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Monday 17 April 2023
Fort Myers Felon Sentenced After Brandishing A Firearm on Social MediaRead the Press Release
Fort Myers, Florida – U.S. District Judge Thomas Barber has sentenced Terry Kristopher Flournoy (23, Fort Myers) to two years and six months in federal prison for possessing a firearm and ammunition as a convicted felon. The court also ordered Flournoy to forfeit the firearm and ammunition he illegally possessed. Flournoy had pleaded guilty on December 21, 2022.
According to court documents, on April 27, 2020, officers from the Fort Myers Police Department arrested Flournoy on an active warrant after he had posted a video on Instagram of food items at a Fort Myers area restaurant. When arrested, officers located a loaded Glock pistol. Flournoy’s fingerprint was later located on the magazine of the firearm. Officers further noted that Flournoy had posted a video on social media pointing what appeared to be a Glock pistol at the camera on the same evening of his arrest. Flournoy is a convicted felon, and as a result, is 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 Fort Myers Police Department. It was prosecuted by Assistant United States Attorney Mark Morgan.
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 out 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 first place, setting focused and strategic enforcement priorities, and measuring the results.
Former Oakland Police Chief Pleads Guilty to Misuse of Public FundsRead the Press Release
United States Attorney Steven Russell announced that Terry A. Poland, 33, of Fremont, Nebraska, was arraigned and pleaded guilty today before the Honorable Michael D. Nelson, United States Magistrate Judge, to Misuse of Public Funds. Poland further agreed that he has or will surrender his law enforcement certification before the date set for sentencing, and that he will not work as a law enforcement officer in the future. Sentencing is scheduled for July 25, 2023 before Magistrate Judge Nelson.
During February 2020 to January 2021, Poland purchased about 27 gift cards in four transactions from a sporting goods store operating in Nebraska, using the charge account that the City of Oakland had at the store. The total value of the gift cards that Poland acquired with Oakland’s funds was $14,631.00.
Poland used the gift cards to acquire items for the use of himself and family members. Poland purchased among other things women’s and children’s clothing, an ice fishing house, an auger, fishing equipment and a basketball backboard. Poland acquired the basketball backboard on or about March 22, 2020, in the amount of $949.99. Poland made most purchases using the gift cards at store locations in Nebraska but made at least one purchase online.
An outside auditor questioned the acquisition of the gift cards. At the request of the outside auditor, the Oakland City Clerk requested additional receipts from Poland. Poland stated that all the gift cards were used to purchase ammunition for the Oakland Police Department and provided to the City Clerk five purported receipts, each captioned “Purchase Statement.” Each Purchase Statement was purportedly from the store and reflected the purchase of ammunition on a particular date during August 2020 to January 2021.
The Purchase Statements that Poland provided to the City Clerk were phony. They were not issued by the store, and the transactions, item numbers and item descriptions did not match the store’s records.
This case was investigated by the Federal Bureau of Investigation.
Former Bristol Woman Sentenced for Theft of Federal FundsRead the Press Release
PROVIDENCE, R.I. – A former Bristol woman who perpetrated a scheme to fraudulently collect more than $42,000 in Social Security Supplemental Security Income (SSI) benefits earmarked for a disabled child who was no longer in her care or custody was sentenced today to three years of federal probation and ordered to reimburse the Social Security Administration, announced United States Attorney Zachary A. Cunha.
Sonia Pimentel, 44, formerly of Bristol, RI, now residing in Norwich, CT, pleaded guilty in U.S. District Court in Providence on December 1, 2022, to a charge of theft of public funds.
Pimentel admitted that, from December 2011 through October 2016, she continued to receive, and to keep for her own personal use, monthly SSI payments totaling $42,346.73; those funds were earmarked for the care of a disabled child who was no longer in her custody or care at the time. The child was, in fact, in the custody and care of his father at that time Pimentel fraudulently and willfully collected and retained the SSI payments.
At sentencing today, U.S. District Court Judge Mary S. McElroy sentenced Pimentel to three years of federal probation and ordered her to pay restitution in the amount of $42,346.73 to the Social Security Administration.
The case was prosecuted by Assistant U.S. Attorney Denise M. Barton.
The matter was investigated by the Social Security Administration Office of Inspector General.
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Former Administrative Manager for Covington Public Works Department Pleads Guilty to Wire Fraud and Aggravated Identity TheftRead the Press Release
COVINGTON, Ky. – The former administrative manager for the City of Covington Public Works Department, Allison Donaldson, 50, of Covington, pleaded guilty on Friday, before U.S. District Judge David Bunning, to wire fraud and aggravated identity theft.
Donaldson was employed as an administrative manager for the Public Works Department, from 2005 until 2022, and had access to credit card information for the department. Her plea agreement explains that starting in February 2020 and continuing until February 2022, Donaldson knowingly defrauded the City of Covington, by using employee credit cards and making over $150,000 in purchases for herself and her home. Some of the purchases listed in the plea agreement include repairs for a Mercedes Benz, a Louis Vuitton agenda, a Chanel tote, Crate & Barrel furniture, and a remodel to her master bedroom and garage.
Donaldson was indicted in September 2022.
“Any time public servants turn to greed and misappropriate public funds, it does serious damage,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky. “Not only does it deprive communities of necessary – and often very limited – resources, but it severely erodes the trust that communities place in their government. Her conduct was an egregious betrayal, for which she now faces the consequences. The dedicated efforts of our law enforcement partners made this important prosecution possible, and was the first step in repairing the damage to the Covington community.”
United States Attorney Shier; Jodi Cohen, Special Agent in Charge, FBI, Louisville Field Office; Daniel Cameron, Kentucky Attorney General; and Spike Jones, Chief of the Kenton County Police Department, jointly announced the guilty plea.
The investigation preceding the indictments was conducted by the FBI, the Kentucky Attorney General’s Department of Criminal Investigation, and the Kenton County Police Department. The United States was represented by Assistant U.S. Attorney Kyle Winslow.
Donaldson is scheduled to be sentenced on September 8. She faces up to 20 years for the wire fraud charge; she faces up to two years, run consecutively on the aggravated identity theft charge; and she faces criminal judgments for restitution and forfeiture of the property attained through the fraud. Any sentence, however, will be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
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Federal Grand Jury Indicts Level III Sex Offender for Receipt and Possession of Child PornographyRead the Press Release
PROVIDENCE – A level III sex offender, charged and convicted three times in Rhode Island state court on child pornography charges, has been in indicted by a federal grand jury on additional, and unrelated, child pornography charges, announced United States Attorney Zachary A. Cunha.
The grand jury returned an indictment charging Patrick K. Beattie, 37, of Charlestown, with two counts of receipt of child pornography and one count of possession of child pornography.
It is alleged in court documents that in February 2023, a state probation officer received information that Beattie, while serving a terms of state probation related to previous state child pornography convictions, was allegedly violating the terms of his state probation. It was alleged that Beattie possessed an internet-connected smartphone in violation of the terms of his court-imposed probation.
Court documents allege that, on February 10, 2023, during an unannounced home visit of Beattie’s residence, as was permitted by the terms of his state probation, Beattie was found to be in possession of a smartphone. A subsequent, court-authorized search of the phone revealed child pornography involving prepubescent minors.
Beattie was arraigned on Friday in federal court and ordered detained in federal custody. A federal indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
According to court documents, Beattie was previously convicted in Rhode Island State Court in April 2017, March 2022, and in January 2023, on child pornography charges.
The current case, charged by way of a federal grand jury indictment, is being prosecuted in federal court by Assistant U.S. Attorney Denise M. Barton.
The matter was investigated by Homeland Security Investigations, Charlestown Police, and Rhode Island State Police, with the assistance of the Rhode Island Department of Corrections Probation and Parole Unit.
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Federal Grand Jury Indicts Man for Illegally Possessing Two Machine GunsRead the Press Release
NEW ORLEANS, LOUISIANA – XAVIER DUHON, age 20, a resident of New Orleans, Louisiana, was charged on April 14, 2023 in a one-count indictment for possession of machine guns, announced U.S. Attorney Duane A. Evans.
If convicted, DUHON faces a maximum term of imprisonment of 10 years, up to a $250,000 fine, up to 3 years of supervised release, and a mandatory special assessment fee of $100.
U. S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
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 Bureau of Alcohol, Tobacco, Firearms, and Explosives, the New Orleans Police Department, and the Louisiana State Police. Assistant United States Attorney Sarah Dawkins of the Violent Crimes Unit is in charge of the prosecution.
Eight Chinese Government Officials Charged with Directing Employee of a U.S. Telecommunications Company to Remove Chinese Dissidents from Company's PlatformRead the Press Release
Today, an amended complaint was unsealed charging a total of 10 defendants, including a former executive of a U.S. telecommunications company (Company-1) who worked in the People’s Republic of China (PRC), six officers of the PRC Ministry of Public Security (MPS), two officials with the Cyberspace Administration of China (CAC), and one other civilian with conspiracy to commit interstate harassment and unlawful conspiracy to transfer means of identification. All the defendants are believed to reside in the PRC and remain at large.
Carolyn Pokorny, First Assistant United States Attorney for the Eastern District of New York[1]; Matthew G. Olsen, Assistant Attorney General of the Justice Department’s National Security Division; and David Sundberg, Assistant Director-in-Charge, Federal Bureau of Investigation, Washington Field Office (FBI), announced the charges.
“The amended complaint charging a former PRC-based employee of a U.S. telecommunications company illustrates the insider threat faced by U.S. companies operating in the PRC,” stated First Assistant United States Attorney Pokorny, who thanked Company-1 for its cooperation in the government’s investigation. “As alleged, Julien Jin and his co-conspirators in the Ministry of Public Security and Cyberspace Administration of China weaponized the U.S. telecommunications company he worked for to intimidate and silence dissenters, and enforce PRC law to the detriment of Chinese activists in New York, among other places, who had sought refuge in this country to peacefully express their pro-democracy views.”
“These cases demonstrate the lengths the PRC government will go to silence and harass U.S. persons who exercise their fundamental rights to speak out against PRC oppression, including by unlawfully exploiting a U.S.-based technology company,” stated Assistant Attorney General Olsen. “These actions violate our laws and are an affront to our democratic values and basic human rights.”
“These cases demonstrate that the Chinese Communist Party, once again, attempted to intimidate, harass, and suppress Chinese dissidents in the United States,” stated FBI Assistant Director-in-Charge Sundberg. “In the U.S., freedom of speech is a cornerstone of our democracy, and the FBI will work tirelessly to defend everyone's right to speak freely without fear of retribution from the CCP. These complex investigations revealed an MPS-wide effort to repress individuals by using a U.S. communications platform and fake social media accounts to censor political and religious speech.”
As alleged in the amended complaint, ten individuals, including a former PRC-based Company-1 executive, six MPS officers, and two officials with the Cyberspace Administration of China (CAC), are charged with conspiracy to commit interstate harassment and unlawful conspiracy to transfer means of identification.
In December 2020, the Department first announced charges against Julien Jin in connection with his efforts to disrupt a series of meetings on the Company-1 platform held in May and June 2020 commemorating the 1989 Tiananmen Square Massacre. Julien Jin served as Company-1’s primary liaison with PRC government law enforcement and intelligence services. In that capacity, he regularly responded to requests from the PRC government to terminate meetings and block users on Company-1’s video communications platform.
As detailed in the original complaint, Jin and others conspired to use Company-1’s U.S. systems to censor the political and religious speech of individuals located in the United States and elsewhere at the direction of the PRC government. For example, Jin and others disrupted meetings held on the Company-1 platform to discuss politically sensitive topics unacceptable to the PRC government – including the Tiananmen Square Massacre. Jin and his co-conspirators fabricated evidence of purported misconduct to cause U.S.-based employees of Company-1 to terminate the meetings.
The allegations in the amended complaint reveal that Jin worked directly with and took orders from defendants at the MPS and the CAC to disrupt meetings on the Company-1 platform and that the co-defendants had targeted U.S.-based dissidents’ speech on Company-1’s platform since 2018.
Starting in 2018, Jin and his co-defendants repeatedly sought to terminate video chat meetings organized by a Chinese dissident residing in New York City who has been a vocal critic of the PRC government and the Chinese Communist party. After the CAC requested that Company-1 terminate the dissident’s meetings on the Company-1 platform, Jin worked to identify all accounts associated with the dissident, caused meetings related to the dissident to be hosted in a “quarantine zone” – that is, on a server with known lags in response time – and later worked to block all accounts associated with the dissident. Similarly, in 2019, Jin collaborated with the MPS and CAC to block accounts seeking to commemorate the Tiananmen Square Massacre.
The charges in the amended complaint 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 U.S. Attorneys Alexander A. Solomon, Ian C. Richardson, Nicholas J. Moscow and Jessica K. Weigel of the United States Attorney’s Office for the Eastern District of New York, with Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section are in charge of the prosecution.
The FBI has created a website for victims to report efforts by foreign governments to stalk, intimidate, or assault people in the United States. Please visit: www.fbi.gov/investigate/counterintelligence/transnational-repression.
The Defendants:
JIN XINJIANG (also known as “Julien Jin”)
Age: 42
PEOPLE’S REPUBLIC OF CHINACHEN YUANYUAN (陈媛媛)
Age: Unknown
PEOPLE’S REPUBLIC OF CHINAFU YIBIN (傅一彬)
Age: 39
PEOPLE’S REPUBLIC OF CHINAHUANG YIWEN (黄奕雯) also known as “Nicole Huang”
Age: 25
PEOPLE’S REPUBLIC OF CHINAJIN TAO (金涛)
Age: Unknown
PEOPLE’S REPUBLIC OF CHINALIU ZHIYANG (刘智洋)
Age: 43
PEOPLE’S REPUBLIC OF CHINASHEN ZHENHUA (沈振华)
Age: 41
PEOPLE’S REPUBLIC OF CHINASONG GUORONG (宋国荣)
Age: 43
PEOPLE’S REPUBLIC OF CHINATIAN XINNING (田心宁)
Age: Unknown
PEOPLE’S REPUBLIC OF CHINAXU WEI (徐威)
Age: 35
PEOPLE’S REPUBLIC OF CHINA[1] U.S. Attorney Breon Peace for the Eastern District of New York is recused from and has not participated in this case.
Drug Enforcement Administration Announces Spring Take Back DayRead the Press Release
Memphis, TN – The Drug Enforcement Administration has announced the date of its 24th National Prescription Drug Take Back Day. On Saturday, April 22, DEA, and its partners will collect tablets, capsules, patches, and other solid forms of prescription drugs.
For more than a decade, DEA’s National Prescription Drug Take Back Day has helped Americans easily rid their homes of unneeded medications—those that are old, unwanted, or expired—that too often become a gateway to addiction.
Take Back Day offers free and anonymous disposal of unneeded medications at more than 4,000 local drop-off locations nationwide.
What: National Prescription Drug Take Back Day
When: Saturday, April 22 from 10 a.m. to 2 p.m. local time
Who: State and local law enforcement partners across Kentucky, Tennessee, and West Virginia
Where: For a complete list of collection sites, visit www.DEATakeBack.com
In Memphis, the “Street Team for Overdose Prevention” (S.T.O.P.), a collaboration of several agencies, encourage citizens to turn in unused medications safely and anonymously at 2811 Clarke Road.
In partnership with local law enforcement, Take Back Day has removed more than 8,300 tons of medication from circulation since its inception.
Collection sites will not accept syringes, sharps, and illicit drugs. Liquid products, such as cough syrup, should remain sealed in their original container. The cap must be tightly sealed to prevent leakage.
To find a collection site near you, visit www.DEATakeBack.com.
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For more information, please contact Public Information Officer Cherri Green at (901) 544-4231 or [email protected]. Follow @ WDTNNews on Twitter for office news and updates.
Credit Card Processors Ordered to Pay $650,000 in Consumer Redress for Assisting in Fraudulent Computer Repair Telemarketing SchemesRead the Press Release
The Justice Department, together with the Federal Trade Commission (FTC), today announced that the government will collect $650,000 in consumer redress from corporate defendants Nexway, SASU, Nexway Group AG, Nexway, Inc., asknet Solutions AG, asknet, Inc., (collectively Nexway), and individual defendants Casey Potenzone and Victor Iezuitov. The defendants’ payment of the $650,000 will result in the suspension of the total monetary judgment of $49.5 million granted by the court.
In a complaint filed in the U.S. District Court for the District of Columbia, the government alleges that, since at least August 2016, the defendants violated the FTC Act and the Telemarketing Sales Rule (TSR) by processing credit card payments for India-based Tech Live Connect and other foreign clients that commit telemarketing fraud via tech support scams. The complaint alleges that Nexway helped its clients open and use merchant accounts to process credit card charges. In a typical scam, Nexway’s client caused deceptive pop-up notifications to appear on a consumer’s computer screen, warning that the computer was infected with a virus or freezing the screen and displaying a phone number to call for help. Consumers who called reached call centers in India and were convinced to pay for “repairs.” The consumers’ credit card charges were processed by Nexway’s credit card merchant account. Nexway received a commission for each charge. The complaint alleges that Nexway and its principals worked with TLC and other fraudster clients despite knowing or consciously avoiding knowing that they were engaged in fraudulent telemarketing and other deceptive practices. The government also asserts that Nexway engaged in “credit card laundering” by allowing its clients to use Nexway’s credit card merchant accounts for their telemarketing scam even though Nexway was not the merchant on those transactions.
“The Department of Justice will not hesitate to pursue and hold accountable payment processors who facilitate tech support scams that defraud consumers,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department is committed to protecting consumers from companies that engage in or support deceptive practices.”
“Companies like Nexway that knowingly launder charges for scammers are breaking the law and helping scammers cheat money from consumers,” said Director Samuel Levine of the FTC’s Bureau of Consumer Protection. “The FTC will not hesitate to use its law enforcement powers to stop them.”
This matter is being handled by Claude Scott of the Civil Division’s Consumer Protection Branch and Russell Deitch and J. Ronald Brooke of the FTC.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at www.justice.gov/civil/consumer-protection-branch. For more information about the FTC, visit its website at www.FTC.gov.
Construction Company Owner Sentenced to 78 Months in Prison and Ordered to Pay Nearly $1 Million in Restitution for Rigging Bids and Bribing a Public OfficialRead the Press Release
A construction company owner in California was sentenced to 78 months in prison and ordered to pay $984,699.53 in restitution for his role in a bid-rigging and bribery scheme involving California Department of Transportation (Caltrans) improvement and repair contracts.
According to a guilty plea entered on Nov. 14, 2022, in the U.S. District Court for the Eastern District of California in Sacramento, Bill R. Miller engaged in a conspiracy from April 2015 through as late as December 2019. As part of the conspiracy, Miller recruited others to submit sham bids on Caltrans contracts, including co-conspirator William D. Opp, a former business partner who pleaded guilty in the case on Oct. 3, 2022.
In addition to pleading guilty to bid rigging, Miller also pleaded guilty to paying bribes to Choon Foo “Keith” Yong, the former Caltrans contract manager who managed the contracts involved on behalf of Caltrans, a California state agency that receives significant federal funding. On April 11, 2022, Yong pleaded guilty for his role in the bid-rigging and bribery scheme. According to Yong’s plea agreement, Yong received the bribes in the form of cash payments, wine, furniture and remodeling services on his home. The total value of the bribes that Miller paid to Yong was nearly $1 million. Miller is the first defendant to be sentenced in the case.
