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Tuesday 11 April 2023
Return Preparer and Former Owner of National Tax Preparation Franchise Pleads Guilty to Tax EvasionRead the Press Release
A Georgia man pleaded guilty today to evading the proper assessment of his personal federal income taxes.
According to court documents, from 1999 to 2021, Samir Patel of Statesboro, Georgia, was a tax return preparer at a national return preparation business. In 2015, Patel purchased a franchise of the business in Claxton, Georgia. As the owner, he hired, trained and supervised tax preparers, and continued to prepare returns for customers. Patel, however, willfully filed false income tax returns that underreported his income and evaded proper assessment of his personal taxes for years 2015, 2016, and 2017.
He faces a maximum penalty of five years in prison, as well as a period of supervised release, restitution and monetary penalties. U.S. District Court Chief Judge J. Randal Hall for the Southern District of Georgia will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Jill E. Steinberg for the Southern District of Georgia made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Matthew C. Hicks and Richard J. Hagerman of the Justice Department’s Tax Division and Assistant U.S. Attorney John P. Harper III of the Southern District of Georgia are prosecuting the case.
Restaurateur Sentenced to 57 Months in Prison for over $6 Million Pandemic Loan Fraud and Interstate ThreatsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that restaurateur BESIM KUKAJ was sentenced to 57 months in prison for orchestrating a sprawling loan fraud scheme, including while he was on pretrial release, whereby he fraudulently sought at least $6.14 million and received $1.5 million in Government-guaranteed loans designed to provide relief to small businesses during the COVID-19 pandemic. KUKAJ was also sentenced for attempting to intimidate a creditor as part of an interstate threats scheme with his already sentenced co-defendant Abduraman Iseni, a/k/a “Diamond.” U.S. District Judge Andrew L. Carter imposed today’s sentence.
U.S. Attorney Damian Williams said: “Manhattan restaurateur Besim Kukaj took advantage of the hardships created by the COVID-19 pandemic and the federal government’s efforts to help those in need by lining his own pockets with seven figures of illegally obtained funds. He did this out of pure greed, sending some of this money to a Florida real estate developer and using it to buy luxury items from Cartier and Hugo Boss. He even continued to commit the same crimes while he was on bail. And he didn’t stop there. He directed his co-conspirator to physically threaten a victim to whom he owed money. For his brazen crimes, Kukaj will serve meaningful time in prison.”
According to court filings and statements made in court proceedings:
The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of hundreds of billions of dollars in forgivable loans to small businesses for job retention and certain other expenses through the Small Business Administration’s Paycheck Protection Program (“PPP”) and additional billions for the separate Economic Injury Disaster Loan program (“EIDL”). Pursuant to the CARES Act, the amount of PPP funds a business is eligible to receive is determined in significant part by the number of employees employed by the business and their average payroll costs. The amount of a loan under the EIDL program is determined in part by a formula based on the date the borrower began operating and the borrower’s gross revenue and cost of goods sold during a period before the pandemic. The loans can be used only for working capital and other normal operating expenses. Businesses applying for loans under the PPP and EIDL program must confirm the accuracy of their loan statements.
From at least in or about April 2020 through at least in or about July 2020, KUKAJ, working with others, submitted applications for loans under the EIDL program and the PPP to multiple banks on behalf of various restaurants KUKAJ or a relative of his owned. He did so on behalf of restaurants that were no longer operating or that had far less revenue and far fewer employees than were listed on the loan applications. KUKAJ and his co-conspirators applied for dozens of loans, totaling at least $6.14 million, from numerous financial institutions, using many different corporate entities, and they successfully received at least $1.5 million in loans.
KUKAJ was arrested in October 2020 and charged with bank fraud conspiracy and later indicted for the same charges in December 2020. He was released on pretrial release under a court order that notified him of the potential effect of committing a crime while on pretrial release. KUKAJ violated the terms of his bail for continuing to file false loan applications while on pretrial release for the same conduct. Specifically, in 2021, while on pretrial release, KUKAJ filed additional false loan applications that inflated the businesses’ number of employees and payrolls and falsely claimed that he was not under indictment.
Separately, on November 6, 2019, at the urging of KUKAJ, co-defendant Abduraman Iseni placed a telephone call to a victim, in which Iseni threatened physical violence against the victim. KUKAJ instructed Iseni to place this call because KUKAJ owed money to the victim.
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In addition to the prison sentence, KUKAJ, 43, of Fort Lee, New Jersey, was ordered to pay forfeiture of $1,500,000 and restitution in the amount of $1,500,000 to the U.S. Small Business Administration.
Mr. Williams praised the outstanding work of the Federal Bureau of Investigation New York’s Balkans and Middle East Organized Crime Squad, as well as the Small Business Administration Office of the Inspector General, the Social Security Administration Office of the Inspector General, and the New York State Liquor Authority for their investigative efforts and ongoing 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. Attorneys David R. Felton and Samuel L. Raymond are in charge of the case.
Repeat Sex Offender Sentenced to Ten Years in Federal Prison Following Third Conviction for Possession of Child Sexual Abuse ImagesRead the Press Release
INDIANAPOLIS- Jasmine Marshall, 41, of Indianapolis, Indiana, formerly known as Wesley Marshall, was sentenced to 10 years in federal prison after pleading guilty to possession of child sexual abuse material.
According to court documents, in 2011, Marshall was convicted of possession of child sexual abuse material in Hamilton County and was sentenced to 3 years in the Indiana Department of Corrections. In 2014, Marshall was again convicted of possession of child sexual abuse material and sentenced to 10 years in federal prison, followed by a lifetime of supervised release. Marshall has been a registered sex offender since December of 2011.
On, October 29, 2021, Marshall was released from federal prison to lifetime supervision. On August 25, 2022, Indianapolis Metropolitan Police Department Task Force Officers assisted Marion County Probation officers, State Parole Agents, and Federal Probation Agents in a search of apartments of sex offenders living in Indianapolis. At the time of the search, Marshall was living in a halfway house.
During a search of Marshall’s apartment, agents located a Motorola cell phone hidden inside a bag on the floor of a closet. At the time of this search, Marshall was prohibited from owning a computer or internet-enabled device that did not comply with the U.S. Parole & Probation Office’s Computer Restriction and Monitoring Program.
When questioned by agents, Marshall admitted using the cell phone to view and download child sexual abuse material. Specifically, Marshall described a hidden folder on the phone that was only accessible by her fingerprint. The folder contained pictures of the sexual abuse of children as young as nine-years-old.
Zachary A. Myers, United States Attorney for the Southern District of Indiana, Herbert J. Stapleton, Special Agent in Charge of the FBI’s Indianapolis Field Office, and Randall Taylor, Chief of Indianapolis Metropolitan Police Department made the announcement.
“Undeterred by two prior prison sentences, this defendant persisted in seeking out these vile images of child sexual abuse,” said U.S. Attorney Myers. “Pedophiles traffic in child sexual abuse materials online because gratifying their sexual interest in children is more important to them then the safety or dignity of survivors. Circulation of abuse images exacerbates the trauma already inflicted on child victims and is deserving of significant punishment. The sentence imposed today demonstrates the commitment of our Office, the FBI, and IMPD, to make our children safer by ensuring that these dangerous offenders are in prison where they belong.”
The Federal Bureau of Investigation and IMPD investigated this case. The sentence was imposed by U.S. District Court Judge James R. Sweeney. Judge Sweeney also ordered that Marshall be supervised by the U.S. Probation Office for life following her release from federal prison.
U.S. Attorney Myers thanked Assistant U.S. Attorney Adam Eakman, who prosecuted this 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. Attorneys’ Offices and the Child Exploitation and Obscenity Section, 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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Rapid City Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange, U.S. District Court, has sentenced a Rapid City, South Dakota, man convicted of Failure to Register as a Sex Offender. The sentencing took place on April 7, 2023.
Sonny Ray Escarsega, a/k/a Sonny Ray Ruiz, age 40, was sentenced to two years in federal prison, followed by five years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Escarsega was indicted by a federal grand jury in November of 2022. He pleaded guilty on January 9, 2023.
Escarsega was convicted of Aggravated Sexual Abuse in 2003. As a result of this conviction, he is required to register as a sex offender and to update his registration within three business days of relocation or changing employment. In August of 2022, Escarsega was released from prison and began a period of supervised release. Escarsega initially registered and resided at an address in Rapid City, but he subsequently moved from his registered address and did not update his registration. His whereabouts were unknown until his arrest near Mission, South Dakota, on October 25, 2022.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Escarsega was immediately remanded to the custody of the U.S. Marshals Service.
Queen City Motors Owner Sentenced for $783,000 Fraud SchemeRead the Press Release
SPRINGFIELD, Mo. – A Nixa, Mo., man who used his business to steal customers’ identity information in a scheme to obtain hundreds of thousands of dollars in fraudulent car loans was sentenced in federal court today.
Chris R. King, 48, was sentenced by U.S. Chief District Judge Beth Phillips to four years in federal prison without parole. The court also ordered King to pay $646,597 in restitution to his victims and to forfeit the same amount to the government.
On Nov. 20, 2021, King pleaded guilty to one count of conspiracy to commit wire fraud, one count of wire fraud, and one count of aggravated identity theft.
King, formerly the co-owner of Queen City Motors, a used car business in Springfield, Mo., admitted that he stole the identity information of individuals who were interested in obtaining loans to purchase vehicles from him. King used that information, without the knowledge or authorization of the potential customers, to fraudulently submit loan applications and receive funds wired to his bank account from Credit Acceptance, a company that dealt specifically in the approval of subprime loans for individuals with poor credit ratings.
King fraudulently submitted at least 30 automobile loan applications and received cash deposits of approximately $783,475 between Nov. 1, 2018, and Nov. 8, 2020.
This case was prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the U.S. Secret Service and the Springfield, Mo., Police Department.
Pittsburgh-Area Business Owner Sentenced to Prison for Selling Stolen Health and Beauty ProductsRead the Press Release
PITTSBURGH, PA – A former resident of Pittsburgh, Pennsylvania, currently a resident of Parkland, Florida, has been sentenced in connection with his plea of guilty to charges of wire fraud and money laundering, Acting United States Attorney Troy Rivetti announced today.
According to the information presented to the Court, Thach Duc Le, had pled guilty in November of 2022 to counts of wire fraud and money laundering for his role in selling stolen goods, mostly health and beauty aids and over the counter medications, through his Bellevue business, called Last Call Entertainment, which was supposedly in the business of selling used electronics.
Chief Judge Mark Hornak imposed a sentence of 19 months in federal prison, a fine of $8000 and three years of supervised release in addition to a $200 special assessment. In imposing sentence Judge Hornak noted the seriousness of the offense, what he characterized as a “consequential crime,” a long term fencing operation for goods stolen from local merchants in the Bellevue area. Judge Hornak noted that Le was aware that the persons who brought the goods into his store to sell to him were known to him to be drug addicts and that his activity was instrumental in perpetuating a cycle of criminal activity that damaged the community and made Le a “mountain of money.”
The Internal Revenue Service, Criminal Investigation, the Federal Bureau of Investigation, and the United States Postal Inspection Service conducted the investigation leading to the Indictment and the guilty plea in this case. Police departments from the City of Pittsburgh, Ross Township and Shaler Township also assisted in the overall investigation.
Pittsburgh Man Sentenced to more than 5 Years in Prison for Drug and Gun Law ViolationsRead the Press Release
PITTSBURGH, PA - A resident of the Beechview neighborhood of Pittsburgh was sentenced to 67 months and a term of three years of supervised release by United States District Judge for the Western District of Pennsylvania, Nora Barry Fischer, Acting United States Attorney Troy Rivetti announced today.
