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Thursday 6 April 2023
Honduran Man Sentenced to Prison for Illegally Reentering the United States After Being DeportedRead the Press Release
A man who illegally returned to the United States after being deported was sentenced today to more than two months in federal prison.
Jesus Mira-Pineda, age 31, a citizen of Honduras illegally present in the United States and residing in Waterloo, Iowa, received the prison term after a February 9, 2023, guilty plea to one count of illegal reentry into the United States after having been deported.
At the guilty plea, Mira-Pineda admitted he had previously been deported from the United States and illegally reentered the United States without the permission of the United States government. Mira-Pineda was previously deported in March 2014 and illegally reentered the United States in 2015. On December 19, 2022, immigration officials learned Mira-Pineda had illegally returned to the United States and found Mira-Pineda at the Black Hawk County Jail following his arrest for assault causing bodily injury.
Mira-Pineda was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Mira-Pineda was sentenced to 73 days’ imprisonment. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
Mira-Pineda is being held in the United States Marshal’s custody until he can be turned over to immigration officials.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-CR-2001.
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Hoboken Woman Admits $1.5 Million Fraud Scheme that Targeted over 100 Non-Profit Victims, Including Schools and Religious InstitutionsRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, woman pleaded guilty today to stealing over $1.5 million from over 100 victims made up mainly of non-profits, private schools, and religious institutions throughout New Jersey, U.S. Attorney Philip R. Sellinger announced.
Yezenia Castillo, 46, of Hoboken, New Jersey, pleaded guilty before U.S District Judge Susan D. Wigenton, to an information charging her with one count each of wire fraud and tax evasion.
According to documents filed in this case and statements made in court:
From 2012 through 2021, Castillo falsely claimed to be a CPA who could provide various financial and accounting services to non-profit organizations throughout New Jersey, including private schools and religious institutions. Castillo was not a CPA and never provided any of these promised services. After she was hired, Castillo used various ways to steal from her clients, including collecting fees for services that she never performed and transferring client funds to herself without authorization. Castillo also collected funds from clients by falsely claiming she would use it to pay their taxes, but she instead kept the money. To conceal her fraud, Castillo told victims that she had filed and paid their taxes, and she falsified receipts to make it appear to the victims as if their taxes were paid. Castillo defrauded over 100 victims, resulting in financial losses totaling over $1.5 million.
The charge of wire fraud carries a maximum potential penalty of 20 years in prison and $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest. The charge of tax evasion carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Aug. 7, 2023.
U.S. Attorney Philip R. Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; special agents of the U.S. Department of Housing and Urban Development, Office of the Inspector General, under the direction of Special Agent in Charge Christina Scaringi; and special agents of IRS – Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy L. Tomlins, with the investigation leading to the today’s guilty plea.
The government is represented by Assistant U.S. Attorney Blake Coppotelli of the U.S. Attorney’s Office Economic Crimes Unit.
castillo.information.pdfGuatemalan Woman Sentenced for Use of Fraudulent Identity Documents to WorkRead the Press Release
United States Attorney Steven A. Russell announced that Cristian Yanira Ruiz-Cardona, 28, was sentenced on Thursday, April 6, 2023, in federal court in Omaha, Nebraska, for use of immigration documents not lawfully issued, false representation of a Social Security number with intent to deceive, and for making a false claim to U.S. Citizenship. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Ruiz to probation for a term of 3 years, including a condition for home detention for 180 days. Ruiz may later face removal (deportation) from the United States to Guatemala by immigration authorities.
In March of 2022, Homeland Security Investigations (HSI) received information from the Nebraska Department of Motor Vehicles (NEDMV) Fraud Unit regarding an identity theft case under investigation by the Dixon County Sheriff’s Office (DCSO). A suspect in that case used fraudulent identity documents in the name of C.M. to work at Michael’s Foods in Wakefield, Nebraska. The suspect told the DCSO deputy that she had used a Social Security card and identification card (the fraudulent C.M. identity documents) obtained from Ruiz, and that Ruiz required that the suspect to return them to her (Ruiz) later.