“This sentence sends a strong message that criminals who corrupt the competitive bidding process will face stern consequences,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “Protecting infrastructure spending and taxpayer dollars remains a top priority for the Antitrust Division and our Procurement Collusion Strike Force partners.”
“A lengthy investigation and a series of guilty pleas has led to the sentencing today for a bid-rigging and bribery conspiracy,” said U.S. Attorney Phillip A. Talbert for the Eastern District of California. “But our work is not done. Anticompetitive practices harm taxpayers and legitimate businesses alike. My office will continue to investigate and prosecute such conduct.”
“Fair and free competition is essential to ensure taxpayer money is only obligated and spent on essential services and contracts,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “The FBI is committed to working with our partners to investigate such allegations, and bringing to justice those who conspire to enrich themselves by cheating the American public as a whole. We hope this sentence serves as ample warning to anyone contemplating a scheme to falsely influence a government bidding process for personal gain.”
Today’s sentencing is the result of a joint investigation that was conducted by the Antitrust Division’s San Francisco office, the U.S. Attorney’s Office for the Eastern District of California and the FBI Sacramento Field Office as part of the Justice Department’s Procurement Collusion Strike Force (PCSF).
Trial Attorneys Christopher J. Carlberg and Tai S. Milder of the Antitrust Division and Assistant U.S. Attorney Lee S. Bickley for the Eastern District of California prosecuted the case.
In November 2019, the Department of Justice created the Procurement Collusion Strike Force, a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant, and program funding at all levels of government — federal, state and local. To contact the Procurement Collusion Strike Force, or to report information on market allocation, price fixing, bid rigging and other anticompetitive conduct related to construction or infrastructure, go to www.justice.gov/procurement-collusion-strike-force.
Construction Company Owner Sentenced to 78 Months in Prison and Ordered to Pay Nearly $1 Million in Restitution for Rigging Bids and Bribing a Public OfficialRead the Press Release
WASHINGTON – A construction company owner in California was sentenced to 78 months’ imprisonment and ordered to pay $984,699 in restitution for his role in a bid-rigging and bribery scheme involving California Department of Transportation (Caltrans) improvement and repair contracts.
According to a guilty plea entered on Nov. 14, 2022, in the U.S. District Court for the Eastern District of California in Sacramento, Bill R. Miller engaged in a conspiracy from April 2015 through as late as December 2019. As part of the conspiracy, Miller recruited others to submit sham bids on Caltrans contracts, including co-conspirator William D. Opp, a former business partner who pleaded guilty in the case on Oct. 3, 2022.
In addition to pleading guilty to bid rigging, Miller also pleaded guilty to paying bribes to Choon Foo “Keith” Yong, the former Caltrans contract manager who managed the contracts involved on behalf of Caltrans, a California state agency that receives significant federal funding. On April 11, 2022, Yong pleaded guilty for his role in the bid-rigging and bribery scheme. According to Yong’s plea agreement, Yong received the bribes in the form of cash payments, wine, furniture and remodeling services on his home. The total value of the bribes that Miller paid to Yong was nearly $1 million. Miller is the first defendant to be sentenced in the case.
“This sentence sends a strong message that criminals who corrupt the competitive bidding process will face stern consequences,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “Protecting infrastructure spending and taxpayer dollars remains a top priority for the Antitrust Division and our Procurement Collusion Strike Force partners.”
“A lengthy investigation and a series of guilty pleas has led to the sentencing today for a bid-rigging and bribery conspiracy,” said U.S. Attorney Phillip A. Talbert for the Eastern District of California. “But our work is not done. Anticompetitive practices harm taxpayers and legitimate businesses alike. My office will continue to investigate and prosecute such conduct.”
“Fair and free competition is essential to ensure taxpayer money is only obligated and spent on essential services and contracts,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “The FBI is committed to working with our partners to investigate such allegations, and bringing to justice those who conspire to enrich themselves by cheating the American public as a whole. We hope this sentence serves as ample warning to anyone contemplating a scheme to falsely influence a government bidding process for personal gain.”
Today’s sentencing is the result of a joint investigation that was conducted by the Antitrust Division’s San Francisco office, the U.S. Attorney’s Office for the Eastern District of California, and the FBI’s Sacramento Division as part of the Justice Department’s Procurement Collusion Strike Force (PCSF). Trial Attorneys Christopher J. Carlberg and Tai S. Milder and Assistant U.S. Attorney Lee S. Bickley prosecuted the case.
In November 2019, the Department of Justice created the Procurement Collusion Strike Force, a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant, and program funding at all levels of government — federal, state and local. To contact the Procurement Collusion Strike Force, or to report information on market allocation, price fixing, bid rigging and other anticompetitive conduct related to construction or infrastructure, go to https://www.justice.gov/procurement-collusion-strike-force.
Columbia Man Sentenced After Attempting to Bring Stun Guns, Smoke Grenades, Knives, and Pepper Spray into Columbia AirportRead the Press Release
Columbia, SOUTH CAROLINA — David Lee Angell, 51, was sentenced to 12 months in federal prison after pleading guilty to knowingly and willfully entering into an airport area in violation of security requirements.
Evidence obtained in the investigation showed that Angell was stopped at a TSA screening before attempting to board a plane the Columbia Metropolitan Airport. While at TSA screening, his carry-on baggage alerted on prohibited items. A search of his carry-on revealed that he was carrying three smoke grenades, one set of plastic stun knuckles, three stun batons, two knives, and two cans of capsaicin spray in his carry-on bag. All of these items are prohibited from being in a passenger’s carry-on baggage.
Angell has prior convictions for carrying a concealed weapon in vehicle, possession of a dangerous weapon, burglary, and resisting a public officer.
As a result of the federal conviction, United States Magistrate Judge Paige J. Gossett sentenced Angell to the maximum term imprisonment of one year, to be followed by a one-year term of court-ordered supervision.
The case was investigation by the Federal Bureau of Investigation (FBI) and Transportation Security Administration (TSA).
Assistant United States Attorney Elle E. Klein prosecuted the case.
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Citrus County Man Found Guilty of Possessing A Short-Barrel RifleRead the Press Release
Ocala, Florida – Senior U.S. District Judge Gregory A. Presnell has found David Robinson, Jr. (24, Tampa) guilty of possessing an unregistered National Firearms Act (NFA) firearm. Robinson faces a maximum penalty of 10 years in federal prison. His sentencing hearing is scheduled for July 20, 2023. Robinson had been indicted on October 11, 2022.
According to evidence presented at trial, deputies from the Citrus County Sheriff’s Office encountered Robinson in September 2022. Robinson had in his possession a loaded short barrel rifle. The barrel length was approximately 12.5 inches long. The rifle was not registered to Robinson in the National Firearms Registration and Transfer record.
This case was investigated by the Citrus County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Sarah Janette Swartzberg.
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.
Choctaw County Resident Sentenced for Abusive Sexual Contact in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Jimmy Ray Robinson, age 55, of Choctaw County, Oklahoma, was sentenced to the statutory maximum 24 months in federal prison for one count of Abusive Sexual Contact in Indian Country. Robinson pleaded guilty to the offense in August 2022.
The evidence in this case established that in September of 2020, Robinson intentionally touched a child over the clothing in a sexual manner. The victim disclosed the abuse and provided details during a forensic interview.
On August 24, 2022, Robinson pleaded guilty to one count of Abusive Sexual Contact in Indian Country. Robinson was immediately remanded to the custody of the U.S. Marshal to await sentencing.
The Federal Bureau of Investigation conducted the investigation.
“Let today’s sentence send the message that those who prey on Oklahoma’s children will be found and prosecuted to the fullest extent of the law,” said FBI Oklahoma City Special Agent in Charge Edward J. Gray. “The FBI and our law enforcement partners remain committed to ensuring the safety of our communities, especially our most vulnerable citizens."
“Cases like this are especially troubling and heart-wrenching,” said United States Attorney Christopher J. Wilson. “I am thankful for the work of the Federal Bureau of Investigation and the United States Attorney’s Office to see to it the defendant was brought to justice.”
Prosecutors brought this case as part of Project Safe Childhood. Project Safe Childhood is 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 draws on federal, state, and local agencies to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
The United States Attorney’s Office for the Eastern District of Oklahoma prosecuted this case because the defendant is a member of a federally recognized Indian tribe and the crimes occurred in Choctaw County, within the boundaries of the Choctaw Nation Reservation and the Eastern District of Oklahoma.
The Honorable Bernard M. Jones, U.S. District Judge in the United States District Court for the Western District of Oklahoma, presided over the sentencing in Muskogee. Robinson will remain in custody pending transportation to a designated United States Bureau of Prisons facility to serve his non-paroleable sentence of incarceration. Upon completion of his term of imprisonment, Robinson will serve a life term of supervised release under Federal supervision.
Assistant United States Attorney Edith Singer represented the United States.
Cherry Hill Gang Member Sentenced to 21 Years in Federal Prison for a Racketeering Conspiracy, Including Murdering a Rival Gang MemberRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III today sentenced Deaven Cherry, age 35, of Baltimore, Maryland to 21 years in federal prison, followed by five years of supervised release, for a conspiracy to participate in a racketeering enterprise.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Commissioner Michael Harrison of the Baltimore Police Department; and Interim Chief Dennis J. Delp of the Baltimore County Police Department.
According to his guilty plea, Cherry was an associate of a gang known as “Hillside” which operated in part of Cherry Hill in Baltimore, Maryland. Members of Hillside distributed powder and crack cocaine, heroin, oxycodone and marijuana, primarily in a local shopping center, in other locations throughout Cherry Hill, and in west and southwest Baltimore City. The members of Hillside used the proceeds of their narcotics sales to purchase firearms, to enrich themselves, and to further the narcotics trafficking and other activities of the organization. Hillside members also committed acts of violence, including robberies, non-fatal shootings and homicides.
As stated in his plea agreement, Hillside members and associates have been in a long-running dispute with rival gang members, including Up Da Hill (“UDH”), the Lakebrook Circle Boys, and others. Members and associates of Hillside have routinely engaged in murder and other acts of violence directed at members of these rival gangs, or persons in the territories controlled by these rival gangs. Cherry knew members of Hillside sold narcotics and committed violent acts against rival gangs or others who impeded on Hillside’s territory. Further, Cherry admitted that he participated in Hillside’s racketeering enterprise, including the murder of a UDH member (Victim 1). On May 22, 2010, Cherry shot and murdered Victim 1 in the 2900 block of Denham Circle. Later that day, Cherry was in possession of a loaded 9mm semi-automatic pistol with an extended magazine containing 21 rounds. Ballistic evidence confirmed that Cherry’s firearm was used to murder Victim 1. Cherry also admitted that it was reasonably foreseeable to him that Hillside was responsible for the distribution of between one and three kilograms of heroin, between five and 15 kilograms of cocaine, between 280 and 840 grams of crack cocaine, as well as marijuana and oxycodone.
Cherry and co-defendant Travis Alewine fled after their indictment and were fugitives until their arrests in 2020 and 2019, respectively. Nineteen other Hillside co-defendants pleaded guilty and were sentenced to up to 23 years in federal prison. Travis Alewine has also pleaded guilty and is scheduled to be sentenced on April 20, 2023, at 9:30 a.m.
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 made possible by investigative leads generated from the Bureau of Alcohol, Tobacco, Firearms, and Explosives’ (ATF) National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
This case is also part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
United States Attorney Erek L. Barron praised the ATF, the Baltimore County Police Department, and the Baltimore City Police Department for their work in the investigation and the U.S. Marshals Service for their assistance. Mr. Barron thanked Assistant United States Attorneys Patricia C. McLane and Brandon K. Moore, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/community-outreach and https://www.justice.gov/usao-md/project-safe-neighborhoods-psn
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Carjackers Each Sentenced to More than a Decade in Federal PrisonRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announces that Brian Armando Diaz Montellano, age 29, was sentenced to 14 years in prison for carjacking and for discharging a firearm in furtherance of a crime of violence. Co-defendant Alexis Michele Ruder-Iturrino, age 27, was sentenced to 11 years in prison.
According to the terms of the plea agreement, Douglas County deputies pursued Diaz Montellano and Ruder-Iturrino on June 19, 2022, while they were driving in a stolen Dodge truck at speeds of approximately 100 miles per hour. After fleeing from law enforcement, Diaz Montellano drove the truck directly in front of a moving 2022 Subaru Cross Trek, forcing the Subaru to stop. Diaz Montellano and Ruder-Iturrino got out of the truck and approached the Subaru, demanding the two occupants get out of the car. Ruder-Iturrino held an AR-15 rifle, pointed it at the victims, and then fired a round into the ground. Diaz Montellano opened the driver’s side door as Ruder-Iturrino screamed at the driver to get out. The co-defendants then got into the Subaru and drove away. Diaz Montellano was later arrested in possession of a loaded 9mm pistol.
“The defendants terrorized their carjacking victims, making them afraid for their lives,” said U.S. Attorney Cole Finegan. “Based on their conduct they will each have more than ten years in federal prison to consider their actions.”
United States District Court Judge Raymond P. Moore pronounced the sentences for both defendants on April 17, 2023.
This case was investigated by the FBI Denver Rocky Mountain Safe Streets Task Force, the Douglas County Sheriff’s Office, and the Denver Police Department. The prosecution was handled by Assistant United States Attorney Brian Dunn.
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.
Case No. 22-cr-0260
For more information about the U.S. Attorney's Office for the District of Colorado, visit: https://www.justice.gov/usao-co/pr
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California Man Sentenced for Possession with Intent to Distribute Fentanyl and Fentanyl AnalogueRead the Press Release
United States Attorney Steven Russell announced that Alejandro Berrelleza-Bojorquez, 25, of Los Angeles, California, was sentenced on April 14, 2023, in federal court in Lincoln, Nebraska. Senior United States District Judge John M. Gerrard sentenced Berrelleza-Bojorquez to 76 months in prison for possession with intent to distribute 400 grams or more of fentanyl and 100 grams or more of fentanyl analogue. After completing his sentence, Berrelleza-Bojorquez will be placed on supervised release for 4 years. Berrelleza-Bojorquez faces deportation from the United States following the service of his sentence. There is no parole in the federal system.
On March 7, 2022, a Nebraska State Patrol trooper stopped a vehicle driven by Berrelleza-Bojorquez on Interstate 80 in Dawson County for speeding. His co-defendant, Orlando Castro-Gutierrez, was the passenger. The trooper smelled marijuana odor emanating from the vehicle, and the vehicle was searched. In the trunk, law enforcement found 10 triple-wrapped bags under clothing. Those bags contained about 10,000 pills. Law enforcement also found in the trunk 15 zip-lock baggies in a paper sack that contained about 15,000 pills. The vehicle was towed, and both men were arrested. Upon further search after the tow, law enforcement found a 1 kilogram-sized brick in a box in the trunk. Sample pills from the 10 wrapped bags were tested at the state lab, and the lab confirmed that they contained fentanyl. The pills in those ten wrapped bags weighed over one kilogram. Sample pills from the 15 zip-lock baggies were tested at the lab, and the lab determined they contained para-fluorofentanyl, a schedule I substance and analogue of fentanyl. The pills from those 15 baggies weighed about one and a half kilograms. The brick was tested at the lab as well, and the lab confirmed it contained fentanyl.
Castro-Gutierrez is scheduled to plead guilty on May 3, 2023, in Lincoln.
This case was investigated by the Nebraska State Patrol.
Cabell County Man Sentenced to Prison for Federal Child Pornography CrimeRead the Press Release
HUNTINGTON, W.Va. – Jason Robert Henthorne, 48, of Milton, was sentenced today to nine years and two months in prison, to be followed by 20 years of supervised release, for possession of prepubescent child pornography. Henthorne must also register as a sex offender.
According to court documents and statements made in court, in June 2021, Henthorne possessed videos and more than 1,000 images of child pornography stored on electronic devices at the Milton residence where he was staying. Henthorne admitted that some of the images and videos depict infants and prepubescent children subjected to sadistic or masochistic conduct. Henthorne further admitted that one of the images depicts adult males sexually assaulting a prepubescent female.
United States Attorney Will Thompson made the announcement and commended the investigative work of the U.S. Department of Homeland Security-Homeland Security Investigations (HSI) and the West Virginia State Police.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Julie M. White prosecuted the case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:22-cr-234.
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Burrillville Man Sentenced for Illegally Possessing More Than 200 Firearms, Making False Statements on ATF Firearm Purchase FormsRead the Press Release
PROVIDENCE – A 39-year-old Burrillville man who falsely claimed on federal documents that he was not an unlawful user of controlled substances, including cocaine, when he purchased and possessed more than 200 firearms and tens of thousands of rounds of ammunition was sentenced today to more than five years in federal prison, announced United States Attorney Zachary A. Cunha.
In February 2022, when Burrillville Police responded to reports of shots fired at the home of Ronald Andruchuk, numerous gunshots could be heard – with some bullets passing overhead of responding officers. Andruchuk was found wearing a Commando-style multipurpose vest and was carrying four firearms and methamphetamine. After Andruchuk was taken into custody, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) agents and Burrillville Police executed a federal search warrant and seized 219 firearms strewn unsecured within Andruchuk’s home. Among the items seized were an AR-style privately-made firearm; assorted firearm ammunition magazines and accessories; and approximately 25,390 rounds (1,555.8lbs) of assorted boxed and loose ammunition of various calibers.
Additionally, an ATF investigation determined that Andruchuk previously admitted to law enforcement that he was a user of controlled substances and that he had a substance abuse problem. Further investigation determined that when attempting to purchase firearms from federally licensed firearms dealers, Andruchuk falsely claimed on federal forms that he was not “an unlawful user of, or addicted to, marijuana or any depressant, stimulant, narcotic drug, or any other controlled substance.”
“By repeatedly violating federal law to acquire an arsenal of firearms – firearms that he stored and used in a way that is the antithesis of responsible gun ownership, Ronald Andruchuk put his family, his neighbors, and our communities at risk,” said U.S. Attorney Cunha. “Today’s sentence should make crystal clear that we and our law enforcement partners intend to vigorously enforce federal gun laws to keep our communities safe.”
"Individuals who illegally use controlled substances are prohibited from possessing firearms,” said James M Ferguson Special Agent in Charge of the ATF Boston Field Division “ATF will continue to work with our law enforcement partners to ensure these offenders do not have the opportunity to illegally possess firearms. In this case, we were able to recover 219 guns and thousands of rounds of ammunition from Ronald Andruchuk”
“Ronald Andruchuk’s child-like infatuation with weapons, recklessness and illegal drug use posed an extreme threat to the lives and safety of his neighbors, his family and the Burrillville Police, added Burrillville Police Chief Colonel Stephen J. Lynch. “The Burrillville Police is appreciative of the collaborative work with ATF, its Task Force members, and the US Attorney’s Office in bringing Andruchuk to justice.”
According to court documents, during a routine review of multiple sales reports of firearms, ATF learned that between July and November of 2021, Andruchuk had purchased 169 firearms. Agents began to investigate further to ensure that Andruchuk was not involved in illegal firearms-trafficking activities. During that review, agents learned that Andruchuk had previous contact with the Cranston Police Department, during which he admitted to being a medical marijuana user. During a later contact with Cranston Police, Andruchuk was arrested on controlled substance offenses and admitted to having a substance abuse problem.