Prior to imposing this sentence, Stephen Morgan, age 28, pleaded guilty to a two-count Information related to trafficking narcotics and felony possession of a firearm in December 2022. Morgan’s conviction and sentence stemmed from an incident on or about Jan. 12, 2019, where Morgan possessed with intent to distribute heroin and acetyl fentanyl, Schedule I controlled substances, and cocaine base and fentanyl, Schedule II controlled substances.
When imposing this sentence, Judge Fischer expressed her concern regarding the seriousness of trafficking offenses and the fatalities that controlled substances, including fentanyl, cause in this district.
Assistant United States Attorney Nicole A. Stockey prosecuted this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the City of Pittsburgh Bureau of Police conducted the investigation leading to the Indictment in this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Pittsburgh Man Gets 12-Year Prison Sentence for Drug Distribution and Illegal Possession of a Firearm and AmmunitionRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to 12 years of imprisonment on his convictions Possession with the Intent to Distribute Heroin and Crack Cocaine, Possession of Firearms and Ammunition by a Convicted Felon, and Possession of Contraband in Prison, Acting United States Attorney Troy Rivetti announced today.
United States District Judge Robert J. Colville imposed the sentence on Kris Johnson, age 32, of the City’s Knoxville neighborhood.
According to information presented to the court, Johnson used the third-floor bedroom of a relative’s house located on Antrim Street, which is in the Northside neighborhood of Pittsburgh, as a place to store his controlled substances and firearms. On Nov. 9, 2017, the Allegheny County Sheriff’s Office executed a Family Division arrest warrant at that home unrelated to Johnson. During the protective sweep of the residence and a later search warrant, officers from the Allegheny County Sheriff’s Office found, in a third-floor bedroom used by Johnson, distribution quantities of heroin and crack cocaine, two guns, numerous boxes of ammunition, two digital scales, rubber bands consistent with the packaging of drugs, two cellular telephones and evidence linking the defendant to the bedroom. The Allegheny County Medical Examiner’s Office recovered Johnson’s fingerprints from a digital scale and a box of ammunition found in the bedroom. Johnson is prohibited from possessing firearms and ammunition under federal law because of he has prior felony convictions, which include prior drug trafficking and illegal firearm possession charges.
While awaiting trial for those offenses, Johnson was incarcerated at the Allegheny County Jail. Officials from the Allegheny County Jail received some information that Johnson’s cell contained drugs, and they conducted a search of the cell on Aug. 12, 2018. During the search, Johnson was found in possession of a ripped off glove finger that contained more than 150 small pieces of paper consistent with a “hit” of K-2. Subsequent laboratory analysis by the Allegheny County Medical Examiner’s Office determined that the substance was 5-F ADB, which is a synthetic cannabinoid and a Schedule I controlled substance.
Assistant United States Attorney Brendan T. Conway prosecuted this case on behalf of the government.
Acting United States Attorney Rivetti commended the Allegheny County Sherriff’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, and the Allegheny County Medical Examiner’s Office for the investigation leading to the successful prosecution of Johnson.
Pine Ridge Man Charged with Second Degree MurderRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced that a Pine Ridge, South Dakota, man has been charged with Second Degree Murder.
Trent Brewer, age 20, was recently charged, and appeared before U.S. Magistrate Judge Daneta Wollman on April 7, 2023, and pleaded not guilty to the charge.
The maximum penalty upon conviction is up to life in custody and/or a $250,000 fine, five years supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
In April of 2023, at Pine Ridge, Brewer shot and killed another man during an argument. The charge is merely an accusation and Brewer is presumed innocent until and unless proven guilty.
The investigation is being conducted by the FBI and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Benjamin Patterson is prosecuting the case.
Brewer was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been scheduled for June 13, 2023.
Omaha Man Sentenced to 87 Months for Distribution of MethamphetamineRead the Press Release
United States Attorney Steven Russell announced that Massey Allen, 42, of Omaha and South Sioux City, Nebraska, was sentenced today in federal court in Omaha for distribution of methamphetamine. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Allen to 87 months’ imprisonment. There is no parole in the federal system. After his release from prison, he will begin a four-year term of supervised release.
On June 21, 2022, Allen sold methamphetamine to a cooperating witness working with law enforcement. Forensic testing by a crime laboratory confirmed 139 grams of methamphetamine.
This case was investigated by the Drug Enforcement Agency, the Omaha Police Department, and the Southwest Iowa Narcotics Task Force.
Omaha Man Sentenced for Theft of FirearmsRead the Press Release
United States Attorney Steven Russell announced that Terry Barfield, 19, of Omaha, Nebraska, was sentenced today in federal court in Omaha for stealing firearms from a federally licensed dealer. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Barfield to imprisonment for 36 months to be followed by a 3-year term of supervised release.
On August 8, 2022, forty-four (44) firearms were stolen during a break-in of the store front of Frontier Justice, a Federal Firearms Licensee (FFL), in Omaha. Investigators determined that three suspects broke exterior windows of the store and entered wearing face coverings and gloves. They were observed to be driving a white sedan.
On August 19, 2022, Omaha Police Department (OPD) detectives observed a car matching the description of the sedan used during the break-in of Frontier Justice. OPD officers stopped the car at North 35th and Jaynes Streets and the four occupants fled on foot. A detective observed Barfield in possession of a black handgun which he (Barfield) placed in his waistband while he was fleeing. Three suspects were arrested including Barfield, and Barfield’s cell phone was seized. Detectives searched the area and recovered a Glock 34 9mm handgun. The Glock was later confirmed to have been stolen from Frontier Justice during the August 8, 2022, break-in. Another firearm was found near the car. OPD later obtained a warrant to search Barfield’s cell phone which yielded additional evidence of his involvement in the break-in.
On August 30, 2022, OPD officers executed a warrant to search Barfield’s residence. Investigators recovered another firearm during the search (a CZ P-10c 9mm handgun) which was also confirmed to have been stolen from Frontier Justice. Barfield was arrested and interviewed and admitted the CZ P-10c firearm found at his residence was his, though he falsely claimed he found it at a party. He denied knowing about the break-in at Frontier Justice.
This case was 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 make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
This case was investigated by the Omaha Police Department and the Bureau of Alcohol, Tobacco, and Firearms.
Omaha Man Sentenced for Mail TheftRead the Press Release
United States Attorney Steven Russell announced the Jorge Felix Morejon, 25, of Omaha, Nebraska, was sentenced today in federal court in Omaha for theft of mail. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Morejon to five months’ imprisonment. There is no parole in the federal system. After his release from prison, Morejon will begin a 3-year term of supervised release. Chief Judge Rossiter ordered Morejon to pay restitution in the amount of $25.
In July 2022, United States Postal Inspectors found duct tape rings inside the snorkel of a mail collection box located in Omaha. Postal Inspectors determined that the tape rings were used to collect mail without knowledge of the mailer. The mail could then be manually retrieved from the tape within the mail collection box. Found on the tape were eight fingerprints that were identified as the prints of Morejon. As part of their investigation, Postal Inspectors placed a test mailing containing two gift cards on the tape found in the mail collection box. Surveillance showed Morejon using the gift cards at various locations in Omaha.
Morejon was convicted in 2017 in Miami, Florida, of mail theft using a similar means.
This case was investigated by the United States Postal Inspection Service.
NoHo Man Admits Lying to FBI about His Role in Creating Fake Basquiat Paintings Seized Last Summer from Florida MuseumRead the Press Release
LOS ANGELES – A one-time auctioneer has agreed to plead guilty to lying to FBI agents about the origins of paintings attributed to Jean-Michel Basquiat that were seized last year from the Orlando Museum of Art, admitting in court papers filed today that he and another man created the fake art and that he falsely attested to the paintings’ provenance.
Michael Barzman, 45, of North Hollywood, was charged today in federal court with making false statements to the FBI during an interview in August 2022. In a plea agreement also filed today, Barzman agreed to plead guilty to the felony offense and made a series of admissions about the fake paintings.
Barzman has agreed to surrender to federal authorities for a court appearance that has not yet been scheduled.
The plea agreement and a criminal information filed today outline how Barzman and a second man – identified in the court documents as “J.F.” – created the fake Basquiats in 2012 after hatching a plan to market the bogus artwork.
“J.F. spent a maximum of 30 minutes on each image and as little as five minutes on others, and then gave them to [Barzman] to sell on eBay,” according to the plea agreement. “[Barzman] and J.F. agreed to split the money that they made from selling the Fraudulent Paintings. J.F. and [Barzman] created approximately 20-30 artworks by using various art materials to create colorful images on cardboard.”
Barzman, who in 2012 ran an auction business focused on purchasing and reselling the contents from unpaid storage units, further admitted that he attempted to create a false provenance – or history of the ownership of a piece of art – for the purported Basquiats by claiming in a notarized document that the fraudulent paintings were found inside a storage unit that a well-known screenwriter had rented.
The bogus art was sold and made its way through the art market, forming the basis of an exhibition that opened in February 2022 at the Orlando Museum of Art. “Most of the featured works had, in fact, been created by [Barzman] and J.F.,” Barzman admitted in his plea agreement.
The FBI executed a search warrant at the Orlando Museum of Art in June 2022 and seized 25 pieces that Basquiat purportedly had created.
During an August 18, 2022 interview with special agents of the FBI, Barzman denied making the paintings himself.
“At the time of the interview, [Barzman] knew that he and J.F. had created the paintings and that his statements to the contrary were untruthful,” Barzman admitted in his plea agreement. “His statement that he did not make the paintings or have someone make them for him were material to the activities and decisions of the FBI and were capable of influencing the agency’s decisions and activities.”
In another FBI interview in October 2022, Barzman admitted “it was a lie” that the artwork had come from the storage locker, but he continued to deny making the fraudulent paintings – even after agents showed him the back of a painting on cardboard seized from the Orlando Museum of Art in which his name appears on a mailing label that had been painted over.
The crime of making false statements to a government agency carries a statutory maximum penalty of five years in federal prison.
The FBI’s Art Crime Team is investigating this matter.
Assistant United States Attorneys Mark A. Williams, Chief of the Environmental and Community Safety Crimes Section; Matthew W. O’Brien of the Environmental and Community Safety Crimes Section; and Alix L. McKenna of the General Crimes Section are prosecuting this case. Assistant United States Attorney Daniel Boyle of the Asset Forfeiture and Recovery Section is handling the forfeiture of seized artwork.
Nigerian Man Pleads Guilty to Online Fraud SchemesRead the Press Release
BOSTON – A Nigerian man pleaded guilty yesterday to his role in online fraud schemes after being extradited from the United Kingdom.
Happy Chukwuma, 30, pleaded guilty to one count of wire fraud conspiracy. U.S. Senior District Court Judge Douglas P. Woodlock scheduled sentencing for May 5, 2023. Chukwuma was indicted by a federal grand jury in August 2019. He was arrested and detained in the United Kingdom at the request of the United States in September 2022 and extradited to the United States in March 2023.
Between November 2015 and January 2019, Chukwuma and his co-conspirators participated in a variety of online fraud schemes, including “phishing” and romance scams. They exchanged victims’ personally identifiable information, including identification and financial documents, and engaged in financial transactions with that information. Several of the victims whose information was compromised were from Massachusetts.
Phishing schemes mimic the appearance of legitimate websites to gather victims’ online credentials, including usernames, passwords, financial account information, social security numbers and other types of personal identifiable information. In romance scams, perpetrators generally create fictitious online personas to develop online romantic relationships with individuals in the United States, and then leverage those relationships to obtain money and property.
The charge of wire fraud conspiracy provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorney Mackenzie A. Queenin of Rollins’ Securities, Financial & Cyber Fraud Unit is prosecuting the case. The Justice Department’s Office of International Affairs and the United Kingdom’s Metropolitan Police National Extradition Unit provided critical assistance in securing the arrest and extradition of Chukwuma.