HSI learned that Ruiz had been arrested by the U.S. Border Patrol in 2009, placed in removal proceedings at that time, and released. In 2020, HSI received information that the defendant was selling identity documents in Wakefield, Nebraska. She was arrested again but was released due to lack of jail space. At the time, she was not prosecuted for selling identity documents, but it was determined that she was working for Michael’s Foods in Wakefield under another identity, “A.C.”.
At the time she was arrested in this case she was working at Williams Form Engineering in Wayne, Nebraska under the identity of C.M., the same identity she provided to the suspect in the Dixon County case for use at Michael’s Foods. Ruiz used counterfeit identity documents in C.M.’s name including a Kansas Identification Card and a Social Security Card bearing the C.M.’s Social Security Number, as proof of identity to obtain employment. Ruiz also attested that she was a U.S. Citizen during the hiring process.
This case was investigated by Homeland Security Investigations and the Nebraska Department of Motor Vehicles Fraud Unit.
Georgia Men Convicted in Separate Project Safe Childhood Cases for Possessing Child Sexual Abuse MaterialRead the Press Release
MACON, Ga. – A former U.S. Airman and a repeat child sex offender both admitted to possessing child sexual abuse material (CSAM) involving minor victims in separate Project Safe Childhood cases in the Middle District of Georgia this week.
Kenneth Queen, 35, of Forsyth, Georgia, and formerly of Dayton, Tennessee, pleaded guilty to two counts of possession of child sexual abuse material and one count of failure to register as a sex offender today before U.S. District Judge Marc Treadwell. Queen faces a maximum sentence of 20 years in prison for each count of possession of CSAM, a maximum sentence of ten years in prison for failing to register as a sex offender and a maximum lifetime of supervised release. Queen will also have to register as a sex offender for life upon his release from prison. Sentencing for Queen is scheduled for July 13, 2023.
Justin Wayne Pallett, 29, of Warner Robins, Georgia, was sentenced to serve 210 months in prison to be followed by a lifetime on supervised release by U.S. District Judge Tilman E. “Tripp” Self III on April 4, after he previously pleaded guilty to possession of child sexual abuse material. Pallett will have to register as a sex offender for life upon his release from federal prison. There is no parole for federal convictions.
“Our office will work tirelessly to protect children from child predators,” said U.S. Attorney Peter D. Leary. “Through Project Safe Childhood, our office has a team of prosecutors working with law enforcement from every level dedicated to protecting our most vulnerable citizens from child victimization.”
According to public records, Queen was convicted of sexual battery against a child under 16 and child molestation in Madison County, Georgia, Superior Court on Oct. 27, 2008. Queen was required to register as a sex offender for life. After his conviction, Queen relocated to Tennessee, where he registered as a sex offender. Queen was residing in Monroe County, Georgia, in the summer of 2020 when it was reported to authorities that he was unlawfully tattooing children. Queen was found in possession of graphic child sexual abuse material he captured involving a young child. Queen was required to be registered as a sex offender at the time, but had not registered himself in Monroe County as the law required him to do. For the protection of the minor victim, a portion of Queen’s plea agreement will remain sealed.
According to Pallett’s plea agreement, the mother of a 13-year-old girl reported to law enforcement in November 2020 that her daughter had exchanged sexually explicit Snapchat and Facebook messages and images with a 26-year-old male. The male was later identified as Pallett, who was an active duty service member assigned to Robins Air Force Base. A search warrant executed on Pallett’s Snapchat account revealed he was engaged in similar sexually explicit communication with numerous underage girls. Agents found 178 images and six videos of child sexual abuse material on Pallett’s electronic devices—a cell phone, tablet, laptop and PC—including 14 images found within the National Center for Missing and Exploited Children (NCMEC) database.
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 www.projectsafechildhood.gov.
The Queen case was investigated by the Monroe County Sheriff’s Office, FBI and the U.S. Marshals Service. Assistant U.S. Attorney Joy Odom is prosecuting the case.