Further investigation by ATF determined that, in December 2021, two firearms, drugs, and other items were located in the drop ceiling of a bathroom inside a Millbury, MA, retail store shortly after Andruchuk vacated the restroom. Both firearms were traced to Andruchuk as the purchaser. He did not have a license to carry a firearm in Massachusetts.
Andruchuk pleaded guilty on January 18, 2023, to two charges of making a false statement of material fact during a firearm purchase and possession of a firearm by an unlawful user of a controlled substance. At sentencing today, U.S. District Court Judge Mary S. McElroy sentenced Andruchuk to sixty-three months in federal prison to be followed by three years of federal supervised release, and to pay a $10,000 fine.
At the request of the U.S. Attorney’s Office, the court ordered the 219 firearms and more than 25,000 rounds of ammunition seized from the defendant to be forfeited to the Government to be destroyed.
The case is being prosecuted by Assistant United Sates Attorney Ronald R. Gendron.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Bronx, New York, Man Sentenced to 43 Years in Prison for Multistate Kidnapping, Assault, and Arson RampageRead the Press Release
NEWARK, N.J. – A Bronx, New York, man was sentenced today to 516 months in prison for a multistate crime spree during which he kidnapped and sexually assaulted his former girlfriend, assaulted a federal employee, set fire to a used car dealership, and rammed multiple police vehicles before being apprehended, U.S. Attorney Philip R. Sellinger announced today.
Luis Figueroa, 42, was convicted in May 2022 of kidnapping; criminal sexual abuse; possession of a firearm in furtherance of a crime of violence; and assaulting an employee of the United States following a two-week trial before U.S. District Judge John Michael Vazquez. Figueroa had previously pleaded guilty to possession of a firearm by a previously convicted felon and arson. Judge Vazquez imposed the sentence today in Newark federal court.
“Figueroa is a danger to the public,” U.S. Attorney Sellinger said. “Figueroa deliberately engaged in a premeditated crime spree to extract revenge on the mother of his son. Fueled with anger, he kidnapped, assaulted and raped her. Along the way, he assaulted a federal employee, stole his car, burned down a car dealership office and endangered law enforcement officers and members of the public who were in his way. We are committed to protecting the community from such violent criminals and bringing them to justice.”
“ATF will never waver in our commitment to protecting the communities we serve and public safety,” Special Agent in Charge Bryan Miller of the Bureau of Alcohol, Tobacco, Firearms and Explosives said. “Figueroa was undoubtedly a clear and present danger to the community with his willingness to engage in this lawless behavior and commit these malicious, criminal, and violent acts. I am proud of the collaborative efforts and successful partnership of the U.S. Attorney’s Office, ATF, and our local and state partners involved in this investigation and prosecution. Justice has been served with this sentence and reflects ATF’s commitment to hold violent offenders accountable.”
According to court documents filed in this case and the evidence at trial:
On the morning of June 6, 2014, Figueroa, armed with a shotgun, waited outside the Hazleton, Pennsylvania, apartment of his former girlfriend. When she emerged from the apartment, Figueroa struck the victim in the face with the shotgun and said: “I told you I was going to kill you.” Figueroa then proceeded to physically assault both the former girlfriend and her sister, who, at the time, was eight months pregnant. As Figueroa attacked the women, another family member took Figueroa’s and the ex-girlfriend’s young child into a bedroom to shield the child from the violence.
After struggling with the pregnant woman and causing her to fall down a flight of stairs, Figueroa collected the shotgun from the apartment and led his former girlfriend to a red SUV, where he forced her into the backseat. Figueroa then drove the victim across state lines to New Jersey. Figueroa eventually stopped at the Kittatinny Point Visitor’s Center, which is located on federal property, and sexually assaulted his former girlfriend.
After the assault, the victim convinced Figueroa to dispose of the shotgun. When Figueroa went to do so, the former girlfriend climbed into the driver’s seat of the red SUV and drove away to safety.
After returning and discovering both his former girlfriend and the red SUV were no longer there, Figueroa approached a National Park Service employee, and led the employee to a nearby storage room, where he slammed the victim’s head against a door and threatened to harm the victim if he did not hand over the keys to his car. The employee complied and Figueroa fled the scene in the victim’s car.
Figueroa drove to Paterson, New Jersey, where he entered a used car dealership operated by a person with whom Figueroa had a business relationship. Figueroa asked an employee for a portable gas canister, which he filled shortly thereafter at a nearby gas station, and then returned to the dealership and doused the office with gasoline. After a brief struggle with an employee, Figueroa ignited a match and set the building on fire, engulfing the structure in flames and setting himself on fire in the process. Figueroa then fled the scene in another vehicle.
Law enforcement officers spotted Figueroa’s vehicle driving erratically towards the George Washington Bridge heading into New York. Figueroa ignored officers’ commands to stop, leading to a high-speed chase in which Figueroa rammed his vehicle into multiple police vehicles, injuring a police officer. Figueroa then got out of his vehicle and fled on foot. Officers placed Figueroa under arrest shortly thereafter.
In addition to the prison term, Judge Vazquez sentenced Figueroa to five years of supervised release.
U.S. Attorney Sellinger credited special agents of the ATF, under the direction of Special Agent in Charge Miller in Newark, for the investigation leading to today’s sentencing. He also thanked the Hazelton City, Pennsylvania, Police Department; the Luzerne County, Pennsylvania, District Attorney’s Office; the Pennsylvania State Police; the New Jersey State Police; the Warren County Prosecutor’s Office, the Passaic County Prosecutor’s Office, the Bergen County Prosecutor’s Office, the Port Authority of New York and New Jersey Police Department, and the Manhattan District Attorney’s Office for their assistance.
The government is represented by Assistant U.S. Attorneys Vera Varshavsky of the U.S. Attorney’s Office’s Criminal Division and Bruce P. Keller, Special Counsel to the U.S. Attorney.
Atlantic County Man Sentenced to 37 Months in Prison for Health Care Fraud Conspiracy Targeting State Health Benefits ProgramsRead the Press Release
CAMDEN, N.J. – An Atlantic County, New Jersey, man was sentenced today to 37 months in prison, two years of supervised release and ordered to pay $2.77 million in restitution and 327,987 in forfeiture for his role in defrauding New Jersey state and local health benefits programs and other insurers by submitting fraudulent claims for medically unnecessary prescriptions. John Sher, 40, of Margate, New Jersey, pleaded guilty on July 28, 2022, before U.S. District Judge Robert B. Kugler to a superseding information charging him with one count of conspiracy to commit health care fraud.
Arkansas Man Charged with Transportation of Unlawfully Killed WildlifeRead the Press Release
ANCHORAGE – An Arkansas resident was charged on April 11, 2023, relating to unlawfully transporting illegally taken wildlife from Alaska to his residence in Arkansas.
According to court documents, Edward A. Bundy, of Tuckerman, Arkansas, 54, was charged by the United States Attorney’s Office for transporting a bull caribou from Alaska to his home in Arkansas which he killed in violation of Alaska Fish and Game laws. It is alleged that Bundy falsely claimed Alaska residency when he was not a resident of the state of Alaska, making his take of the bull caribou illegal.
Bundy is charged with a violation of the Lacey Act, which prohibits transportation of unlawfully taken wildlife over state lines. If convicted, Bundy faces up to a year imprisonment and a fine of $100,000. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney S. Lane Tucker of the District of Alaska; and Resident Agent in Charge David Rippeto made the announcement.
The U.S. Fish and Wildlife Service, with the assistance of the Alaska Wildlife Troopers is investigating the case.
Assistant U.S. Attorney Steve Skrocki is prosecuting the case.
An information is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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usao/ak/23-026
Ada, Oklahoma Podiatrist Agrees to Pay $7,000,000.00 to Resolve False Claims Act AllegationsRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma announced today that Dr. Bryan Andrew Blanck, a Doctor of Podiatric Medicine (DPM) who formerly owned and operated the Valley View Foot and Ankle Center, located in Ada, Oklahoma, has agreed to pay $7,000,000.00 to the United States to resolve allegations he violated provisions of the False Claims Act (FCA).
The settlement resolves allegations that Dr. Blanck submitted false claims to the VA Choice/Patient-Centered Community Care programs for excessive medical services and for higher levels of service than what were medically reasonable or necessary for veterans receiving bioengineered skin substitutes and skin substitute related treatment.
The Department of Veterans Affairs, Veterans Health Administration (VHA), provides integrated health care to U.S. Military Veterans in the United States through VA Medical Centers and VA Outpatient Clinics. VHA provides health care services similar to traditional hospitals. Veterans enrolled in VA health care have the option to receive care at the VA or at health care facilities within the local community. TriWest oversees the scheduling, claims processing and billing functions for veterans receiving care in the community. Dr. Blanck accepted and treated veterans at the Valley View Foot and Ankle Clinic.
An audit conducted by the VA revealed that from February 14, 2017 – June 14, 2018, Dr. Blanck was the #1 billing podiatrist out of 4,014 podiatrists nationwide in VA Choice and accounted for 23.7% of total podiatrist billings in the VA Choice program. During the same time period, Dr. Blanck was the #1 billing provider out of 280,073 individual providers in the entire VA Choice program across the nation. These high billing numbers sparked an investigation by the VA-Office of Inspector General. Based on the investigation, it was alleged Dr. Blanck misrepresented the seriousness of patients’ wounds to Tri-West in order to obtain authorization to administer bioengineered skin substitutes and copy and pasted medical notes as justification for his billing. For skin substitutes to be used, a detailed treatment history is required of standard wound care for a minimum of four weeks. At the end of the minimum four weeks, documentation must be shown as to why standard wound care has failed and it is necessary to use skin substitutes. It was alleged Dr. Blanck regularly administered skin substitutes without performing standard preliminary wound care and billed the VA Choice program for these medically unnecessary services.
“Protecting the citizens of our district against unscrupulous health care providers who do not play by the rules is a priority for my office,” said United States Attorney Christopher J. Wilson. “Billing for and receiving payment for medically unnecessary and inappropriate levels of care is wrong and a waste of taxpayer dollars. The False Claims Act is a valuable weapon in the government’s arsenal to combat these types of abuses.”
“Subjecting veterans to unnecessary medical procedures at the expense of the taxpayer cannot be tolerated. Such activities put at risk VA’s ability to provide timely, quality health care within the local community,” said Special Agent in Charge Kris Raper with the Department of Veterans Affairs Office of the Inspector General’s South Central Field Office. “The VA OIG will continue to work with our law enforcement partners to ensure the integrity of VA’s programs and services.”
This civil settlement illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $26.7 billion through False Claims Act cases, with more than $16.8 billion of that amount recovered in cases involving fraud against federal health care programs.
This case was a coordinated effort among the United States Attorney’s Office for the Eastern District of Oklahoma and the Office of the Inspector General of Veteran Affairs. The lawsuit is captioned United States v. Bryan Blanck, Case No. 6:23-cv-00003-JAR (E.D. Okla.).
Assistant United States Attorneys Michael O'Malley and Clay Compton represented the United States.
The claims settled or pursued by the government are only allegations; there has been no determination of liability.
Ada Resident Sentenced for Domestic Violence, Child Neglect, and Assault with A Dangerous WeaponRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announces that Terrell Eugene Delozier, age 39, of Ada, Oklahoma, was sentenced to 46 months for domestic violence, 46 months for assault with a dangerous weapon, and 57 months for child neglect on March 29, 2023. The sentences will run concurrently.
The charges arose from an investigation by the Ada Police Department, the Chickasaw Lighthorse Police Department, and the Federal Bureau of Investigation.
On February 15, 2022, Delozier pleaded guilty to one count of Domestic Violence in Indian Country, one count of Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country, and one count of Child Neglect in Indian Country stemming from a single incident on April 28, 2021, where he assaulted and threatened a former intimate partner in front of her children.
The United States Attorney’s Office for the Eastern District of Oklahoma prosecuted this case because the victims are members of a federally recognized Indian tribe and the crimes occurred in Pontotoc County, which is within the boundaries of the Chickasaw Nation Reservation and the Eastern District of Oklahoma.
“Domestic violence is a scourge which impacts and destabilizes all segments of society, including our Tribal Nations. Today’s sentencing of Terrell Delozier for domestic violence affords safety to his victims and ensures that crimes against intimate partners and children continue to be taken seriously in the Eastern District of Oklahoma,” said United States Attorney Christopher J. Wilson.
"The severe assault by Terrell Delozier will have long-lasting effects on his victims, including young children, who should never have to endure such violence,” said FBI Oklahoma City Special Agent in Charge Edward J. Gray. “The FBI will continue to work with our law enforcement partners to aggressively pursue these cases and ensure justice is met for violent offenders.”
The Honorable Bernard M. Jones, II, U.S. District Judge in the United States District Court for the Western District of Oklahoma, presided over the hearings in Muskogee. Delozier was remanded to the custody of the U.S. Marshal at the conclusion of sentencing. He will remain in custody pending transportation to a designated United States Bureau of Prisons facility to serve his sentence of incarceration.
Assistant United States Attorney Cameron McEwen represented the United States.
40 Officers of China’s National Police Charged in Transnational Repression Schemes Targeting U.S. ResidentsRead the Press Release
Two criminal complaints filed by the U.S. Attorney’s Office for the Eastern District of New York were unsealed today in federal court in Brooklyn charging 44 defendants with various crimes related to efforts by the national police of the People’s Republic of China (PRC) – the Ministry of Public Security (MPS) – to harass Chinese nationals residing in the New York metropolitan area and elsewhere in the United States. The defendants, including 40 MPS officers and two officials in the Cyberspace Administration of China (CAC), allegedly perpetrated transnational repression schemes targeting U.S. residents whose political views and actions are disfavored by the PRC government, such as advocating for democracy in the PRC.
In the two schemes, the defendants created and used fake social media accounts to harass and intimidate PRC dissidents residing abroad and sought to suppress the dissidents’ free speech on the platform of a U.S. telecommunications company (Company-1). The defendants charged in these schemes are believed to reside in the PRC or elsewhere in Asia and remain at large.
“These cases demonstrate the lengths the PRC government will go to silence and harass U.S. persons who exercise their fundamental rights to speak out against PRC oppression, including by unlawfully exploiting a U.S.-based technology company,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “These actions violate our laws and are an affront to our democratic values and basic human rights.”
“China’s Ministry of Public Security used operatives to target people of Chinese descent who had the courage to speak out against the Chinese Communist Party – in one case by covertly spreading propaganda to undermine confidence in our democratic processes and, in another, by suppressing U.S. video conferencing users’ free speech,” said Acting Assistant Director Kurt Ronnow of the FBI Counterintelligence Division. “We aren’t going to tolerate CCP repression – its efforts to threaten, harass, and intimidate people – here in the United States. The FBI will continue to confront the Chinese government’s efforts to violate our laws and repress the rights and freedoms of people in our country.”
Disclosure: U.S. Attorney Breon Peace for the Eastern District of New York is recused from and has not participated in the case captioned United States v. Julien Jin et al., 20-mj-1103.
United States v. Yunpeng Bai, et al.
The two-count complaint charges 34 MPS officers with conspiracy to transmit interstate threats and conspiracy to commit interstate harassment. All the defendants are believed to reside in the PRC, and they remain at large.
As alleged, the officers worked with Beijing’s MPS bureau and are or were assigned to an elite task force called the “912 Special Project Working Group” (the Group). The purpose of the Group is to target Chinese dissidents located throughout the world, including in the United States.
“As alleged, the PRC government deploys its national police and the 912 Special Project Working Group not as an instrument to uphold the law and protect public safety, but rather as a troll farm that attacks persons in our country for exercising free speech in a manner that the PRC government finds disagreeable, and also spreads propaganda whose sole purpose is to sow divisions within the United States,” said U.S. Attorney Breon Peace for the Eastern District of New York. “I commend the investigative team for comprehensively revealing the insidiousness of a state-directed criminal scheme directed at residents of the United States.”
The complaint alleges how members of the Group created thousands of fake online personas on social media sites, including Twitter, to target Chinese dissidents through online harassment and threats. These online personas also disseminated official PRC government propaganda and narratives to counter the pro-democracy speech of the Chinese dissidents. As alleged, for example, Group members created and maintained the fake social media accounts through temporary email addresses, posted official PRC government content, and interacted with other online users to avoid the appearance that the Group accounts were “flooding” a given social media platform. The Group tracks the performances of members in fulfilling their online responsibilities and rewards Group members who successfully operate multiple online personas without detection by the social media companies who host the platforms or by other users of the platforms.
The investigation also uncovered official MPS taskings to Group members to compose articles and videos based on certain themes targeting, for example, the activities of Chinese dissidents located abroad or the policies of the U.S. government.
As alleged, the defendants also attempted to recruit U.S. persons to act as unwitting agents of the PRC government by disseminating propaganda or narratives of the PRC government. On several occasions, the defendants used online personas to contact individuals assessed to be sympathetic and supportive of the PRC government’s narratives and asked these individuals to disseminate Group content.
In addition, Group members took repeated affirmative actions to have Chinese dissidents and their meetings removed from the platform of Company-1. For example, Group members disrupted a dissident’s efforts to commemorate the Tiananmen Square Massacre through a videoconference by posting threats against the participants through the platform’s chat function. In another Company-1 videoconference on the topic of countering communism organized by a PRC dissident, Group members flooded the videoconference and drowned out the meeting with loud music and vulgar screams and threats directed at the pro-democracy participants.
United States v. Julien Jin, et al.
This amended complaint charges 10 individuals, including a former PRC-based Company-1 employee, six MPS officers, and two officials with the CAC, with conspiracy to commit interstate harassment and unlawful conspiracy to transfer means of identification. Nine of the defendants are believed to reside in the PRC and remain at large. The tenth defendant is believed to reside in Indonesia or the PRC and also remains at large.
“The amended complaint charging a former PRC-based employee of a U.S. telecommunications company illustrates the insider threat faced by U.S. companies operating in the PRC,” said First Assistant U.S. Attorney Pokorny for the Eastern District of New York, who thanked Company-1 for its cooperation in the government’s investigation. “As alleged, Julien Jin and his co-conspirators in the Ministry of Public Security and Cyberspace Administration of China weaponized the U.S. telecommunications company he worked for to intimidate and silence dissenters and enforce PRC law to the detriment of Chinese activists in New York, among other places, who had sought refuge in this country to peacefully express their pro-democracy views.”
“These cases demonstrate that the Chinese Communist Party, once again, attempted to intimidate, harass, and suppress Chinese dissidents in the United States,” said Assistant Director in Charge David Sundberg of the FBI Washington Field Office. “In the United States, the freedom of speech is a cornerstone of our democracy, and the FBI will work tirelessly to defend everyone's right to speak freely without fear of retribution from the CCP. These complex investigations revealed an MPS-wide effort to repress individuals by using the U.S. communications platform and fake social media accounts to censor political and religious speech.”
In December 2020, the Department first announced charges against Julien Jin in connection with his efforts to disrupt a series of meetings on the Company-1 platform held in May and June 2020 commemorating the 1989 Tiananmen Square Massacre. Jin served as Company-1’s primary liaison with PRC government law enforcement and intelligence services. In that capacity, he regularly responded to requests from the PRC government to terminate meetings and block users on Company-1’s video communications platform.