Methamphetamine Dealer Sentenced to 10 Years in Federal PrisonRead the Press Release
EAST ST. LOUIS, Ill. – In a U.S. District courtroom on Monday, a federal judge sentenced a Cahokia Heights man to 120 months in prison after he admitted to distributing methamphetamine in 2021.
Carlos M. Johnson, 49, received a concurrent sentence of 87 months’ imprisonment for a separate possession with intent to distribute a controlled substance charge, and another concurrent sentence of 87 months’ imprisonment for being a felon in possession of a firearm. He was fined $300 and must also pay $300 in special assessments. Following his release from federal prison, Johnson must complete five years of supervised release.
“Drug dealers selling harmful and dangerously addictive drugs gamble with their freedom by the decade,” said U.S. Attorney Rachelle Aud Crowe. “Federal law enforcement agents will work alongside state and local partners to pursue drug distributors wherever they are located and bring them to justice.”
According to court documents, Johnson’s offenses occurred in January 2021. Based on evidence of drug dealing activity, federal agents executed a search warrant of Johnson’s home. As a result, federal agents seized six different kinds of controlled substances and multiple firearms from Johnson’s home.
A federal grand jury indicted Johnson on March 22, 2022, for distribution of a controlled substance, possession with intent to distribute a controlled substance, and felon in possession of a firearm. Johnson pled guilty on Dec. 1, 2022.
The Drug Enforcement Administration conducted the investigation, and Assistant U.S. Attorney John Trippi prosecuted the case.
This case was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Mason City Woman Sentenced to Federal Prison for Distributing MethamphetamineRead the Press Release
A Mason City woman was sentenced April 10, 2023, to more than 7 years in federal prison.
Kari Ann Peters, age 36, from Mason City, Iowa, received the prison term after an August 31, 2023, guilty plea to distribution of methamphetamine.
In a plea agreement, Peters admitted to distributing methamphetamine around the Mason City, Iowa area.
Peters was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Peters was sentenced to 84 months’ imprisonment. She must also serve a 4-year term of supervised release after the prison term. There is no parole in the federal system.
Peters is being held in the United States Marshal’s custody until she can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Jack Lammers and investigated by the Cerro Gordo Sheriff’s Office, Mason City Police Department, Iowa Department of Narcotics Enforcement, and the North Central Iowa Drug Task Force.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 21-3033.
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Manchester Man Sentenced for Possessing a Firearm as a FelonRead the Press Release
A man who possessed a firearm as a felon was sentenced today to almost five years in federal prison.
Timothy Tirrell Brown, age 34, from Manchester, Iowa, received the prison term after a November 14, 2022, guilty plea to one count of possession of a firearm by a felon.
At the guilty plea, Brown admitted that, on July 24, 2021, he knowingly possessed a firearm, a Smith & Wesson M&P-15, 5.56 NATO AR pistol with an attached 30-round magazine, as a prohibited person. A Hardin County deputy sheriff found the loaded firearm behind the front passenger seat of the car Brown was driving following a traffic stop. Brown was prohibited from possessing a firearm because he was previously convicted in Jackson County, Mississippi, of one count of Felony Sale or Transfer of Cocaine and two counts of Felony Possession of Cocaine in July 2007, and one count of Felony Hindering Prosecution in the First Degree in May 2014.
Brown was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Brown was sentenced to 57 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Brown 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 Daniel C. Tvedt and was investigated by the Hardin County Sheriff’s Department and the Iowa Department of Public Safety.
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.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-40.
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Kennewick Man Sentenced to over 22 Years in Prison for Producing Child PornographyRead the Press Release
Richland, WA – Chief United States District Judge Stanley A. Bastian sentenced James Patrick Wertman, age 53, of Kennewick, Washington, to 270 months in federal prison today for Production of Child Pornography. At the conclusion of his prison term, Wertman will spend the rest of his life on federal supervision. Chief Judge Bastian ordered restitution to the victims of Wertman’s offenses in the amount of $19,601.10. Wertman had entered a guilty plea to two counts of Production of Child Pornography, on January 10, 2023.
In announcing today’s sentence, Chief Judge Bastian observed that Wertman victimized a young child for several years and that in victimizing the child, he also victimized her family. Judge Bastian further indicated his sentence needed to recognize for the victim, the victim’s family, and the public that Wertman’s crime was serious and deserving of a serious sentence.
According to publicly available court documents, this case stemmed from a complaint from Defendant’s former fiancé, who reported she had located an iPad containing naked images of children, including the fiancé’s daughter, who was seven years old at the time.
Law enforcement obtained a search warrant and searched all of Wertman’s devices to include the iPad provided by the child’s mother and the iCloud account associated with that device. The search revealed child pornography images and videos Defendant produced of the child from the time she was 4 years old, up through the date her mother located the images, when the child was 7. During the investigation, law enforcement interviewed Wertman, who stated he had been in a dating relationship with the child’s mother for several years. Wertman further claimed that he believed he had deleted the nude photographs of the child.
The videos recovered from the iPad and Wertman’s iCloud depict him setting up a recording device (a phone) prior to capturing the child, who was not wearing any clothing. Wertmen then proceeded to sexually molest the child. These images and videos are the subject of the federal case against Wertman for which he was sentenced today. Following today’s sentencing, Wertman will be transferred to Benton County Superior Court, where he has agreed to plead guilty to two counts of first-degree child molestation.
While the gravity of Wertman’s crimes and the impact on his victim are immediately apparent, Wertman’s actions also have impacted, and will continue to impact, the victim’s family. Wertman’s crimes left a mother believing she is incapable of protecting her own children. As the victim’s mother explained in a victim impact letter, she now questions every relationship, distrusts everyone, and lives in a state of constant worry and fear, all as a result of Wertman’s betrayal of trust. This grieving mother further notes she thought she was doing all of the right things to protect her children, but believes she failed her daughter. The victim’s other family members expressed the same feelings regarding the harm they experienced as a result of Wertman’s crimes against an innocent child.
After today’s sentencing hearing, U.S. Attorney Vanessa R. Waldref stated, “Child abuse devastates entire families and our community. While we all need to take great care in selecting our children’s caretakers, this crime was the fault of one man only, the Defendant, James Wertman, who chose to victimize an innocent child who trusted him.” U.S. Attorney Waldref reiterated, “My office prioritizes these offenses against our community’s youngest and most vulnerable and will continue to aggressively prosecute those who harm children.”
“Mr. Wertman exploited a position of trust to abuse an innocent child. I applaud the investigative work to put this child predator behind bars,” said SAC Robert Hammer, who oversees HSI operations in the Pacific Northwest. “Child exploitation cases will remain a priority for HSI, and we ask that parents remain alert to anyone that would pose a threat to children.”
This case was pursued as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. The Project Safe Childhood Initiative (“PSC”) has five major components:
· Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue children;
· Participation of PSC partners in coordinated national initiatives;
· Increased federal enforcement in child pornography and enticement cases;
· Training of federal, state, and local law enforcement agents; and
· Community awareness and educational programs.For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
The federal case was investigated by Homeland Security Investigations through the Southeast Regional Internet Crimes Against Children Task Force, which includes detectives from the Kennewick and Richland Police Departments as well as the Benton County Sheriff’s Office. This case was prosecuted by Alison L. Gregoire, Assistant United States Attorney for the Eastern District of Washington, and Laurel Holland, Deputy Prosecuting Attorney for Benton County.
4:21-CR-06024-SAB
Inmate Indicted for Assaulting Warden at Medical CenterRead the Press Release
SPRINGFIELD, Mo. – An inmate at the U.S. Medical Center for Federal Prisoners in Springfield, Mo., was indicted by a federal grand jury today for assaulting the warden.
Omar Romero-Morales, 36, was charged in an indictment returned by a federal grand jury in Springfield.
According to the indictment, Romero-Morales punched the medical center’s warden in the face.
The charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the FBI, the U.S. Medical Center for Federal Prisoners, and the Bureau of Prisons.
Illinois Man Pleads Guilty to Being a Felon in Possession of a FirearmRead the Press Release
A felon who possessed a firearm pled guilty today in federal court in Cedar Rapids, Iowa.
Jamie Swanson, age 32, of Colona, Illinois, was convicted of one count of being a felon in possession of a firearm. At the plea hearing, Swanson admitted that, in March 2022, he possessed a pistol after having been convicted of a felony.
Sentencing before Chief United States District Court Judge Leonard T. Strand will be set after a presentence report is prepared. Swanson remains in custody of the United States Marshal pending sentencing. Swanson faces a possible maximum sentence of ten years’ imprisonment, a $250,000 fine, and three years of supervised release following any imprisonment.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Anamosa Police Department, the Jones County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Iowa Division of Criminal Investigation.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 22-100.
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Honduran citizen admits to two federal feloniesRead the Press Release
HOUSTON – A 23-year-old non-U.S. citizen illegally residing in Houston has pleaded guilty to illegally re-entering the country and to unlawfully possessing a firearm, announced U.S. Attorney Alamdar S. Hamdani.
Jairon Odair Pineda-Gomez is a citizen of Honduras and is an alleged member of the 18th Street gang.
In January 2021, Pineda-Gomez was arrested for illegally re-entering the country. Released on bond, he later cut off his ankle monitor and absconded while charges were pending.
Authorities arrested him for the bond violation in September 2022, at which time he had a Smith & Wesson .40 caliber pistol in his backpack. Records indicate Pineda-Gomez had pointed the pistol at multiple people, including a 9-year-old child, in July 2022. He was also seen on surveillance video shooting a gun in the air.
Chief U.S. District Judge Randy Crane accepted the plea and set sentencing for June 21. At that time, Pineda-Gomez faces up to 15 years for the firearms conviction as well as another two for the illegal re-entry as well as a possible $250,000 maximum fine.
He has been and will remain in custody pending that hearing.
U.S. Marshals Service and Immigrations and Customs Enforcement Enforcement and Removal Operations conducted the investigation. Assistant U.S. Attorney Stephanie Bauman is prosecuting the case.
Hamilton felon sentenced to five years in prison for illegal possession of firearms, including “ghost gun”Read the Press Release
MISSOULA — A Hamilton man who admitted to illegally possessing firearms and ammunition, including a “ghost gun,” after having been convicted of felonies, was sentenced today to five years in prison, to be followed by three years of supervised release, U.S. Attorney Jesse Laslovich said.
Kevin Michael Jakub, 38, pleaded guilty in November 2022 to prohibited person in possession of a firearm and ammunition.
U.S. District Judge Dana L. Christensen presided.
The government alleged in court documents that in January 2022, law enforcement executed a search warrant on a storage unit of Jakub’s and recovered two semi-automatic rifles with large capacity magazines, one pistol, three suppressors, various firearm parts and thousands of rounds of ammunition. In July 2022, law enforcement contacted Jakub after receiving a report of him possibly discharging a firearm. Jakub admitted to firing his pistol, and agents recovered a pistol described as a “ghost gun,” which means it had no identifiable markings. Jakub, who had three previous felony convictions in Colorado and Montana for drug offenses, was prohibited from possessing firearms and ammunition.
Assistant U.S. Attorney Tara J. Elliott prosecuted the case, which was investigated by the Missoula High Intensity Drug Trafficking Area Task Force, Homeland Security Investigations, U.S. Postal Service, Bureau of Alcohol, Tobacco, Firearms and Explosives, Montana Highway Patrol and Ravalli County Sheriff’s Office.
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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Great Falls man sentenced to four years in prison for illegal possession of firearmsRead the Press Release
GREAT FALLS — A Great Falls man who admitted to illegally possessing firearms while on supervision for prior felony convictions was sentenced today to four years in prison, to be followed by three years of supervised release, U.S. Attorney Jesse Laslovich said.
