Rodriguez and five other individuals with heroin trafficking and related offenses. Rosado-Rodriguez was arrested on October 28, 2021. On September 20, 2022, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 100 grams or more of heroin.
Rosado-Rodriguez has been detained since his arrest.
Rosario was convicted of a related charge and, on July 18, 2019, Judge Bryant sentenced him to 210 months of imprisonment.
This matter was investigated by the FBI’s Bridgeport Safe Streets Task Force, DEA’s Bridgeport High Intensity Drug Trafficking Area Task Force, Bridgeport Police Department and Stratford Police Department. The case was prosecuted by Assistant U.S. Attorneys Robert S. Ruff and Natasha M. Freismuth through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Boogaloo Movement Supporter Pleads Guilty to Illegally Possessing FirearmsRead the Press Release
DETROIT – A supporter of the “Boogaloo” movement pleaded guilty today to being a drug user in possession of firearms and ammunition, and for making a false statement in connection with the acquisition of a firearm, announced United States Attorney Dawn N. Ison.
Ison was joined in the announcement by James A. Tarasca, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.
Timothy Allen Teagan, 23, of Plymouth, Michigan, pleaded guilty before United States District Judge Sean F. Cox.
According to court records, Teagan is a supporter of the anti-government Boogaloo movement. Members of the Boogaloo movement advocate for the violent overthrow of the government. They believe that a civil war or uprising against the government is coming to the United States, and they refer to that conflict as the “Boogaloo.” On July 17, 2022, Teagan completed a Firearms Transaction Record, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Form 4473, in connection with the acquisition of a firearm from a federally licensed firearms dealer in Westland, Michigan. Teagan applied for the purchase of a Glock 34, 9 millimeter pistol. On the ATF Form 4473, Teagan checked “no” to the question concerning drug use. At the time Teagan prepared the ATF Form 4473 and submitted it, he was a frequent and habitual user of marijuana and was also addicted to the drug. Teagan lied on the ATF Form 4473 because he knew that he would be legally prohibited from purchasing and possessing a firearm if he answered truthfully and admitted that he was addicted to marijuana, or a habitual user of marijuana. Teagan subsequently purchased the Glock 9 mm pistol on July 20, 2022.
In addition, in October 2022, Teagan possessed a Diamondback Arms, Inc. DB-15 .556 caliber semi-automatic rifle and ammunition. Teagan stored the rifle and some of the ammunition in his bedroom at his father’s home located in Plymouth, Michigan. Teagan purchased the rifle in December 2019 from a federally licensed firearms dealer in Canton, Michigan. At the time of the December 2019 purchase, Teagan knew that he was a frequent and habitual user of marijuana and therefore not permitted to possess the firearm.
On October 27, 2022, FBI agents executed a search warrant at Teagan’s father’s residence in Plymouth. During the search, agents recovered the DB-15 rifle, Level IV body armor, gas masks, dozens of rounds of rifle and pistol ammunition, an ACOG rifle sight, firearm magazines, and Boogaloo movement flags and patches. The Glock 9 mm pistol was recovered from a nearby vehicle.
“Individuals who illegally possess firearms and who lie to purchase them present a danger to our community,” stated U.S. Attorney Ison. “We will aggressively prosecute those who would violate and seek to circumvent federal firearms laws.”
“Working with our law enforcement counterparts and the U.S. Attorney’s Office to pursue and prosecute individuals who lie about their habitual drug use in order to purchase a firearm helps keep our communities safe,” said James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Field Office. “Investigations such as this show the FBI in Michigan is working diligently and tirelessly to protect the American people and uphold the United States Constitution.”
Teagan faces a maximum sentence of 15 years in prison on the firearms possession charge, and a maximum of ten years in prison on the false statement charge. A sentencing hearing is set for August 16, 2023.
The case was investigated by the FBI and prosecuted by Assistant United States Attorney Saima Mohsin.
Bloodhound Brims Leader and Gang Members Indicted for Racketeering and Attempted Murders on Long IslandRead the Press Release
Earlier today, a 22-count indictment was unsealed in federal court in Central Islip charging Jussiah Herbert, a leader of the Bloodhound Brims (BHB) street gang, and BHB gang members Brandon Hicks and Janell Johnson with racketeering, attempted murders in aid of racketeering, assaults and attempted assaults in aid of racketeering, firearms charges and narcotics possession and distribution. Herbert was arrested today in North Carolina and will make an initial appearance tomorrow in federal court in Winston-Salem. Hicks and Johnson were previously arrested and will be arraigned at a later date.
Breon Peace, United States Attorney for the Eastern District of New York, Ivan J. Arvelo, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), and Rodney K. Harrison, Commissioner, Suffolk County Police Department (SCPD), announced the arrest and charges.
“As alleged, Herbert showed zero regard for others by ordering his underlings to carry out shootings that wounded numerous victims and endangered the community just so he could maintain and increase the violent reputation of the ruthless street gang that he led,” stated United States Attorney Peace. “This Office and our law enforcement partners will continue working relentlessly to address gun violence in our district and bring to justice members of violent gangs.”
“Jussiah Herbert is accused of using violence, fear, and intimidation to maintain his leadership of the Bloodhound Brims (BHB) street gang,” said HSI New York Special Agent in Charge Ivan J. Arvelo. “He is alleged to have ruthlessly ordered gang members to commit horrific acts, to include attempted murder against suspected rival gang members to further his criminal enterprise and control Long Island neighborhoods so the BHB could thrive. HSI will continue to work with our law enforcement partners to keep our communities safe and free of violent gang members.”
As alleged in the indictment and court filings and proceedings, Herbert directed other BHB gang members, including Hicks, to shoot at members of rival gangs on August 16, 2020, August 25, 2020 and October 15, 2020 at locations in Brentwood, Central Islip and West Babylon, New York. During those shootings, four individuals were shot and suffered injuries as a result of the shootings. In a fourth incident, which occurred on September 15, 2021, in Bay Shore, New York, Herbert and other BHB members, including Johnson, shot at individuals whom they believed to be rival gang members.
Hicks was previously arrested on federal narcotics and firearms offenses in April 2021 and Johnson was previously arrested in December 2022 in connection with New York State conspiracy offenses. Both Hicks and Johnson are currently incarcerated and awaiting trial on the earlier charges.
The charges in the indictment are allegations, and the defendants are presumed to be innocent unless and until proven guilty. If convicted, Herbert faces up to a maximum sentence of 60 years’ imprisonment.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Bradley T. King is in charge of the prosecution.
The Defendant Arrested Today:
JUSSIAH HERBERT (also known as “Loko” and “Lokkoo BeenHoundin”)
Age: 26
Blanch, North CarolinaThe Defendants Previously Arrested:
BRANDON HICKS (also known as “Bang Swoop” and “Swoopy”)
Age: 21
Hauppauge, New YorkJANELL JOHSNON (also known as “Jahh Jahh” and “Glizzy”)
Age: 20
Shirley, New YorkE.D.N.Y. Docket No. 23-CR-164 (GRB)
Bemidji Woman Sentenced to 20 Years in Prison for Murder and Assault on the Red Lake Indian ReservationRead the Press Release
ST. PAUL, Minn. – A Bemidji woman has been sentenced to 240 months in prison for her role in a murder and an assault that took place in August 2019 on the Red Lake Indian Reservation, announced United States Attorney Andrew M. Luger.
According to court documents, shortly before 1:00 a.m. on August 12, 2019, Alexia Gah Gi Gay Mary Cutbank, 21, Mia Faye Sumner, 21, of Duluth, and Daniel Charles Barrett, 31, of Redby, entered the garage of a Red Lake residence where Daniel Alan Johnson was known to reside. Cutbank, Sumner, and Barrett were masked and armed. Once inside, Cutbank fired multiple gunshots, fatally wounding Johnson and seriously injuring a second victim, T.B.S. The three defendants returned to the waiting vehicle and left the scene. To assist the defendants in avoiding arrest, Rose Celeste Siewert, 50, of Cass Lake, drove Cutbank, Barrett, and Sumner off the Red Lake Indian Reservation.
On September 20, 2022, Cutbank pleaded guilty to one count of aiding and abetting murder in the second degree and one count of aiding and abetting assault resulting in serious bodily injury. Cutbank was sentenced yesterday before Senior U.S. District Judge Susan Richard Nelson. Sumner was sentenced on March 9, 2023, to 120 months in prison and Siewert was sentenced on March 8, 2023, to 48 months in prison. Barrett will be sentenced at a later date.
This case is the result of an investigation conducted by the Red Lake Tribal Police Department, the FBI, the FBI Headwaters Safe Trails Task Force, the Duluth Police Department, the Minnesota Bureau of Criminal Apprehension, and the Minnesota Department of Corrections.
Assistant U.S. Attorney Deidre Y. Aanstad prosecuted the case.
Arizona Man Sentenced to 10 Years in Prison for Methamphetamine Trafficking in Sacramento AreaRead the Press Release
SACRAMENTO, Calif. — Jose Manuel Navarro, 65, of San Luis, Arizona, was sentenced Tuesday to 10 years in prison for conspiring to distribute and possess with intent to distribute methamphetamine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in May 2019, a law enforcement officer working in an undercover capacity (UC) negotiated with an unknown male, using a Mexico telephone number, for the delivery of methamphetamine to the Sacramento area. The unknown male informed the UC that a third party would be calling the UC to coordinate an in-person meeting in the Sacramento area.
On May 19, 2019, Navarro called the UC and arranged to meet at a Target parking lot the following day. At the meeting, Navarro told the UC he had the “product” hidden in his truck. The two agreed to travel to a more discreet location to finish the deal. On the way to his location, a law enforcement officer pulled Navarro over for various traffic violations. Navarro consented to a search of his truck, and the officer found 68 pounds of methamphetamine. The methamphetamine was 99% pure.
This case was the product of an investigation by the Drug Enforcement Administration and the Tri-County Drug Enforcement Team with assistance from the California Highway Patrol. Assistant U.S. Attorney Adrian T. Kinsella prosecuted the case.
Ardmore Man Convicted of Second-Degree Murder in Indian CountryRead the Press Release
OKLAHOMA CITY – KEVIN BRUCE McGUIRE, 60, of Ardmore, Oklahoma, pleaded guilty today to second-degree murder in Indian Country, announced United States Attorney Robert J. Troester.
On November 15, 2022, a federal grand jury returned a one-count indictment against McGuire alleging that he committed second-degree murder while illegally driving under the influence of alcohol.
Today, McGuire pleaded guilty before U.S. District Judge Stephen P. Friot to second-degree murder in Indian Country. According to public record, McGuire was driving under the influence of alcohol going the wrong direction on Highway I-35. He collided head-on into another vehicle, killing its driver. Public records further reflect that McGuire has six prior felony DUI convictions.
At sentencing, McGuire faces up to life in federal prison, a $250,000 fine, and up to five years supervised release. In determining McGuire’s sentence, the Court will consider the nature and circumstances of the offense, McGuire’s history and characteristics, and the need to protect the public from further crimes of McGuire. Sentencing will take place in approximately 120 days.
This case is the result of an investigation by the FBI’s Oklahoma City Field Office and the Oklahoma Highway Patrol. It is being prosecuted by Assistant U.S. Attorney D.H. Dilbeck.
Reference is made to court filings for further information.
1st Adult & Pediatrics Healthcare to Pay $3 Million to Settle False Claims Act AllegationsRead the Press Release
LYNCHBURG, Va. –1st Adult & Pediatrics Healthcare Services, headquartered in Fairfax, Virginia, has agreed to pay $3,000,000 to resolve allegations that it violated the False Claims Act by engaging in fraudulent billing activities between January 2017 and May 2021 with regards to pediatric in-home health, personal care, and related services.
From 2017 and continuing through May 2021, 1st Adult & Pediatrics billed Virginia Medicaid for reimbursements for in-home health care services for pediatric patients who were actually hospitalized at the time the in-home services were billed. In addition, 1st Adult & Pediatrics routinely billed Virginian Medicaid for home health services that were not actually provided.
“The Medicaid and Medicare systems are important safety nets for many in our communities, especially vulnerable patients, like the seriously ill children involved in this case. We must do our part to keep them free of waste, fraud, and abuse,” Principal Deputy United States Attorney Zachary T. Lee said today. “I am grateful for our partnership with the Virginia Medicaid Fraud Control Unit and the Department of Health and Human Services in resolving this matter.”
“Those who take advantage of Virginians during some of their most vulnerable times must be held accountable. Thanks to the excellent work done by my office and our federal partners, this organization will have to answer for its illegitimate billing methods that exploited hospitalized pediatric patients,” Virginia Attorney General Jason Miyares said today.
“Providers that submit false Medicaid claims disregard their legal requirement to bill for services legitimately and, simultaneously, cheat the program on which their patients greatly rely,” stated Special Agent in Charge Maureen R. Dixon of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “In collaboration with fellow agencies, HHS-OIG is committed to preventing and detecting fraud in taxpayer-funded health care programs.”