As detailed in the original complaint, Jin and others conspired to use Company-1’s U.S. systems to censor the political and religious speech of individuals located in the United States and elsewhere at the direction of the PRC government. For example, Jin and others disrupted meetings held on the Company-1 platform to discuss politically sensitive topics unacceptable to the PRC government – including the Tiananmen Square Massacre. Jin and his co-conspirators fabricated evidence of purported misconduct to cause U.S.-based employees of Company-1 to terminate the meetings.
The allegations in the amended complaint reveal that Jin worked directly with and took orders from defendants at the MPS and the CAC to disrupt meetings on the Company-1 platform and that the co-defendants had targeted U.S.-based dissidents’ speech on Company-1’s platform since 2018.
Starting in 2018, Jin and his co-defendants repeatedly sought to terminate video chat meetings organized by a Chinese dissident residing in New York City who has been a vocal critic of the PRC government and the Chinese Communist Party. After the CAC requested that Company-1 terminate the dissident’s meetings on the Company-1 platform, Jin worked to identify all accounts associated with the dissident, caused meetings related to the dissident to be hosted in a “quarantine zone” – that is, on a server with known lags in response time – and later worked to block all accounts associated with the dissident. Similarly, in 2019, Jin collaborated with the MPS and CAC to block accounts seeking to commemorate the Tiananmen Square Massacre.
The FBI Washington Field Office investigated the cases.
Assistant U.S. Attorneys Alexander A. Solomon, Antoinette N. Rangel, Ian C. Richardson, Nicholas J. Moscow and Jessica K. Weigel of the Eastern District of New York, and Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the cases.
The FBI has created a website for victims to report efforts by foreign governments to stalk, intimidate, or assault people in the United States. Please visit: www.fbi.gov/investigate/counterintelligence/transnational-repression.
34 Officers of People's Republic of China National Police Charged with Perpetrating Transnational Repression Scheme Targeting U.S. ResidentsRead the Press Release
Today, a complaint was unsealed in federal court in Brooklyn charging 34 officers of the national police of the People’s Republic of China (PRC) – the Ministry of Public Security (MPS) – with harassing Chinese nationals residing in the New York metropolitan area and elsewhere in the United States. The defendants allegedly perpetrated transnational repression schemes targeting U.S. residents whose political views and actions are disfavored by the PRC government, such as advocating for democracy in the PRC. All the defendants are believed to reside in the PRC, and they remain at large.
Breon Peace, United States Attorney for the Eastern District of New York; Matthew G. Olsen, Assistant Attorney General of the Justice Department’s National Security Division; Kurt Ronnow, Acting Assistant Director, Federal Bureau of Investigation, Counterintelligence Division (FBI), and David Sundberg, Assistant Director-in-Charge, FBI, announced the charges.
“As alleged, the Chinese government deploys an elite task force of its national police—the 912 Special Project Working Group—as a troll farm to attack Chinese dissidents in our country for exercising free speech in a manner that the PRC government disfavors, and spread disinformation and propaganda to sow divisions within the United States,” stated United States Attorney Peace. “I commend the investigative team for comprehensively revealing the insidiousness of a state-directed criminal scheme directed at residents of the United States.”
“These cases demonstrate the lengths the PRC government will go to silence and harass U.S. persons who exercise their fundamental rights to speak out against PRC oppression, including by unlawfully exploiting a U.S.-based technology company,” stated Assistant Attorney General Olsen. “These actions violate our laws and are an affront to our democratic values and basic human rights.”
“China’s Ministry of Public Security used operatives to target people of Chinese descent who had the courage to speak out against the Chinese Communist Party – in one case by covertly spreading propaganda to undermine confidence in our democratic processes and, in another, by suppressing U.S. video conferencing users’ free speech,” stated FBI Acting Assistant Director Ronnow. “We aren’t going to tolerate CCP repression – its efforts to threaten, harass, and intimidate people – here in the United States. The FBI will continue to confront the Chinese government’s efforts to violate our laws and repress the rights and freedoms of people in our country.”
“These cases demonstrate that the Chinese Communist Party, once again, attempted to intimidate, harass, and suppress Chinese dissidents in the United States,” stated FBI Assistant Director-in-Charge Sundberg. “In the U.S., the freedom of speech is a cornerstone of our democracy, and the FBI will work tirelessly to defend everyone's right to speak freely without fear of retribution from the CCP. These complex investigations revealed an MPS-wide effort to repress individuals by using the U.S. communications platform and fake social media accounts to censor political and religious speech.”
As alleged, the officers are or were assigned to a task force called the “912 Special Project Working Group” (the Group) and worked out of an MPS facility in Beijing. The purpose of the Group is to influence and shape public perceptions of the PRC government, the CCP, and its leaders in the United States and around the world. The Group carries out this mission by using a host of accounts created under false names on multiple social media platforms to promote narratives that portray the PRC government and the Chinese Communist Party (CCP) in a favorable light, while criticizing and attacking their perceived adversaries, including the United States, and Chinese pro-democracy activists located throughout the world, including in the United States. As alleged, the defendants carried out this mission in part through a campaign of threats, harassment and intimidation directed at critics of the PRC government and the CCP in the United States and around the world.
The complaint alleges that members of the Group created thousands of fake online personas on social media sites, including Twitter, to target Chinese democracy activists and critics of the CCP through online harassment and threats. These online personas also disseminate official PRC government propaganda and narratives to counter and overwhelm the critical speech of the Chinese activists. The topics of the propaganda and official narratives are directed by MPS headquarters, and have included the advantages of the PRC’s CCP-dominated political system over democracy, U.S. domestic and foreign policy, human rights issues in Hong Kong and Xinjiang Province, the Russian invasion of Ukraine, civil unrest following the murder of George Floyd and the COVID-19 pandemic.
As further alleged, the investigation has obtained a policy guide issued to new Group members for detailing how to create and maintain fake social media accounts through temporary email addresses; posting official PRC government content; and interacting with other online users to avoid the appearance that the Group accounts are “flooding” a given social media platform.
Some of these online personas purport to be U.S. persons, giving U.S. users of social media platforms the false impression that individuals located in the United States advocate positions and policies favored by the PRC government and the CCP. The Group tracks the performance of the MPS officers assigned to the Group and rewards Group members who successfully operate multiple online personas without detection by the social media companies who host the platforms or by other users of the platforms.
The investigation has also uncovered official MPS directions to Group members to compose articles and videos based on certain themes targeting, for example, the activities of Chinese pro-democracy activists located abroad or the policies of the U.S. government. As alleged, the Group executed a standing order from MPS headquarters to harass a well-known critic of the PRC government and the CCP (Victim-1) by using a host of Group-controlled social media accounts to, among other things, make death threats and demand that U.S. authorities arrest Victim-1.
In addition, Group members took repeated affirmative actions to have Chinese dissidents and their meetings interfered with on the platform of Company-1. For example, Group members disrupted a pro-democracy activist’s efforts to commemorate the Tiananmen Square Massacre through a videoconference meeting by posting threats against the participants through the platform’s chat function. In another Company-1 videoconference on the topic of countering communism organized by a Chinese pro-democracy activist, Group members flooded the videoconference and drowned out the meeting with loud music, vulgar screams and threats directed at the pro-democracy participants.
The charges in the complaint 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 Alexander A. Solomon, Ian C. Richardson, Nicholas J. Moscow, and Jessica K. Weigel of the Eastern District of New York with assistance from Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section, are in charge of the prosecution.
The FBI has created a website for victims to report efforts by foreign governments to stalk, intimidate, or assault people in the United States. If you believe that you are or have been a victim of transnational repression, please visit https://www.fbi.gov/investigate/counterintelligence/transnational-repression.
The Defendants:
BAI YUNPENG (白云鹏)
Age: 31CHEN ZHICHEN (陈之琛)
Age: 26GAO CAINAN (高彩楠)
GAO HONGTING (高宏亭)
Age: 35HU XIAOHUI (呼啸慧)
Age: 32HUANG CHUNHUI (黄春晖)
Age: 37JIN YI (金乙)
Age: 32JU QIANG (居强)
Age: 32LI BOLUN (李博伦)
Age: 42LI XUAN (李轩)
Age: 31LI XUEYANG (李雪阳)
Age: 31LI ZHEFENG (李哲峰)
LIANG SHUANG (梁爽)
Age: 39LIN YUQIONG (林玉琼) (also known as “Lin Huishan (林慧姗),”)
Age: 35LIU ZHAOXI (刘朝夕)
Age: 35MIAO SHIHUI (苗世辉)
Age: 34SHI LIANGTIAN (史粮田)
Age: 29SONG YANG (I) (宋杨)
Age: 43SONG YANG (II) (宋阳)
TAN JINYAN (覃金燕)
Age: 43WANG CHUNJIE (王春杰)
WANG SHIPENG (王士朋)
Age: 37WEN JIANXUN (温建勋)
XI SHUO (西硕)
Age: 34XI YUE (袭岳) (also known as “Qi Dong (齐栋),”)
Age: 36XU YANAN (徐亚楠)
Age: 32 or 33XU ZHEN (徐震)
Age: 29XUE WENFENG (薛文峰) (also known as “Feng Xu (徐丰),”)
Age: 41YANG DALIN (杨大林)
Age: 34YANG MIAO (杨淼)
Age: 30 or 31YIN YINA (尹贻娜)
Age: 33YU MIAO (余苗)
Age: 38 or 39ZHANG DI (张迪)
ZHOU GUOQIANG (周国强)
Age: 52
Sunday 16 April 2023
Three Rhode Island Fisherman Among Seven Charged with Tax Evasion and Failing to File ReturnsRead the Press Release
PROVIDENCE - Federal grand juries in Providence and Boston returned separate indictments charging seven commercial fishermen with tax evasion and failing to file returns.
According to the indictments, the commercial fishermen each worked for fishing companies operating primarily out of New Bedford, Massachusetts, or Point Judith, Rhode Island, and received substantial compensation. The companies allegedly paid the fishermen as independent contractors and documented that income by, among other things, filing Forms 1099 with the IRS that reported the funds paid to the fishermen. It is alleged that notwithstanding the receipt of this income, each fisherman did not file individual tax returns or pay all the taxes owed on that income – for some defendants, they allegedly failed to file and/or pay taxes for a decade or more. To conceal the source and disposition of their income, the fishermen allegedly cashed paychecks and then used the cash to fund their lifestyles. One of the defendants allegedly also used the name and Social Security number of another individual to conduct business as a further effort to hide income. In some instances, the fishermen allegedly filed false tax returns for certain years by either not reporting their fishing income or by reporting false business expense deductions to reduce the amount of taxes they owed. Each allegedly evaded tax on between $900,000 and $1.9 million in income.
The seven fishermen indicted are:
Jorge Cazarin of New Bedford, Massachusetts, was charged with five counts of tax evasion and five counts of willful failure to file tax returns for 2016 through 2020.
Christopher Garraty of Newport and East Greenwich, Rhode Island, was charged with three counts of tax evasion and three counts of willful failure to file for 2016 through 2018, and a fourth count of tax evasion related to taxes he allegedly owed for 2007 through 2011.
Wojciech Kaminski of West Warwick, Rhode Island, was charged with five counts of tax evasion for 2014 and 2016 through 2019 and four counts of willful failure to file tax returns for 2016 through 2019.
Brian Kobus of Durham, Connecticut, was charged with five counts of tax evasion for 2017 through 2021.
Rodolfo Membreno of Fall River, Massachusetts, was charged with six counts of tax evasion for 2012 and 2017 through 2021 and four counts of willful failure to file tax returns for 2017 through 2019 and 2021.
John Doe of New Bedford, Massachusetts, was charged with six counts of tax evasion for 2016 through 2021 and three counts of willful failure to file tax returns for 2016 through 2018.
Miguel Cruz Rubio of New Bedford, Massachusetts, and Elizabethtown, North Carolina, was charged with four counts of tax evasion for 2016 through 2019.
If convicted, each defendant faces a maximum sentence of five years in prison for each evasion count and one year in prison for each failure to file a tax return charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division thanked and U.S. Attorney Zachary A. Cunha for the District of Rhode Island and U.S. Attorney Rachael S. Rollins for the District of Massachusetts for their help and assistance in the investigation and prosecution of these cases.
IRS-Criminal Investigation is investigating these cases.
Assistant Chief John Kane and Trial Attorneys Samuel Bean, Matthew Cofer, Christina Grimes, and Ezra Spiro of the Justice Department’s Tax Division are prosecuting the cases.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Note: Indictments returned in this matter are available for review and/or download at https://www.justice.gov/opa/pr/seven-new-england-fishermen-charged-tax-evasion-and-failing-file-returns
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Saturday 15 April 2023
United States Attorney Rachael S. Rollins Honors First Responders in Commemoration of the Tenth Anniversary of the Boston Marathon BombingRead the Press Release
BOSTON – In commemoration of the 10th anniversary of the Boston Marathon Bombing, United States Attorney Rachael S. Rollins held a private ceremony honoring the selflessness, commitment and bravery demonstrated by first responders and the medical community in the tragic events that occurred during the week of April 15, 2013.
“Ten years ago today, the City of Boston changed forever. On April 15, 2013 and the days following, four innocent lives were stolen and nearly three hundred others were maimed and wounded in a terrorist attack near the finish line of the 117th annual Boston Marathon. The tragedies of that day and the days that followed will forever remain as one of the most significant events in our Commonwealth’s – and our nation’s – modern history. We continue to honor and fight for the hundreds of victims and their families who were devastatingly affected by this act of terrorism,” said United States Attorney Rollins.
“The impact of this horrific event has been far reaching. However, so has that of the countless first responders who demonstrated momentous bravery and selflessness in response. It was medical professionals’ incredible expertise, commitment and round-the-clock care that served as our guiding light through the dark, devastating week. It was law enforcement’s courage, persistence, and unprecedented collaboration that unified the Cities of Boston, Cambridge and Watertown along with the campus of MIT during a time of uncertainty and fear. Now a decade past, they remain our heroes whose selfless service – both highly visible and behind the scenes – made Boston and our Commonwealth stronger than ever.
Inspired by the first responders and unsung heroes who brought our community together in the aftermath of April 2013, young artists from the YMCAs and Boys and Girls Clubs in six Project Safe Neighborhood cities have produced artwork depicting their view of peace, community, and love. The art exhibit is displayed in the John Joseph Moakley Federal Courthouse in Boston and is available for viewing now through June 30, 2023.”
Statement from Deputy Attorney General Lisa Monaco on the 10th Anniversary of the Boston Marathon BombingsRead the Press Release
The Deputy Attorney General is a native of Boston. On April 15, 2013, she was the Homeland Security and Counterterrorism Advisor to the President of the United States.
The Justice Department issued the following statement from Deputy Attorney General Lisa Monaco on the 10th anniversary of the Boston Marathon bombings:
“Today marks the 10th anniversary of the Boston Marathon bombings. We remember the innocent lives lost and the many survivors who were injured in a senseless act of terrorism. We also remember their loved ones, whose lives were forever changed that day. And we honor the dedication and heroism of the first responders whose swift actions saved many.
“Ten years ago we saw the very worst in the actions of two terrorists, but we also saw the very best in the resilience of a great city—and in the actions of the law enforcement officers, medical professionals, and bystanders who acted heroically in the wake of the attack. Their strength and resilience showed the world the true meaning of Boston Strong.
“This day, and every day, the professionals of the Department of Justice honor the memory of victims of terrorism by working tirelessly to prevent terrorist acts and by holding those who commit them accountable.”
Friday 14 April 2023
“Chapitos” Charged in Department’s Latest Actions to Disrupt Flow of Illegal Fentanyl and Other Dangerous DrugsRead the Press Release
WASHINGTON - The Justice Department today announced charges unsealed in the Southern District of New York, Northern District of Illinois, and District of Columbia, against several leaders of the Sinaloa Cartel, a transnational drug trafficking organization based in Sinaloa, Mexico, and its facilitators across the globe.
“Today, the Justice Department is announcing significant enforcement actions against the largest, most violent, and most prolific fentanyl trafficking operation in the world – run by the Sinaloa Cartel, and fueled by Chinese precursor chemical and pharmaceutical companies,” said Attorney General Merrick B. Garland. “Families and communities across our country are being devastated by the fentanyl epidemic. Today’s actions demonstrate the comprehensive approach the Justice Department is taking to disrupt fentanyl trafficking and save American lives.”
“The fentanyl crisis in America – fueled in large part by the Sinaloa cartel – threatens our public health, our public safety, and our national security,” said Deputy Attorney General Lisa O. Monaco. “Today’s indictments target every element of the Sinaloa Cartel's trafficking network and reflect the Justice Department's commitment to attacking every aspect of this threat: from the chemical companies in China that spawn fentanyl precursors, to the illicit labs that produce the poison, to the networks and money launderers and murderers that facilitate its distribution. Just as we have gone on offense against terrorists and cyber criminals around the globe, the Department is now waging a relentless campaign to disrupt the production and trafficking of fentanyl – before it can reach its victims.”
“Today’s indictments send a clear message to the Chapitos, the Sinaloa Cartel, and criminal drug networks around the world that the DEA will stop at nothing to protect the national security of the United States and the safety and health of the American people,” said DEA Administrator Anne Milgram. “The Chapitos pioneered the manufacture and trafficking of fentanyl – the deadliest drug threat our country has ever faced – flooded it into the United States for the past eight years and killed hundreds of thousands of Americans. Over the last year and a half, the DEA proactively infiltrated the Sinaloa Cartel and the Chapitos network, obtained unprecedented access to the organization’s highest levels, and followed them across the world. I am grateful to the men and women of the DEA for their exceptional work on this case, which is the beginning of our work as ‘One DEA’ to dismantle every part of the criminal cartels that are killing Americans at record rates.”
“Far too many Americans have become victims in the national fentanyl crisis. These cartels have shown us they will stop at nothing to manufacture, traffic, and push these dangerous drugs to every corner of our country,” said FBI Director Christopher Wray. “Today’s indictments show that the FBI and our law enforcement partners will never tire in our pursuit not only to shut down their criminal enterprises, but also to go after individuals in their network. I want to thank the FBI team continuing to work on these cases everyday as we join with our law enforcement partners to tackle this national epidemic.”
“This indictment is another example of how this administration is taking on the cartels and their transnational criminal networks, and sending a clear message that we are going to hold them accountable,” said Secretary of Homeland Security Alejandro N. Mayorkas. “I commend our workforce at Homeland Security Investigations and our federal partners who are relentless in their efforts to stop the scourge of fentanyl. Today’s announcement exemplifies a whole-of-government approach to protecting our homeland that is yielding results.”
The Sinaloa Cartel is one of the most powerful drug cartels in the world and is largely responsible for the manufacturing and importing of fentanyl for distribution in the United States. Fentanyl is a dangerous synthetic opioid that is more than 50 times more potent than heroin. Fentanyl is now the leading cause of death for Americans ages 18 to 49, and it has fueled the opioid epidemic that has been ravaging families and communities across the United States for approximately the past eight years. Between 2019 and 2021, fatal overdoses increased by approximately 94%, with an estimated 196 Americans dying each day from fentanyl.