Zachary Paul Potts, 26, pleaded guilty in November 2022 to prohibited person in possession of a firearm and ammunition.
Chief U.S. District Judge Brian M. Morris presided.
The government alleged in court documents that in the fall of 2021, Potts was on state supervision for multiple felony convictions when he was stopped while driving a vehicle in Great Falls with a suspended license. During a probation search of the vehicle, law enforcement found a .357-caliber revolver in a backpack and a 9mm pistol under the driver’s seat. Potts told the officer he knew about the pistol and that he had used it in the past. The government further alleged that the backpack also contained a small amount of suspected methamphetamine, more than four grams of fentanyl powder, a scale and empty plastic baggies.
Assistant U.S. Attorney Ethan R. Plaut prosecuted the case, which was investigated by the FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration and Great Falls Police Department.
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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Government Contractors Indicted in San Antonio for Wire Fraud, Money LaunderingRead the Press Release
SAN ANTONIO – A federal grand jury in San Antonio returned an indictment last week charging four members of a San Antonio family with conspiracy to commit wire fraud and money laundering.
According to court documents, Kenneth Flores, Christopher Flores, Antonio Flores Jr., and Irma Flores, are alleged to have conspired together to defraud the United States by eliminating competition and fixing contract awards and prices on Army contracts for the housekeeping and janitorial services at Army Hospitals and Medical Centers. The alleged scheme involved a corrupt partnership between the Floreses and co-conspirator government employees Karisa Waysepappy Kelley and John Jordan “Chip” Mathes, involving millions of dollars in work on Army healthcare housekeeping and janitorial services contracts in return for bribes and kickbacks, eliminating the Flores’ competition in the process.
The defendants made their initial court appearances Monday, April 10, before U.S. Magistrate Judge Richard B. Farrer of the U.S. District Court for the Western District of Texas.
The four defendants are each charged with one count of conspiracy, one count of conspiracy to commit wire fraud, and one count of conspiracy to commit money laundering. If convicted on all charges, they each face a maximum penalty of 45 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Floreses are currently released on a $50,000 bond each. An arraignment hearing is scheduled for April 19.
U.S. Attorney Jaime Esparza of the Western District of Texas made the announcement.
The Defense Criminal Investigative Service; Department of the Army Criminal Investigation Division; U.S. General Services Administration Office of Inspector General; and IRS Criminal Investigation are investigating the case.
Assistant U.S. Attorney William Lewis is prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Fox Valley Man Indicted for Child Pornography Production and DistributionRead the Press Release
United States Attorney Gregory J. Haanstad of the Eastern District of Wisconsin announced that on April 11, 2023, a federal grand jury indicted John D. Schaefer (age: 34) of Menasha and Oshkosh, Wisconsin, on a count of production of child pornography, in violation of Title 18, United States Code, Section 2251(a), and a count of distribution of child pornography in violation of Title 18, United States Code, Section 2252A(a)(2)(A).
The indictment alleges that on or about August 2, 2020, Schaefer “employed and used a minor” for the purpose of creating a “visual depiction of a minor engaged in sexually explicit conduct.” It further alleges that on or about September 21, 2021, Schaefer distributed a digital video depicting the sexual assault of a prepubescent child.
If convicted of the production charge, Schaefer faces a mandatory minimum 15 years’ imprisonment and a maximum of 30 years’ imprisonment. He faces up to 40 years’ imprisonment on the distribution charge. He also faces up to a $250,000 fine on each count.
This case was investigated by the City of Menasha Police Department and the City of Oshkosh Police Department. It will be prosecuted by Assistant United States Attorney Daniel R. Humble.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006, by the U.S. Department of Justice. Led by U.S. Attorneys’ 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.projectsafechildhood.gov.
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For Additional Information Contact:
Public Information Officer
414-297-1700
Former St. Louis Letter Carrier Sentenced to Probation, Restitution for Stealing ChecksRead the Press Release
ST. LOUIS – U.S. District Judge Audrey G. Fleissig on Tuesday sentenced a former U.S. Postal Service letter carrier who stole two checks in St. Louis, Missouri to five years of probation and ordered him to repay $33,996.
Judge Fleissig also ordered Marquan Long, 28, to complete 40 hours of community service. The advisory sentencing guidelines ranged from probation to six months behind bars.
Long pleaded guilty in January to theft of mail by an employee of the U.S. Post Office. He admitted that on May 30, 2019, while working as a carrier in St. Louis, he stole two envelopes containing checks from the mail. A Long associate deposited a $29,019 check into an account belonging to Long’s girlfriend at a credit union. That check was mailed to an address in south St. Louis.
The second check, for $4,977, was originally mailed by a St. Louis woman and deposited into an account in Chicago about two weeks later.
Assistant U.S. Attorney Linda Lane, who prosecuted the case, told Judge Fleissig in court Tuesday that Long had violated the trust of the public, who rely on the mail to conduct business.
The U.S. Postal Service Office of Inspector General conducted the investigation.
Former Investment Banker and Registered Broker Charged with Operating Cryptocurrency Investment Fraud SchemeRead the Press Release
Today, in federal court in Brooklyn, Rashawn Russell, a former investment banker and registered broker, will be arraigned on an indictment charging him with perpetrating a cryptocurrency investment fraud scheme. Russell was arrested yesterday in Brooklyn and will be arraigned this afternoon before United States Magistrate Judge Ramon E. Reyes, Jr.
Breon Peace, United States Attorney for the Eastern District of New York; Kenneth A. Polite, Jr., Assistant Attorney General of the Justice Department’s Criminal Division; and Eric Shen, Inspector-in-Charge, U.S. Postal Inspection Service, Criminal Investigations Group (USPIS), announced the arrest and indictment.
“As alleged, Russell turned the demand for cryptocurrency investments into a scheme to defraud numerous investors in order to fund his lifestyle,” stated United States Attorney Peace. “This Office will continue to aggressively pursue fraudsters perpetrating these schemes against investors in the digital asset markets.”
As alleged in court documents, Russell engaged in a scheme to defraud multiple investors by falsely promising that their money would be used for cryptocurrency investments that would generate large—and sometimes “guaranteed”—returns. In truth, much of the investors’ money was misappropriated by Russell and used for his personal benefit, to gamble, and to repay other investors. Russell formerly worked as an investment banker and was a registered broker with the Financial Industry Regulatory Authority.
As part of the scheme, Russell lied to investors about the status of their investments and fabricated multiple documents that he sent to investors. As alleged, Russell sent one investor an altered image of a bank balance displayed on a bank website that purported to show Russell’s substantial liquidity. When another investor sought to recoup their investment, Russell never sent the money and instead sent the investor a fabricated bank wire transfer confirmation that purported to show the return of the investor’s money.
The charge in the indictment is an allegation and Russell is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, he faces a maximum of 20 years in prison.
If you believe you are a victim in this case, please contact the Fraud Section’s Victim Witness Unit toll-free at (888) 549-3945 or by email at [email protected].
The government’s case is being handled by Assistant United States Attorney Drew Rolle from the Business and Securities Fraud Section of the United States Attorney’s Office for the Eastern District of New York and. Assistant Chief Scott Armstrong and Trial Attorney Kyle Crawford from of the Department of Justice’s Criminal Division, Fraud Section.
The Defendant:
RASHAWN RUSSELL
Age: 27
Brooklyn, New YorkE.D.N.Y. Docket No.: 23-CR-152 (HG)
Former Investment Banker and Registered Broker Arrested for Operating Cryptocurrency Investment Fraud SchemeRead the Press Release
A former investment banker, who was a registered broker with the Financial Industry Regulatory Authority, was arrested yesterday in Brooklyn, New York, on criminal charges related to his alleged role in operating a cryptocurrency investment fraud scheme.
According to court documents, Rashawn Russell, 27, of Brooklyn, New York, allegedly engaged in a scheme to defraud multiple investors by inducing them to invest with him based on false promises that, among other things, he would use their funds for cryptocurrency investments and that the investors would earn large – and sometimes guaranteed – returns from those investments. Russell allegedly misappropriated much of the investors’ assets and used them for his personal benefit, to gamble, and to repay other investors.
In addition, the indictment alleges that Russell repeatedly failed to repay investors’ principal investments and failed to provide investors with promised rates of return. After certain investors requested to be repaid their investments, Russell also allegedly falsely represented that he had wired them money.
Russell is charged with one count of wire fraud. If convicted, he faces a maximum penalty of 20 years in prison.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Breon Peace for the Eastern District of New York, and Inspector in Charge Eric Shen of the U.S. Postal Inspection Service (USPIS) Criminal Investigations Group made the announcement.
The USPIS is investigating the case.
Trial Attorney Kyle Crawford and Assistant Chief Scott Armstrong of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Drew Rolle for the Eastern District of New York are prosecuting the case.
If you believe you are a victim in this case, please contact the Fraud Section’s Victim Witness Unit toll-free at (888) 549-3945 or by email at [email protected].
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Executives of Outcome Health Convicted in $1B Corporate Fraud SchemeRead the Press Release
A federal jury convicted three former executives of Outcome Health, a Chicago-based health technology start-up company, for their roles in a fraud scheme that targeted the company’s clients, lenders, and investors and involved approximately $1 billion in fraudulently obtained funds.
The individuals convicted by jury verdict today were:
- Rishi Shah, 37, the co-founder and former CEO of Outcome Health (Outcome), which was founded in 2006 and known as Context Media prior to January 2017;
- Shradha Agarwal, 37, the former president of Outcome, who was described as a co-founder; and
- Brad Purdy, 33, the former chief operating officer and chief financial officer.
Outcome installed television screens and tablets in doctors’ offices around the United States and then sold advertising space on those devices to clients, most of whom were pharmaceutical companies. According to evidence presented at trial, Shah, Agarwal, and Purdy sold advertising inventory the company did not have to Outcome’s clients, then under-delivered on its advertising campaigns. Despite these under-deliveries, the company still invoiced its clients as if it had delivered in full. Shah, Agarwal, and Purdy lied or caused others to lie to conceal the under-deliveries from clients and make it appear as if the company was delivering advertising content to the number of screens in the clients’ contracts. Purdy and others at Outcome also inflated metrics that purported to show how frequently patients engaged with Outcome’s tablets installed in doctors’ offices. According to the trial evidence, the scheme targeting Outcome’s clients began in 2011, lasted until 2017, and resulted in at least $45 million of overbilled advertising services.
Shah, Agarwal, and Purdy were also convicted of defrauding Outcome’s lenders and investors. The under-delivery to Outcome’s advertising clients resulted in a material overstatement of Outcome’s revenue for the years 2015 and 2016. The company’s outside auditor signed off on the 2015 and 2016 revenue numbers because Purdy caused others to fabricate data to conceal the under-deliveries from the auditor. Shah, Agarwal, and Purdy then used the inflated revenue figures in Outcome’s 2015 and 2016 audited financial statements to raise $110 million in debt financing in April 2016, $375 million in debt financing in December 2016, and $487.5 million in equity financing in early 2017.
Shah, Agarwal, and Purdy lied to investors and lenders to conceal their ongoing under-delivery of advertising campaigns for clients. Shah and Purdy also misrepresented to investors the efficacy of Outcome’s advertising campaigns by concealing the fact that it had failed to meet return-on-investment commitments to clients.
The $110 million debt financing resulted in a $30.2 million dividend to Shah and a $7.5 million dividend to Agarwal; the $487.5 million in equity financing resulted in a $225 million dividend to Shah and Agarwal.