The Pallett case was investigated by the U.S. Air Force, Office of Special Investigations. Deputy Criminal Chief Will Keyes prosecuted the Pallett case.
Four Charged in State Bribery SchemeRead the Press Release
Rick Johnson, former Chairperson of the Michigan Medical Licensing Board, and three others have agreed to plead guilty and cooperate in ongoing investigation
LANSING – U.S. Attorney for the Western District of Michigan Mark Totten today announced that four men were charged in federal court for participating in the bribery of Rick Johnson, the former Chairperson of the Michigan Marijuana Licensing Board. All four defendants are cooperating with the investigation and have agreed to plead guilty to their offense.
"Public corruption is a poison to any democracy. Those who wield the power of state have a sacred obligation to serve the people they represent. But when a government official takes a bribe, they spurn that solemn duty – in favor of the connected, the crooked, and ultimately themselves,” said U.S. Attorney Mark Totten. "Now and always, my office will place the highest priority on rooting out public corruption, with independence and impartiality.”
U.S. Attorney Totten charged the following individuals today:
- Rick Vernon Johnson, 70, of Leroy was charged with Accepting a Bribe, a felony offense punishable by up to 10 years in federal prison and a $250,000 fine.
- John Dawood Dalaly, 70, of West Bloomfield was charged with Payment of a Bribe, a felony offense punishable by up to 10 years in federal prison and a $250,000 fine.
- Brian Dennis Pierce, 45, of Midland was charged with Conspiracy to Commit Bribery, a felony offense punishable by up to 5 years in federal prison and a $250,000 fine.
- Vincent Tyler Brown, 32, of Royal Oak was charged with Conspiracy to Commit Bribery, a felony offense punishable by up to 5 years in federal prison and a $250,000 fine.
According to court documents, Rick Johnson was a member and the Chairperson of the Michigan Medical Marijuana Licensing Board (MMLB) between May 2017 and April 2019. John Dalaly operated two companies that were formed with the purpose of obtaining various operating licenses from the MMLB or exploring the licensing of a digital currency platform for medical marijuana financial transactions. Brian Pierce and Vincent Brown were lobbyists doing business as Philip Alan Brown Consulting, LLC and Michigan Grower’s Consultants, LLC, who lobbied on behalf of businesses and individuals who were seeking operating licenses from the MMLB. Johnson provided valuable non-public information about the anticipated rules and operation of the MMLB and assistance with license application matters to Dalaly, Pierce, Brown, and others that paid money to Johnson while he was Chairperson of the MMLB. The cash payments were made to three business entities, which Johnson used to accept payments from the companies, Philip Alan Brown Consulting, LLC, and Michigan Grower’s Consultants, LLC, to help hide those payments to Johnson while he was Chairperson of the MMLB. Between July 2018 and April 2019, Johnson voted in favor of approving the prequalification status of one of Dalaly’s companies and a company that was represented by Pierce and Brown and voted in favor of granting medical marijuana licenses to those companies.
All four defendants have agreed to plead guilty in written plea agreements that will be filed with the Court today. Johnson’s plea agreement states that he accepted more than $100,000 in cash payments and benefits while he was a member and Chairperson of the MMLB. Dalaly’s plea agreement states that he gave at least $68,200 in cash payments and other benefits to Johnson, including paying for Johnson’s travel on two private chartered flights to Canada. Pierce’s and Brown’s plea agreements state that they caused at least $42,000 in cash payments and other benefits to be given to Johnson. The defendants have agreed to cooperate with the FBI and the U.S. Attorney’s Office in the investigation of the charges as well as of any other federal crimes, including full, complete, and truthful interviews and testimony.
“It is always a sad day when someone who enjoys the trust of the people abuses that trust for his or her personal gain,” said James A. Tarasca, Special Agent in Charge of the FBI in Michigan. “Public corruption is a top investigative priority for the FBI and today’s charges represent our continued commitment to working with the United States Attorney’s Office to ensure residents receive the fair and honest government to which they are entitled.”