The Sinaloa Cartel operated as an affiliation of drug traffickers and money launderers who obtain precursor chemicals – largely from China – for the manufacture of synthetic drugs, manufacture drugs in Mexico, move those drugs into the United States, and collect, launder, and transfer the proceeds of drug trafficking. Once led by Joaquin Guzman Loera, aka El Chapo, and Ismael Zambada Garcia, aka El Mayo, the Sinaloa Cartel’s members and associates – allegedly including the sons of Guzman Loera, collectively known as the Chapitos – smuggled significant quantities of drugs through Mexico and into the United States. The Chapitos are Ivan Guzman Salazar, 40, Alfredo Guzman Salazar, 37, Joaquin Guzman Lopez, 36, and Ovidio Guzman Lopez, 33.
Following Guzman Loera’s arrest in January 2016 and extradition to the United States in January 2017, the Chapitos allegedly assumed their father’s former role as leaders of the Sinaloa Cartel, along with Zambada Garcia and Damaso Lopez Nunez, aka Licenciado. The Chapitos subsequently amassed greater control over the Sinaloa Cartel by allegedly threatening and causing violence against Lopez Nunez, his family, and his associates and, as a result, became principal leaders and drug traffickers within the Sinaloa Cartel.
The indictments being unsealed today demonstrate that the Sinaloa Cartel has been engaged in drug trafficking activities into the United States, and violence, spanning over a decade and a half. The Chapitos are alleged to have repeatedly and consistently transported lethal amounts of cocaine, heroin, methamphetamine, and fentanyl.
The Chapitos allegedly used cargo aircraft, private aircraft, submarines and other submersible and semi-submersible vessels, container ships, supply vessels, go-fast boats, fishing vessels, buses, rail cars, tractor trailers, automobiles, and private and commercial interstate and foreign carriers to transport their drugs and precursor chemicals. They allegedly maintained a network of couriers, tunnels, and stash houses throughout Mexico and the United States to further their drug-trafficking activities. The Chapitos allegedly used these networks to import the drugs into the United States.
Southern District of New York
Fentanyl trafficking, weapons, and money laundering charges were unsealed today in the Southern District of New York against 28 defendants, including three of the Chapitos; top lieutenants and leadership of the Sinaloa Cartel; alleged manufacturers and distributors of the Sinaloa Cartel’s fentanyl; the managers of the violent armed security apparatus that protects the Sinaloa Cartel’s drug trafficking operations; the sophisticated money launderers who repatriate the Sinaloa Cartel’s drug proceeds back to Mexico; and multiple chemical precursor suppliers in China that fuel the Sinaloa Cartel’s fentanyl distribution operation.
According to court documents, Ivan Guzman Salazar, Alfredo Guzman Salazar, Ovidio Guzman Lopez, and their co-conspirators allegedly controlled extensive, multi-faceted, and international operations covering the fentanyl trade. Through these efforts, the Chapitos and the Sinaloa Cartel allegedly reaped hundreds of millions of dollars in profits by flooding the United States with fentanyl.
Seven defendants are in custody pending extradition proceedings.
Ovidio Guzman Lopez is charged in a separate indictment alleging the same offenses.
The DEA investigated the case with assistance from the Department of Treasury’s Office of Foreign Assets Control and the Department of State’s Rewards for Justice Program.
Assistant U.S. Attorneys Kyle A. Wirshba, Nicholas S. Bradley, Sarah L. Kushner, David J. Robles, and Alexander Li for the Southern District of New York are prosecuting the case. The Justice Department’s Office of International Affairs (OIA) provided substantial assistance.
Northern District of Illinois
Narcotics, money laundering, and firearms charges were unsealed today in the Northern District of Illinois against four of the Chapitos: Ivan Guzman Salazar, Alfredo Guzman Salazar, Joaquin Guzman Lopez, and Ovidio Guzman Lopez.
According to court documents, the charges stem from a decades-long, collaborative, multi-district effort between the Criminal Division’s Narcotic and Dangerous Drug Section (NDDS), the Northern District of Illinois, the Southern District of California, and their law enforcement partners. The indictment alleges that between May 2008 and April 5, 2023, the Chapitos operated a drug trafficking Continuing Criminal Enterprise (CCE), along with additional drug, money laundering, and firearms charges.
Ovidio Guzman Lopez is charged in a separate indictment alleging the same offenses, dating from May 2008 until October 2021, when Mexican authorities arrested him on Jan. 5 in Culiacan, Sinaloa, Mexico. Ovidio Guzman Lopez remains detained in Mexico pending extradition proceedings.
The FBI Washington Field Office and San Diego Field Office, Homeland Security Investigations Nogales Office, DEA’s Chicago Division and San Diego Division, and IRS Criminal Investigations Chicago Office are investigating the case.
Acting Deputy Chief Katharine Wagner and Trial Attorney Kirk Handrich of NDDS, Assistant U.S. Attorneys Andrew Erskine and Erika Csicsila for the Northern District of Illinois, and Assistant U.S. Attorney Matthew Sutton for the Southern District of California are prosecuting the case. OIA provided substantial assistance.
This case is supported by the Organized Crime Drug Enforcement Task Forces (OCDETF).
District of Columbia
Narcotics, firearms, and witness retaliation charges were unsealed today in the District of Columbia against Nestor Isidro Perez Salas, aka Nini, 31, allegedly one of the Chapitos’ lead sicarios, or assassins.
According to court documents, Perez Salas is allegedly a leader and commander of the “Ninis,” a violent group charged with providing security for the Chapitos. From at least 2012 until February 2021, Perez Salas allegedly conspired to distribute and manufacture cocaine and methamphetamine for unlawful importation into the United States, used a firearm in furtherance of the alleged drug-trafficking offense, and killed, attempted to kill, threatened, and caused bodily injury to another to intimidate a government witness and informant.
The FBI Washington Field Office is investigating the case.
Trial Attorneys Kirk Handrich and Kate Naseef of the Criminal Division’s Narcotic and Dangerous Drug Section are prosecuting the case.
This case is supported by the OCDETF.
* * * * *
The U.S. Department of State, through its Narcotics Rewards Program, is offering rewards of up to $10 million for information leading to the arrest and/or conviction of Ivan Guzman Salazar, Alfredo Guzman Salazar, and Ovidio Guzman Lopez, and up to $5 million for information leading to the arrest and/or conviction of Joaquin Guzman Lopez.
Attorney General Merrick B. Garland, Deputy Attorney General Lisa O. Monaco, FBI Director Christopher A. Wray, DEA Administrator Anne Milgram, Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Damian Williams for the Southern District of New York, U.S. Attorney Randy Grossman of the Southern District for California, Acting U.S. Attorney Morris Pasqual for the Northern District of Illinois, and HSI made the announcement.
Photos of the fugitives can be obtained at www.dea.gov/fugitives.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Zohannon Gang Member Sentenced to Prison for Illegally Possessing Firearms in ColumbusRead the Press Release
COLUMBUS, Ga. – A confirmed member of the Columbus-based Zohannon criminal street gang who is also a convicted felon was sentenced to serve federal prison time this week for illegally possessing two semiautomatic weapons, one was stolen and the other had two loaded magazines attached with a brass catcher—a device designed to capture spent bullets.
Bernard Shaw, 23, of Columbus, was sentenced to serve 60 months in prison to be followed by three years of supervised release by U.S. District Clay Land on April 13 after he pleaded guilty to two counts of possession of a firearm by a convicted felon on Dec. 7, 2022. There is no parole in the federal system.
“Armed repeat criminals caught with guns in Columbus are facing federal prosecution—where the penalties include prison time without parole,” said U.S. Attorney Peter D. Leary. “The U.S. Attorney’s Office is acutely aware of the pressing violent crime problems plaguing the Columbus community; alongside our law enforcement partners, we are tirelessly working to prevent more shooting deaths and reduce violent crime.”
“Despite prior felony convictions, Shaw continued his criminal lifestyle” said Keri Farley, Special Agent in Charge of FBI Atlanta. “This sentence sends the message that the FBI and our law enforcement partners are determined to make our streets safer by removing violent felons and holding them accountable with prison terms and no opportunity for parole.”
According to court documents, on April 24, 2022, Columbus Police Department (CPD) officers were on uniform patrol when they observed a vehicle traveling on Dawson St. in Columbus with multiple traffic violations. The driver, Tyquerrius Ford, did not immediately stop and when he did, he did not have a license and attempted to walk away from the officers and was detained. Shaw, who was a passenger, leaned against the door to prevent the officer from accessing the vehicle, then got out of the car and fled the scene. Officers found a loaded Glock Model 17 pistol with an extended 31-round magazine in the driver’s seat. The firearm had been illegally modified with an automatic selector switch, allowing the operator of the firearm to continuously fire bullets with one pull of the trigger. In the passenger seat of the vehicle, there was a green bookbag containing a stolen Springfield XD semiautomatic pistol belonging to Shaw. Officers also found bags of marijuana, a scale and 100 small baggies.
On July 22, 2022, Muscogee County Sheriff’s Office (MCSO) deputies and FBI agents located Shaw seated inside a car in the parking lot of the AutoZone on Buena Vista Road in Columbus. He was quickly detained; officers found a loaded Del-Ton 5.56 semiautomatic rifle with two 30-round magazines taped together containing a total of 37 rounds in both magazines belonging to Shaw. Additionally, a brass catcher was mounted on the firearm. Shaw was arrested and his cell phone and rifle were seized.
Shaw has prior convictions in Jefferson County Circuit Court, Louisville, Kentucky, to include theft by taking and fleeing police. Shaw is also a confirmed member of Zohannon, a Columbus-based criminal street gang. It is illegal for a convicted felon to possess a firearm.
The case was investigated by FBI, CPD and MCSO.
Assistant U.S. Attorney Christopher Williams is prosecuting the case for the government.
Yonkers Man Sentenced to 35 Years for March 2011 MurderRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that DARNELL KIDD, a/k/a “Black,” a/k/a “Donney,” a/k/a “Donney Black,” was sentenced today to 35 years in prison for the murder of Jonathan Johnson, 21, on March 18, 2011, in White Plains, New York. On November 16, 2022, KIDD was convicted of one count of murder through the use of a firearm, following a jury trial before U.S. District Judge Nelson S. Román, who imposed today’s sentence.
U.S. Attorney Damian Williams said: “This lengthy investigation is yet another example of this Office’s commitment to prosecuting those who perpetuate gun violence and rob residents of New York of their peace and safety. We will continue our all-hands-on-deck approach with our law enforcement partners to identify and punish those who commit violent and brutal gun offenses.”
According to the evidence at trial and statements made in public court proceedings and filings:
On March 18, 2011, DARNELL KIDD and his co-defendant MARCUS CHAMBERS murdered Jonathan Johnson by shooting him during an armed robbery for marijuana in White Plains. In advance of the robbery, CHAMBERS arranged by phone to purchase three ounces of marijuana from Johnson. Intending to instead rob Johnson, CHAMBERS and KIDD met with Johnson in or near Johnson’s car, which was parked on a suburban street in White Plains. During the course of the robbery, KIDD drew a loaded gun and fired it, killing Johnson. KIDD and CHAMBERS then fled from the scene of the murder.
* * *
In addition to his prison term, KIDD, 31, of Yonkers, New York, was sentenced to five years of supervised release.
Mr. Williams praised the outstanding investigative work of the White Plains Police Department and the Federal Bureau of Investigation (“FBI”) Westchester Safe Streets Task Force, which comprises Special Agents and Task Force Officers from the FBI, United States Probation Office, New York State Police, New York State Department of Corrections and Community Supervision, Westchester County Department of Public Safety, Westchester County District Attorney’s Office, Putnam County Sheriff’s Office, New York City Police Department, Yonkers Police Department, Mount Vernon Police Department, Peekskill Police Department, Greenburgh Police Department, New Rochelle Police Department, White Plains Police Department, Clarkstown Police Department, and Ramapo Police Department. Mr. Williams also thanked the Westchester County District Attorney’s Office for its assistance in this matter.
This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Olga I. Zverovich, Christopher Brumwell, and Steven J. Kochevar, with the assistance of Paralegal Specialist Shannon Becker, are in charge of the prosecution.
Woodbridge Man Sentenced for Distributing Narcotics to 14-Year-OldRead the Press Release
ALEXANDRIA, Va. – A Woodbridge man was sentenced today to 52 months in prison for distributing a Schedule II controlled substance to a person under age twenty-one.
According to court documents, in April of 2022, Latae'veion Woods, 21, sold pills purporting to be Percocet to a 14-year-old, who died of a fentanyl overdose approximately five days after the distribution. Following the overdose death, officers found a clear plastic baggie containing four blue pills with markings consistent with 30 milligram Percocet pills in the juvenile’s pants. Analysis later showed that the pills actually contained fentanyl. Police also discovered text messages on the 14-year-old’s phone which revealed that Woods distributed pills to the juvenile on multiple occasions during March and April 2022. The messages further established that Woods instructed the juvenile how to redistribute the pills and directed him to resell the pills for a specific amount of money. No other messages were located on the juvenile’s phone to suggest he had any other source of supply for Percocet.
Messages also demonstrated that Woods offered to sell the juvenile a firearm, specifically, a Glock 19 or Glock 48 semiautomatic handgun. During a search warrant of Woods’ residence, law enforcement seized a Glock 48 handgun and a Glock-style semi-automatic “ghost” gun, both of which Woods admitted belonged to him.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Jarod Forget, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Division; and Peter Newsham, Chief of Prince William County Police, made the announcement after sentencing by Senior U.S. District Judge T. S. Ellis, III.
Special Assistant U.S. Attorney Lauren Hahn prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:22-cr-226.
Washington man admits attempting to coerce minor for sexual activity in undercover investigationRead the Press Release
MISSOULA — A Washington man who was accused of traveling to Missoula expecting to meet a child for sex and was arrested in an undercover investigation admitted to a coercion crime today, U.S. Attorney Jesse Laslovich said.
Kenton Alan Shaull, 59, pleaded guilty to attempted coercion and enticement of a minor. Shaull faces a mandatory minimum of 10 years to life in prison, a $250,000 fine and not less than five years of supervised release.
U.S. District Judge Donald W. Molloy presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for July 26. Shaull was detained pending further proceedings.
The government alleged in court documents and in statements in court that from January to May 2022, Shaull used his cellular phone to communicate on an internet-based social media service with a profile he believed belonged to a child, identified as “E,” who was under the age of 14. Shaull reaffirmed multiple times his belief that “E” was a child under the age of 14. Shaull also expressed his desire to engage in sexual activity with “E” and sent several sexually explicit videos of himself. Shaull further expressed his desire to meet “E” in person for sexual activity and traveled to Missoula on May 14, 2022 to meet with “E” at a pre-determined location, where law enforcement officers arrested him.
Assistant U.S. Attorney Brian C. Lowney is prosecuting the case. The FBI’s Child Exploitation and Human Trafficking Task Force and Missoula County Sheriff’s Office investigated the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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USAO hosts training at Texas Medical Center on cyberintrusion safety measuresRead the Press Release
HOUSTON – Executives and leaders of the Texas Medical Center (TMC) have learned about the dangers of cyberattacks by malicious actors like China, Russia and transnational criminals and how to tackle those attacks, announced U.S. Attorney Alamdar S. Hamdani.
The U.S. Attorney’s Office (USAO) along with FBI, Homeland Security Investigations, Cybersecurity and Infrastructure Security Agency and the Food and Drug Administration provided the training which included essential tools and protocols for TMC attendees to follow if their facilities are subject to cyber intrusions.
Methodist Hospital hosted the training event with attendees from Memorial Herman Hospital, Texas Children’s Hospital, MD Anderson, Baylor College of Medicine and the University of Texas Health System.
Criminal organizations and nation state actors like China, Russia and Iran as well as other bad actors have become more sophisticated in their ability to launch cyber-attacks against critical infrastructure such as the health care facilities in the TMC.
“It is essential to national security and crucial to the safety of patients for federal law enforcement to work closely with the health care sector to develop resilient and adaptive defenses against malicious cyberspace activity and network intrusions,” said Hamdani. “The USAO will continue to seek opportunities to enhance collaboration with our law enforcement partners and the health care industry to prevent potential network intrusions and ensure greater unity of effort in response to cyber incidents.”
On a weekly basis, hundreds of cyberattacks occur on businesses all across the Southern District of Texas. There must be a quick response team in place to immediately address the intrusion in order to circumvent major damage and losses. The USAO routinely works with other prosecutors and law enforcement in the district to stay ahead of potential cyber threats.
As the global economy enters another year of Russia’s invasion of Ukraine, and China continues to seek to disrupt critical industries like the health care sector, the private industry must be reminded to be diligent about their networks and to know their response plans, have a paper copy available and review their cyber-related insurance policies.
The USAO has established contact lines for assistance 24 hours a day. If you have fallen victim to an intrusion, inadvertently diverted funds to an unknown third-party or suffered a ransomware attack, please email directly or call the hotline at 713-542-5213.
U.S. Attorney’s Office Reminds Healthcare Providers of ADA’s Effective Communication RequirementsRead the Press Release
ALEXANDRIA, Va. – The United States Attorney’s Office for the Eastern District of Virginia announced today that it has sent a Dear Colleagues Letter reminding healthcare providers of the effective communication requirements under the Americans with Disabilities Act (ADA). To strengthen awareness and understanding of these requirements, the U.S. Attorney’s Office is inviting the public, including personnel at healthcare providers, to an informational meeting that will be held on June 6, 2023, at 1 p.m.
When Congress passed the ADA, it recognized that discrimination against individuals with disabilities persists in critical areas, including health services, which often involve high stakes communication. Through the ADA, Congress established a national mandate for the elimination of discrimination against individuals with disabilities by providing strong and enforceable standards. In support of these goals, the ADA and its implementing regulations require covered entities, including healthcare providers, to furnish appropriate auxiliary aids and services to individuals with communication disabilities without imposing a surcharge on the individual, including qualified sign language interpreters, computer-aided transcription services, and effective methods of making visually delivered materials available to individuals who are blind or have low vision.
The ADA requirements apply to a variety of healthcare providers, including those operated by either private entities or state and local governments, such as hospitals, nursing facilities, urgent care providers, physicians, dentists, optometrists, durable medical equipment retailers, infirmaries located at institutions of higher learning and correctional facilities, and local mental health agencies. Further, the ADA applies to all services that covered entities provide, including in-person medical services, telehealth appointments, electronic kiosks, and websites.
The Dear Colleagues Letter explains that “[p]ursuant to the ADA, healthcare providers are required to ensure that communication with people with disabilities is as effective as communication with people without disabilities.” Further, “healthcare providers may not decline to provide treatment to an individual solely because they have a disability and may need auxiliary aids and services.” The Dear Colleagues Letter also includes links to numerous Department of Justice publications that provide a detailed discussion of the ADA’s effective communication requirements, including publications on ADA.gov: “ADA Requirements: Effective Communication,” “ADA Business BRIEF: Communicating with People Who Are Deaf or Hard of Hearing in Hospital Settings,” and “Guidance on Web Accessibility and the ADA.” In addition, the Dear Colleagues Letter provides links to settlement agreements that provide a roadmap to the steps that covered entities can take to comply with the ADA, including Settlement Agreements with Goochland Powhatan Community Services, Brookside Rehabilitation & Nursing Center, Spotsylvania Regional Medical Center, Rite Aid Corporation, and Lincare, Inc.