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act against 1st Adult & Pediatrics. Under the qui tam provisions of the False Claims Act, a private party can file an action on behalf of the United States and receive a portion of the settlement if the government takes over the case and reaches a monetary agreement with the defendant. In this case, the United States and Commonwealth of Virginia intervened in the whistleblower’s case and obtained default prior to settlement. The case is captioned U.S. ex rel. Patterson & Williams v. 1st Adult & Pediatrics Healthcare Services, Inc., Civil Action No. 6:19-cv-68.
The resolutions obtained in this matter were the result of a coordinated effort among the United States Attorney’s Office for the Western District of Virginia, the Office of the Virginia Attorney General’s Medicaid Fraud Control Unit, and the Department of Health and Human Services.
Assistant U.S. Attorney Justin Lugar and the Affirmative Civil Enforcement Division investigated the matter.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Tuesday 18 April 2023
United States Attorney's Office Launches Reentry Simulation Initiative to Commemorate National Second Chance MonthRead the Press Release
Philadelphia, PA - On Monday, April 17, 2023, in partnership with the National Constitution Center, United States Attorney Jacqueline C. Romero hosted a Reentry Simulation to raise awareness about the challenges that formerly incarcerated individuals face when they reenter society. The event marked the launch of the United State Attorney's Office’s "Reentry Simulation Kits," distributed to community organizations and other stakeholders to encourage greater understanding and support efforts to promote successful reintegration.
Reentry Simulations are designed to help people understand the significant challenges faced by citizens returning home from prison. Versions of this exercise have been facilitated by U.S. Attorney's Offices and community and criminal justice organizations nationwide.
The U.S. Attorney’s Office for the Eastern District of Pennsylvania redesigned the kits to facilitate conducting Simulations with easy-to-use, high-quality and reusable materials designed to replicate the challenges encountered such as obtaining identification, finding employment, and accessing essential services.
What is a Reentry Simulation?
The Simulation is a two-hour activity that prompts participants to walk in the shoes of someone who has just returned home from prison by providing them with tasks to complete within a certain amount of time.
The exercise is divided into four 15-minute segments, representing four weeks (the first month) of someone returning home. The participants receive a "wallet" with an "Identity Sheet," which lists information about their criminal offense and life circumstances. They also receive a "Life Card," which details the tasks they must complete, including complying with the terms of probation, finding a job, attending treatment, managing family responsibilities, paying bills, and purchasing food and transportation. The participants must move among several corresponding “stations” to complete the tasks at each station within the allotted time.
The Simulation is followed by a debrief and discussion about the criminal justice system and the complexities of Reentry. This exercise can create awareness about the barriers to Reentry, change perceptions about returning citizens and the criminal justice system, deepen empathy, and inspire people to think more about the workings of our criminal justice system.
“Promoting successful reintegration of formerly incarcerated individuals is why we are here today to commemorate National Second Chance Month with the launch of the Reentry Simulation Initiative," said U.S. Attorney Romero. "In my previous role as an Assistant United States Attorney, I participated in the office's Reentry Court for years and I saw the struggles. I hope that our Reentry Simulation Kits and numerous simulations hosted after today will open up many more eyes and inspire understanding."
The United States Attorney's Office is committed to raising awareness about the importance of Reentry and to supporting initiatives that promote successful reintegration into society. Over the next several months, the Office will facilitate Simulations across the District with law enforcement, community members, non-profits, and people from all walks of life. By working together, we can ensure that our returning citizens have the tools and resources they need to succeed in their journey home.
U.S. Citizens and Russian Intelligence Officers Charged with Conspiring to Use U.S. Citizens as Illegal Agents of the Russian GovernmentRead the Press Release
A federal grand jury in Tampa, Florida, returned a superseding indictment charging four U.S. citizens and three Russian nationals with working on behalf of the Russian government and in conjunction with the Russian Federal Security Service (FSB) to conduct a multi-year foreign malign influence campaign in the United States. Among other conduct, the superseding indictment alleges that the Russian defendants recruited, funded and directed U.S. political groups to act as unregistered illegal agents of the Russian government and sow discord and spread pro-Russian propaganda; the indicted intelligence officers, in particular, participated in covertly funding and directing candidates for local office within the United States.
Additionally, in a separate case out of the District of Columbia, a criminal complaint was unsealed charging Russian national Natalia Burlinova with conspiring with an FSB officer to act as an illegal agent of Russia in the United States.
“Russia’s foreign intelligence service allegedly weaponized our First Amendment rights – freedoms Russia denies its own citizens – to divide Americans and interfere in elections in the United States,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The department will not hesitate to expose and prosecute those who sow discord and corrupt U.S. elections in service of hostile foreign interests, regardless of whether the culprits are U.S. citizens or foreign individuals abroad.”
“Efforts by the Russian government to secretly influence U.S. elections will not be tolerated,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “As today’s announcement demonstrates, the Criminal Division is committed to eradicating foreign malign influence from the U.S. political system and helping ensure the integrity of our elections.”
“Today’s announcement paints a harrowing picture of Russian government actions and the lengths to which the FSB will go to interfere with our elections, sow discord in our nation and ultimately recruit U.S citizens to their efforts,” said Acting Assistant Director Kurt Ronnow of the FBI’s Counterintelligence Division. “All Americans should be deeply concerned by the tactics employed by the FSB and remain vigilant to any attempt to undermine our democracy. The FBI remains committed to confronting this egregious behavior and ultimately disrupting our adversaries and those who act on their behalf.”
United States v. Ionov, et al.
According to the superseding indictment returned in the Middle District of Florida, Aleksandr Viktorovich Ionov, a resident of Moscow, was the founder and president of the Anti-Globalization Movement of Russia (AGMR), an organization headquartered in Moscow, Russia, and funded by the Russian government. Ionov allegedly utilized AGMR to carry out Russia’s malign influence campaign. Ionov’s influence efforts were allegedly directed and supervised by Moscow-based FSB officers, including indicted defendants Aleksey Borisovich Sukhodolov and Yegor Sergeyevich Popov.
“The prosecution of this criminal conduct is essential to protecting the American public when foreign governments seek to inject themselves into the American political process,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “We thank our partners at the FBI for their tireless investigation of these events and their commitment to ensure justice is done.”
Among other illegal activities, the superseding indictment alleges that Ionov, Sukhodolov and Popov conspired to directly and substantially influence democratic elections in the United States by clandestinely funding and directing the political campaign of a particular candidate for local office in St. Petersburg, Florida, in 2019. For instance, the superseding indictment alleges that Popov expressly referred to this effort on behalf of the FSB as “our election campaign,” and Ionov referring to the candidate as the “candidate whom we supervise.” Ionov and Popov allegedly intended that this election interference plot would extend beyond the 2019 local election cycle in St. Petersburg, and subsequently discussed that the “USA Presidential election” was the FSB’s “main topic of the year.”
Moreover, from at least November 2014 until July 2022, Ionov allegedly engaged in a years-long foreign malign influence campaign targeting the United States. As a part of the campaign, Ionov allegedly recruited members of political groups within the United States, including the African People’s Socialist Party and the Uhuru Movement (collectively, the APSP) in Florida, Black Hammer in Georgia and a political group in California (referred to in the superseding indictment as U.S. Political Group 3), to participate in the influence campaign and act as agents of Russia in the United States, including the following indicted defendants:
- Omali Yeshitela, a U.S. citizen residing in St. Petersburg, Florida, and St. Louis, Missouri, who served as the chairman and founder of the APSP;
- Penny Joanne Hess, a U.S. citizen residing in St. Petersburg, Florida, and St. Louis, Missouri, who served as the leader of a component of the APSP;
- Jesse Nevel, a U.S. citizen residing in St. Petersburg, Florida, and St. Louis, Missouri, who served as a member of a component of the APSP; and
- Augustus C. Romain Jr., aka Gazi Kodzo, a U.S. citizen residing in St. Petersburg, Florida, and Atlanta, who served as a leader of the APSP and a founder of Black Hammer in Georgia.
One focus of Ionov’s alleged influence operation was to create the appearance of American popular support for Russia’s annexation of territories in Ukraine. For example, in May 2020, Ionov allegedly sent a request he stated was from “Russia, the Donetsk People’s Republic” – an apparent reference to a Russian-occupied region in eastern Ukraine – to Yeshitela and members of other U.S. political groups to make statements in support of the independence of the so-called Donetsk People’s Republic, a Russian-backed breakaway state in eastern Ukraine. Ionov later allegedly touted to the FSB that Yeshitela’s video-recorded statement of support was the first time that “American nonprofit organizations congratulated citizens” of the occupied region.
Ionov’s use of the APSP to promote Russian propaganda relating to Ukraine allegedly continued after Russia’s invasion of Ukraine. On the day Russia invaded Ukraine, Feb. 24, 2022, Ionov allegedly emailed Nevel an “URGENT MESSAGE” which contained pro-Russian talking points in support of the invasion. Thereafter, throughout March 2022, the APSP repeatedly hosted Ionov via video conference to discuss the war, during which Ionov falsely stated that anyone who supported Ukraine also supported Naziism and white supremacy, and Yeshitela and another APSP member allegedly made statements of solidarity with the Russian government.
Ionov, Sukhodolov, Popov, Yeshitela, Hess, Nevel and Romain are charged with conspiring to have U.S. citizens act as illegal agents of the Russian government within the United States without providing prior notification to the Attorney General, as required by law. If convicted, they each face a maximum penalty of five years in prison. Yeshitela, Hess and Nevel are also charged with acting as agents of Russia within the United States without such prior notification. If convicted, they each face a maximum penalty of 10 years in prison. If convicted, a federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant U.S. Attorneys Daniel J. Marcet and Risha Asokan for the Middle District of Florida, Trial Attorney Menno Goedman of the Justice Department’s Counterintelligence and Export Control Section, and Trial Attorney Demetrius Sumner of the Criminal Division’s Public Integrity Section are prosecuting the case.
United States v. Burlinova
According to the affidavit in support of the criminal complaint unsealed in the District of Columbia, Russian national Natalia Burlinova, a resident of Moscow, conspired with an FSB officer to recruit U.S. citizens from academic and research institutions to travel to Russia to participate in a public diplomacy program called Meeting Russia. The program was operated by PICREADI, a Russian organization led by Burlinova, funded by the Russian government and devoted to promoting Russian national interests.
“The defendant is accused of subverting our foreign agent notification laws to promote Russian national interests here in the United States, concealing from the public that her recruitment efforts were funded by a Russian security service,” said U.S. Attorney Matthew M. Graves for the District of Columbia. “We will continue to expose these serious crimes and hold all who perpetrate them accountable.”
The affidavit alleges that the FSB officer provided funding and other support for Burlinova’s foreign recruitment and her efforts to advance Russian interests in the United States. In return, Burlinova provided the FSB officer with extensive information about U.S. citizens who were recruited to attend her programs, including their résumés, passport information, photographs and analyses of their views toward Russia. Burlinova further identified for the FSB officer particular U.S. citizens who, in Burlinova’s view, had expressed positive attitudes towards Russia and were prepared to continue to collaborate. During a recruitment trip to the United States in fall 2018, Burlinova met with U.S. citizens at various universities and research institutions and provided to photographs of her meetings to the FSB officer. The FSB officer used the information Burlinova provided prepare FSB intelligence reports. Burlinova never notified the Attorney General of these efforts or otherwise disclosed to the public that her recruitment efforts were supported and funded by a Russian security service.
Assistant U.S. Attorney Michael J. Friedman for the District of Columbia and Trial Attorney Emma D. Ellenrieder of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
An indictment and a complaint are merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
U.S. Citizens and Russian Intelligence Officers Charged with Conspiring to Use U.S. Citizens as Illegal Agents of the Russian GovernmentRead the Press Release
A federal grand jury in Tampa, Florida, returned a superseding indictment charging four U.S. citizens and three Russian nationals with working on behalf of the Russian government and in conjunction with the Russian Federal Security Service (FSB) to conduct a multi-year foreign malign influence campaign in the United States. Among other conduct, the superseding indictment alleges that the Russian defendants recruited, funded and directed U.S. political groups to act as unregistered illegal agents of the Russian government and sow discord and spread pro-Russian propaganda; the indicted intelligence officers, in particular, participated in covertly funding and directing candidates for local office within the United States.
Additionally, in a separate case out of the District of Columbia, a criminal complaint was unsealed charging Russian national Natalia Burlinova with conspiring with an FSB officer to act as an illegal agent of Russia in the United States.
“Russia’s foreign intelligence service allegedly weaponized our First Amendment rights – freedoms Russia denies its own citizens – to divide Americans and interfere in elections in the United States,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The department will not hesitate to expose and prosecute those who sow discord and corrupt U.S. elections in service of hostile foreign interests, regardless of whether the culprits are U.S. citizens or foreign individuals abroad.”
“Efforts by the Russian government to secretly influence U.S. elections will not be tolerated,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “As today’s announcement demonstrates, the Criminal Division is committed to eradicating foreign malign influence from the U.S. political system and helping ensure the integrity of our elections.”
“Today’s announcement paints a harrowing picture of Russian government actions and the lengths to which the FSB will go to interfere with our elections, sow discord in our nation and ultimately recruit U.S citizens to their efforts,” said Acting Assistant Director Kurt Ronnow of the FBI’s Counterintelligence Division. “All Americans should be deeply concerned by the tactics employed by the FSB and remain vigilant to any attempt to undermine our democracy. The FBI remains committed to confronting this egregious behavior and ultimately disrupting our adversaries and those who act on their behalf.”