The FBI’s investigation into this matter is ongoing. Assistant United States Attorneys Christopher O’Connor and Clay Stiffler are prosecuting the case on behalf of the United States.
A Felony Information contains allegations of criminal conduct, and all defendants are presumed innocent under the law until they are found guilty by the court or a jury.
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Former St. Louis Postal Worker Accused of Stealing and Depositing Checks Taken from MailRead the Press Release
ST. LOUIS – An ex-employee of the U.S. Postal Service has been accused in an indictment of stealing checks from the mail and then depositing them in her own account.
Porcia Denise Rhodes, 26, of St. Louis, Missouri, was indicted March 8 on four counts of bank fraud and one count of theft of mail by an employee of the U.S. Postal Service. She appeared in U.S. District Court in St. Louis and pleaded not guilty Wednesday.
The indictment alleges that between July 26, 2022 and Sept. 22, 2022, Rhodes stole checks from the mail, replaced the payee’s name on the check with her own and then used a mobile device to deposit them. Rhodes altered and deposited or attempted to deposit 21 checks totaling $5,035, victimizing 21 people and 13 financial institutions, the indictment says.
The bank fraud charges are punishable by up to 30 years in prison, a $1 million fine or both. The theft charge is punishable by up to five years in prison, a $250,000 fine or both.
Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The case was investigated by the U.S. Postal Inspection Service. Assistant U.S. Attorney Linda Lane is prosecuting the case.
Former Potosi Police Officer Accused of Child Sex TraffickingRead the Press Release
ST. LOUIS – A former Potosi, Missouri police officer appeared in federal court Thursday to face charges of sex trafficking, solicitation of child pornography and coercion and enticement of a minor.
Matthew N. Skaggs, 39, was indicted March 29 and arrested Wednesday. The indictment alleges that between January 1 and August 10 of 2022, Skaggs enticed or solicited three minors into engaging in a commercial sex act, solicited a visual depiction of a minor engaging in sexually explicit conduct and attempted to persuade a minor to engage in sexual acts.
A motion seeking to have Skaggs held in jail until trial says he gave vape cartridges to one minor in exchange for pornographic images, paid another via CashApp not to reveal sexual abuse and sexually abused a third minor. Skaggs met the alleged victims through his work as a police officer or committed sex acts while on duty or in uniform, the detention motion says.
Anyone who believes they are a victim or has information about other offenses is asked to call the Missouri Highway Patrol at 573-751-3313.
The sex trafficking and coercion charges are each punishable by a minimum of 10 years in prison and a maximum of life. The solicitation of child pornography charge carries a minimum five-year term and a maximum of life in prison. All also are punishable by a fine of up to $250,000.
Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The case was investigated by the Missouri State Highway Patrol. Assistant U.S. Attorney Jillian Anderson is prosecuting 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.
Former Hospice Care Owner Convicted of Defrauding MedicareRead the Press Release
LAFAYETTE, La. – A federal jury has returned a guilty verdict against Kristal Glover-Wing, 50, of Broussard, Louisiana, for one count of conspiracy to commit health care fraud and three counts of health care fraud following a trial that lasted nearly four weeks, announced United States Attorney Brandon B. Brown. Dr. Gary M. Wiltz and Dr. Charles H. Louis were each acquitted on their charges in the indictment. Judge Robert R. Summerhays presided over the trial.
Glover-Wing was the owner of Angel Care Hospice (“Angel Care”), a Louisiana corporation that purported to provide hospice services in Lafayette Parish and other parishes in the Western District of Louisiana. Through evidence presented at trial, jurors learned that from approximately 2009 through 2017, over 24 patients were placed on hospice by Angel Care without meeting the criteria required by Medicare. During the time period that the patients were on hospice and under the care and supervision of Angel Care, none of them had been diagnosed with a terminal illness. In fact, many of the patients themselves, who are still alive and thriving many years later, as well as family members of other patients, testified that they never knew that they had been placed on hospice. The testimony revealed that while on hospice care, many of the patients were living normal lives and although most of them did have medical conditions, none had been diagnosed as being terminally ill. The fraudulent claims submitted to Medicare and reimbursed to Angel Care resulted in a loss of approximately $1,539,161.10 to Medicare.