The Dear Colleagues Letter announces that at 1 p.m. on June 6, 2023, the U.S. Attorney’s Office will be holding a virtual meeting for the public, including personnel at healthcare providers, to share information on the steps providers can take to comply with the ADA’s effective communication requirements, and provide an opportunity for questions and collaboration. The registration link for the meeting is here.
“Ensuring that healthcare providers are complying with the ADA by being accessible to individuals with communication disabilities is a critical mission of this Office,” said U.S. Attorney Jessica D. Aber. “We look forward to meeting with personnel from healthcare providers so that we can discuss the ADA’s effective communication requirements in healthcare settings.”
The U.S. Attorney’s Office, through its Civil Rights Enforcement (CRE) Unit, and in partnership with the Justice Department’s Civil Rights Division, works to uphold the civil and constitutional rights of all Americans, particularly some of the most vulnerable members of our society. The Office vigorously enforces a variety of federal statutes that prohibit discrimination, including the ADA and the Civil Rights Act of 1964, Civil Rights of Institutionalized Persons Act, and Equal Educational Opportunities Act of 1974. The CRE Unit also enforces the Servicemembers Civil Relief Act and the Uniformed Services Employment and Reemployment Rights Act of 1994, which protect military members as they enter and return from active duty.
For more information on the ADA, visit https://www.ada.gov or call the Justice Department’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD).
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
U.S. Attorney Announces Charges Against Leadership of the Sinaloa Cartel and 25 Other Defendants in Massive Fentanyl Importation and Trafficking ConspiraciesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Merrick B. Garland, the Attorney General of the United States, Lisa O. Monaco, the Deputy Attorney General of the United States, and Anne Milgram, the Administrator of the U.S. Drug Enforcement Administration (“DEA”), announced today the unsealing of fentanyl trafficking, weapons, and money laundering charges contained in three Indictments charging 28 defendants, including 23 based in Mexico, four based in China, and one based in Guatemala.
Since at least in or about 2014, the Sinaloa Cartel has run a global fentanyl manufacturing and distribution operation, sending massive quantities of fentanyl — a drug that has killed unprecedented numbers of Americans — into the United States. Cartel leadership includes three sons of the Sinaloa Cartel’s former leader, Joaquín Archivaldo Guzmán Loera, a/k/a “El Chapo,” known as the “Chapitos”: IVAN ARCHIVALDO GUZMAN SALAZAR, JESUS ALFREDO GUZMAN SALAZAR, a/k/a “Alfredo,” and OVIDIO GUZMAN LOPEZ, a/k/a “Raton.” Together with their co-conspirators, the Chapitos allegedly controlled extensive, multi-faceted, and international operations covering the fentanyl trade, which was designed to pump staggering quantities of fentanyl into the United States — in IVAN ARCHIVALDO GUZMAN SALAZAR’s words, to flood the United States with fentanyl in order to supply “streets of junkies.” The Indictments returned today charge not only the Chapitos but also top lieutenants and leadership of the Sinaloa Cartel; alleged manufacturers and distributors of the Sinaloa Cartel’s fentanyl; the managers of the violent armed security apparatus that protects the Sinaloa Cartel’s drug trafficking operations; the sophisticated money launderers who repatriate the Sinaloa Cartel’s drug proceeds back to Mexico; and multiple chemical precursor suppliers in China that fuel the Sinaloa Cartel’s fentanyl distribution operation. Through these efforts, the Chapitos and the Sinaloa Cartel allegedly reaped hundreds of millions of dollars in profits by flooding the United States with fentanyl. Seven defendants are in custody pending extradition proceedings: OVIDIO GUZMAN LOPEZ was arrested in Mexico; CARLOS OMAR FELIEX GUTIERREZ and SILVANO FRANCISCO MARIANO, a/k/a “Rayo,” were arrested in Colombia; SERGIO DUARTE FRIAS, ANA GABRIELA RUBIO ZEA, and HUMBERTO BELTRAN CUEN, a/k/a “Don Chino,” were arrested in Guatemala; and ANASTACIO SOTO VEGA, a/k/a “Tachin,” was arrested in Greece. Additionally, JULIO MARIN GONZALEZ was previously arrested in the United States and will be arraigned before U.S. District Judge Katherine Polk Failla.
U.S. Attorney Damian Williams said: “For over a decade, the illicit fentanyl trade has created a plague of addiction, death, and misery for Americans and New Yorkers of all walks of life. As alleged, the sons of the infamous Sinaloa Cartel leader ‘El Chapo,’ Ivan Archivaldo Guzman Salazar, Jesus Alfredo Guzman Salazar, and Ovidio Guzman Lopez, commanded the Sinaloa Cartel’s fentanyl manufacturing and trafficking operation. Today’s charges target not only Sinaloa Cartel leadership but the Cartel’s entire fentanyl infrastructure, including the armed enforcers who use abhorrent violence to protect the Cartel, the lab operators who produce untold quantities of fentanyl, the drug traffickers who move their deadly fentanyl into and throughout the United States, the money launderers who funnel proceeds back to the Cartel, and the China-based chemical suppliers who service the Cartel. I commend the career prosecutors of the Southern District of New York and our partners at the Drug Enforcement Administration for their tireless efforts to disrupt the Sinaloa Cartel’s fentanyl trafficking at all levels. We hope that today’s charges are a major step toward accountability for those who have for so long pushed this poison into our communities.”
Attorney General Merrick B. Garland said: “Today, the Justice Department is announcing significant enforcement actions against the largest, most violent, and most prolific fentanyl trafficking operation in the world – run by the Sinaloa Cartel, and fueled by Chinese precursor chemical and pharmaceutical companies. Families and communities across our country are being devastated by the fentanyl epidemic. Today’s actions demonstrate the comprehensive approach the Justice Department is taking to disrupt fentanyl trafficking and save American lives.”
Deputy Attorney General Lisa O. Monaco said: “The fentanyl crisis in America – fueled in large part by the Sinaloa cartel – threatens our public health, our public safety, and our national security. Today’s indictments target every element of the Sinaloa Cartel's trafficking network and reflect the Justice Department's commitment to attacking every aspect of this threat: from the chemical companies in China that spawn fentanyl precursors, to the illicit labs that produce the poison, to the networks and money launderers and murderers that facilitate its distribution. Just as we have gone on offense against terrorists and cyber criminals around the globe, the Department is now waging a relentless campaign to disrupt the production and trafficking of fentanyl – before it can reach its victims.”
DEA Administrator Anne Milgram said: “Today’s indictments send a clear message to the Chapitos, the Sinaloa Cartel, and criminal drug networks around the world that the DEA will stop at nothing to protect the national security of the United States and the safety and health of the American people. The Chapitos pioneered the manufacture and trafficking of fentanyl – the deadliest drug threat our country has ever faced – flooded it into the United States for the past eight years and killed hundreds of thousands of Americans. Over the last year and a half, the DEA proactively infiltrated the Sinaloa Cartel and the Chapitos network, obtained unprecedented access to the organization’s highest levels, and followed them across the world. I am grateful to the men and women of the DEA for their exceptional work on this case, which is the beginning of our work as ‘One DEA’ to dismantle every part of the criminal cartels that are killing Americans at record rates.”
According to the allegations contained in the Indictments, other court filings, and statements made during court proceedings:[1]
The Sinaloa Cartel (the “Cartel”) is one of the most powerful drug cartels in Mexico and is largely responsible for the manufacturing and importing of fentanyl for distribution in the United States. Fentanyl is a dangerous synthetic opioid that is more than 50 times more potent than heroin. Fentanyl is now the leading cause of death for Americans ages 18 to 49, and it has fueled the opioid epidemic that has been ravaging families and communities across the United States for the past approximately eight years. Between 2019 and 2021, fatal overdoses increased by approximately 94%, with an estimated 196 Americans dying each day from fentanyl.
The Cartel is led, in part, by IVAN ARCHIVALDO GUZMAN SALAZAR, JESUS ALFREDO GUZMAN SALAZAR, and OVIDIO GUZMAN LOPEZ, who are sons of the Cartel’s notorious former leader, Joaquín Archivaldo Guzmán Loera, a/k/a “El Chapo,” and are known collectively as the “Chapitos.”
Since in or about 2014, the Chapitos’ alleged fentanyl trafficking operation for the Cartel has grown exponentially in volume, scale, and sophistication. Under the Chapitos’ leadership, the Cartel operates a vast fentanyl trafficking operation that integrates each step in the fentanyl trade, from manufacture to distribution. Members and affiliates of the Cartel purchase and import fentanyl precursor chemicals from China directly or through third countries, manufacture fentanyl in laboratories in the mountains of Sinaloa, move that fentanyl across the border into the United States, distribute that fentanyl through various networks operating across the United States, and launder the proceeds back to Mexico.
As a critical part of the fentanyl trafficking enterprise, the Cartel relies on and directs hundreds of violent, heavily armed soldiers (known as sicarios) to protect the Cartel’s fentanyl operations at every step and intimidate others who might attempt to cheat, interfere with, or compete against the Cartel through kidnapping, torture, and murder using machineguns and other weaponry. As alleged, the Chapitos’ sicarios operated under the direction of the Chapitos and OSCAR NOE MEDINA GONZALEZ, a/k/a “Panu,” NESTOR ISIDRO PEREZ SALAS, a/k/a “Nini,” and JORGE HUMBERTO FIGUEROA BENITEZ, a/k/a “27,” to kidnap, torture, and kill anyone who opposed the Chapitos.
To manufacture fentanyl, the Cartel uses precursor chemicals procured principally from China. As alleged, the Cartel relies on brokers such as ANA GABRIELA RUBIO ZEA, a/k/a “Gaby,” who procure fentanyl precursor chemicals for the Cartel through Chinese chemical companies and the owners and operators of the Chinese chemical companies, including KUN JIANG, YONGHAO WU, a/k/a “Tim,” YAQIN WU, a/k/a “Lily,” and HUATAO YAO, a/k/a “Yao.”
The Cartel also employs skilled chemists — or “cooks” — who have expertise in synthesizing fentanyl from the China-sourced precursor chemicals. In one day alone, a Cartel cook can manufacture over 100,000 pills using pill press machines. In some instances, Cartel traffickers under the Chapitos have tested the purity of their fentanyl by testing it on others. For example, in or about 2022, PEREZ SALAZ and FIGUEROA BENITEZ experimented on a woman by injecting her repeatedly with doses of fentanyl until she died.
Led by the Chapitos, the trafficking of finished fentanyl powder and pills is a main goal of the Cartel and one of its most lucrative endeavors. Most often, the Cartel’s fentanyl crosses into the United States at ports of entry, including concealed in secret compartments of cars, disguised among goods in tractor-trailers, hidden in luggage on planes, obscured through fake paperwork in shipping containers, or secreted on or in the bodies of drug mules.
Once the Cartel’s fentanyl is transported into the United States, Cartel traffickers maintain designated stash locations where the fentanyl is stored, and the Cartel’s U.S.-based distribution network then sells the fentanyl wholesale for retail distribution throughout the United States, including in New York City. In 2022, alone, the DEA seized over 57 million fentanyl-laced pills and over 13,000 pounds of fentanyl powder — the equivalent of approximately 410 million potentially deadly doses of fentanyl.
Finally, as alleged, the Cartel relies on increasingly sophisticated ways of laundering fentanyl proceeds from the United States back into Mexico to enrich the Chapitos. For example, over the course of approximately two years, a single Cartel trafficker in the United States assisted in the laundering of more than $24 million in narcotics proceeds belonging to OVIDIO GUZMAN LOPEZ by providing to Cartel money launderers in the United States approximately $15 million and by sending approximately $9 million in bulk cash to Mexico hidden in secret compartments in cars. Other alleged Cartel money launderers, including MARIO ALBERTO JIMENEZ CASTRO, a/k/a “Kastor,” and SERGIO DUARTE FRIAS, have used cryptocurrency wallets to launder hundreds of thousands of dollars in fentanyl proceeds for the Cartel.
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A chart containing the charges and minimum and maximum penalties each defendant faces is attached. The statutory minimum and maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants would be determined by a judge.
Mr. Williams praised the outstanding investigative work of the DEA’s Special Operations Division, Bilateral Investigations Unit; Atlanta Division Office; Aviation Division; Boston Division Office; Denver Division Office; Imperial County District Office; Indianapolis District Office; Los Angeles Division Office; Nashville District Office; Newark Division Office; New York Division Office; Omaha Division Office; Orlando District Office; Philadelphia Division Office; Phoenix Division Office; Riverside District Office; Salt Lake City District Office; San Diego Division Office; San Ysidro District Office; Madrid Country Office; Athens Country Office; Bogota Country Office; Canberra Country Office; Guatemala City Country Office; Vienna Country Office; and multiple DEA offices throughout Mexico, as well as the assistance of the Office of International Affairs of the Justice Department’s Criminal Division; the U.S. Department of the Treasury, Office of Foreign Assets Control; and the U.S. Department of State, Rewards for Justice Program.
This case is being handled by the Office’s National Security and International Narcotics Unit. Assistant U.S. Attorneys Kyle A. Wirshba, Nicholas S. Bradley, Sarah L. Kushner, David J. Robles, and Alexander Li are in charge of the prosecution.
The charges in the Indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
United States v. Ovidio Guzman Lopez, 23 Cr. 42
Defendant
Age
Charges
Minimum and Maximum Penalties
OVIDIO GUZMAN LOPEZ, a/k/a “Raton”
33
Continuing criminal enterprise; fentanyl importation conspiracy; fentanyl distribution conspiracy; possession of machineguns and destructive devices; conspiracy to possess machineguns and destructive devices; conspiracy to commit money laundering
Mandatory life in prison
United States v. Ivan Archivaldo Guzman Salazar, et al., 23 Cr. 180
Defendant
Age
Charges
Minimum and Maximum Penalties
IVAN ARCHIVALDO GUZMAN SALAZAR
39
Continuing criminal enterprise; fentanyl importation conspiracy; fentanyl distribution conspiracy; possession of machineguns and destructive devices; conspiracy to possess machineguns and destructive devices; conspiracy to commit money laundering
Mandatory life in prison
JESUS ALFREDO GUZMAN SALAZAR, a/k/a “Alfredo”
36
Continuing criminal enterprise; fentanyl importation conspiracy; fentanyl distribution conspiracy; possession of machineguns and destructive devices; conspiracy to possess machineguns and destructive devices; conspiracy to commit money laundering
Mandatory life in prison
OSCAR NOE MEDINA GONZALEZ, a/k/a “Panu”
39
Continuing criminal enterprise; fentanyl importation conspiracy; fentanyl distribution conspiracy; possession of machineguns and destructive devices; conspiracy to possess machineguns and destructive devices; conspiracy to commit money laundering
Mandatory life in prison
NESTOR ISIDRO PEREZ SALAS, a/k/a “Nini”
31
Continuing criminal enterprise; fentanyl importation conspiracy; fentanyl distribution conspiracy; possession of machineguns and destructive devices; conspiracy to possess machineguns and destructive devices; conspiracy to commit money laundering
Mandatory life in prison
JORGE HUMBERTO FIGUEROA BENITEZ, a/k/a “27”
31
Continuing criminal enterprise; fentanyl importation conspiracy; fentanyl distribution conspiracy; possession of machineguns and destructive devices; conspiracy to possess machineguns and destructive devices; conspiracy to commit money laundering
Mandatory life in prison
LIBORIO NUNEZ AGUIRRE, a/k/a “Karateca”
65
Fentanyl importation conspiracy; fentanyl distribution conspiracy; possession of machineguns and destructive devices; conspiracy to possess machineguns and destructive devices; conspiracy to commit money laundering
Life in prison; mandatory minimum of 40 years in prison
NOEL PEREZ LOPEZ, a/k/a “Tio”
42
Fentanyl importation conspiracy; fentanyl distribution conspiracy; possession of machineguns and destructive devices; conspiracy to possess machineguns and destructive devices; conspiracy to commit money laundering
Life in prison; mandatory minimum of 40 years in prison
SAMUEL LEON ALVARADO
34
Fentanyl importation conspiracy; fentanyl distribution conspiracy; possession of machineguns and destructive devices; conspiracy to possess machineguns and destructive devices; conspiracy to commit money laundering
Life in prison; mandatory minimum of 40 years in prison
LUIS JAVIER BENITEZ ESPINOZA, a/k/a “El Fourteen”
22
Fentanyl importation conspiracy; fentanyl distribution conspiracy; possession of machineguns and destructive devices; conspiracy to possess machineguns and destructive devices; conspiracy to commit money laundering
Life in prison; mandatory minimum of 40 years in prison
ALAN GABRIEL NUNEZ HERRERA
29
Fentanyl importation conspiracy; fentanyl distribution conspiracy; conspiracy to commit money laundering
Life in prison; mandatory minimum of 10 years in prison
JUAN PABLO LOZANO, a/k/a “Camaron”
30
Fentanyl importation conspiracy; fentanyl distribution conspiracy; possession of machineguns and destructive devices; conspiracy to possess machineguns and destructive devices; conspiracy to commit money laundering
Life in prison; mandatory minimum of 40 years in prison
CARLOS LIMON
19
Fentanyl importation conspiracy; fentanyl distribution conspiracy; possession of machineguns and destructive devices; conspiracy to possess machineguns and destructive devices; conspiracy to commit money laundering
Life in prison; mandatory minimum of 40 years in prison
JESUS TIRADO ANDRADE
26
Fentanyl importation conspiracy; fentanyl distribution conspiracy; possession of machineguns and destructive devices; conspiracy to possess machineguns and destructive devices; conspiracy to commit money laundering
Life in prison; mandatory minimum of 40 years in prison
CARLOS OMAR FELIX GUTIERREZ
22
Fentanyl importation conspiracy; fentanyl distribution conspiracy; possession of machineguns and destructive devices; conspiracy to possess machineguns and destructive devices; conspiracy to commit money laundering
Life in prison; mandatory minimum of 40 years in prison
SILVANO FRANCISCO MARIANO, a/k/a “Rayo”
41
Fentanyl importation conspiracy; fentanyl distribution conspiracy; possession of machineguns and destructive devices; conspiracy to possess machineguns and destructive devices; conspiracy to commit money laundering
Life in prison; mandatory minimum of 40 years in prison
JULIO MARIN GONZALEZ
32
Fentanyl importation conspiracy; fentanyl distribution conspiracy; possession of machineguns and destructive devices; conspiracy to possess machineguns and destructive devices; conspiracy to commit money laundering
Life in prison; mandatory minimum of 40 years in prison
MARIO ALBERTO JIMENEZ CASTRO, a/k/a “Kastor”
34
Fentanyl importation conspiracy; fentanyl distribution conspiracy; possession of machineguns and destructive devices; conspiracy to possess machineguns and destructive devices; conspiracy to commit money laundering
Life in prison; mandatory minimum of 40 years in prison
SERGIO DUARTE FRIAS
26
Fentanyl importation conspiracy; fentanyl distribution conspiracy; possession of machineguns and destructive devices; conspiracy to possess machineguns and destructive devices; conspiracy to commit money laundering
Life in prison; mandatory minimum of 40 years in prison
ANA GABRIELA RUBIO ZEA, a/k/a “Gaby”
32
Fentanyl importation conspiracy; fentanyl distribution conspiracy; conspiracy to commit money laundering
Life in prison; mandatory minimum of 10 years in prison
KUN JIANG
Unknown
Fentanyl importation conspiracy; fentanyl distribution conspiracy; conspiracy to commit money laundering
Life in prison; mandatory minimum of 10 years in prison
YONGHAO WU, a/k/a “Tim”
31
Fentanyl importation conspiracy; fentanyl distribution conspiracy; conspiracy to commit money laundering
Life in prison; mandatory minimum of 10 years in prison
YAQIN WU, a/k/a “Lily”
30
Fentanyl importation conspiracy; fentanyl distribution conspiracy; conspiracy to commit money laundering
Life in prison; mandatory minimum of 10 years in prison
HUATAO YAO, a/k/a “Yao”
32
Fentanyl importation conspiracy; fentanyl distribution conspiracy; conspiracy to commit money laundering
Life in prison; mandatory minimum of 10 years in prison
United States v. Leobardo Garcia Corrales, et al., S2 23 Cr. 136
Defendant
Age
Charges
Minimum and Maximum Penalties
LEOBARDO GARCIA CORRALES, a/k/a “Leo”
53
Fentanyl importation conspiracy; possession of machineguns and destructive devices; conspiracy to possess machineguns and destructive devices
Life in prison; mandatory minimum of 40 years in prison
MARTIN GARCIA CORRALES, a/k/a “Tano,” a/k/a “Cachuchas”
43
Fentanyl importation conspiracy; possession of machineguns and destructive devices; conspiracy to possess machineguns and destructive devices
Life in prison; mandatory minimum of 40 years in prison
HUMBERTO BELTRAN CUEN, a/k/a “Don Chino”
69
Fentanyl importation conspiracy; possession of machineguns and destructive devices; conspiracy to possess machineguns and destructive devices
Life in prison; mandatory minimum of 40 years in prison
ANASTACIO SOTO VEGA, a/k/a “Tachin”
45
Fentanyl importation conspiracy; possession of machineguns and destructive devices; conspiracy to possess machineguns and destructive devices
Life in prison; mandatory minimum of 40 years in prison
[1] As the introductory phrase signifies, the entirety of the text of the Indictments and the description of the Indictments set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Two South Florida Residents Indicted for Stealing Millions in COVID-19 Relief FundsRead the Press Release
MIAMI – A federal magistrate judge in Fort Lauderdale has unsealed an indictment today charging Carl Henry Charles, 43, of Miramar, Fla., and Patrick Charles, 41, of Lake Worth, Fla., for fraudulently obtaining millions of dollars in COVID-19 pandemic relief loans and advances from the Small Business Administration (SBA) through the Economic Injury Disaster Loan (EIDL) program.