Three other former employees of Outcome pleaded guilty prior to trial. Ashik Desai, the former chief growth officer pleaded guilty to one count of wire fraud; and Kathryn Choi, a former senior analyst, and Oliver Han, a former analyst, both pleaded guilty to conspiracy to commit wire fraud. Desai, Choi, and Han will be sentenced at a date to be determined.
Shah was convicted of five counts of mail fraud, 10 counts of wire fraud, two counts of bank fraud, and two counts of money laundering. Agarwal was convicted of five counts of mail fraud, eight counts of wire fraud, and two counts of bank fraud. Purdy was convicted on five counts of mail fraud, five counts of wire fraud, two counts of bank fraud, and one count of false statements to a financial institution. The defendants face a maximum penalty of 30 years in prison for each count of bank fraud and 20 years in prison for each count of wire fraud and mail fraud. Purdy faces a maximum penalty of 30 years in prison for the count of false statements to a financial institution. Shah faces a maximum penalty of 10 years in prison for each count of money laundering. A sentencing hearing will be scheduled at a date to be determined. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, Acting U.S. Attorney Morris Pasqual for the Northern District of Illinois, Assistant Inspector General for Investigations Shimon Richmond of the Federal Deposit Insurance Corporation-Office of Inspector General (FDIC-OIG), and Robert W. Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the Federal Bureau of Investigation.
Assistant Chiefs William E. Johnston and Kyle C. Hankey of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Matthew F. Madden and Saurish Appleby-Bhattacharjee for the Northern District of Illinois are prosecuting the case.
“The defendants’ vast scheme damaged the clients, investors, and lenders who supported their business. Although they sought to hide the fraud by silencing whistleblowers and duping auditors, the jury today rightly held the defendants accountable for the losses they caused, which total hundreds of millions of dollars,” said Acting U.S. Attorney Pasqual. “Today’s verdicts demonstrate that this Office and its law enforcement partners will work tirelessly and dedicate the resources necessary to deliver justice for the victims of complex fraud schemes.”
“The scope of this fraud scheme is staggering, with almost $1 billion in victim losses. Today’s conviction is a fitting reminder that deceptive and illegal business practices have very real consequences" said Special Agent-in-Charge Wheeler.
"Today's conviction holds these defendants accountable for deceiving Outcome Health's clients, and fraudulently obtaining approximately $1 billion from its lenders and investors," said Assistant Inspector General Richmond. "The FDIC-OIG remains committed to working with our law enforcement partners to investigate and bring to justice those who harm lenders, investors, and clients by committing such fraudulent acts."
Former Executives of Outcome Health Convicted in $1B Corporate Fraud SchemeRead the Press Release
A federal jury convicted three former executives of Outcome Health, a Chicago-based health technology start-up company, for their roles in a fraud scheme that targeted the company’s clients, lenders, and investors and involved approximately $1 billion in fraudulently obtained funds.
The individuals convicted by jury verdict today were:
- Rishi Shah, 37, the co-founder and former CEO of Outcome Health (Outcome), which was founded in 2006 and known as Context Media prior to January 2017;
- Shradha Agarwal, 37, the former president of Outcome, who was described as a co-founder; and
- Brad Purdy, 33, the former chief operating officer and chief financial officer.
Outcome installed television screens and tablets in doctors’ offices around the United States and then sold advertising space on those devices to clients, most of whom were pharmaceutical companies. According to evidence presented at trial, Shah, Agarwal, and Purdy sold advertising inventory the company did not have to Outcome’s clients, then under-delivered on its advertising campaigns. Despite these under-deliveries, the company still invoiced its clients as if it had delivered in full. Shah, Agarwal, and Purdy lied or caused others to lie to conceal the under-deliveries from clients and make it appear as if the company was delivering advertising content to the number of screens in the clients’ contracts. Purdy and others at Outcome also inflated metrics that purported to show how frequently patients engaged with Outcome’s tablets installed in doctors’ offices. According to the trial evidence, the scheme targeting Outcome’s clients began in 2011, lasted until 2017, and resulted in at least $45 million of overbilled advertising services.
Shah, Agarwal, and Purdy were also convicted of defrauding Outcome’s lenders and investors. The under-delivery to Outcome’s advertising clients resulted in a material overstatement of Outcome’s revenue for the years 2015 and 2016. The company’s outside auditor signed off on the 2015 and 2016 revenue numbers because Purdy caused others to fabricate data to conceal the under-deliveries from the auditor. Shah, Agarwal, and Purdy then used the inflated revenue figures in Outcome’s 2015 and 2016 audited financial statements to raise $110 million in debt financing in April 2016, $375 million in debt financing in December 2016, and $487.5 million in equity financing in early 2017.
Shah, Agarwal, and Purdy lied to investors and lenders to conceal their ongoing under-delivery of advertising campaigns for clients. Shah and Purdy also misrepresented to investors the efficacy of Outcome’s advertising campaigns by concealing the fact that it had failed to meet return-on-investment commitments to clients.
The $110 million debt financing resulted in a $30.2 million dividend to Shah and a $7.5 million dividend to Agarwal; the $487.5 million in equity financing resulted in a $225 million dividend to Shah and Agarwal.
Three other former employees of Outcome pleaded guilty prior to trial. Ashik Desai, the former chief growth officer pleaded guilty to one count of wire fraud; and Kathryn Choi, a former senior analyst, and Oliver Han, a former analyst, both pleaded guilty to conspiracy to commit wire fraud. Desai, Choi, and Han will be sentenced at a date to be determined.
Shah was convicted of five counts of mail fraud, 10 counts of wire fraud, two counts of bank fraud, and two counts of money laundering. Agarwal was convicted of five counts of mail fraud, eight counts of wire fraud, and two counts of bank fraud. Purdy was convicted on five counts of mail fraud, five counts of wire fraud, two counts of bank fraud, and one count of false statements to a financial institution. The defendants face a maximum penalty of 30 years in prison for each count of bank fraud and 20 years in prison for each count of wire fraud and mail fraud. Purdy faces a maximum penalty of 30 years in prison for the count of false statements to a financial institution. Shah faces a maximum penalty of 10 years in prison for each count of money laundering. A sentencing hearing will be scheduled at a date to be determined. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Morris Pasqual for the Northern District of Illinois, and Assistant Inspector General for Investigations Shimon Richmond of the Federal Deposit Insurance Corporation-Office of Inspector General (FDIC-OIG) made the announcement.
The FBI and FDIC-OIG investigated the case.
Assistant Chiefs William E. Johnston and Kyle C. Hankey of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Matthew F. Madden and Saurish Appleby-Bhattacharjee for the Northern District of Illinois are prosecuting the case.
Former Champaign, Illinois, Pastor Sentenced to 10 Months of Imprisonment for Misapplying Federal Funds and Bankruptcy FraudRead the Press Release
URBANA, Ill. – A Champaign, Illinois, man, Lekevie C. Johnson, formerly of the 2000 block of Clayton Boulevard, was sentenced on April 10, 2023, to 10 months of imprisonment and ordered to pay $59,358.90 restitution following his December 2022 guilty pleas to financial crimes including federal program misapplication, student loan misapplication, and false statement in bankruptcy.
Johnson was formerly the pastor of Mount Calvary Missionary Baptist Church, previously known as Jericho Missionary Baptist Church, on Bloomington Road in Champaign, Illinois. Johnson also served for years as the head football coach at Centennial High School in Champaign. Between 2012 and 2019, Johnson operated a not-for-profit corporation, Life Line Champaign, Inc., which received federal grant funds from the United States Department of Housing and Urban Development, through the City of Champaign, to provide summer enrichment programs for low-income students in the Garden Hills neighborhood. Johnson previously admitted misapplying $25,700.74 of HUD program grant funds for his own benefit, including by making numerous ATM cash withdrawals at various casinos.
Johnson also admitted that he had obtained federal student loans between 2017 and 2019 to attend Liberty University’s online Master of Arts program. Prior to receiving the loans, Johnson certified that he would use the loans only for authorized educational expenses. Nonetheless, Johnson used $31,291.62 of the loans for various non-educational expenses, including to gamble at casinos.
Finally, Johnson admitted to committing bankruptcy fraud. On January 31, 2020, Johnson and his wife filed for Chapter 7 bankruptcy in the Central District of Illinois. In his petition, Johnson claimed that he received only $42,900 from his church in 2019, even though he received tens of thousands of additional monies from the church that year. On March 5, 2020, Johnson testified under oath at a bankruptcy hearing that he had disclosed all the payments he received from the church and had no control over the church’s finances. In fact, Johnson controlled the church’s finances and had received tens of thousands of dollars in payments from the church that he had not disclosed in bankruptcy.
In sentencing Johnson to 10 months of imprisonment and ordering full restitution to both HUD and the U.S. Department of Education, United States District Judge Michael M. Mihm found that, although Johnson suffered from a gambling addiction, his crimes were the result of his voluntary choices and hurt many people, including the disadvantaged children in the Garden Hills neighborhood who did not benefit as intended from the federal grant.
Judge Mihm ordered Johnson to report to the federal Bureau of Prisons to begin serving his sentence on June 6, 2023. After pleading guilty to these offenses, Johnson left Champaign and relocated to the Dallas, Texas, area.
“Abuse of the bankruptcy system by making false statements, utilizing federal program monies for gambling purposes, and concealing those acts strikes at the very core of the integrity of the bankruptcy system and undermines public confidence in that system,” stated Nancy J. Gargula, United States Trustee for Indiana, Central and Southern Illinois (Region 10). “Today’s sentencing sends a strong message that these actions will not be tolerated. I am grateful to U.S. Attorney Harris and our law enforcement partners for their strong commitment to combating fraud and abuse in bankruptcy cases.”
The case investigation was conducted by the Federal Bureau of Investigation, Springfield Field Office; Department of Housing and Urban Development—Office of Inspector General; and the Department of Education – Office of Inspector General in collaboration with the Central District of Illinois Bankruptcy Fraud Working Group coordinated by the United States Trustee for Central and Southern Illinois and Indiana (Region 10). The bankruptcy fraud charge was referred for criminal prosecution by the United States Trustee for Region 10. The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. Region 10 is headquartered in Indianapolis, with additional offices in Peoria, Illinois, and South Bend, Indiana. Supervisory Assistant U.S. Attorney Eugene L. Miller represented the government in the prosecution.
Federal Court Shuts Down Detroit-Area Father-and-Son Tax Return Preparers Until Further NoticeRead the Press Release
On April 10, 2023, the U.S. District Court for the Eastern District of Michigan entered a preliminary injunction against Detroit-area tax return preparers Herman “Eddie” Simmons, Richmond Simmons, and the business Profile Income Tax Co., doing business as Simmons Income Tax Company, enjoining Defendants from preparing federal income tax returns for others through the resolution of their case on the merits.
In issuing the preliminary injunction after holding a hearing and taking evidence, the Court noted that the government supported its motion with twelve sworn declarations in which Defendants’ customers disavowed various aspects of the returns that Defendants prepared for them, in particular, false and inflated deductions for charitable contributions. Defendants’ customers’ declarations repeatedly stated that they had never discussed the deductions at issue with Defendants, and that they had no idea why their returns contained the reported figures. Based on that customer testimony, and the similarities across all the fraudulent returns, the Court found that “filing tax returns with falsified deductions plainly qualifies as acting in willful or reckless disregard of the tax code,” and “that Defendants engaged in a pattern of willfully claiming false or inflated deductions to understate their clients’ liabilities.” The Court also rejected Defendants’ contention that they had made “honest mistakes” in the returns they prepared, finding that their claim that they simply reported whatever their customers told them was not credible. According to the Court, “no reasonable tax preparer would proceed in such a grossly uninformed and willfully ignorant manner.”
Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Shady tax return preparers remain a concern of the IRS, which recently warned taxpayers about unscrupulous tax return preparers as part of the IRS’s Dirty Dozen series. As the 2023 tax season continues, taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS offers tips on how to accurately file returns and how to choose a tax return preparer, as well as steps taxpayers can take to get a jumpstart on filing. The IRS also offers 10 tips to avoid tax season fraud and ways to safeguard their personal information.
In the past decade, the Department of Justice Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
El Paso Woman Pleads Guilty to Wire Fraud, Impersonation of Federal EmployeeRead the Press Release
EL PASO, Texas – An El Paso woman pleaded guilty Monday to 11 counts related to wire fraud and impersonation of a federal employee.
According to court documents, Ana Maria Hernandez, 53, portrayed herself to be a U.S. Citizenship and Immigration Services (CIS) employee and defrauded numerous undocumented noncitizen victims and their family members by falsely representing that she would process their immigration applications for a substantial fee. Hernandez’s victims provided her with the documentation required to file and adjust their immigration status. She was not an employee of CIS and never took any actions to adjust the victims’ status. Investigation revealed that Hernandez had amassed thousands of dollars of unexplained wealth within the 18 months coinciding with her fraudulent activity. Following her arrest on Jan. 23, 2023, the U.S. Attorney’s Office for the Western District of Texas and the Homeland Security Investigations (HSI) El Paso Division began receiving calls from dozens of potential victims in Hernandez’s fraud scheme.
Hernandez pleaded guilty to 10 counts of wire fraud and one count of impersonating an employee of the United States. She faces a maximum penalty of 20 years imprisonment on each wire fraud count and three years on the impersonation count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. A sentencing date has not yet been set.
U.S. Attorney Jaime Esparza of the Western District of Texas and Special Agent in Charge Francisco B. Burrola of the HSI El Paso Division made the announcement.
HSI is investigating the case.
Assistant U.S. Attorney Patricia Aguayo is prosecuting the case.
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East Hartford Man Admits Role in Catalytic Converter Theft RingRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that BRYANT BERMUDEZ, 31, of East Hartford, pleaded guilty yesterday before U.S. District Judge Sarala V. Nagala in Hartford to offenses related to his participation in a stolen catalytic converter trafficking ring.
According to court documents and statements made in court, law enforcement has been investigating the theft of catalytic converters from motor vehicles across Connecticut. A catalytic converter contains precious metals, can easily be removed from its vehicle, and is difficult to trace, making it a desirable target for thieves. The average scrap price for catalytic converters currently varies between $300 and $1,500, depending on the model and type of precious metal component.
In November 2021, Bermudez began working at Downpipe Depot & Recycling LLC (“Downpipe Depot”), which had a warehouse on Park Avenue in East Hartford. At Downpipe Depot, Bermudez and a co-conspirator purchased stolen catalytic converters from a network of thieves, with some of the transactions occurring late at night, and then transported and sold the catalytic converters to recycling businesses in New York and New Jersey. On at least a bi-weekly basis, Bermudez or a co-conspirator transported van loads of catalytic converters to New York or New Jersey. Some of the trips yielded payments in excess of $200,000.
Bermudez pleaded guilty to one count of conspiracy to commit interstate transportation of stolen property, an offense that carries a maximum term of imprisonment of five years, and three counts of interstate transportation of stolen property, an offense that carries a maximum term of imprisonment of 10 years on each count.
Judge Nagala scheduled sentencing for July 12. Bermudez is released on a $150,000 bond pending sentencing.
This investigation is being led by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Internal Revenue Service – Criminal Investigation Division (IRS-CI), and the East Hartford Police Department. The case is being prosecuted by Assistant U.S. Attorneys Lauren C. Clark and A. Reed Durham.
Eagan Man Sentenced to 7.5 Years in Prison for Receiving Child PornographyRead the Press Release
ST. PAUL, Minn. – An Eagan man has been sentenced to 90 months in prison followed by 15 years of supervised release for receipt of child pornography, announced United States Attorney Andrew M. Luger.
According to his guilty plea, Tyler Michael Sauve, 29, admitted to possessing thousands of images and videos depicting prepubescent minors engaging in sexually explicit conduct.
Sauve pleaded guilty on December 15, 2022, to one count of receipt of child pornography. Sauve was sentenced today in U.S. District Court before Judge Eric C. Tostrud.
This case was the result of an investigation conducted by the Minnesota Bureau of Criminal Apprehension (BCA) and the Eagan Police Department.
Assistant U.S. Attorney Manda M. Sertich prosecuted the case.
Dupree Woman Sentenced for LarcenyRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange, U.S. District Court, has sentenced a Dupree, South Dakota, woman convicted of Larceny. The sentencing took place on April 6, 2023.
Sophie Little Wounded, a/k/a Sophie Dupris, age 35, was sentenced to time served from her arrest on October 18, 2022, through May 1, 2023, equal to approximately six months of incarceration, followed by two years of supervised release, and ordered to pay $700 in restitution and a $100 special assessment to the Federal Crime Victims Fund.
Little Wounded was indicted for Larceny by a federal grand jury in November of 2022. She pleaded guilty on January 4, 2023.
Little Wounded took a 2013 Ford Mustang from the driveway of a residence in Sioux Falls on the evening of October 18, 2022, or the early morning hours of October 19, 2022, without the owner’s consent. Little Wounded had been visiting at the owner’s residence prior to the theft. Little Wounded also took $700 in cash belonging to the victim. The vehicle was reported stolen on the morning of October 19, 2022, to the Sioux Falls Police Department. The victim also contacted the Cheyenne River Sioux Tribe Law Enforcement Services, assuming that Little Wounded was headed towards Dupree. At approximately 9:30 a.m. on the morning of October 19, 2022, the Cheyenne River Sioux Tribe Law Enforcement Services recovered the vehicle by performing a traffic stop on Little Wounded a short distance outside of Eagle Butte. The $700 in missing money was not recovered.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services and the Sioux Falls Police Department. Assistant U.S. Attorney Jay Miller prosecuted the case.
Little Wounded was immediately remanded to the custody of the U.S. Marshals Service.
Dubuque Man Responsible for over a Pound of Ice Methamphetamine Sentenced to 95 Months in Federal PrisonRead the Press Release
A man who possessed or distributed over a pound of ice methamphetamine and was found with more than $45,000 of drug proceeds was sentenced today to more than seven years in federal prison.
Matthew Daniel Birch, from Dubuque, Iowa, received the prison term after a September 6, 2022 guilty plea to possession with intent to distribute methamphetamine.
Information disclosed at the sentencing hearing demonstrated that between 2019 and 2021, Birch sold approximately 194 grams of ice methamphetamine in Dubuque. Law enforcement officers seized another 315 grams of ice methamphetamine before Birch had the opportunity to sell it. One on occasion, officers found Birch with over $6,000 of drug proceeds. Later, after Birch attempted to flee from a traffic stop, officers found over $39,000 of drug proceeds. Birch has a history of fleeing from the police. Birch’s criminal history includes several violent convictions, including going armed with intent, false imprisonment in which he hit someone in the face and nose several times, assault with injury, domestic abuse assault causing bodily injury, and harassment in the first degree.
Birch was sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand. Birch was sentenced to 95 months’ imprisonment and must also serve a 4-year term of supervised release after the prison term. There is no parole in the federal system.
Birch is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Special Assistant United States Attorney Devra T. Hake and investigated by the Dubuque Drug Task Force, Dubuque County Sheriff’s Office, and the Dubuque Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-1002.
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Donaldsonville Woman Sentenced to 78 Months in Federal Prison for Pandemic Benefits Fraud SchemeRead the Press Release
United States Attorney Ronald C. Gathe, Jr. announced that Chief Judge Shelly D. Dick sentenced Tynea Lynnshay Gray, age 24, of Donaldsonville, Louisiana to 78 months in federal prison following her conviction for mail fraud. The Court further sentenced Gray to serve three years of supervised release following her term of imprisonment and ordered her to pay $906,534 in restitution.
Between June 2020 and October 2021, Gray submitted fraudulent claims for unemployment insurance benefits in California in her name and in the names of other individuals. Gray also submitted fraudulent claims for Paycheck Protection Program (“PPP”) benefits in the names of fictitious businesses and based on fictitious business profits and losses.
Through her unemployment insurance scheme, Gray falsely claimed that she and others were working in California prior to the coronavirus pandemic and that they lost their employment due to the pandemic. Gray obtained names, birth dates, and Social Security numbers of others and submitted fraudulent claims for unemployment insurance benefits in their names, with and without their knowledge. Gray captured people’s identifying information through social media. Upon submitting the claims and receiving the funds, she either gave a portion of the funds to others or kept all the funds for herself. Through her scheme, Gray obtained hundreds of thousands of dollars in prepaid debit cards in the mail.
Gray also devised a scheme to defraud lenders and the United States, through the Small Business Administration, by filing false and fraudulent applications for PPP funds. In furtherance of the scheme, Gray submitted forged bank statements, false tax documents, and made misrepresentations in her PPP applications.
Gray also falsely reported bank cards stolen or lost so that she would receive new cards with additional pandemic benefit funds. Throughout the course of the fraudulent schemes, Gray caused over $550,000 in prepaid debit cards to be mailed to her addresses, to which she and others were not entitled. Additionally, Gray caused $20,833 to be deposited into her bank account to which she was not entitled.
U.S. Attorney Gathe stated, “At a time when over 1 million U.S. Citizens died from COVID-related issues, Ms. Gray took advantage of the system designed to help American taxpayers in this time of need. The sentencing today shows that these cases will not be tolerated. With the help of federal partners such as the FBI and U. S. Department of Labor-OIG, my office will continue to prosecute these cases and redeem taxpayer money.”
“Ms. Gray chose to con the system during one of the most vulnerable times in U.S. history,” said New Orleans FBI Special Agent in Charge Douglas A. Williams, Jr. “The FBI is committed to aggressively pursuing those who seek to defraud the American taxpayers for their own personal gain. We thank our partners at the United States Attorney’s Office Middle District of Louisiana and the Office of Inspector General at the U.S. Department of Labor for their dedication in pursuing justice in this case.”
“Tynea LynnShay Gray used social media as a catalyst to defraud the California Employment Development Department (CA-EDD) of more than $500K in Pandemic Unemployment Assistance (PUA), both in her name and in the names of others, with and without their consent. The scheme orchestrated by Gray resulted in a tremendous loss of pandemic relief needed by those legitimately unemployed as result of the pandemic. We will continue to work diligently to protect the integrity of the unemployment insurance system and bring those who exploit these benefit programs to justice.” said Special Agent-in-Charge Steven Grell, Central Region, U.S. Department of Labor, Office of Inspector General.
This matter was investigated by the Federal Bureau of Investigation and the U.S. Department of Labor-OIG and was prosecuted by Assistant United States Attorney Edward H. Warner.
Detroit Street Gang Leader Sentenced to Life Imprisonment Following Convictions at Trial for Racketeering and MurderRead the Press Release
DETROIT – A 38-year-old Detroit man was sentenced to life imprisonment today for murder, racketeering, narcotics trafficking, and other gang related crimes, United States Attorney Dawn N. Ison announced today.
Ison was joined in the announcement by James A. Tarasca, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.
Evidence at trial showed that Duane Peterson acted as the leader of “It’s Just Us” (IJU), a violent street gang. At its peak, the gang boasted 40 members. IJU terrorized the Detroit community from 2014 through the beginning of 2019 by engaging in violent acts, obstruction of justice, and witness intimidation. In May 2017, IJU ambushed a 33-year-old Detroit man for allegedly disparaging an IJU associate. Peterson chased the man down and executed him, shooting him in the back of the head while he lay dying on the ground.
In March 2018, Peterson and another IJU member opened fire on a carful of innocent bystanders who happened to be stopped at a red light and saw Peterson beating a female in a liquor store parking lot.