United States v. Ionov, et al.
According to the superseding indictment returned in the Middle District of Florida, Aleksandr Viktorovich Ionov, a resident of Moscow, was the founder and president of the Anti-Globalization Movement of Russia (AGMR), an organization headquartered in Moscow, Russia, and funded by the Russian government. Ionov allegedly utilized AGMR to carry out Russia’s malign influence campaign. Ionov’s influence efforts were allegedly directed and supervised by Moscow-based FSB officers, including indicted defendants Aleksey Borisovich Sukhodolov and Yegor Sergeyevich Popov.
“The prosecution of this criminal conduct is essential to protecting the American public when foreign governments seek to inject themselves into the American political process,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “We thank our partners at the FBI for their tireless investigation of these events and their commitment to ensure justice is done.”
Among other illegal activities, the superseding indictment alleges that Ionov, Sukhodolov and Popov conspired to directly and substantially influence democratic elections in the United States by clandestinely funding and directing the political campaign of a particular candidate for local office in St. Petersburg, Florida, in 2019. For instance, the superseding indictment alleges that Popov expressly referred to this effort on behalf of the FSB as “our election campaign,” and Ionov referring to the candidate as the “candidate whom we supervise.” Ionov and Popov allegedly intended that this election interference plot would extend beyond the 2019 local election cycle in St. Petersburg, and subsequently discussed that the “USA Presidential election” was the FSB’s “main topic of the year.”
Moreover, from at least November 2014 until July 2022, Ionov allegedly engaged in a years-long foreign malign influence campaign targeting the United States. As a part of the campaign, Ionov allegedly recruited members of political groups within the United States, including the African People’s Socialist Party and the Uhuru Movement (collectively, the APSP) in Florida, Black Hammer in Georgia and a political group in California (referred to in the superseding indictment as U.S. Political Group 3), to participate in the influence campaign and act as agents of Russia in the United States, including the following indicted defendants:
- Omali Yeshitela, a U.S. citizen residing in St. Petersburg, Florida, and St. Louis, Missouri, who served as the chairman and founder of the APSP;
- Penny Joanne Hess, a U.S. citizen residing in St. Petersburg, Florida, and St. Louis, Missouri, who served as the leader of a component of the APSP;
- Jesse Nevel, a U.S. citizen residing in St. Petersburg, Florida, and St. Louis, Missouri, who served as a member of a component of the APSP; and
- Augustus C. Romain Jr., aka Gazi Kodzo, a U.S. citizen residing in St. Petersburg, Florida, and Atlanta, who served as a leader of the APSP and a founder of Black Hammer in Georgia.
One focus of Ionov’s alleged influence operation was to create the appearance of American popular support for Russia’s annexation of territories in Ukraine. For example, in May 2020, Ionov allegedly sent a request he stated was from “Russia, the Donetsk People’s Republic” – an apparent reference to a Russian-occupied region in eastern Ukraine – to Yeshitela and members of other U.S. political groups to make statements in support of the independence of the so-called Donetsk People’s Republic, a Russian-backed breakaway state in eastern Ukraine. Ionov later allegedly touted to the FSB that Yeshitela’s video-recorded statement of support was the first time that “American nonprofit organizations congratulated citizens” of the occupied region.
Ionov’s use of the APSP to promote Russian propaganda relating to Ukraine allegedly continued after Russia’s invasion of Ukraine. On the day Russia invaded Ukraine, Feb. 24, 2022, Ionov allegedly emailed Nevel an “URGENT MESSAGE” which contained pro-Russian talking points in support of the invasion. Thereafter, throughout March 2022, the APSP repeatedly hosted Ionov via video conference to discuss the war, during which Ionov falsely stated that anyone who supported Ukraine also supported Naziism and white supremacy, and Yeshitela and another APSP member allegedly made statements of solidarity with the Russian government.
Ionov, Sukhodolov, Popov, Yeshitela, Hess, Nevel and Romain are charged with conspiring to have U.S. citizens act as illegal agents of the Russian government within the United States without providing prior notification to the Attorney General, as required by law. If convicted, they each face a maximum penalty of five years in prison. Yeshitela, Hess and Nevel are also charged with acting as agents of Russia within the United States without such prior notification. If convicted, they each face a maximum penalty of 10 years in prison. If convicted, a federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant U.S. Attorneys Daniel J. Marcet and Risha Asokan for the Middle District of Florida, Trial Attorney Menno Goedman of the Justice Department’s Counterintelligence and Export Control Section, and Trial Attorney Demetrius Sumner of the Criminal Division’s Public Integrity Section are prosecuting the case.
United States v. Burlinova
According to the affidavit in support of the criminal complaint unsealed in the District of Columbia, Russian national Natalia Burlinova, a resident of Moscow, conspired with an FSB officer to recruit U.S. citizens from academic and research institutions to travel to Russia to participate in a public diplomacy program called Meeting Russia. The program was operated by PICREADI, a Russian organization led by Burlinova, funded by the Russian government and devoted to promoting Russian national interests.
“The defendant is accused of subverting our foreign agent notification laws to promote Russian national interests here in the United States, concealing from the public that her recruitment efforts were funded by a Russian security service,” said U.S. Attorney Matthew M. Graves for the District of Columbia. “We will continue to expose these serious crimes and hold all who perpetrate them accountable.”
The affidavit alleges that the FSB officer provided funding and other support for Burlinova’s foreign recruitment and her efforts to advance Russian interests in the United States. In return, Burlinova provided the FSB officer with extensive information about U.S. citizens who were recruited to attend her programs, including their résumés, passport information, photographs and analyses of their views toward Russia. Burlinova further identified for the FSB officer particular U.S. citizens who, in Burlinova’s view, had expressed positive attitudes towards Russia and were prepared to continue to collaborate. During a recruitment trip to the United States in fall 2018, Burlinova met with U.S. citizens at various universities and research institutions and provided to photographs of her meetings to the FSB officer. The FSB officer used the information Burlinova provided prepare FSB intelligence reports. Burlinova never notified the Attorney General of these efforts or otherwise disclosed to the public that her recruitment efforts were supported and funded by a Russian security service.
Assistant U.S. Attorney Michael J. Friedman for the District of Columbia and Trial Attorney Emma D. Ellenrieder of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
An indictment and a complaint are merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney’s Office Hosts Second Community Hate Crimes Prevention PresentationRead the Press Release
ALEXANDRIA, Va. – Today, Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia (EDVA), announced the completion of an event designed to help community members and leaders have a better understanding of hate crimes and how to report them to law enforcement.
Yesterday evening, EDVA hosted a presentation called “United Against Hate: Identifying, Reporting and Preventing Hate Crimes” at the Weinstein Jewish Community Center. Members of the Richmond community, as well as organizations representing those who are at risk of being targeted in hate crimes, were invited to the event. The goal of this event series is to empower community members to prevent and respond to hate crimes and incidents by meeting and facilitating conversations with the law enforcement members to whom they can direct questions and reports about hate crimes and hate incidents.
“Hate or bias-motivated crimes are some of important crimes that we prosecute in EDVA. All citizens of the Commonwealth and the nation, regardless of their background or identity, deserve to live freely and without fear of discrimination and violence,” said Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia. “The United Against Hate event is only the beginning of many conversations and action steps that our office and our law enforcement partners are taking to increase public awareness about hate crimes and how to report them. EDVA, alongside community organizations such as the Weinstein JCC, encourage the community to come together to call out hatred, report all incidents of hate crimes, and help us create neighborhoods that are safe and welcoming to all.”
The speakers at the event included U.S. Attorney Aber and First Assistant U.S. Attorney Raj Parekh, as well as Assistant U.S. Attorneys Stephen Anthony and Nick Durham. Speakers also included law enforcement professionals from the FBI Richmond Field Office and Virginia State Police.
Through hypothetical scenarios and video clips depicting real-life hate crime cases and stories, United Against Hate promotes robust interaction between community members and law enforcement participants. Program topics include defining hate crimes versus hate incidents; the importance of reporting unlawful acts of hate; providing options for responding to hate incidents when situations do not constitute a federal or state crime; and distinguishing unlawful conduct from protected First Amendment activity, including identifying protected speech versus speech that advocates violence or encourages people to commit hate crimes.
To request a United Against Hate presentation at your organization, house of worship, or school, please contact Assistant U.S. Attorney Nick Durham, EDVA Civil Rights Coordinator, at (703) 299-3700.
On May 27, 2021, Attorney General Garland issued a memorandum on “Improving the Department’s Efforts to Combat Hate Crimes and Hate Incidents,” which emphasized the importance of prioritizing community outreach around hate crimes. The United Against Hate presentation, developed by the Department’s Hate Crimes Enforcement and Prevention Initiative, is designed to meet that objective. The U.S. Attorney’s Office for the Eastern District of Virginia applied for and was proud to be selected for the first national phase of this important program.
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.
Two fraudsters sent to prison for COVID-19 fraud schemeRead the Press Release
HOUSTON – A Florida man and Texas woman have been ordered to prison following their conviction of wire fraud during the COVID-19 pandemic, announced U.S. Attorney Alamdar S. Hamdani.
Dylan Kinlock, 30, Orlando, Florida, and Felicia Garza, 37, Houston, pleaded guilty in January to conspiracy to commit wire fraud in connection with a scheme to defraud the United States of COVID-related disaster loan proceeds.
Today, U.S. District Judge David Hittner ordered Kinlock to serve 56 months in federal prison, while Garza received 24-month-term of imprisonment. Both must also serve three years of supervised release following completion of prison terms. Additionally, the Court ordered Dylan Kinlock to forfeit to the United States $312,573.05 in funds found in a bank account as well as his home in Orlando. Kinlock was also ordered to pay restitution to the United States in the amount of $939,379, offset by the amount recovered by the forfeiture.
Kinlock and Garza admitted they devised a scheme to solicit others to fraudulently apply for Paycheck Protection Program (PPP) loans the Coronavirus Aid, Relief and Economic Security (CARES) Act provided. The two utilized victims’ personal information to create falsified documents and applied for a PPP loan on their behalf.
The fraud scheme resulted in at least 241 fraudulent PPP loans which led to the distribution of more than $1 million. Kinlock received at least $939,379 in fee income from individuals he assisted in securing the fraudulent PPP Loans. Garza was paid by Kinlock to refer PPP clients to him. She also helped Kinlock file a fraudulent PPP loan application on her own behalf.
Numerous individuals residing in the Southern District of Texas applied for PPP loans through Kinlock. They were referred to Kinlock by Garza and they all reported that Kinlock attached fraudulent documents to their application without their knowledge, and the applications contained false statements about the number of employees their business had.
The false documents included fictitious Schedule C tax forms reporting profit or loss from a business, 1099-MISC forms and invoices reporting incorrect income to qualify for the loans. Kinlock and Garza solicited each victim to execute a contract in which they agreed to share a portion of their PPP loans.
After clients received their PPP loan funds, Kinlock directed the client to send fees through various means including direct deposit into a bank account or electronic payment methods such as Zelle, CashApp or Venmo. Fees ranged from $3000 to $4,000 per loan or 20% of the amount the client received.
Both used the monies for their personal benefit. Notably, Kinlock used some of the funds to pay off his home in Florida. As part of his plea, he also agreed to forfeit that residence.
The CARES Act is a federal law enacted March 27, 2020, to provide emergency financial assistance to the millions of Americans who suffered the economic effects caused by the COVID-19 pandemic.
Kinlock will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Garza was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
IRS - Criminal Investigation conducted the investigation. Assistant U.S. Attorney Jay Hileman prosecuted the case.
Two charged in scheme to illegally purchase firearms and transfer them to othersRead the Press Release
Seattle – Two South King County men were charged today with multiple firearms offenses for their involvement in the purchase of more than 100 firearms in an apparent “straw purchaser” scheme, announced U.S. Attorney Nick Brown. Dion Jamar Cooper, 31, of Kent, Washington and De’ondre Lamontia Phillips, aka Deondre Lamontia McDougle, 32, of Federal Way, Washington were charged by criminal complaint. Phillips and Cooper will appear in U.S. District Court in Seattle at 2:00 today.
“The alleged straw purchaser in this case bought more than 100 firearms in less than two years – and two dozen of the firearms have been linked to crimes,” said U.S. Attorney Nick Brown. “Schemes like this put our community at significant risk. We will use all tools – including new criminal statutes passed by congress – to stop such conduct.”
According to the criminal complaint, the investigation began in late January with the assault and attempted robbery of a woman in Rainier Valley. The victim was able to flee in her car. Police found a firearm in her vehicle that had been dropped by one of the assailants. A check of the firearm revealed it had been purchased by Dion Jamar Cooper on December 10, 2022. That recovery led the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) to check Cooper’s purchase history. Cooper had purchased 107 firearms since June 2021. On 24 different instances he purchased multiple firearms – sometime four or more. Of the 107 firearms identified as being purchased in this scheme, 24 of the guns have been recovered and linked to crimes.