According to the indictment, from March 2020 through December 2021, Carl Charles and his brother, Patrick Charles, submitted applications to the SBA for EIDL program loans seeking nearly $5 million for purported businesses that did not exist before the start of the COVID-19 pandemic and did not have any revenue or other business activity. As a result of the false and fraudulent applications, the SBA disbursed approximately $2.5 million in loan proceeds and advances to the defendants, who in turn used the funds to enrich themselves and others.
The indictment charges each defendant with multiple counts of wire fraud. If convicted, Carl Charles faces up to 80 years in prison and Patrick Charles faces up to 60 years in prison. A federal district court judge will determine any sentence after considering U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida; Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; Special Agent in Charge Jeffrey B. Veltri of the FBI, Miami Field Office; Special Agent in Charge Mark H. Morini Jr. of the U.S. Treasury Inspector General for Tax Administration (TIGTA), Southern Field Division; and Special Agent in Charge Amaleka McCall-Brathwaite, U.S. Small Business Administration Office of Inspector General (SBA-OIG), Investigations Division’s Eastern Region, made the announcement.
FBI Miami, TIGTA, and SBA-OIG investigated the case. Assistant U.S. Attorney David Snider for the Southern District of Florida and Trial Attorneys Samad Pardesi and Ariel Glasner of the Criminal Division’s Fraud Section are prosecuting it. Assistant U.S. Attorney Emily Stone is handling asset forfeiture.
An indictment contains mere allegations, and all defendants are presumed innocent unless and until proven guilty in a court of law.
In March 2020, the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was enacted. It was designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. Among other sources of relief, the CARES Act authorized and provided funding to the SBA to provide Economic Injury Disaster Loans (“EIDLs”) to eligible small businesses, including sole proprietorships and independent contractors, experiencing substantial financial disruptions due to the COVID-19 pandemic to allow them to meet financial obligations and operating expenses that could otherwise have been met had the disaster not occurred. EIDL applications were submitted directly to the SBA via the SBA’s on-line application website, and the applications were processed and the loans funded for qualifying applicants directly by the SBA.
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.
On September 15, 2022, the Attorney General selected the Southern District of Florida’s U.S. Attorney’s Office to head one of three national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. The Strike Force combines law enforcement and prosecutorial resources and focuses on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors, as well as those who committed multiple instances of pandemic relief fraud. The Strike Force uses prosecutor-led and data analyst-driven teams to identify and bring to justice those who stole pandemic relief funds. For more information on the department’s response to the pandemic, please click here.
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.
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 23-cr-60072.
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Two Men Sentenced to 30 and 46 Months in Prison for Scheme to Defraud New York City Program for Homeless VeteransRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that JEROME WEAH was sentenced today in Manhattan federal court to 46 months in prison for engaging in a scheme to defraud a program of the New York City Human Resources Administration (“HRA”), which provides cash assistance to homeless veterans of the United States armed services (“Veterans”) seeking permanent housing. Another defendant, RUDEAN WEIR, was sentenced to 30 months in prison on March 30, 2023, for his participation in the scheme. The sentences were imposed by United States District Judge Denise L. Cote.
U.S. Attorney Damian Williams said: “Rudean Weir and Jerome Weah stole approximately $5.4 million from a New York City program intended to benefit U.S. veterans seeking permanent housing. These sentences should send a message that individuals who abuse Government programs to enrich themselves at the expense of taxpayers will face serious consequences.”
As alleged in the Complaint, Informations, and other documents in the public record, as well as statements made in public court proceedings:
From at least October 2020 through at least May 2022, RUDEAN WEIR and JEROME WEAH submitted more than 340 fraudulent applications seeking cash assistance pursuant to the Enhanced One Shot Deal (“EOSD”) program administered by the HRA. The EOSD is an emergency assistance program pursuant to which HRA makes a one-time cash assistance payment to qualifying individuals. EOSD payments are often used to help individuals move out of homeless shelters and/or other temporary housing into permanent housing. EOSD payments may be used to cover certain costs associated with the move to permanent housing, including rent, moving expenses, security deposits, broker’s fees, and payments for furniture and other household items. The HRA also offers and administers services and programs for Veterans, sometimes referred to as “Veteran’s Initiatives.” In connection with these services, the HRA has a designated group responsible for receiving and reviewing EOSD requests made on behalf of homeless Veterans seeking permanent housing.
Between October 2020 and May 2022, the HRA received at least 340 EOSD applications which claimed that the applicants were homeless Veterans who had entered into a lease agreement with a particular landlord (“Landlord-1”). Each of these applications (the “Landlord-1 EOSD Applications”) claimed that a particular company provided broker’s services in connection with the lease agreement (“Broker Company-1”). HRA paid approximately $5.4 million in EOSD payments and broker’s fees pursuant to the Landlord-1 EOSD Applications.
The Landlord-1 EOSD Applications were fraudulent. Landlord-1 and the Veterans did not, in fact, enter into the lease agreements submitted to HRA in connection with the Landlord-1 EOSD Applications, and Broker Company-1 did not provide real estate brokerage services to either Landlord-1 and/or the Veterans. The Veterans identified in the Landlord-1 EOSD Applications were not homeless and typically did not live in New York City. The Landlord-1 EOSD Applications, therefore, contained fake documentation and information and fraudulently induced HRA into making EOSD payments.
* * *
In addition to the prison terms, both WEIR, 38, of Atlanta, Georgia, and WEAH, 47, of Trenton, New Jersey, were sentenced to three years of supervised release and ordered to pay restitution in the amount of $5,388,769.60. WEIR was ordered to forfeit $3,779,489.00, including his interest in two bank accounts and six real estate properties. WEAH was ordered to forfeit $2,179,922.60, including his interest in two bank accounts and one real estate property.
Mr. Williams praised the outstanding investigative work of the New York City Department of Investigation. Mr. Williams also thanked the New York City Department of Social Services and the U.S. Department of Veterans Affairs, Office of Inspector General for their assistance.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Matthew Weinberg is in charge of the prosecution.
Tucson Man Sentenced for Coordinating Alien Smuggling ConspiracyRead the Press Release
TUCSON, Ariz. – Adrian Duran-Estrada, 39, of Tucson, Arizona, was sentenced last week by United States District Judge Jennifer G. Zipps to 120 months in prison, followed by three years of supervised release. Judge Zipps also ordered Duran-Estrada to pay a $200 special assessment and a $20,000 money judgment. Duran-Estrada pleaded guilty to Conspiracy to Transport Illegal Aliens and Unlawful Possession of a Firearm by a Convicted Felon.
From at least May 2019 through May 2021, Duran-Estrada conspired with co-defendants to transport undocumented non-citizens in southern Arizona. As the coordinator and leader of the conspiracy, he used WhatsApp, text messages, and voice calls to coordinate the movement of undocumented non-citizens. Examples of Duran-Estrada’s actions in furtherance of the conspiracy include:
- On May 30, 2019, Duran-Estrada coordinated the transport of 10 undocumented non-citizens, who were later apprehended by Border Patrol agents on Highway 286 near Sasabe, Arizona. Later that same day, a juvenile co-conspirator became lost and died in the desert east of Highway 286 while attempting to guide another group of undocumented non-citizens at the direction of Duran-Estrada.
- About one week later, on June 7, 2019, Duran-Estrada coordinated with co-defendant Bruce Rivera to pick up two undocumented non-citizens near San Miguel, Arizona, including providing Rivera with GPS coordinates to locate the two individuals. Although Rivera traveled to a location near San Miguel intending to pick up the two undocumented non-citizens, he was stopped by Border Patrol agents before he was able to pick them up.
- On July 23, 2019, Duran-Estrada coordinated with co-defendants Kaitlan Cox and Arturo Alday Cordova to pick up a group of undocumented non-citizens near Sasabe, Arizona.
In addition, a May 4, 2021, search of his residence revealed evidence that, in November 2020, Duran-Estrada knowingly possessed a .22 caliber rifle that he used to poach a deer on the Buenos Aires National Wildlife Refuge. At the time Duran-Estrada possessed the firearm, he was a convicted felon, having previously been convicted of two separate felony offenses.
Duran-Estrada’s co-defendants, Kaitlan Cox, Arturo Alday Cordova, and Bruce Rivera, were previously convicted of Conspiracy to Transport Illegal Aliens, Conspiracy to Transport Illegal Aliens, and Attempted Transportation of Illegal Aliens, respectively, for their involvement in the conspiracy. Cox was sentenced to 27 months in prison; Cordova was sentenced to eight months in prison; and Rivera was sentenced to a term of three years’ probation.
Homeland Security Investigations and Customs and Border Protection’s United States Border Patrol conducted the investigation in this case, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives. The United States Attorney’s Office, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-21-0883-TUC-JGZ (BGM)
RELEASE NUMBER: 2023- 053_Duran-Estrada# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.St. Louis Man Indicted on Gun, Fentanyl ChargesRead the Press Release
ST. LOUIS – A man arrested by police after a shooting in St. Louis was indicted in U.S. District Court this week on gun and fentanyl possession charges.
Robert Eutz III, 43, was indicted Wednesday on five felonies: two counts of possession with the intent to distribute fentanyl, possession of a firearm in furtherance of a drug trafficking crime and two counts of being a felon in possession of a firearm. The crimes are alleged to have occurred on February 1 and 21 of 2022 and March 30, 2023.
A criminal complaint filed March 31 says officers with the St. Louis Metropolitan Police Department were called to a shooting in the 3500 block of Lafayette Avenue on March 30 and were told that someone in an older model Chrysler shot a victim multiple times. Police also were given a partial license plate number. Police stopped a Chrysler with a license plate matching that number a short distance away, and arrested Eutz, who was identified as the shooter by a witness. Eutz also had ammunition, spent cartridges and a safe in the car.
A motion seeking to have Eutz held in jail until trial says he has a pending drug charge in St. Louis Circuit Court related to a February 2022 arrest, in which he is alleged to have possessed a large quantity of fentanyl.
The felon in possession charges carry a potential penalty of up to 10 years in prison, and the fentanyl charge carries a 20-year maximum. The possession of a firearm in furtherance of a drug trafficking crime charge carries a mandatory minimum term of at least five years in prison, consecutive to the other charges.
Charges set forth in an indictment or a criminal complaint are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The case was investigated by the St. Louis Metropolitan Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Jennifer Szczucinski is prosecuting the case.
Son of Murder Victim and a Co-Conspirator Sentenced to Life in Prison for Murder-for-Hire Committed at McDonald's Drive-ThruRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Anthony Zottola, Sr. and Himen Ross were sentenced by United States District Judge Hector Gonzalez to mandatory life imprisonment plus 112 years for their roles in the October 4, 2018 killing of 71-year-old Sylvester Zottola, the father of Anthony Zottola, Sr. The additional years represent 41 years for Salvatore Zottola’s age when he was shot and 71 years for Sylvester Zottola’s age when he was killed. In October 2022, following a six-week trial, a federal jury found the defendants guilty of murder-for-hire, conspiracy to commit murder-for-hire, and firearms offenses.
Breon Peace, United States Attorney for the Eastern District of New York and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI) announced the sentence.
“Over the course of more than a year, the elderly victim, Sylvester Zottola, was stalked, beaten, and stabbed, never knowing who orchestrated the attacks. It was his own son, who was so determined to control the family’s lucrative real estate business, that he hired a gang of hit men to murder his father,” stated United States Attorney Peace. “For sentencing his father to a violent death, Anthony Zottola and his co-defendant will spend the rest of their lives in prison. I commend our prosecutors, the FBI Special Agents and NYPD detectives for their tremendous investigative work solving this cold-blooded crime and bringing the defendants to justice.”
“Today’s sentence justly punishes Mr. Zottola and Mr. Ross to life imprisonment for their roles in the heartless murder of Sylvester Zottola. The FBI and the NYPD worked relentlessly to investigate this case and ensure the defendants paid the price for their senseless actions. Today’s result is a direct reflection of their effort, as well as that of the skilled and dedicated professionals from the Eastern District of New York who prosecuted the case,” stated Assistant Director-in-Charge Driscoll.
Sylvester Zottola controlled a residential real estate portfolio consisting of multi-family rental properties that was valued at tens of millions of dollars at the time of his death. Defendant Anthony Zottola helped manage his father Sylvester Zottola’s real estate business by maintaining the properties, collecting rent, and helping to run A&S Maintenance, a company that was jointly owned by Anthony and his brother Salvatore Zottola. Anthony Zottola plotted to kill his father and his brother so that he could take control of the family business.
As proven at trial, Anthony Zottola hired co-conspirator Bushawn Shelton to kill his father and his brother, Salvatore. Shelton recruited others to commit the murders, and together they engaged in a year-long conspiracy to carry out a series of violent attacks against Sylvester and Salvatore Zottola. Among other attempts, on November 26, 2017, Sylvester Zottola was menaced at gunpoint by a masked individual. On December 27, 2017, three men invaded Sylvester Zottola’s residence, struck him on the head with a gun, stabbed him multiple times, and slashed his throat. Zottola survived the attack. Then on July 11, 2018, a gunman shot Salvatore Zottola in the head, chest, and hand in front of his residence. Zottola survived the shooting.
The conspirators placed a tracking device on Sylvester Zottola’s car, allowing Ross to track him to a McDonald’s restaurant on Webster Avenue in the Bronx where Ross fatally shot the victim multiple times while the victim waited to pick up a cup of coffee in the drive-through. Ross and Shelton exchanged texts immediately after the hit, and then Shelton and Anthony Zottola exchanged texts, in which Anthony was informed that his father had just been murdered. Shelton texted Anthony Zottola: “Can we party today or tomorrow?” Anthony Zottola assured Shelton that he would have Shelton’s payment for carrying out the murder ready soon: “I have the cases of water in a day or so.” A photograph later recovered from one of Shelton’s cellular telephones shows a cardboard box of bottled water, as well as over $200,000 in banded currency.
Shelton pleaded guilty in August 2022 to murder-for-hire conspiracy and murder-for-hire. He is awaiting sentencing. Co-defendants Herman Blanco, Arthur Codner, Jason Cummings, and Branden Peterson previously pleaded guilty and were sentenced to 240 months’ imprisonment, 228 months’ imprisonment, 204 months’ imprisonment, and 192 months’ imprisonment, respectively.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Kayla C. Bensing, Emily J. Dean, Devon Lash, and Andrew M. Roddin are in charge of the prosecution, with the assistance of paralegal specialist Brittany Wissel. Assistant United States Attorney Brian Morris assisted with forfeiture matters.
The Defendants:
HIMEN ROSS (also known as “Ace” and “A Boggie”)
Age: 37
Bronx, New YorkANTHONY ZOTTOLA, SR.
Age: 45
Larchmont, New YorkDefendants Who Previously Pleaded Guilty:
HERMAN BLANCO (also known as “Taliban” and “L”)
Age: 38
Bronx, New YorkARTHUR CODNER (also known as “Feddi,” “Feddi Bossgod,” and “Scary”)
Age: 34
New Hampton, New YorkJASON CUMMINGS (also known as “The Hat” and “Stacks”)
Age: 34
Brooklyn, New YorkKALIK MCFARLANE (also known as “Dottkom” and “Dot”)
Age: 40
Brooklyn, New YorkBUSHAWN SHELTON (also known as “Shelz”)
Age: 38
Brooklyn, New YorkJULIAN SNIPE (also known as “Biz” and “Bizzzy”)
Age: 37
Bronx, New YorkE.D.N.Y. Docket No. 18-CR-609 (S-3) (HG)
Sioux City Man Sentenced to 7 Years in Federal Prison for RobberyRead the Press Release
A Sioux City, Iowa man who brutally robbed a marijuana dealer was sentenced April 5, 2023, to 7 years in federal prison for robbery.
Alejandro Bautista, age 21, from Sioux City, Iowa, received the prison term after an October 24, 2022, guilty plea.
Evidence in the case showed that on October 28, 2020, Bautista tricked a marijuana dealer into allowing him into his home to buy marijuana. Once inside, Bautista shouted a signal and armed gunman entered the home. The marijuana dealer, a 20-year old man, his brother and girlfriend were home at the time, where they were restrained, beaten, brutalized and robbed of marijuana, cash, a firearm and other valuables.
Bautista was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand to 84 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system. Bautista is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated by the Sioux City, Iowa Police Department and prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-04029.
Follow us on Twitter @USAO_NDIA.
Sioux City Man Back to Prison for Violating Federal Supervised ReleaseRead the Press Release
A man who violated the terms of his federal supervised release was sentenced April 7, 2023, to more than one year in federal prison.
Rahmaan El Herman, 41, from Sioux City, Iowa, received the prison term after a Judge found him guilty of violating the terms and conditions of his supervised release. El Herman was sentenced in October 2008 to 180 months imprisonment with 5 years of supervised release following for his conviction of conspiracy to manufacture and distribute crack cocaine.