Evidence at trial also showed that Peterson ran a heroin/fentanyl drug conspiracy, with at least fifteen IJU members and associates distributing the deadly drugs in Detroit, Jackson, Flint, Ohio, West Virginia, and Kentucky.
Eight defendants were charged in the case. Seven previously pleaded guilty; only Peterson proceeded to trial.
United States District Judge Robert H. Cleland sentenced Peterson to life imprisonment.
“Thanks to a team effort from multiple federal, state, and local agencies, a violent gang leader has been permanently removed from the streets. Violent gang activity and dangerous narcotics trafficking will not be tolerated in our community,” U.S. Attorney Ison said.
“Duane Peterson was found guilty of committing multiple crimes, including murder, as the leader of the IJU street gang, and for those crimes he will spend the rest of his life in prison,” said James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Field Office. “Violent street gangs like IJU threaten the safety and security of everyone in our community. The FBI, alongside federal, state, and local law enforcement agencies across the country, will continue to target and dismantle gangs that wreak havoc on our neighborhoods.”
This case was investigated by the Federal Bureau of Investigation, with assistance from the Drug Enforcement Agency, Detroit Police Department, Jackson County Sheriff’s Office, and many other state and local agencies in Michigan, Ohio, West Virginia, and Kentucky. The case was prosecuted by Assistant U.S. Attorneys Maggie Smith and Eaton Brown.
Denton County Man Sentenced for Threatening Jewish OrganizationRead the Press Release
SHERMAN, Texas – A Denton man has been sentenced to federal prison for violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Anthony Joseph Hammer, 34, pleaded guilty on May 3, 2022, to interstate communication of a threat and was sentenced to 24 months in federal prison today by U.S. District Judge Richard A. Schell.
According to information presented in court, on July 28, 2021, Hammer sent a threatening electronic message to the Anti-Defamation League (ADL), a Jewish civil rights organization based in New York, via the ADL’s website’s contact page. In his message, Hammer stated the following: “Come and find me. Come after me. Come hunt me down. This is me. This is really me. All of my info. I will kill all of you Zionist pigs. 4th reich soon.”
“Threatening to harm others by using phones, computers or mail is a federal crime and taken very seriously,” said U.S. Attorney Brit Featherston. “Hammer believed he could promote his malicious agenda by making threats to kill and to disrupt business activity. That’s why he is going to jail and being punished. Others who do the same will have the same fate.”
“The FBI is tasked with upholding the Constitution to include the right to Free Speech as outlined in the First Amendment. In this case, the direct threats made by the defendant, fell outside of that protected right,” said FBI Dallas Special Agent in Charge Chad Yarborough. “The FBI and our law enforcement partners take all threats seriously and will hold accountable anyone who seeks to intimidate and cause fear simply because they disagree with the views of their fellow citizens.”
An investigation by federal agents revealed that Hammer was already under investigation for threatening calls he made to Pennsylvania Governor Tom Wolf’s office. Hammer made seven calls to Governor Wolf's office requesting to speak to the Governor. When staff members refused to put him through to the Governor, Hammer repeatedly threatened to kill Wolf and his staff members. This conduct was taken into consideration in calculating Hammer’s appropriate sentence in the Eastern District of Texas.
This case was investigated by the FBI and the Pennsylvania Capitol Police and prosecuted by Assistant U.S. Attorney Ryan Locker in the Eastern District of Texas in coordination with Assistant U.S. Attorney Carl Marchioli in the Middle District of Pennsylvania.
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Defendant Charged with Distributing Child Pornography and Sending Death Threats to a MinorRead the Press Release
Christian Brazoban, also known as “Bison,” will be arraigned this afternoon at the federal courthouse in Central Islip on an indictment charging him with distributing child pornography to a minor and sending death threats to a minor. Brazoban was arrested on March 15, 2023 on a complaint charging him with distributing child pornography. He was indicted on March 29, 2023 and has been detained pending trial. Today’s arraignment was be held before United States District Judge Joan M. Azrack.
Breon Peace, United States Attorney for the Eastern District of New York, Ivan J. Arvelo, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), and Patrick J. Ryder, Commissioner, Nassau County Police Department (NCPD), announced the indictment.
“As alleged, the defendant traumatized a child by sending her graphic images of child sexual abuse and then went even further in threatening to kill the child after she told him to stop,” stated United States Attorney Peace. “The defendant’s actions demonstrate the dangers of sextortion directed to children on the Internet. I urge parents and caregivers to talk to their children about the dangers of communicating online with strangers and anyone who may exploit them.”
“HSI New York works tirelessly to protect children from sexual predators that lurk online behind the veil of social media platforms,” said Special Agent in Charge of Homeland Security Investigations New York, Ivan J. Arvelo. “Christian Brazoban is accused of despicable criminal acts that have victimized our most innocent, robbing them of their childhoods and interfering with their emotional and psychological development. HSI will do everything in its power and use every tool at its disposal to track down these heinous criminals and ensure that they are brought to justice. We are appealing to anyone who has awareness about this defendant’s alleged activities or past contacts to come forward. Please reach out to the toll-free Tip Line at 1-866-347-2423 or complete the online tip form. Both are staffed around the clock.”
As set forth in court filings, between approximately March 2021 and March 2023, the victim, a minor who resided in Nassau County, engaged in online communications, including video chats, with Brazoban. On March 3, 2023, Brazoban sent online messages to the victim that contained numerous images of child pornography, including images which depicted the sexual abuse of children between the ages of 3 and 11. When the victim told Brazoban to stop, he sent her additional online messages threatening to kill her and her family. For example, Brazoban wrote: “lil girl shot dead on Long Island”; “I’m thinkin I tie you and just beat you to death with a mallet.”
On March 15, 2023, HSI agents and NCPD officers executed a search warrant at the defendant’s Bronx residence and recovered a cellphone containing images of child pornography and threats that the defendant sent to the minor victim.
Anyone with information about sexual exploitation by Brazoban is asked to contact HSI at https://www.ice.gov/tipline or 1-866-DHS-2-ICE (866-347-2423).
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
If convicted of the charges, Brazoban faces a mandatory minimum term of 5 years’ imprisonment and up to 20 years in prison.
The government’s case is being prosecuted by Assistant United States Attorney Bradley T. King of the Long Island Criminal Division.
The Defendant:
CHRISTIAN BRAZOBAN, also known as “Bison”
Age: 24
Bronx, New YorkE.D.N.Y. Docket No. 23-CR-138 (JMA)
Champaign, Illinois, Man Sentenced to 72 months in Prison for Possession of a Firearm as a FelonRead the Press Release
URBANA, Ill. – A Champaign, Illinois, man, Prentiss Jackson, 40, of the 3300 block of Stoneway Court, was sentenced on April 10, 2023, to 72 months’ imprisonment, to be followed by a three-year term of supervised release, for possessing a firearm as a felon.
At the sentencing hearing, the government presented evidence that Jackson, a felon on supervised release for a 2010 federal narcotics conviction, possessed a Ruger handgun. Officers from the Urbana Police Department executed a traffic stop on Jackson’s car in June 2022 and eventually asked him to exit the vehicle after he handed an officer marijuana that had been inside it. After exiting the car, Jackson ran from the stop, producing a Ruger handgun during his flight. After he was apprehended, police found MDMA (ecstasy) and a large amount of cash on Jackson’s person.
Also at the hearing, U.S. District Judge Colins S. Bruce found that Jackson possessed the firearm in connection with a felony drug offense. Judge Bruce further ordered that the imposed sentence of 72 months’ imprisonment run consecutive to any sentence Jackson receives for violating his conditions of supervised release in relation to his prior federal narcotics conviction.
Jackson previously entered a guilty plea to the single-count indictment in this case.
Jackson is scheduled to appear in front of U.S. District Judge James E. Shadid on April 13, 2023, at the federal courthouse in Peoria, Illinois, in connection with the supervised release violation. He faces up to an additional five-year term of imprisonment.
The Urbana Police Department investigated the case. Assistant U.S. Attorney William J. Lynch represented the government in the prosecution in cooperation with the Champaign County State’s Attorney’s Office.
California Man Sentenced to 7 Years in Prison for Sex with Missouri TeenRead the Press Release
ST. LOUIS – A man from California admitted traveling to Missouri to have sex with a teenage girl and was sentenced Tuesday to seven years in prison.
Edson S. Ortiz, 30, of Napa County, pleaded guilty at the start of Tuesday’s hearing in U.S. District Court in St. Louis Tuesday to one felony count of traveling with the intent to engage in illicit sexual conduct. He admitted that he began communicating with the Missouri teen over Snapchat and WhatsApp. On Oct. 23, 2020, Ortiz flew from California to St. Louis. The next day, at a hotel in Chesterfield, Ortiz engaged in illegal sex acts with the girl, who was then 16. Ortiz was 27.
He also recorded the sexual contact on his iPhone. That video, as well as pictures, were discovered after a January 2021 search of his home that was triggered when Ortiz uploaded child sexual abuse material to Snapchat.
The case was investigated by the St. Louis County Special Investigations Unit, the Napa County (California) Sheriff’s Office and the FBI. Assistant U.S. Attorney Jillian Anderson prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, 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.
Browning man admits stabbing man on Blackfeet Indian ReservationRead the Press Release
GREAT FALLS — A Browning man accused of stabbing another man at a party in Browning, on the Blackfeet Indian Reservation, admitted to assault charges today, U.S. Attorney Jesse Laslovich said.
Frank David Francis Boy, 24, pleaded guilty to assault with a dangerous weapon. Boy faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release.
Chief U.S. District Judge Brian M. Morris presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for Sept. 7. Boy was detained pending further proceedings.
The government alleged in court documents that on Sept. 18, 2022, Boy was drinking alcohol with friends in East Glacier. The group decided to go for a drive and ended up at a house party in Browning. The victim, identified as John Doe, who lived at the residence at the time, and Boy arm-wrestled and then got into a wrestling match, which led to a disagreement. Boy and his companions were told to leave, but Boy refused. Boy’s companions pulled Boy from the residence and as they were walking away, Boy turned around and began to engage John Doe. Boy walked toward John Doe, who was backing up, and then stabbed John Doe four or five times in the left shoulder and back area. Another individual captured the assault on video. John Doe was treated for injuries at a hospital in Great Falls.
Assistant U.S. Attorney Kalah A. Paisley is prosecuting the case, which was investigated by the FBI and Blackfeet Law Enforcement Services.
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Brothers Sentenced for $1.6M COVID-19 Fraud SchemeRead the Press Release
Two men were sentenced yesterday for their participation in a COVID-19 fraud scheme, which involved fraudulent applications for $1.6 million in loans through the Paycheck Protection Program (PPP).
Dumarsais Blaise Jr., 45, of Stonecrest, Georgia, was sentenced to two years and three months in prison. His brother, Alexander Blaise, 41, of Plantation, Florida, was sentenced to two years and six months in prison.
According to court documents, Dumarsais Blaise and Alexander Blaise worked together to submit fraudulent PPP applications. Dumarsais Blaise used his expertise as a tax preparer to create fake tax documents that were submitted in support of the fraudulent applications. The conspiracy involved fabricating information about three purported companies, two of which did not exist. For the third company, the brothers falsely inflated the number of employees and payroll costs, claiming the company employed 41 people when in fact it employed only one person.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Kyle A. Myles of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG) Atlanta Region, and Special Agent in Charge Jeffery Veltri of the FBI Miami Field Office made the announcement.
The FDIC-OIG and FBI Miami Field Office investigated the case.
Trial Attorney Edward Emokpae of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Kiran Bhat for the Southern District of Florida prosecuted the case.