During March and April 2023, agents surveilled Cooper as he made arrangements to purchase additional firearms. Agents identified De’ondre Lamontia Phillips as the person who drove Cooper to the gun shops where he purchased the firearms. Phillips is prohibited from purchasing and possessing firearms due to convictions for distribution of heroin (2014) and convictions for illegal firearms possession and two counts of assault (2009). Surveillance of the two revealed Cooper turning the firearms over to Phillips who stored them in his residence.
Cooper and Phillips are charged with Straw Purchasing of Firearms, involving ten different guns. Both men are also charged with two counts of trafficking in firearms. Phillips is charged with possession of controlled substances with intent to distribute and possession of a firearm in furtherance of a drug trafficking crime. Phillips is also charged with unlawful possession of firearms.
Straw Purchasing of Firearms and Trafficking in Firearms are both punishable by up to 15 years in prison. Possession of controlled substances in this case is punishable by a mandatory minimum five years and up to 40 years in prison. Possession of a firearm in furtherance of a drug trafficking crime is punishable by a mandatory minimum five years in prison to run consecutive to any sentence imposed on the other charges. Unlawful possession of firearms is punishable by up to fifteen years in prison.
The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) and the Seattle Police Department.
The case is being prosecuted by Assistant United States Attorney Todd Greenberg.
Two Individuals Sentenced to Lengthy Prison Terms for Child ExploitationRead the Press Release
SAN JUAN, Puerto Rico – U.S. District Court Chief Judge Raúl Arias-Marxuach sentenced José Luis González Rivera to 292 months (24 years and four months) in prison and 10 years of supervised release for production of child pornography and transportation of a minor with the intent to engage in sexual activity.
According to court documents, from March 2019 through March 2020, José Luis González Rivera knowingly employed, used, induced, and coerced a female minor when she was between the age of 14 to 16 years old to engage in sexually explicit conduct for the purpose of producing videos and still images using a cell phone with camera capabilities, which was manufactured outside of Puerto Rico. Also, the defendant transported the female minor victim to a motel with the intent to engage in sexual activity and to produce sexually explicit images.
Homeland Security Investigations (HSI) Task Force agents in Ponce, Puerto Rico, investigated the case.
In a separate case, U.S. District Court Judge Pedro A. Delgado sentenced Luis Márquez Díaz to 204 months (17 years) in prison and seven years of supervised release for production of child exploitation material and possession of child exploitation material.
According to court documents, defendant Márquez Díaz communicated via social media with at least two female minors in a sexually explicit manner, sent them sexually explicit images and requested that the minors send him sexually explicit images.
A forensic review of the electronic devices seized from defendant Márquez Díaz revealed more than 600 images, both still images and videos, of child pornography, to include sexually explicit images of minors under the age of twelve and images depicting sadistic and masochistic abuse of minors and toddlers. The FBI investigated this matter.
U.S. Attorney W. Stephen Muldrow of the District of Puerto Rico, HSI Acting Special Agent in Charge Rebecca González, and FBI Special Agent in Charge Joseph González made the announcements.
Assistant United States Attorney Jenifer Hernández, Chief of the Child Exploitation and Immigration Unit and Project Safe Childhood Coordinator, prosecuted the cases.
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Three Individuals Indicted on Federal Drug ChargesRead the Press Release
NEW ORLEANS, LA – United States Attorney Duane A. Evans announced today that FERMIN DANIEL PUENTE-MONTOYA, age 31, ALEJANDRO AGUILAR-RAMOS, age 30, and ELIAS SALAS, age 19, were all indicted on April 14th, 2023 on two (2) counts of Conspiracy to Distribute and Possess with Intent to Distribute a Controlled Dangerous Substance in violation of Title 21, United States Code, Sections 841 and 846. PUENTE-MONTOYA was also indicted on one count of Illegal Reentry of a Removed Alien, in violation of Title 8, United States Code, Section 1326(a).
According to the indictment, PUENTE-MONTOYA, AGUILAR-RAMOS, and SALAS conspired to traffic large quantities of illegal narcotics from Houston, Texas to Kenner, Louisiana. If convicted on the drug counts, all three defendants face a maximum sentence of life imprisonment , up to a $10,000,000 fine, and up to five years of supervised release. Regarding the illegal reentry count, PUENTE-MONTOYA faces up to two years imprisonment, up to a $250,000 fine, and up to one year of supervised release. Each count also carries a mandatory $100 special assessment fee.
U. S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.
U. S. Attorney Evans also praised the work of the Drug Enforcement Administration and the Kenner Police Department. This case is being prosecuted by Assistant United States Attorney Stuart Theriot of the Narcotics Unit.
Sturgis Man Sentenced for Illegal Possession of FirearmRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Jeffrey L. Viken has sentenced a Sturgis, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person. The sentencing took place on April 14, 2023.
Dallas Ford, 29, was sentenced to three years in federal prison, followed by three years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Ford was indicted for Possession of a Firearm by a Prohibited Person by a federal grand jury in March of 2022. He pleaded guilty on January 6, 2023.
The charge stems from Ford illegal possessing a .22 caliber, semi-automatic pistol in December of 2021 in Sturgis.
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 Bureau of Alcohol, Firearms, Tobacco and Explosives, and the Sturgis Police Department. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Ford was immediately remanded to the custody of the U.S. Marshals Service.
Statement of U.S. Attorney Alison J. Ramsdell on the Passing of Former U.S. Attorney Randy SeilerRead the Press Release
SIOUX FALLS – Today, United States Attorney Alison J. Ramsdell of the District of South Dakota issued the following statement on the death of former U.S. Attorney Randy Seiler:
“With profound sadness, our office mourns the untimely passing of our friend and former colleague Randy Seiler. Randy served South Dakota for over two decades as a federal prosecutor and, ultimately, as United States Attorney. He led with unparalleled dedication to the cause of justice and equality under the law. Randy was an inspiring and tenacious leader, and we will miss him dearly. Our thoughts are with Randy’s wife, Wanda, and their family during this difficult time.”
Somerville Tax Preparer Arrested for False Tax Returns SchemeRead the Press Release
BOSTON – A Somerville tax preparer has been arrested for allegedly preparing false tax returns in the names of taxpayers.
Yves Isidor, 67, was indicted by a federal grand jury on five counts of aiding and assisting in the filing of false federal tax returns. Isidor was arrested on April 14, 2023 and, following an initial appearance in federal court in Boston, was released on conditions and an unsecured bond.According to the indictment, from at least 2012 through 2016, Isidor operated under the name Tax and Realty Pro – a Malden tax preparation business – to file more than 1,200 tax returns in the names of clients, charging from $100 to $500 per return. He allegedly added false information to returns to claim deductions for fictitious medical and dental expenses, personal property taxes, gifts to charities, general sales taxes and unreimbursed employee business expenses. As a result, the indictment alleges that some taxpayers paid lower taxes than they owed and, in most cases, received tax refunds to which the taxpayers were not entitled, leading to hundreds of thousands of dollars in losses to the IRS.
The charges of aiding and assisting in the filing of false federal tax returns each provide for a sentence of up to three years in prison, one year of supervised release, a fine of $250,000 and restitution. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins and Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston made the announcement today. Assistant U.S. Attorney Victor A. Wild of Rollins’ Securities, Financial & Cyber Fraud Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Sioux City Woman to Federal Prison for Meth ConspiracyRead the Press Release
A Sioux City woman who conspired to distribute methamphetamine with others was sentenced on April 14, 2023, to 37 months in federal prison.
Kimberly Hansen, 58, from Sioux City, Iowa, pled guilty on October 21, 2022, in federal court to conspiracy to distribute methamphetamine.
Evidence at the plea and sentencing hearings showed that Hansen was involved in a conspiracy with 7-8 other persons that distributed at least 15 kilograms of methamphetamine from June 2017 through August 2019. On 12 occasions, Hansen received multiple pounds of meth through the mail from California for local drug dealer Melroy Johnson Sr. Hansen also traveled to California and acquired multiple pounds of methamphetamine from the same California source, then transported the meth back to Sioux City, Iowa, for distribution.
Sentencing was held before United States District Court Chief Judge Leonard T. Strand. Hansen was sentenced to 37 months’ imprisonment and must serve a 2-year term of supervised release following imprisonment. There is no parole in the federal system. Hansen remains in the custody of the United States Marshal until she can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by the United States Postal Service, and the Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-4086. Follow us on Twitter @USAO_NDIA.
Sex Offender from Advance Sentenced to Serve 11 Years in Federal Prison for Possessing Child PornographyRead the Press Release
CAPE GIRARDEAU - The U.S. Attorney's Office announced that Darrell D. Meador, Jr., 38, was sentenced Tuesday to serve 11 years in federal prison for the offense of possession of child pornography.
Meador appeared for his sentencing hearing before U.S. District Judge Stephen N. Limbaugh, Jr. at the federal courthouse in Cape Girardeau, Missouri.
Meador, of Advance, in Stoddard County, Missouri, began serving a term of supervised release in 2018 following his release from federal prison for a prior child pornography conviction, according to court documents. Last May, Meador’s probation officer discovered images of child pornography on a cell phone Meador was using.
At his guilty plea hearing earlier this year, Meador admitted that he used the cell phone to search for child pornography over the internet. After serving his 11-year sentence, Meador will be placed on supervised release for the rest of his life. He will also be required to continue registering as a sex offender.
This case was investigated by the U.S. Probation Office. Assistant U.S. Attorney Jack Koester handled the prosecution for the Government.
Security guard detained for attempted human smugglingRead the Press Release
McALLEN, Texas – A 59-year-old legal permanent resident of Mission has been ordered to remain in custody for his role in attempting to smuggle an undocumented alien, announced U.S. Attorney Alamdar S. Hamdani.
Ernesto Gaona-Gonzalez appeared before U.S. Magistrate Judge Nadia S. Medrano who found him to be a danger to the community and a flight risk and ordered him to remain in custody pending further criminal proceedings.
A federal grand jury retuned the indictment April 5, which was unsealed upon his arrest April 12.
Gaona allegedly attempted to transport an alien by motor vehicle through Mission.
Gaona was employed as a security guard for the purpose of checking vehicles entering Anzalduas Park in Mission.
At the hearing today, the court heard that on Sept. 4, 2022, a female undocumented non-citizen was allegedly being held against her will. Gaona allegedly had the victim in his vehicle and contacted a friend for money in exchange for releasing her.
If convicted, Gaona faces up to five years in prison and a maximum $250,000 fine.
Homeland Security Investigations conducted the investigation with the assistance of Border Patrol and the Federal Air Marshal Service. Assistant U.S. Attorney Jongwoo Chung is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Russian Public Diplomacy Advocate Charged with Acting as Agent of Russian Federation in the United StatesRead the Press Release
WASHINGTON – A criminal complaint was unsealed today in the District of Columbia charging Russian national Natalia Burlinova with conspiracy to act as an agent of the Russian Federation in the United States without prior notification to the Attorney General.
The announcement was made by U.S. Attorney for the District of Columbia Matthew M. Graves, Assistant Attorney General of the National Security Division Matthew G. Olsen, and Special Agent in Charge of the FBI’s Detroit Field Office James A. Tarasca.
“The defendant is accused of subverting our foreign agent notification laws in order to promote Russian national interests here in the United States, concealing from the public that her recruitment efforts were funded by a Russian security service,” said U.S. Attorney Graves. “We will continue to expose these serious crimes and hold all who perpetrate them accountable.”
“The defendant is accused of exploiting academic and research institutions’ commitment to the free exchange of ideas in order to promote Russian interests,” said Special Agent in Charge Tarasca. “The FBI will continue to prioritize counterintelligence because of the importance of protecting our nation’s vital secrets, and we will work with our partners to investigate and stop individuals who hide their work for foreign governments.”
According to the affidavit in support of criminal complaint, Burlinova recruited U.S. citizens from academic and research institutions to travel to Russia in order to participate in a public diplomacy program called Meeting Russia. The program was operated by a Russian organization called PICREADI that was funded by the Russian government and devoted to Russian national interests. Burlinova’s co-conspirator was employed by the Russian Federal Security Service (“FSB”), Russia’s principal security service with counterintelligence and surveillance responsibilities. The FSB Officer provided funding and other support for Burlinova’s foreign recruitment and her efforts to advance Russian interests in the United States.
The affidavit in support of criminal complaint states that Burlinova provided extensive information to the FSB Officer about the U.S. citizens that were recruited to attend her programs, including resumes, passport information, photographs, and analysis of their views towards Russia. Burlinova informed the FSB Officer about particular U.S. citizens who, in Burlinova’s view, had expressed positive attitudes towards Russia and were prepared to continue to collaborate. The FSB Officer used the information to prepare security service reports. During a recruitment trip to the United States in fall 2018, Burlinova met with U.S. citizens at various universities and research institutions and provided to photographs of her meetings to the FSB Officer. Burlinova never notified the Attorney General of these efforts or otherwise disclosed to the public that her recruitment efforts were funded by a Russian security service.
Burlinova was sanctioned by the Department of the Treasury on July 29, 2022.
The factual allegations in a criminal complaint are merely allegations and every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt. The defendant faces up to ten years of imprisonment if convicted.
The investigation was conducted by the FBI’s Detroit Field Office. The case is being prosecuted by Assistant United States Attorney Michael J. Friedman of the U.S. Attorney’s Office for the District of Columbia, and Trial Attorney Emma D. Ellenrieder of the National Security Division’s Counterintelligence and Export Control Section.