Evidence at the hearings showed El Herman violated multiple conditions of his supervised release which included multiple failures to report for drug testing and possessing a firearm during an assault of another person.
El Herman was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. El Herman was sentenced to 12 months’ plus one day imprisonment. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
El Herman is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by the U.S. Probation Office and the Sioux City Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 04-4042. Follow us on Twitter @USAO_NDIA.
Silk Road Dark Web Fraud Defendant Sentenced Following Seizure and Forfeiture of over $3.4 Billion in CryptocurrencyRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that JAMES ZHONG was sentenced today to one year and one day in prison for committing wire fraud in September 2012 when he unlawfully obtained approximaely 50,000 Bitcoin from the Silk Road dark web internet marketplace. United States District Judge Paul G. Gardephe imposed today’s sentence.
As part of the ZHONG investigation, the Government has obtained final orders of forfeiture for, among other items, 51,680.32473733 Bitcoin, valued at over $3.4 billion at the time of seizure and over $1.57 billion today.
U.S. Attorney Damian Williams said: “Back in 2012, James Zhong committed wire fraud by stealing 50,000 Bitcoin from Silk Road, and for the next 10 years, he managed to conceal what he had done and how he obtained his fortune. Zhong used a decentralized Bitcoin mixer, an overseas cryptocurrency exchange, and an impressive array of technological tools to frustrate tracing efforts. But thanks to the relentless and skillful efforts of law enforcement in following the money, the federal government uncovered Zhong’s scheme and obtained final orders of forfeiture for over 51,680 Bitcoin. Cyber-criminals should heed this message: we will follow the money and hold you accountable, no matter how sophisticated your scheme and no matter how long it takes.”
According to court filings and statements made in court proceedings:
ZHONG’s Scheme to Defraud
Silk Road was an online “darknet” black market. In operation from approximately 2011 until 2013, Silk Road was used by numerous drug dealers and other unlawful vendors to distribute massive quantities of illegal drugs and other illicit goods and services to many buyers and to launder all funds passing through it. In 2015, following a groundbreaking prosecution by this Office, Silk Road’s founder Ross Ulbricht was convicted by a unanimous jury and sentenced to life in prison. United States v. Ulbricht, 14-cr-68 (S.D.N.Y.).
In September 2012, ZHONG executed a scheme to defraud Silk Road of its money and property by (i) creating a string of approximately nine Silk Road accounts (the “Fraud Accounts”) in a manner designed to conceal his identity; (ii) triggering over 140 transactions in rapid succession in order to trick Silk Road’s withdrawal-processing system into releasing approximately 50,000 Bitcoin from its Bitcoin-based payment system into ZHONG’s accounts; and (iii) transferring this Bitcoin into a variety of separate addresses also under ZHONG’s control, all in a manner designed to prevent detection, conceal his identity and ownership, and obfuscate the Bitcoin’s source.
While executing the September 2012 fraud, ZHONG did not list any item or service for sale on Silk Road, nor did he buy any item or service on Silk Road. ZHONG registered the accounts by providing the bare minimum of information required by Silk Road to create the account; the Fraud Accounts were merely a conduit for ZHONG to defraud Silk Road of Bitcoin.
ZHONG funded the Fraud Accounts with an initial deposit of between 200 and 2,000 Bitcoin. After the initial deposit, ZHONG then quickly executed a series of withdrawals. Through his scheme to defraud, ZHONG was able to withdraw many times more Bitcoin out of Silk Road than he had deposited in the first instance. As an example, on September 19, 2012, ZHONG deposited 500 Bitcoin into a Silk Road wallet. Less than five seconds after making the initial deposit, ZHONG executed five withdrawals of 500 Bitcoin in rapid succession — i.e., within the same second — resulting in a net gain of 2,000 Bitcoin. As another example, a different Fraud Account made a single deposit and over 50 Bitcoin withdrawals before the account ceased its activity. ZHONG moved this Bitcoin out of Silk Road and, in a matter of days, consolidated them into two high-value amounts.
Nearly five years after ZHONG’s fraud, in August 2017, solely by virtue of ZHONG’s possession of the 50,000 Bitcoin that he unlawfully obtained from Silk Road, ZHONG received a matching amount of a related cryptocurrency — 50,000 Bitcoin Cash (“BCH Crime Proceeds”) — on top of the 50,000 Bitcoin. In August 2017, in a hard fork coin split, Bitcoin split into two cryptocurrencies, traditional Bitcoin and Bitcoin Cash (“BCH”). When this split occurred, any Bitcoin address that had a Bitcoin balance (as ZHONG’s addresses did) now had the exact same balance on both the Bitcoin blockchain and on the Bitcoin Cash blockchain. As of August 2017, ZHONG thus possessed 50,000 BCH in addition to the 50,000 Bitcoin that ZHONG unlawfully obtained from Silk Road. ZHONG thereafter exchanged through an overseas cryptocurrency exchange all of the BCH Crime Proceeds for additional Bitcoin, amounting to approximately 3,500 Bitcoin of additional crime proceeds. Collectively, by the last quarter of 2017, ZHONG thus possessed approximately 53,500 Bitcoin of total crime proceeds (the “Crime Proceeds”).
The Government’s Seizure of Over 50,000 Bitcoin
On November 9, 2021, pursuant to a judicially authorized premises search warrant, law enforcement agents recovered approximately 50,491.06251844 Bitcoin of crime proceeds from ZHONG’s Gainesville, Georgia, house. Law enforcement located these crime proceeds in an underground floor safe and on a single-board computer that was submerged under blankets in a popcorn tin stored in a bathroom closet. In addition, law enforcement recovered $661,900 in cash, 25 Casascius coins (physical bitcoin) with an approximate value of 174 Bitcoin, 11.1160005300044 additional Bitcoin, four one-ounce silver-colored bars, three one-ounce gold-colored bars, four 10-ounce silver-colored bars, and one gold-colored coin. Photographs of the popcorn tin, single-board computer, underground floor safe, and some of the seized items are included below:
Beginning in or around March 2022, ZHONG began voluntarily surrendering to the Government additional Bitcoin that ZHONG had access to and had not dissipated. In total, ZHONG voluntarily surrendered 1,004.14621836 additional Bitcoin.
Using a conservative estimate of the lowest spot price of Bitcoin on the seizure dates, the total value of all Bitcoin seized for which the Government has obtained final orders of forfeiture is approximately $3.4 billion.
Forfeiture Actions
On February 7, 2023, in United States v. Ross Ulbricht, S1 14 Cr. 68 (S.D.N.Y.), District Judge Lorna G. Schofield entered a final order of forfeiture as to the below property seized from ZHONG, vesting all right, title, and interest in the below property in the United States:
- 50,491.06251844 Bitcoin seized from ZHONG’s home on November 9, 2021;
- 825.38833159 Bitcoin provided by ZHONG on March 25, 2022; and
- 35.4470080 Bitcoin provided by ZHONG on May 25, 2022.
On March 14, 2023, District Judge Gardephe entered a final order of forfeiture as to the below property, vesting all right, title, and interest in the below property in the United States:
- ZHONG’s 80% interest in RE&D Investments, LLC, a Memphis-based company with substantial real estate holdings;
- $661,900 in United States currency seized from ZHONG’s home on November 9, 2021;
- Metal items, consisting of four one-ounce silver-colored bars, three one-ounce gold-colored bars, four 10-ounce silver-colored bars, and one gold-colored coin, all seized from ZHONG’s home on November 9, 2021;
- 11.1160005300044 Bitcoin seized from ZHONG’s home on November 9, 2021;
- 25 Casascius coins (physical Bitcoin) with an approximate value of 174 Bitcoin, collectively, seized from ZHONG’s home on November 9, 2021;
- 23.7112850 Bitcoin provided by ZHONG on April 27, 2022;
- 115.02532155 Bitcoin provided by ZHONG on April 28, 2022; and
- 4.57427222 Bitcoin provided by ZHONG on June 8, 2022.
* * *
ZHONG, 32, of Gainesville, Georgia, and Athens, Georgia, previously pled guilty to one count of wire fraud before Judge Gardephe.
Mr. Williams praised the outstanding work of the Internal Revenue Service, Criminal Investigation’s Western Cyber Crimes Unit of the Los Angeles Field Office. Mr. Williams also thanked the Athens-Clarke County Police Department in Athens, Georgia, for its support and assistance with the case.
The prosecution of this case is being overseen by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant U.S. Attorney David R. Felton is in charge of the case.
Seven New England Fishermen Charged with Tax Evasion and Failing to File ReturnsRead the Press Release
Federal grand juries in Providence, Rhode Island, and Boston returned separate indictments charging seven commercial fishermen with tax evasion and failing to file returns.
According to the indictments, the commercial fishermen each worked for fishing companies operating primarily out of New Bedford, Massachusetts, or Point Judith, Rhode Island, and received substantial compensation. The companies allegedly paid the fishermen as independent contractors and documented that income by, among other things, filing Forms 1099 with the IRS that reported the funds paid to the fishermen. It is alleged that notwithstanding the receipt of this income, each fisherman did not file individual tax returns or pay all the taxes owed on that income – for some defendants, they allegedly failed to file and/or pay taxes for a decade or more. To conceal the source and disposition of their income, the fishermen allegedly cashed paychecks and then used the cash to fund their lifestyles. One of the defendants allegedly also used the name and Social Security number of another individual to conduct business as a further effort to hide income. In some instances, the fishermen allegedly filed false tax returns for certain years by either not reporting their fishing income or by reporting false business expense deductions to reduce the amount of taxes they owed. Each allegedly evaded tax on between $900,000 and $1.9 million in income.
The seven fishermen indicted are:
Jorge Cazarin of New Bedford, Massachusetts, was charged with five counts of tax evasion and five counts of willful failure to file tax returns for 2016 through 2020.
Christopher Garraty of Newport and East Greenwich, Rhode Island, was charged with three counts of tax evasion and three counts of willful failure to file for 2016 through 2018, and a fourth count of tax evasion related to taxes he allegedly owed for 2007 through 2011.
Wojciech Kaminski of West Warwick, Rhode Island, was charged with five counts of tax evasion for 2014 and 2016 through 2019 and four counts of willful failure to file tax returns for 2016 through 2019.
Brian Kobus of Durham, Connecticut, was charged with five counts of tax evasion for 2017 through 2021.
Rodolfo Membreno of Fall River, Massachusetts, was charged with six counts of tax evasion for 2012 and 2017 through 2021 and four counts of willful failure to file tax returns for 2017 through 2019 and 2021.
John Doe of New Bedford, Massachusetts, was charged with six counts of tax evasion for 2016 through 2021 and three counts of willful failure to file tax returns for 2016 through 2018.
Miguel Cruz Rubio of New Bedford, Massachusetts, and Elizabethtown, North Carolina, was charged with four counts of tax evasion for 2016 through 2019.
If convicted, each defendant faces a maximum sentence of five years in prison for each evasion count and one year in prison for each failure to file a tax return charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division thanked U.S. Attorney Rachael S. Rollins for the District of Massachusetts and U.S. Attorney Zachary A. Cunha for the District of Rhode Island for their help and assistance in the investigation and prosecution of these cases.
IRS-Criminal Investigation is investigating these cases.
Assistant Chief John Kane and Trial Attorneys Samuel Bean, Matthew Cofer, Christina Grimes, and Ezra Spiro of the Justice Department’s Tax Division are prosecuting the cases.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
San Juan Man Indicted and Arrested for Coercion and Enticement of a MinorRead the Press Release
SAN JUAN, Puerto Rico – A federal grand jury returned an indictment charging Samuel Vega-Rodríguez, 42, of San Juan, Puerto Rico, with coercion and enticement of a minor and attempted production of child pornography, announced W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico. The arrest follows an investigation by Homeland Security Investigations (HSI) with the assistance of the Puerto Rico Police Bureau (PRPB) and the U.S. Attorney’s Office for the District of Puerto Rico.
According to the indictment, from May to September 2022, Samuel Vega-Rodríguez knowingly persuaded, induced, enticed, and coerced a 13-year-old female minor to engage in sexual activity. The man was arrested at his residence without incident on April 6.
According to court documents, the defendant began conversations via social media with the minor victim. In said conversations, the defendants talked about sex and asked for naked photos and videos of the minor victim. In May 2022, the defendant and the minor agreed to meet for a sexual encounter. When the minor victim saw Vega-Hernández and realized that the defendant was older than the male depicted in his social media accounts, the female minor left the meeting point running, after she punched him and kicked him when he attempted to stop her from leaving.
“We want to remind the community that the U.S. Attorney’s Office along with our federal, state and local partners, are committed to protecting children from these types of criminals,” said U.S. Attorney Muldrow. “If you are a victim or know of another victim of this individual, please come forward; contact the authorities so we can protect you and others from these crimes.”
“The Puerto Rico Crimes Against Children Task Force, led by HSI brings together local, state and federal law enforcement agencies with the common goal of investigating and arresting individuals that prey on our children,” said Rebecca C. González, Acting Special Agent in Charge of HSI San Juan.
Today, Vega-Rodríguez had his arraignment and bail hearing before U.S. Magistrate Judge Giselle López-Soler and was ordered to remain at the Guaynabo Metropolitan Detention Center awaiting the outcome of his case.
If convicted, Vega-Rodríguez faces a mandatory minimum penalty of 10 years up to life for the coercion and enticement charge, and a minimum of 15 years up to 30 years in prison for the production of child exploitation material charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant United States Attorney Daynelle Álvarez-Lora, of the Child Exploitation and Immigration Unit, is in charge of the prosecution of this case.
HSI is the principal investigative arm of DHS and a vital U.S. asset in combatting transnational crimes and threats. One of HSI’s top priorities is to protect the public from crimes of victimization, and HSI’s child exploitation investigations program is a central component of this mission. HSI is recognized as a global leader in this investigative discipline, and is committed to utilizing its vast authorities, international footprint and strong government and non-government partnerships to identify and rescue child victims, identify and apprehend offenders, prevent transnational child sexual abuse and help make the internet a safer place for children.
For more information about HSI’s efforts to protect children from online sexual abuse, visit https://www.ice.gov/topics/iGuardians.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Salvadoran Man Convicted of Illegally Reentering U.S. After RemovalRead the Press Release
RICHMOND, Va. – A federal jury convicted a citizen of El Salvador today of illegally reentering the United States after a prior removal.
According to court records and evidence presented at trial, Victor Manuel Romero-Diaz, 40, of El Salvador, was removed from the United States on December 12, 2011, after he was convicted of a felony offense for cocaine possession and distribution. In October 2022, immigration authorities found Romero-Diaz living in North Chesterfield, without having obtained permission to apply for reentry into the United States.
Romero-Diaz faces a maximum penalty of 10 years in prison when sentenced on September 5, 2023. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Russell Hott, Field Office Director, for U.S. Department of Homeland Security’s Enforcement and Removal Operations (ERO) Washington, D.C., made the announcement after U.S. District Judge David J. Novak accepted the verdict.
The Department of Justice’s Office of International Affairs and the Department of Justice’s Organized Crime and Gang Section provided assistance in this case. The Dirección General de Migración y Extranjería of El Salvador also provided significant assistance.
Assistant U.S. Attorneys Carla Jordan-Detamore and Kaitlin G. Cooke are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:22-cr-177.
Rochester Resident Arrested, Charged with Production and Possession of Child PornographyRead the Press Release
ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Matthew Richardson a/k/a Skylar “Sky” Ravenwood, 35, of Rochester, NY, was arrested and charged by criminal complaint with production and distribution of child pornography. The charge carries a mandatory minimum penalty of 15 years in prison, a maximum of 30 years, and a 250,000 fine.
Assistant U.S. Attorney Meghan K. McGuire, who is handling the case, stated that according to the complaint, in November 2022, the Greece Police Department received a report that a 16-year-old minor (minor victim) was missing, and that the minor victim had been seeing a person named “Sky.” Greece Police contacted “Sky” by telephone, who confirmed that he was with the minor victim. Greece Police also spoke with the minor victim who would not provide their location and stated that they did not want to return home. As a result, the minor victim was registered as a missing person in a law enforcement database. In early December 2022, Greece Police learned that Richardson and the minor victim were in an OnlyFans video and reached out to the FBI, which located the sexually explicit video. On December 9, 2022, Richardson and the minor victim were located by Ohio State Troopers in a vehicle Richardson had stolen in New York State. Richardson was arrested at that time.
Richardson made an initial appearance before U.S. Magistrate Judge Mark W. Pedersen and was held pending a detention hearing on April 18, 2023, at 1:00 p.m.
The complaint is the result of an investigation by the Greece Police Department, under the direction of Chief Michael Wood, the Federal Bureau of Investigation Child Exploitation Human Trafficking Task Force, under the direction of Special Agent-in-Charge Matthew Miraglia, New York State Police, under the direction of Major Brian J. Ratajczak, and the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Quincy Man Sentenced to 12 Years for Child Pornography OffenseRead the Press Release
Spokane – On April 12, 2023, U.S. District Judge Thomas O. Rice sentenced Sergio Bonilla
Henriquez, 24, of Quincy, Washington, to 144 months in federal prison for Receipt of Child
Pornography. Defendant pleaded guilty on January 11, 2023. Judge Rice also ordered
Henriquez to pay $48,000 in restitution to his victims and be federally supervised for life after
Henriquez is released from prison.According to court documents and proceedings, Henriquez was identified as a child exploitation
suspect after he used various names to engage in several online chat groups dedicated to the
trading of child pornography. Within the chat groups, Henriquez distributed and received child
pornography files depicting minors of all ages and engaged in explicit discussions detailing his
sexual interest in minors and encouraging the sex abuse of minors by others. After a federal
search warrant was executed at Henriquez’s residence, forensic review of his phone revealed
more than 26,000 images and videos of child pornography.Court documents further reveal that, after being granted pretrial release from custody, Henriquez
uploaded child pornography to outgoing communications in Snapchat, which led to the execution
of another federal search warrant at Henriquez’s residence. Investigators found minors living in
the residence and Henriquez in possession of firearms, which were violations of his release
conditions. They also discovered additional evidence of child pornography on Defendant’s
electronic devices.“The significant sentence imposed in this case recognizes the ongoing and lasting harm caused
by child exploitation. It also sends a strong message to Mr. Henriquez and others who use what
they believe to be online anonymity to exploit the most vulnerable among us,” said United States
Attorney Vanessa R. Waldref. “I commend the collaborative, hand-in-glove investigation and
prosecution of this case by the child exploitation agents at Homeland Security Investigations and
AUSA Ann Wick, who is one of the most experienced and thoughtful child exploitation
prosecutors in the District.”“Child predators like Mr. Henriquez cannot be allowed to engage in these kinds of depraved acts,
whether in person or online,” said Steven Schrank, Deputy Special Agent in Charge of HSI
operations in the Pacific Northwest. “Child exploitation cases can be among the most heart-wrenching
in all of law enforcement, but this investigation shows our commitment to finding
justice for underage victims and their families.”This case was investigated by Homeland Security Investigations, with the assistance of the Grant
County Sheriff’s Office, and prosecuted by Ann T. Wick, Assistant United States Attorney for
the Eastern District of Washington.2:20-CR-100-TOR