The Fraud Section leads the Criminal Division’s prosecution of fraud schemes that exploit the PPP. Since the inception of the CARES Act, the Fraud Section has prosecuted over 200 defendants in more than 130 criminal cases and has seized over $78 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at https://www.justice.gov/criminal-fraud/ppp-fraud.
Black Hawk Man Sentenced on Drug and Firearm ChargesRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Jeffrey L. Viken has sentenced a Black Hawk, South Dakota, man convicted of Distribution of a Controlled Substance and Possession of an Unregistered Firearm. The sentencing took place on April 7, 2023.
Gregory Martin, 35, was sentenced to six years in federal prison on each charge, to be served concurrently, followed by five years of supervised release, and ordered to pay a $200 special assessment to the Federal Crime Victims Fund.
Martin was indicted for Distribution of a Controlled Substance and Possession of an Unregistered Firearm by a federal grand jury in March of 2022. He pleaded guilty on December 8, 2022.
In November of 2021, in Box Elder and Black Hawk, Martin knowingly distributed methamphetamine. Additionally, when law enforcement executed a search warrant in December of 2021 at a residence where Martin was staying, he was found in possession of several firearms, including a Mossberg 12-gauge pump-action shotgun with a barrel length of less than 18 inches. The shotgun was not registered to Martin in the National Firearms Registration and Transfer Record as is required by law.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the South Dakota Division of Criminal Investigation, and the Mellette County Sheriff's Office. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Martin was immediately remanded to the custody of the U.S. Marshals Service.
Belmont County sex offender sentenced to 15 years in prison for distributing, receiving child sexual abuse materialRead the Press Release
COLUMBUS, Ohio – A 42-year-old convicted sex offender from Flushing, Ohio, was sentenced in federal court today to 180 months in prison for distributing and receiving child pornography.
Joshua E. Green was also sentenced to serve his time in a prison facility that provides sexual offender treatment and serve 20 years under court supervision after completing his prison sentence.
“Repeat offenders who have shown that they remain a threat to the children around them must be kept away from society for a significant period of time,” said Kenneth L. Parker, United States Attorney for the Southern District of Ohio.
According to court documents, the investigation into Green began when he distributed images of himself to an undercover FBI agent posing as a 12-year-old female. Green admitted that in September 2021, he engaged in conversations through an online messenger app with the purported 12-year-old female and distributed sexually explicit images of himself along with pictures of his face. These images ultimately led to the identification of Green as a registered sex offender.
Further investigation revealed that Green had also distributed child sexual abuse material in January 2022 and February 2022 via the mobile application Kik.
A search warrant was executed at Green’s residence and numerous digital media devices were seized which contained additional evidence of his child exploitation activities.
Green pleaded guilty on Dec. 1, 2022, to distributing and receiving child pornography after being convicted of an offense relating to the sexual abuse of a minor. His prior conviction stemmed from a 2014 case in Belmont County Common Pleas Court in which he pleaded guilty to unlawful sexual conduct with a minor and pandering obscenity involving a minor.
Court documents also say that the National Center for Missing and Exploited Children (NCMEC) received tips from Kik messenger regarding Green’s online child exploitation activities.
Parker was joined by J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Angie Salazar, Special Agent in Charge for Homeland Security Investigations (HSI) Detroit Field Office; and Belmont County Sheriff David M. Lucas in announcing the sentence imposed today by U.S. District Judge Sarah D. Morrison. Assistant United States Attorneys Emily Czerniejewski and S. Courter Shimeall are representing the United States in this case.
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Bvi Man Sentenced to 70 Months Incarceration on Cocaine Smuggling ConvictionRead the Press Release
St. Croix, VI – United States Attorney Delia L. Smith announced today that Sean John, 35 of Tortola, BVI, was sentenced to 70 months of imprisonment by District Court Judge Wilma A. Lewis on his conviction of conspiracy to possess with intent to distribute cocaine while on board a vessel subject to the jurisdiction of the United States. Judge Lewis also sentenced John to two years of supervised release and a special assessment of $100.00.
According to court documents, on January 9, 2022, Customs and Border Protection Air and Marine agents detected a vessel with bales of suspected cocaine in plain view on the deck of the vessel. The vessel was traveling on the northeast side of St. Croix heading north towards the British Virgin Islands. Upon further investigation, agents encountered a 32-foot Manta low-profile vessel with twin 300 HP outboard engines located at approximately 19 nautical miles northeast of St. Croix in international waters in an area known by law enforcement for drug trafficking. The vessel was dead in the water and displayed no indicia of nationality, flag nor registration, and was determined to be a vessel without nationality, thus subject to the jurisdiction of the United States. Onboard the vessel, agents discovered 21 bales wrapped in plastic and encased in rope four. Drug Enforcement Administration laboratory analysis later confirmed that the 21 bales recovered from the vessel contained approximately 567 kilograms of cocaine hydrochloride. Also onboard the vessel were defendants Shannon John, Sean John, Emmanuel Tolentino-Lebron and Augusto Rodriguez-Molina, all of whom pleaded guilty to the cocaine conspiracy charge.
This case was investigated by the United States Coast Guard, Homeland Security Investigation, Customs and Border Protection and Drug Enforcement Administration and is being prosecuted by Assistant United States Attorney Melissa P. Ortiz. This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Artistas Asesinos Cartel leader sentenced to 27 years for drug traffickingRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, and Gregory M. Millard, Special Agent in Charge for the DEA El Paso Division, announced today that Jorge Marquez was sentenced to over 27 years in prison. Marquez, 43, of Chaparral, New Mexico, pleaded guilty on May 17, 2022, to one count of conspiracy to distribute methamphetamine, one count of distributing 5 grams or more of methamphetamine, and six counts of distributing 50 grams and more of methamphetamine. On April 4, 2023, Marquez was sentenced to 327 months in prison. Upon his release from prison, Marquez will be subject to 5 years of supervised release.
The case against Marquez was part of a five-year investigation into a transnational criminal organization known as the Artistas Asesinos, or Doble A Cartel, which dually operates as a drug trafficking organization and the enforcement arm of the Sinaloa Cartel in Ciudad Juarez, Mexico, and Southern New Mexico. Between 2017 and 2021, Marquez personally delivered, attempted to deliver, or directed others to deliver more than three pounds of methamphetamine to undercover law enforcement agents. In so doing, Marquez recruited couriers and distributors in the United States to include his codefendants in the case – Samantha Bailon, Vanessa Bailon, Jasmine Barradas, and Veronica Rivera – and coordinated the logistics of the Artistas Asesinos drug trafficking activity while in and out of custody in Mexico. Marquez was ultimately arrested on February 24, 2021, when he and a passenger presented in a vehicle at the United States Border Patrol checkpoint south of Alamogordo, New Mexico, and was found in possession of 105.1 grams of methamphetamine concealed in the dashboard of the vehicle.
“This is a fine example of how our agents in collaboration with our law enforcement partners work diligently to keep our community safe from dangerous drugs,” said Miguel Dominguez, Chief of Police for the Las Cruces Police Department. “It proves how critical our law enforcement partnerships are, we will continue to work together to hold drug trafficking organizations accountable for their actions.”
"Illegal drug activity brings danger to our communities—it will not be tolerated,” said Raul Bujanda, FBI Special Agent in Charge. “Collaborative law enforcement efforts will continue to identify and disrupt drug trafficking organizations bringing violence to our streets. Investigations like this prove the essential value of strong law enforcement partnerships and working together to meet a common goal.”
“This case demonstrates the lengths the Sinaloa Cartel will go to bring their poison into our communities,” said Greg Millard, Special Agent in Charge of the DEA’s El Paso Division. “But any person or organization affiliating themselves with Sinaloa will discover the men and women of the DEA will also go to great lengths to bring them to justice.”
“The Sinaloa Cartel uses gangs like Artistas Asesinos to push their drugs, collect their debts, and inflict their violence,” said U.S. Attorney Alexander M.M. Uballez. “Local, state, and federal law enforcement, working shoulder-to-shoulder, will proactively target and bring to justice groups who profit off of the addiction, suffering, and misery of others.”
The investigation of the Artistas Asesinos was led by the Las Cruces/Doña Ana County Metro Narcotics Agency. Metro Narcotics is the leading task force combating drug trafficking in Doña Ana County, New Mexico. Metro Narcotics operates as a joint agency composed of investigators from the Las Cruces Police Department, the Doña Ana County Sheriff's Office, and New Mexico State Police. Metro Narcotics was also supported in the investigation by agents from the Las Cruces Resident Agency of the FBI Albuquerque Field Office and the Drug Enforcement Administration’s Las Cruces District Office. Assistant United States Attorneys Selesia L. Winston and Matthew Ramirez are prosecuting the case.
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Arnold, PA Man Sentenced to 20 Years in Prison for Possessing FentanylRead the Press Release
Editor's Note: An updated outcome to this matter as a result of post-trial litigation can be viewed here.
PITTSBURGH - A Westmoreland County resident has been sentenced in federal court to 20 years of imprisonment on his conviction of Possession with the Intent to Distribute 400 Grams or More of Fentanyl, Acting United States Attorney Troy Rivetti announced today.
United States District Judge W. Scott Hardy imposed the sentence on Kevin Watson, age 33, of Arnold, Pennsylvania.
According to information presented to the court, Watson was pulled over by the Pennsylvania State Police for traffic violations. Watson had been smoking marijuana and had a young child in the back seat of his vehicle. When the Pennsylvania State Police asked him to get out of his vehicle, Watson sped away from the traffic stop and led the Pennsylvania State Police on a high-speed chase that reached speeds of 115 miles per hour on Route 28. Eventually, Watson crashed and fled on foot. The child was not seriously injured. Later, the Pennsylvania State Police obtained a search warrant for the vehicle, which revealed more than $100,000 of fentanyl in the trunk of the vehicle. Watson has an extensive criminal history that includes, among other convictions, three previous drug trafficking convictions, and he was on parole at the time of this offense.
Also, as part of the sentencing proceeding, the government informed Judge Hardy that Watson, one of his brothers, and a third individual were implicated in a scheme to murder a witness who had testified against another brother. On May 14, 2009, Luzay Watson shot and killed Davon Young, and on June 4, 2009, Luzay Watson was arrested for that offense. On July 24, 2009, there was a preliminary hearing involving the homicide charge against Luzay Watson in which Monique Gray testified.
In the aftermath of the preliminary hearing, Luzay Watson engaged in a series of telephone calls from jail with Kevin Watson. The jail recorded those telephone calls. During those calls, Luzay Watson encouraged Kevin Watson to kill Gray. In recorded conversations in July and August of 2009, Luzay Watson angrily and bitterly complained to the Kevin Watson and Luzay Watson’s then girlfriend, Chrissy Stubbs, that nothing was being done about eliminating the witnesses in his case. However, he was repeatedly assured by Kevin Watson and Stubbs that the matter would be taken care of. In one conversation, Stubbs informed Luzay Watson that Charles Cabiness was “posted up” on the Cresswell Street home of Monique Gray's sister, Donneika Gray, to await an opportunity to kill Monique Gray when Monique Gray visited Donneika Gray's home. In the late morning of August 22, 2009, Charles Cabiness shot and killed Monique Gray while she was outside of Donneika Gray's house, in the company of multiple neighbors and young children.
Prior to imposing sentence, Judge Hardy granted a ten-year reduction from the advisory Sentencing Guideline range, which called for a sentence of 30 years to life imprisonment.
Assistant United States Attorney Brendan T. Conway and former Assistant United States Attorney Brian Czarnecki prosecuted this case on behalf of the government.
Acting United States Attorney Rivetti commended the Pennsylvania State Police and the Drug Enforcement Administration for the investigation leading to the successful prosecution of Watson.