Red Lake Felon Sentenced to over Five Years in Prison for Firearm Possession, Fentanyl DistributionRead the Press Release
DULUTH, Minn. – A Red Lake man has been sentenced to 63 months in prison, followed by four years of supervised release, for possessing a firearm as a felon and possession with the intent to distribute fentanyl, announced U.S. Attorney Andrew M. Luger.
According to court documents, on June 22, 2022, after Matt Dion Sayers, 47, had escaped from Red Lake Police custody, agents began investigating Sayers for suspected ongoing drug distribution from a motel in Bemidji. Agents observed Sayers arrive and park his vehicle at the motel, and then enter and exit a silver van parked nearby. Law enforcement detained Sayers moments after he left the van for suspicion of controlled substance sales and driving without a valid driver's license. Sayers told agents that he was staying at a room inside the motel, for which agents had already obtained a search warrant. During a search, agents found approximately 46 grams of fentanyl powder in Sayers’ pants pocket. During a search of Sayers’ Chevy Impala, law enforcement located approximately $11,000 in cash, a small safe containing various packaged controlled substances (including but not limited to multiple additional fentanyl and methamphetamine in small baggies). Law enforcement also located a loaded UZI Pro Brand 9 x 19 mm caliber semi-automatic pistol, which was found on the front driver's side floorboard.
Sayers pleaded guilty on December 13, 2022, to one count of possessing a firearm as a felon and one count of possession with the intent to distribute fentanyl. He was sentenced on April 16, 2023, before U.S. District Judge John R. Tunheim.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI Headwaters Safe Trails Task Force, the Paul Bunyan Drug Task Force, the Beltrami County Sheriff’s Office, and the Red Lake Tribal Police Department.
Assistant U.S. Attorneys Albania Concepcion and Allen A. Slaughter prosecuted the case.
Raleigh Eight Trey Gangster Crip Convicted in Aborted Murder Plot Targeting Rival Gang Member Receives 11 years in PrisonRead the Press Release
RALEIGH, N.C. – A Raleigh member of the Eight Trey Gangster Crips (ETGC) was sentenced yesterday to 132 months in prison for trafficking methamphetamine and his role in a murder conspiracy to kill a rival gang member that was aborted by law enforcement. Clinton Basco pled guilty to the charges on June 23, 2021.
“This case is part of an operation that led to over twenty indictments, taking down dangerous gang leaders and those who, like Basco, peddled dangerous drugs and conspired to kill rivals,” said U.S. Attorney Michael Easley. “We’ve forged a close partnership with Raleigh Police and the ATF to tackle violent crime, allowing for swift action by police to prevent yet another senseless murder.”
According to court documents and other information presented in court, an investigation identified a large drug-trafficking organization (DTO) which was distributing significant amounts of cocaine, methamphetamine, phencyclidine (PCP), 3,4-Methlyenedioxymethamphetamine (MDMA) and marijuana in the Raleigh area. The conduct of the DTO was perpetrated by leaders, members, and associates of the ETGC. Basco was responsible for conspiring to distribute more than 1,124.54 kilograms of converted drug weight in the Raleigh area.
Basco was in a leadership role within the ETGC and was known as an enforcer who committed acts of violence of behalf of the EGTC in Raleigh. Wiretap surveillance intercepted a conversation among members of the ETGC to kill a member of a rival gang that had tased high-level ETGC member Deandre Earp. At the direction of ETGC leader Dexter Maxwell, another gang member, Rayquan Wiggins, provided information on when the target of the murder plot would be in a certain area in Raleigh so that other ETGC’s, Basco and Earp, could commit the murder. Agents took enforcement action to prevent the murder from occurring by having Basco and Earp stopped as they were traveling by car to go murder the rival gang member. They were arrested before the murder could be committed. Maxwell and Earp previously pled guilty to charges related to the planned murder, as well as drug trafficking charges. Earp was sentenced to 40 years. https://www.justice.gov/usao-ednc/pr/raleigh-eight-trey-crip-gangster-sentenced-40-years-prison-vicar-and-methamphetamine Maxwell’s sentencing is pending.
This investigation is part of an Organized Crime and Drug Enforcement Task Force Operation (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launders, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Raleigh Police Department led the investigation with assistance from the Federal Bureau of Investigation, Raleigh/Wake City-County Bureau of Identification and United States Marshals Service. Assistant U.S. Attorney Kelly L. Sandling prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:19-cr-00395-D-5.
RGV brothers sentenced for methRead the Press Release
McALLEN, Texas – Two brothers residing in La Villa have been ordered to federal prison following their convictions of possession with intent to distribute meth, announced U.S. Attorney Alamdar S. Hamdani.
Roberto Serna pleaded guilty Feb. 3, while his brother Artemio entered his plea Nov. 30, 2022.
Today, Chief U.S. District Judge Randy Crane ordered Roberto to serve 120 months in federal prison to be immediately followed by five years of supervised release.
Artemio was previously ordered to serve the same sentence.
On Sept. 26, 2022, the Sernas sold a kilogram of meth undercover authorities.
At the time of their plea, the brothers admitted to selling the drugs on two separate occasions.
The FBI conducted the investigation. Assistant U.S. Attorney Robert L. Guerra Jr. prosecuted the case.
Prison guard who smuggled contraband to prison inmate pleads guilty to federal drug chargeRead the Press Release
BRUNSWICK, GA: A former Georgia state prison guard awaits sentencing after pleading guilty to her role in a widespread drug trafficking conspiracy linked to a white supremacist street gang.
Desiree M. Briley, 26, of McRae-Helena, Ga., faces up to 20 years in prison after pleading guilty to Conspiracy to Possess with Intent to Distribute, and to Distribute, Methamphetamine, said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. Briley was a Georgia state corrections officer with the rank of sergeant when arrested as part of Operation Ghost Busted in January 2023.
“Desiree Briley played a key role in enabling members of the Ghost Face Gangsters to operate a massive drug trafficking operation inside and outside Georgia’s prison system,” said U.S. Attorney Steinberg. “Her actions compromised the security of the facility she was sworn to protect, and threatened the safety of every person in the community where this conspiracy distributed illegal drugs.”
Operation Ghost Busted, announced with the January unsealing of the indictment in USA v. Alvarez, et al., is an Organized Crime Drug Enforcement Task Forces investigation, led by the FBI Coastal Georgia Violent Gang Task Force, the Glynn County Police Department, the Brunswick Police Department, the Glynn County Sheriff’s Office, and the Camden County Sheriff's Office.
Over a more than two-year period, the investigation identified a sprawling drug trafficking network operating in south Georgia counties including Glynn, Pierce, Camden, Wayne, Treutlen, McIntosh, Toombs, Telfair, Dodge, and Ware. The conspiracy operated inside and outside state prison facilities with assistance from Briley, who worked with an inmate indicted as part of the conspiracy: James D. NeSmith, 25, who currently is serving a life sentence for murder at Telfair State Prison. Including Briley and NeSmith, 76 defendants were indicted on federal charges as part of Operation Ghost Busted.
As noted during her plea hearing before U.S. District Court Judge Lisa Godbey Wood, at the time of her arrest, Briley was attending training to become a canine handler and then would have been in a position to further allow contraband in prisons.
Sentencing for Briley will be scheduled before Judge Wood after completion of a pre-sentence investigation by U.S. Probation Services.
“Briley betrayed the trust placed in her by the Georgia state prison system through her illegal and potentially dangerous activity,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “This extensive investigation proves that the FBI will not tolerate public corruption, especially by fellow law enforcement officials who choose their own personal gains over protecting the people they were sworn to protect.”
“This operation has dismantled a serious criminal enterprise which funneled guns and drugs into our communities,” said ATF Assistant Special Agent in Charge Beau Kolodka “ATF and its law enforcement partners acted quickly and judiciously on information developed during this long investigation. The safety of the public is at the core of ATF’s mission and we stand at the front line eradicating violent crime from our streets.”
“Illegal activity being carried out by prison staff will not be tolerated,” said Georgia Bureau of Investigation Director Michael Register. “This guard is being held accountable for her role in facilitating drug trafficking behind the wire. We are committed to working with our local, state, and federal partners to investigate drug trafficking and smuggling and bring these offenders to justice.”
“We maintain a zero-tolerance policy for individuals who choose to bring discredit to the Georgia Department of Corrections and pose a threat to the safety of the public and the operations of our facilities,” said Tyrone Oliver, Commissioner of the Georgia Department of Corrections. “We appreciate the support of our federal partners in ensuring that justice will be served, and we are proud of our agents who were diligent in working this case to help stop the introduction of dangerous contraband into one of our facilities.”
The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach.
Agencies involved in the investigation include the FBI Coastal Georgia Violent Gang Task Force; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Marshals Service; the Georgia Bureau of Investigation; the Georgia Department of Corrections; the Georgia Department of Community Supervision; the Glynn County Police Department; the Brunswick Police Department; and sheriff’s offices from Glynn, Pierce, Camden, Wayne, Treutlen, McIntosh, Toombs, Telfair, Dodge, and Ware counties. The case is being prosecuted for the United States by Assistant U.S. Attorneys Jennifer J. Kirkland and Criminal Division Deputy Chief E. Greg Gilluly Jr.
Ponte Vedra Man Sentenced to Prison and Ordered to Pay More Than $1.9 Million in Taxes He Willfully EvadedRead the Press Release
Jacksonville, Florida – Chief U.S. District Judge Timothy J. Corrigan today sentenced Patrick Brian Hines to a year and a day in federal prison for the willful evasion of taxes due and owing. The court also ordered Hines to pay $1,927,077.90 in restitution to the Internal Revenue Service. Hines had pleaded on November 2, 2022.
According to court documents, from 2004 through 2011, Hines owned and operated a network of telecommunication entities that purchased the rights to specific 1-800 phone numbers and charged consumers’ telephone bills for directory assistance services. Hines owned and operated these entities in his own name. After several lawsuits against the entities and Hines, in April 2011, Hines dismantled most of his entities and the entities filed for bankruptcy. In October 2012, a new telecommunication company was established in Hines’s wife’s name. Hines operated the company established in his wife’s name for his personal benefit from 2012 through 2018, during which time the company generated more than $4 million in revenue. Rather than owning and operating the company in his own name, Hines operated it through nominees. This was done during the time the Federal Communications Commission issued a forfeiture order for the entities and Hines to pay $1.6 million. In addition, in 2016, the California Public Utilities Commission filed a complaint against Hines and his companies, which resulted in a finding that Hines was responsible for $9.8 million plus interest, which remains outstanding. Hines used multiple nominee owners for the company in an attempt to distance himself from it and to evade and defeat the payment of income taxes and other obligations.
From 2012 through 2018, Hines used a system of nominee entities and individuals to conceal his assets and income. Hines paid personal expenses from the company’s business accounts, and he diverted profits of the company into the bank accounts of other nominee entities he controlled and to individual bank accounts he controlled. From 2012 through 2018, Hines arranged for $2.5 million to be spent on personal expenses from these nominee accounts, to include $38,000 in personal training sessions, dues for two private clubs, $275,000 in mortgage payments for a multi-million-dollar residence, and tuition for his children’s private schooling.
Beginning as early as November 28, 2011, the IRS sent Hines collection notices of his unpaid taxes, yet Hines failed to pay. Despite advice from his accountant to pay his taxes, Hines claimed to be “broke” and living off of the proceeds from the sale of the house.
On June 29, 2016, Hines filed an IRS Form 433-A in which he falsely claimed to have no income, but was supported by his spouse who gave him $3,479 per month, even though he knew that he had received the personal benefit of at least $2 million from 2012 through 2018. Hines has accrued penalties and interest as a result of his delinquent taxes, resulting in total outstanding balance of $1,927,077.90.
“For over a decade, Mr. Hines lied to the Internal Revenue Service, cheated the tax system, and stole from honest American taxpayers,” said Brian Payne IRS-CI Special Agent in Charge. “Mr. Hines’s attempts to conceal assets and income to evade taxes were unsuccessful and a tough lesson that came with significant consequences.”
This case was investigated by the Internal Revenue Service – Criminal Investigation. It was prosecuted by Assistant United States Attorney Kelly S. Karase.
Pine Ridge Man Sentenced to Federal PrisonRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced that a Pine Ridge, South Dakota, man convicted of Brandishing a Firearm During the Commission of a Crime of Violence and Assault on a Federal Officer was sentenced on April 10, 2023, by U.S. District Judge Jeffrey L. Viken.
As to the charge of Brandishing a Firearm During the Commission of a Crime of Violence, Daniel Tobacco, age 29, was sentenced to seven years in federal prison, followed by five years of supervised release, and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund. As to the Assault on a Federal Officer charge, Tobacco was sentenced to four years and nine months in federal prison to be served consecutively with the other sentence, followed by five years of supervised release, and ordered to pay another $100 special assessment.
Tobacco was indicted for the charges by a federal grand jury in September of 2021, and pleaded guilty in December of 2022. The conviction stems from Tobacco engaging in a standoff with tribal and federal law enforcement at a residence north of Pine Ridge on September 2, 2021. Tobacco fired a semiautomatic pistol several times during the standoff. Tobacco pointed the gun toward an approaching Tribal law enforcement officer and squeezed the trigger as he was tased by the officer.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Heather Sazama prosecuted the case.
Tobacco was immediately remanded to the custody of the U.S. Marshals Service.
Orono Resident Agrees to Pay over $228,000 to Settle Allegations of Fraudulently Obtaining Pandemic Relief FundsRead the Press Release
PORTLAND, Maine: U.S. Attorney Darcie N. McElwee today announced that Jacob Hennie of Orono has agreed to pay $228,338.30 to settle a civil fraud case alleging that he fraudulently applied for, received and obtained forgiveness for two Paycheck Protection Program (PPP) loans, and fraudulently applied for and received a COVID-19 Economic Injury and Disaster Loan (EIDL) Emergency Advance.
The United States filed a complaint against Hennie in the United States District Court for the District of Maine on April 14, 2023. The complaint alleged that in July 2020, Hennie misrepresented that he operated a business with nine employees to receive a $9,000 EIDL Emergency Advance when he did not operate any business. In February 2021, Hennie obtained a first-draw PPP loan in the amount of $18,625 based on alleged misrepresentations in the loan applications. He then obtained a second-draw PPP loan in the amount of $20,833 based on alleged misrepresentations related to fictitious business expenses. Hennie received forgiveness for both PPP loans through allegedly misrepresenting how the loan funds were used.
The complaint against Hennie was brought by the United States pursuant to the False Claims Act (FCA) and the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA). The FCA provides that any person who “knowingly presents, or causes to be presented, a false or fraudulent claim for payment or approval” or “knowingly makes, uses, or causes to be made or used, a false record or statement material to a false or fraudulent claim” is liable to the United States for three times the amount of damages which the United States sustains, plus a civil penalty for each FCA violation. For FCA violations assessed after January 30, 2023, the minimum penalty per violation is $13,508.
FIRREA provides that the Attorney General may recover civil penalties against persons who knowingly make a false statement for the purpose of influencing a decision by the Administrator of the SBA or to obtain a loan, money, or anything of value under certain SBA programs, including the PPP. For FIRREA violations assessed after January 30, 2023, the maximum penalty per violation is $2,372,677.
The complaint filed by the United States is a result of the District of Maine’s ongoing efforts to identify and investigate fraudulently obtained pandemic relief funds. Recent amendments to federal law have extended the statute of limitations for civil and criminal fraud enforcement actions concerning PPP and EIDL loans from six to ten years. The civil action is docketed United States v. Jacob Hennie, 23-cv-00171-JAW (D. Me.).
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Orlando Felon Sentenced to More Than 7 Years on Firearm Charges in Connection with ShootingRead the Press Release
Orlando, Florida – U.S. District Judge Wendy W. Berger today sentenced Darrius Jaques Garrett (33, Orlando) to seven years and six months in federal prison for possessing a firearm and ammunition as a convicted felon. The court also ordered Garrett to forfeit a Glock pistol and ammunition, which were used in this case. Garrett had pleaded guilty on November 30, 2022.
According to court documents, Garrett was charged with knowingly possessing a Glock pistol and .22 caliber rounds of ammunition on May 27, 2022, in connection with a shooting. At approximately 4:00 p.m. that day, the Orange County Sheriff’s Office was dispatched to Americana Boulevard in Orlando where they found a man who had sustained gunshot wounds to the torso. That man was later treated and released from the hospital. Surveillance images from a nearby business captured the shooting.
Five days later, on June 1, 2022, Garrett was observed in the same area by deputies with the same Dodge Charger depicted on the video. Inside, deputies found a loaded Glock firearm that authorities allege was used in the shooting.
Garrett is a 5-time convicted felon and is therefore prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Orange County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Courtney D. Richardson-Jones.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety – one that includes investigating and prosecuting crimes, along with prevention and re-entry efforts. In the Middle District of Florida, U.S. Attorney Roger B. Handberg coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Orange County Woman Sentenced to Nearly 22 Years in Prison for Her Role in Murder of Man Shot on Her Boat and Tossed OverboardRead the Press Release
SANTA ANA, California – A San Juan Capistrano woman has been sentenced to 262 months in federal prison for her role in the October 2019 murder of a man whose body was found floating in the Pacific Ocean with bullet and blunt force trauma wounds, the Justice Department announced today.
Sheila Marie Ritze, 42, was sentenced late Monday afternoon by United States District Judge David O. Carter, who at the hearing described Ritze’s conduct as “horrific and horrendous” and noted its “callousness.”
At the conclusion of a 12-day trial in April 2022, a federal jury found Ritze guilty of one count of second-degree murder within in the special maritime and territorial jurisdiction of the United States, and one count of making false statements to federal investigators.
On October 15, 2019, Ritze went out on her boat – in what was described to the victim as a late-night lobster-fishing trip – with Hoang Xuan Le, 41, a.k.a. “Wayne,” and “Wangsta,” of Fountain Valley, and the victim, who owed Le a debt. Ritze’s boat was docked at Dana Point Harbor.
Around midnight, Ritze drove her boat out into the Pacific Ocean with Le and the victim on board. Le shot the victim on the boat, the victim went overboard, and Ritze and Le left the victim to die in the ocean, where he drowned. Le and Ritze then returned to Dana Point Harbor.
The victim’s body was recovered from the Pacific Ocean several miles northwest of Oceanside on October 16, 2019. The San Diego County Medical Examiner’s Office determined that he was a homicide victim who drowned after being shot and suffering blunt force trauma.
During a December 2019 interview with federal investigators, Ritze told a series of lies, including when she falsely said she had never met the victim prior to the fatal boat trip. Ritze and the victim had been in Las Vegas together 11 days prior to the murder.
“Ritze’s crime has left a grieving mother, grieving widow, grieving brothers, a grieving sister, and two fatherless small children,” prosecutors argued in a sentencing memorandum. “Ritze continued on with her life after murdering Dao as though nothing had happened, continuing to party with Le…and assisting Le with tracking [the victim’s] grieving widow with GPS trackers.”
At the conclusion of a 17-day trial in December 2021, a federal jury found Le guilty of first-degree murder within the special maritime and territorial jurisdiction of the United States, conspiracy to commit murder, and using a firearm in furtherance of a crime of violence. In February 2022, Le pleaded guilty to eight narcotics-related felonies, including distribution of cocaine and methamphetamine.
Le faces a mandatory sentence of life in federal prison at his July 17 sentencing hearing.
The Coast Guard Investigative Service and the FBI investigated this matter.
Assistant United States Attorneys Greg Scally and Gregory W. Staples of the Santa Ana Branch Office are prosecuting this case.
Orange County Convicted Felon Pleads Guilty to Kidnapping and Aggravated Assault on a Federal Law Enforcement OfficerRead the Press Release
MIAMI – On April 14, Marques Deon Jones, 40, from Orange County, pled guilty to kidnapping, aggravated assault on a federal law enforcement officer, and two felon in possession of a firearm charges, stemming from a two-day crime spree in Port St. Lucie and Fort Pierce, Florida.
On August 14, 2022, Jones pistol-whipped an employee of a Port St. Lucie group home located near SE Walton Road, before forcing the employee to leave with him in the employee’s vehicle. While inside the vehicle, Jones continued to beat the employee, threatening the employee that if he saw police, he would kill the employee and force police to kill him in a shoot-out. A group home supervisor, who witnessed Jones’ threats, the physical assault and the ensuing abduction, notified Port St. Lucie Police Department, who was able to identify Jones and issued a warrant for Jones’ arrest.
The following day, on August 15, 2022, a U.S. Marshals Service warrants unit located Jones, standing outside of a home in Fort Pierce. As the task force officers approached, they observed Jones retrieve a firearm from a parked car, turn, and attempt to flee. Jones later admitted to police that he retrieved the firearm because he wanted officers to shoot and kill him. Jones was arrested without injury. According to court documents, Jones was previously been convicted, in Orange County, of Domestic Battery and Aggravated Battery Causing Great Bodily Harm, both felonies.
Jones is scheduled for sentencing on June 29, before U.S. District Judge Aileen M. Cannon and faces a possible maximum sentence of life in prison.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Christopher A. Robinson of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Miami Field Division, and U.S. Marshal Gadyaces S. Serralta of the U.S. Marshals Service (USMS), made the announcement.
The case was investigated by the U.S. Marshals Service, ATF Fort Pierce, with assistance from the St. Lucie County Sheriff’s Office, Port St. Lucie Police Department and the Fort Pierce Police Department. The case is being prosecuted by Assistant U.S. Attorney Breezye Telfair.
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-14069.
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OFAC-Designated Hizballah Financier and Eight Associates Charged with Multiple Crimes Arising Out of Scheme to Evade Terrorism-Related SanctionsRead the Press Release
A nine-count indictment was unsealed today in United States District Court for the Eastern District of New York charging Nazem Ahmad and eight co-defendants with conspiring to defraud the United States and foreign governments, evade U.S. sanctions and customs laws, and conduct money laundering transactions by securing goods and services for the benefit of Ahmad, a Lebanese resident and dual Belgian-Lebanese citizen who was sanctioned by the United States for being a financier for Hizballah, a foreign terrorist organization. Despite being sanctioned and prohibited from engaging in transactions with U.S. persons since December 2019, Ahmad and his coconspirators relied on a complex web of business entities to obtain valuable artwork from U.S. artists and art galleries and to secure U.S.-based diamond-grading services all while hiding Ahmad’s involvement in and benefit from these activities. Approximately $160 million worth of artwork and diamond-grading services were transacted through the U.S. financial system. One defendant was arrested today in the United Kingdom at the request of the United States, and the eight remaining defendants, including Ahmad, are believed to reside outside the United States and remain at large. The government obtained seizure warrants for millions of dollars in assets that include a diamond ring, cash in an account, and artwork.
Breon Peace, United States Attorney for the Eastern District of New York; Matthew G. Olsen, Assistant Attorney General for the Justice Department’s National Security Division; Tae D. Johnson, U.S. Immigration and Customs Enforcement Deputy Director and Senior Official Performing the Duties of the Director, Department of Homeland Security; and Matthew S. Axelrod, Assistant Secretary of Commerce for Export Enforcement, U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement (BIS), announced the charges.
“The United States implemented terrorism sanctions so that terrorist organizations like Hizballah would be cut off from the goods and services needed to fund violent acts of terrorism. As alleged, Nazem Ahmad and his co-defendants benefitted from the multi-million-dollar trade in diamonds and artwork even after Ahmad was sanctioned for his involvement with a terrorist organization,” stated United States Attorney Peace. “Our Office will continue to prosecute individuals who evade these sanctions and thereby offer a lifeline to designated foreign terrorist organizations.”
“Despite being sanctioned for his dealings with a terrorist organization, Mr. Ahmad remained active in the US-based art and diamond trade while concealing his illicit involvement,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Today we hold Ahmad and his associates accountable and demonstrate that those who would flout our sanctions cannot hide from US justice.”
“This HSI investigation speaks to the unwavering commitment of the U.S. and U.K. governments to prevent art and diamond markets from becoming a haven of illicit financial activity,” said U.S. Immigration and Customs Enforcement Deputy Director and Senior Official Performing the Duties of the Director Tae D. Johnson. “I commend HSI and our investigative partners for their dedication in seeing this investigation through – over many years – to substantial actions. We will utilize every tool at our disposal to dismantle these illicit networks.”
“The funding of foreign terrorist organizations like Hizballah is illegal, regardless of whether that funding comes in the form of cash or the export of high-priced diamonds and art,” said Assistant Secretary of Commerce for Export Enforcement Matthew S. Axelrod. “We are proud to have partnered with DOJ and HSI to bring this significant enforcement action.”
As alleged, Nazem Ahmad was involved in real estate development, the international trade of diamonds, and the international acquisition and sale of artwork, and operated these enterprises through a complex web of business entities. Ahmad was also an associate of high-level members of Hizballah, a Lebanon-based terrorist group that was designated by the United States as a Foreign Terrorist Organization and Specially Designated Global Terrorist. On December 13, 2019, pursuant to the International Emergency Economic Powers Act (IEEPA) and the Global Terrorism Sanctions Regulations, the U.S. Department of Treasury’s Office of Foreign Assets Control (OFAC) designated Ahmad and 11 businesses associated with Ahmad as Specially Designated Nationals (SDN) for Ahmad’s material support of, and provision of goods and services to, Hizballah. At the time of the designation, OFAC explained that Ahmad was “considered a major Hizballah financial donor who laundered money through his companies for Hizballah and provided funds personally to Hizballah Secretary-General Hassan Nasrallah” and was also “involved in ‘blood diamond’ smuggling” who “stores some of his personal funds in high-value art.”
Despite being sanctioned and prohibited from engaging in most transactions with U.S. persons, Ahmad continued to secure valuable goods and services from U.S. persons notwithstanding that such transactions constituted violations of U.S. sanctions and other federal laws. Specifically, Ahmad, together with his son Firas Michael Ahmad, daughter Hind Nazem Ahmad and brother-in-law Rami Yaacoub Baker, as well as associates Mohamad Hijazi, Mohamad Hassan Ismail, Sarya Nemat Martin, Ali Said Mossalem Sundar Nagarajan, and others, used numerous corporate entities and individuals to disguise Ahmad’s control and beneficial interest in the companies and in financial transactions, and facilitate the acquisition of multiple pieces of valuable artwork and diamond-grading services for millions of dollars’ worth of diamonds from U.S. persons.
Evasion of Terrorism Sanctions in the Diamond Trade
The defendants conspired to violate and evade U.S. sanctions by obtaining grading determinations and other services from a U.S.-based diamond grading company (Diamond Grading Company-1). The services of Diamond Grading Company-1, which were secured through multiple entities operating for Ahmad’s benefit, were valuable to the defendants because the services provided can affect the sales price of those diamonds and thus increase the amount that Ahmad can receive for the sale of his property. Collectively, the defendants and other conspirators sent approximately 482 diamond submissions to Diamond Grading Company-1 facilities after Ahmad was designated by OFAC in December 2019. The total weight of the diamonds submitted and graded post-sanctions was approximately 1,546 carats. For example, on or about March 18, 2021, an entity operating for the benefit of Ahmad shipped an approximately 45-carat diamond—valued at $80 million—to a facility belonging to Diamond Grading Company-1 in New York. Following the receipt of services from Diamond Grading Company-1, the 45-carat diamond was exported from the United States on April 26, 2021, back to the same entity.
Evasion of Terrorism Sanctions in the Art Market
The defendants also conspired to violate and evade U.S. sanctions by acquiring contemporary art from the United States, from U.S. persons outside the United States, or through U.S.-based financial transactions, on behalf of and for the benefit of Ahmad, despite his status as an OFAC-sanctioned SDN. Artwork allegedly obtained from the United States after Ahmad was sanctioned in December 2019 was valued at more than $450,000, while an additional $780,000 in artwork from U.S. persons located outside the United States was also acquired in violation of terrorism sanctions.
For example, in or about and between April 2021 and July 2021, Ahmad and several other defendants engaged in multiple transactions with a Chicago-based art gallery (Chicago Art Gallery-1), on behalf of and for the benefit of Ahmad. Ahmad allegedly commissioned multiple pieces of artwork, at least one of which can be seen in a picture with Ahmad, as depicted below:
Chicago Art Gallery-1 Painting Hanging (on Right) Before Ahmad Sitting at a Desk
Chicago Art Gallery-1 Paintings Commissioned by Ahmad
Between approximately February 2021 and November 2021, Ahmad and two other defendants engaged in transactions with a New York-based artist (New York Artist-1), on behalf of and for the benefit of Ahmad. After Ahmad directly negotiated the sale of artwork from New York Artist-1—pointedly directing the artist not to mention Ahmad’s name to anyone—six paintings valued at $199,800 were exported from the United States via John F. Kennedy International Airport to a Lebanese business entity used by Ahmad. At least one piece of artwork acquired from New York Artist-1 was hung in Ahmad’s residence in Lebanon as shown in the images below, which show Ahmad and co-defendant Firas Ahmad (two other uncharged individuals are obscured in the image below) in front of the artwork:
Between in or about May 2021 and June 2021, Nazem Ahmad and co-defendant Ali Said Mossalem allegedly paid for artwork acquired from a Nigerian-based artist through a wire transfer that was facilitated by a U.S. financial institution located in New York, New York. An image of one of the pieces of artwork acquired by Ahmad through the services of U.S. financial institutions is depicted below:
As part of this criminal scheme, the defendants also caused the undervaluation of goods in U.S. customs records in violation of federal law, and took other steps to obscure the value of the goods they received in order to avoid the payment of foreign taxes when the goods were imported into the relevant country.
The defendants and other conspirators engaged in this scheme to benefit Ahmad and themselves while at the same time evading terrorism-related sanctions, to avoid the payment of taxes to foreign governments on the import of valuable goods into foreign countries, and to make it more difficult for the United States government to carry out its lawful functions. Entities controlled by or operating for the benefit of Ahmad engaged in more than $400 million worth of financial transactions between approximately January 2020 and August 2022; the conspirators were responsible for importing more than $207 million of goods to the United States and exporting more than $234 million of goods from the United States between approximately December 2019 and December 2022, consisting primarily of diamonds and artwork; and approximately $160 million worth of transactions involved the U.S. financial system. At least $6 million of the proceeds of the criminal scheme was transferred to Lebanon for use by Ahmad and his associates.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Craig R. Heeren and Nicholas J. Moscow, and Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section, are in charge of the prosecution with assistance from Paralegal Specialists Benjamin Richmond and Magdalena St. Surin. Assistant United States Attorney Claire Kedeshian of the Office’s Asset Recovery Section is in charge of asset forfeiture. The Department of Justice Office of International Affairs is assisting with extradition and international legal assistance in this case.
This investigation was a collaboration between HSI Cedar Rapids, New York, Cultural Property Art and Antiquities Program and Trade Transparency Unit which was made possible through support from HSI Chicago, Dallas, Houston, Kansas City, Los Angeles, Raleigh, St. Paul, and Santa Rosa. HSI Attaché Offices in Africa, Asia, Europe, and the Middle East played critical roles in the investigation. U.S. Customs and Border Protection and U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement, New York Field Office were also key investigative partners.
The Department of Justice’s Office of International Affairs provided critical assistance in this case. The Department also appreciates the significant cooperation and assistance provided by the United Kingdom authorities.
The Defendants:
NAZEM AHMAD (also known as “N.A.,” “Naz,” “Naz Ahmad,” “Nazem Ali Ahmad,” “Nazem Saeed Ahmad,” “Nazim Sa’id Ahmad,” “Nizam Saed Ahmad,” “Nazem Said Ahmed,” “Nazem Saied Ahmed,” “Nazeem Said Ahmad” and “Kariumu Muhamadi”)
Lebanon and BelgiumFIRAS MICHAEL AHMAD (also known as “Firas Ahmed” and “Firas Nazem Ahmad”)
Lebanon and BelgiumHIND NAZEM AHMAD (also known as “Dida Ahmad,” “Hind El Ris,” “Hind El-Riz” and “Julie”
BelgiumRAMI YAACOUB BAKER (also known as “Ramy Kamel Yaqoub Baker”)
Lebanon and BelgiumMOHAMAD HASSAN ISMAIL
LebanonMOHAMAD HIJAZI
LebanonSARYA NEMAT MARTIN (also known as “Sarya N. Marie”)
United StatesALI SAID MOSSALEM
LebanonSUNDAR NAGARAJAN (also known as “Nagarajan Sundar Poongulam Kasiviswanathan Naga” and “Sundar Poongulam K. Nagarajan Nagarajan”)
IndiaE.D.N.Y. Docket No. 23-CR-139 (DG)
OFAC-Designated Hezbollah Financier and Eight Associates Charged with Multiple Crimes Arising Out of Scheme to Evade Terrorism-Related SanctionsRead the Press Release
A nine-count indictment was unsealed today in the Eastern District of New York charging Nazem Ahmad and eight co-defendants with conspiring to defraud the United States and foreign governments, evade U.S. sanctions and customs laws and conduct money laundering transactions by securing goods and services for the benefit of Ahmad, a Lebanese resident and dual Belgian-Lebanese citizen who was sanctioned by the United States for being a financier for Hezbollah, a foreign terrorist organization.
According to court documents, despite being sanctioned and prohibited from engaging in transactions with U.S. persons since December 2019, Ahmad and his co-conspirators relied on a complex web of business entities to obtain valuable artwork from U.S. artists and art galleries and to secure U.S.-based diamond-grading services all while hiding Ahmad’s involvement in and benefit from these activities. Approximately $160 million worth of artwork and diamond-grading services were transacted through the U.S. financial system. One defendant was arrested today in the United Kingdom at the request of the United States, and the eight remaining defendants, including Ahmad, are believed to reside outside the United States and remain at large. The government obtained seizure warrants for millions of dollars in assets that include a diamond ring, cash in an account and artwork.
“Despite being sanctioned for his dealings with a terrorist organization, Mr. Ahmad remained active in the U.S.-based art and diamond trade while concealing his illicit involvement,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Today, we hold Ahmad and his associates accountable and demonstrate that those who would flout our sanctions cannot hide from U.S. justice.”
“The United States implemented terrorism sanctions so that terrorist organizations like Hezbollah would be cut off from the goods and services needed to fund violent acts of terrorism,” said U.S. Attorney Breon Peace for the Eastern District of New York. “As alleged, Nazem Ahmad and his co-defendants benefitted from the multimillion-dollar trade in diamonds and artwork even after Ahmad was sanctioned for his involvement with a terrorist organization. Our office will continue to prosecute individuals who evade these sanctions and thereby offer a lifeline to designated foreign terrorist organizations.”
“Let this action against Nazem Ahmad’s international criminal organization serve as a reminder that the U.S. government and its allies will tirelessly prosecute those who are sanctioned for illicitly financing terrorist activities and wantonly violate those sanctions in order to continue accruing substantial wealth that can be used to continue financing Hezbollah,” said Deputy Secretary John K. Tien of Department of Homeland Security. “We are grateful to our partners across the federal government and our partnership with the United Kingdom that demonstrates international commitment and cooperation to preventing future atrocities by dismantling illicit financial networks supporting terrorism.”
“The funding of foreign terrorist organizations like Hezbollah is illegal, regardless of whether that funding comes in the form of cash or the export of high-priced diamonds and art,” said Assistant Secretary Export Enforcement Matthew S. Axelrod of the Department of Commerce. “We are proud to have partnered with the Justice Department and HSI to bring this significant enforcement action.”
As alleged, Ahmad was involved in real estate development, the international trade of diamonds, and the international acquisition and sale of artwork, and operated these enterprises through a complex web of business entities. Ahmad was also an associate of high-level members of Hezbollah, a Lebanon-based terrorist group that was designated by the United States as a Foreign Terrorist Organization and Specially Designated Global Terrorist. On Dec. 13, 2019, pursuant to the International Emergency Economic Powers Act (IEEPA) and the Global Terrorism Sanctions Regulations, the U.S. Department of Treasury’s Office of Foreign Assets Control (OFAC) designated Ahmad and 11 businesses associated with Ahmad as Specially Designated Nationals (SDNs) for Ahmad’s material support of, and provision of goods and services to, Hezbollah. At the time of the designation, OFAC explained that Ahmad was “considered a major Hezbollah financial donor who laundered money through his companies for Hezbollah and provided funds personally to Hezbollah Secretary-General Hassan Nasrallah” and was also “involved in ‘blood diamond’ smuggling” who “stores some of his personal funds in high-value art.”
Despite being sanctioned and prohibited from engaging in most transactions with U.S. persons, Ahmad continued to secure valuable goods and services from U.S. persons notwithstanding that such transactions constituted violations of U.S. sanctions and other federal laws. Specifically, Ahmad, together with his son Firas Michael Ahmad, daughter Hind Nazem Ahmad and brother-in-law Rami Yaacoub Baker, as well as associates Mohamad Hijazi, Mohamad Hassan Ismail, Sarya Nemat Martin, Ali Said Mossalem Sundar Nagarajan and others, used numerous corporate entities and individuals to disguise Ahmad’s control and beneficial interest in the companies and in financial transactions, and facilitate the acquisition of multiple pieces of valuable artwork and diamond-grading services for millions of dollars’ worth of diamonds from U.S. persons.
Evasion of Terrorism Sanctions in the Diamond Trade
As alleged, the defendants conspired to violate and evade U.S. sanctions by obtaining grading determinations and other services from a U.S.-based diamond grading company (Diamond Grading Company-1). The services of Diamond Grading Company-1, which were secured through multiple entities operating for Ahmad’s benefit, were valuable to the defendants because the services provided can affect the sales price of those diamonds and thus increase the amount that Ahmad can receive for the sale of his property. Collectively, the defendants and other conspirators sent approximately 482 diamond submissions to Diamond Grading Company-1 facilities after Ahmad was designated by OFAC in December 2019. The total weight of the diamonds submitted and graded post-sanctions was approximately 1,546 carats. For example, on or about March 18, 2021, an entity operating for the benefit of Ahmad shipped an approximately 45-carat diamond – valued at $80 million – to a facility belonging to Diamond Grading Company-1 in New York. Following the receipt of services from Diamond Grading Company-1, the 45-carat diamond was exported from the United States on April 26, 2021, back to the same entity.
Evasion of Terrorism Sanctions in the Art Market
The defendants also conspired to violate and evade U.S. sanctions by acquiring contemporary art from the United States, from U.S. persons outside the United States, or through U.S.-based financial transactions, on behalf of and for the benefit of Ahmad, despite his status as an OFAC-sanctioned SDN. Artwork allegedly obtained from the United States after Ahmad was sanctioned in December 2019 was valued at more than $450,000, while an additional $780,000 in artwork from U.S. persons located outside the United States was also acquired in violation of terrorism sanctions.
For example, in or about and between April 2021 and July 2021, Ahmad and several other defendants engaged in multiple transactions with a Chicago-based art gallery (Chicago Art Gallery-1), on behalf of and for the benefit of Ahmad. Ahmad allegedly commissioned multiple pieces of artwork, at least one of which can be seen in a picture with Ahmad, as depicted below:
Between approximately February 2021 and November 2021, Ahmad and two other defendants engaged in transactions with a New York-based artist (New York Artist-1), on behalf of and for the benefit of Ahmad. After Ahmad directly negotiated the sale of artwork from New York Artist-1 – pointedly directing the artist not to mention Ahmad’s name to anyone – six paintings valued at $199,800 were exported from the United States via John F. Kennedy International Airport to a Lebanese business entity used by Ahmad. At least one piece of artwork acquired from New York Artist-1 was hung in Ahmad’s residence in Lebanon.
As part of this criminal scheme, the defendants also caused the undervaluation of goods in U.S. customs records in violation of federal law and took other steps to obscure the value of the goods they received in order to avoid the payment of foreign taxes when the goods were imported into the relevant country.
The defendants and other conspirators engaged in this scheme to benefit Ahmad and themselves while at the same time evading terrorism-related sanctions, to avoid the payment of taxes to foreign governments on the import of valuable goods into foreign countries and to make it more difficult for the United States government to carry out its lawful functions. Entities controlled by or operating for the benefit of Ahmad engaged in more than $400 million worth of financial transactions between approximately January 2020 and August 2022; the conspirators were responsible for importing more than $207 million of goods to the United States and exporting more than $234 million of goods from the United States between approximately December 2019 and December 2022, consisting primarily of diamonds and artwork; and approximately $160 million worth of transactions involved the U.S. financial system. At least $6 million of the proceeds of the criminal scheme was transferred to Lebanon for use by Ahmad and his associates.
Assistant U.S. Attorneys Craig R. Heeren and Nicholas J. Moscow for the Eastern District of New York and Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section are in charge of the prosecution, with assistance from Paralegal Specialists Benjamin Richmond and Magdalena St. Surin. Assistant U.S. Attorney Claire Kedeshian of the is handling asset forfeiture. The Department of Justice Office of International Affairs is assisting with extradition and international legal assistance in this case.
This investigation was a collaboration between HSI Cedar Rapids, New York, HSI New York Counter Proliferation Investigations and Trade Transparency Unit which was made possible through support from HSI Chicago, Dallas, Houston, Kansas City, Los Angeles, Raleigh, St. Paul, and Santa Rosa. HSI Attaché offices in Africa, Asia, Europe, and the Middle East played critical roles in the investigation. U.S. Customs and Border Protection was also a key investigative partner.
The Department also appreciates the significant cooperation and assistance provided by the United Kingdom authorities.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Norristown Man Pleads Guilty to Possessing with the Intent to Distribute Heroin, Fentanyl, and MethamphetamineRead the Press Release
JOHNSTOWN, Pa. – A former resident of Norristown, PA pleaded guilty in federal court to a charge of violating federal narcotics laws, Acting United States Attorney Troy Rivetti announced today.
Keith Pope, age 34, pleaded guilty to Count One of the Indictment, before Senior United States District Judge Kim R. Gibson.
In connection with the guilty plea, on or about October 7, 2020, Pope was found to possess with the intent to distribute 40 grams or more of a mixture and substance containing a detectable amount of fentanyl and heroin, and a mixture and substance containing a detectable amount of methamphetamine.
Judge Gibson scheduled sentencing for August 23, 2023. The law provides for a minimum sentence of 5 years in prison and a maximum sentence of 40 years in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Maureen Sheehan-Balchon is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Cambria County Drug Task Force, and FBI Safe Streets Task Force conducted the investigation that led to the successful prosecution of Pope.
Nicholas County Man Pleads Guilty to Federal Gun CrimeRead the Press Release
CHARLESTON, W.Va. – Shawn K. Bever, 45, of Craigsville, pleaded guilty today to being a felon in possession of a firearm.
According to court documents and statements made in court, on November 17, 2021, law enforcement officers investigating the illegal shooting of a bear encountered Bever outside his Craigsville residence. Officers saw an ATI .22-caliber pistol in Bever’s side-by-side all-terrain vehicle, parked on the property. Winchester .22-caliber ammunition was recovered from Bever’s pants pocket. Bever admitted to possessing the firearm and ammunition.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Bever was prohibited from possessing a firearm or ammunition because of his prior felony conviction for delivery of a controlled substance in Nicholas County Circuit Court on November 14, 2011.
Bever is scheduled to be sentenced on July 11, 2023, and faces a faces a maximum penalty of 10 years in prison, three years of supervised release, and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the West Virginia Division of Natural Resources Police and the assistance provided by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Senior United States District Judge David A. Faber presided over the hearing. Assistant United States Attorneys Nowles Heinrich and Lesley C. Shamblin are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-164.
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New Orleans Man Sentenced to Being a Felon in Possession of a FirearmRead the Press Release
NEW ORLEANS – JARON MCCREE, a resident of New Orleans, was sentenced on April 5, 2023, by U.S. District Court Ivan L.R. Lemelle to seventy (70) months incarceration, three (3) years of supervised release and a mandatory $100 special assessment fee after previously pleading guilty to possessing a firearm while being a convicted felon, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2).
According to the court records, on February 15, 2022, New Orleans Police Department detectives had an outstanding arrest warrant for MCCREE and saw him near a store in the French Quarter. One of the detectives approached MCCREE who then fled on foot.
The detective chased MCCREE and observed as he discarded a firearm in a bush. MCCREE was then arrested. Police later recovered a Glock model 17, nine-millimeter firearm, with an extended magazine, capable of holding thirty-one (31) rounds of ammunition, from the bush. Police also recovered twenty-eight (28) live rounds of ammunition.
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 Federal Bureau of Investigation and the New Orleans Police Department in this matter. The case was prosecuted by Assistant United States Attorney Mike Trummel of the Violent Crime Unit.
New Orleans Man Pleads Guilty to Violations of the Federal Gun Control and Controlled Substances ActsRead the Press Release
NEW ORLEANS, LOUISIANA – On April 11, 2023, BURNEAL ELLIOTT, age 21, of New Orleans, pleaded guilty to a four-count indictment for possession of a machinegun, possession of a firearm by a convicted felon, possession of a firearm in furtherance of a drug trafficking crime, and possession with intent to distribute cocaine, announced U.S. Attorney Duane A. Evans.
As to Counts 1 and 2, ELLIOTT faces a maximum sentence of 10 years of imprisonment, a fine of up to $250,000, and up to 3 years of supervised release. As to Count 3, ELLIOTT faces a maximum term of imprisonment of twenty (20) years, a fine not to exceed $1,000,0000, and at least three (3) years of supervised release following any term of imprisonment. As to Count 4, ELLIOTT faces a minimum term of imprisonment of five (5) years, a maximum term of imprisonment of life, all to be run consecutive to any other term of imprisonment, a fine of up to $250,000, and up to five (5) years of supervised release following any term of imprisonment. As to each count , ELLIOTT also faces payment of a $100 mandatory special assessment fee.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jefferson Parish Sheriff’s Office. Assistant United States Attorney Mike Trummel of the Violent Crime Unit handled the prosecution.
New Castle Man Pleads Guilty to Illegally Possessing Drugs and a FirearmRead the Press Release
PITTSBURGH– Ricardo Reeves pled guilty to violating federal narcotics trafficking and firearm laws, Acting United States Attorney Troy Rivetti announced today.
Reeves, age 44 of New Castle, Pennsylvania, pled guilty before United States District Judge Arthur J. Schwab. Judge Schwab scheduled sentencing to occur on Aug. 16, 2023, at 9:30 a.m. Reeves will be sentenced for (1) possessing with intent to distribute 40 grams or more of a mixture containing fentanyl and heroin, as well as quantities of cocaine and cocaine base, and for (2) possessing a firearm in furtherance of a drug trafficking crime, all on Dec. 14, 2020.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
The Lawrence County Drug Task Force, the Pennsylvania State Police, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives conducted the investigation leading to the convictions in this case.
This case was prosecuted as 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 of Justice 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.
More than 100 dogs forfeited in three separate federal civil actions involving fighting operationsRead the Press Release
SAVANNAH, GA: Recent civil actions in federal court have rescued more than 100 dogs from animal fighting operations in multiple locations in the Southern District of Georgia.
The U.S. Attorney’s Office for the Southern District of Georgia filed three civil forfeiture complaints between September and December 2022 seeking possession of 110 dogs allegedly involved in illegal dog fighting ventures, said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. The U.S. Marshals Service (USMS) worked with local law enforcement and the U.S. Department of Agriculture Office of Inspector General (USDA-OIG) to seize the dogs, resulting in a final order of default in each of the complaints.
“Dog fighting is unacceptable and has no place in this District,” said U.S. Attorney Steinberg. “In addition, animal fighting ventures often entail other forms of illegal activity; this office will continue to work with its law enforcement partners at all levels to investigate and prosecute those who seek to profit off the abuse of helpless animals.”
The complaints include:
Civil Action No.: 5:22-CV-056
In March 2021, the USMS seized 23 dogs from the Ware County Animal Shelter after local animal control officers removed them from 3310 North Street in Waycross, Ga. The dogs were suspected of being involved in dog fighting activities.
Local animal control officers observed that the dogs’ conditions were inconsistent with those of pets, with housing and equipment indicative of a facility for fight training. After USMS took custody of the dogs, an evaluation by a veterinary contractor showed scarring on their faces and bodies, bite marks, and pressure sores, and some tested positive for hookworm. The 23 dogs were forfeited via court order on March 6, 2023.
Civil Action No.: 2:22-CV-00115
In June 2021, USMS seized 13 dogs from the Long County Animal Shelter after local law enforcement officers removed them from 362 Narcy Stafford Road in Glennville, Ga. These dogs were suspected of being involved in dog fighting activities.
Local law enforcement officers observed the dogs were kept in housing conditions consistent with an animal-fighting operation, including access to veterinary medicines and training equipment. An evaluation confirmed the condition of the animals was consistent with dog fighting, with fractured teeth, scarring and torn ears. Many of the dogs also were diagnosed with heartworm, hookworm, and/or giardia. These 13 dogs were forfeited via court order on Jan. 23, 2023.
Civil Action No.: 3:22-CV-177
In May 2022, USMS seized 74 dogs that were suspected of being involved in dog fighting activities, with 47 of the dogs seized from 138 Tucker School Road in Wrightsville, Ga., and 27 of the dogs seized from 236 James Grove Church Road in Wrightsville, Ga.
Federal agents observed that the dogs were housed in a manner consistent with fighting dogs, with training equipment, veterinary medicines, and pedigrees on site. The dogs had missing teeth and extensive scarring. These 74 dogs were forfeited via court order on April 6, 2023.
After taking the 110 dogs into custody, the USMS contracted with various veterinary service providers for care and rehabilitation of the dogs in preparation for sending the adoptable dogs to local animal shelters for adoption. Where relevant, the U.S. Attorney’s Office may pursue criminal action related to the seizures.
“The United States Department of Agriculture, Office of Inspector General, Investigations, actively investigates allegations of animal abuse,” said Acting Special Agent in Charge Salina Walker for USDA-OIG. “This agency has made animal fighting a high priority in order to demonstrate that these blatant acts of cruelty to animals will not be tolerated. We would like to acknowledge the agents and supporting law enforcement agencies for their relentless efforts in pursing individuals engaged in these activities. We would also like to thank the United States Attorney’s Office for aggressively prosecuting perpetrators of animal fighting.”
Under the federal Animal Welfare Act, it is a felony to fight dogs or to possess, train, sell, buy, deliver, receive, or transport them for that purpose, and violation of the law carries a statutory penalty of up to five years in prison. The statute further authorizes the seizure and forfeiture of animals involved in dog fighting and empowers the government to recover the costs for care of the animals from the dogs’ owners.
The cases were investigated by the U.S. Department of Agriculture Office of Inspector General and Special Agent Doug Bridges, with assistance from the U.S. Marshals Service and local law enforcement agencies. Assistant U.S. Attorney Shannon Heath Statkus, U.S. Department of Justice Environmental and Natural Resources Division Senior Trial Attorney Mary Hollingsworth and Attorney Lucy Chiu pursued the forfeiture of the dogs on behalf of the United States, with assistance from Southern District of Georgia Special Assistant U.S. Attorney Jessica K. Rock, Animal Crimes Prosecutor for the Prosecuting Attorneys Council of Georgia.
Media Advisory: United Against Hate Event to be Held in Cedar RapidsRead the Press Release
CEDAR RAPIDS, IA – The United States Attorney’s Office for the Northern District of Iowa is joining with the FBI, the Cedar Rapids Civil Rights Commission, the Linn County Attorney’s Office and others to host a forum designed to identify and address key issues related to hate crime reporting, investigation, prosecution and prevention. The forum is designed to educate the public on how to respond to hate crimes or hate incidents, including who to contact should a member of the public be the victim of a hate crime or incident.
The forum is part of the Department of Justice’s United Against Hate initiative. United Against Hate is a nationwide Department of Justice initiative to combat unlawful acts of hate. This initiative will connect federal, state and local law enforcement with communities in order to build trust and encourage people to report hate crimes and incidents.
Event Details
When: April 25, 2023
Where: Cedar Rapids Downtown Public Library – Beems Auditorium B
Time: 6:00 P.M.
A press release will be provided and interview opportunities will be available.
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