“Krystal Glover-Wing defrauded the government and we thank the jury for holding her accountable. We will now move forward to her sentencing hearing,” stated U.S. Attorney Brandon B. Brown. “I thank the trial team and investigators for staying the course throughout years of investigating and a hard-fought trial. Although the doctors in this case were ultimately acquitted, we as prosecutors present the facts to a federal grand jury when we truly believe there has been a violation of federal law that we can prove beyond a reasonable doubt. Furthermore, if the grand jury decides to indict, we are not afraid to proceed to trial and give a federal trial jury the chance to ultimately decide someone’s guilt or innocence based on the evidence that we have. The verdict rendered in this case is evidence that the system can be just, fair and the trial jury has the ultimate prerogative to convict or acquit.”
“Whenever Medicare providers are motivated by greed, our most vulnerable citizens, the elderly, are put at risk,” said Assistant Special Agent in Charge Jeff Richards of the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG agents will continue to work closely with our law enforcement partners to investigate providers who loot the Medicare Trust Fund.”
Glover-Wing faces a sentence of up to 20 years in prison on the conspiracy to commit health care fraud charge, up to 10 years in prison on the health care fraud charges, 3 years of supervised release, and a fine of up to $250,000.
The case was investigated by the Department of Health and Human Services, Office of Inspector General, and Federal Bureau of Investigation, and prosecuted by Assistant U.S. Attorneys Kelly P. Uebinger, Danny Siefker, and Lauren L. Gardner.
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Former Hawaii State Representative Sentenced to 24 Months in Federal PrisonRead the Press Release
HONOLULU – Senior United States District Judge Susan Oki Mollway sentenced Ty J.K. Cullen, age 42, former Hawaii State Representative and Vice Chair of the House Committee on Finance to serve 24 months in federal prison for honest services wire fraud which consisted of his acceptance of multiple bribes in return for performing, and agreeing to perform, official legislative acts on behalf of a Hawaii businessperson.
According to the prosecution’s argument to the Court, Cullen accepted bribery payments on eight (8) separate occasions over the course of several years from a person identified as “Person A” in the Information. Cullen initially accepted casino chips in New Orleans from Person A and later supported legislation that would benefit Person A’s company. More recently, in September of 2019, Cullen accepted a $5,000 bribe from Person A for anticipated legislative assistance that would benefit Person A’s company. Cullen subsequently accepted payments in the amounts of $3,000 in December 2019, $5,000 in January 2020, and then $10,000 on March 10, 2020, $2,000 in June 2021 and $5,000 in October 2021. The payments Person A made to Cullen were for the purpose of influencing Cullen to support or manipulate legislation that would benefit Person A’s company.
According to other information provided to the court, on his annual mandatory gift disclosure reports, Cullen failed to report any of the bribes and gifts paid and given to him by Person A. As a part of his official gift disclosure submissions, Cullen emailed a false and misleading disclosure form, thereby using interstate commerce.
“Cullen’s acceptance of bribes while serving as a state legislator significantly undermined the public’s confidence in its elected officials,” said U.S. Attorney Clare E. Connors. “By using his position to accumulate personal wealth, he betrayed the trust of those who elected him . This office has prioritized public corruption investigations and will hold officials who violate the public trust accountable by prosecuting them to the full extent of the law.”
"The insidious nature of public corruption is such that it gradually erodes the very fabric of our society, causing widespread damage to our institutions and corroding the public's trust in them," said FBI Special Agent in Charge Steven Merrill. "This sentence unequivocally signals that acts of public corruption will not be condoned, and that the FBI will persist in its relentless efforts to investigate these individuals who misuse their positions of power for personal gain."
The Federal Bureau of Investigation conducted the investigation that resulted in the filing of the Information. Assistant U.S. Attorneys Ken Sorenson, Micah Smith and Michael Albanese handled the prosecution.
Former Federal Correctional Officer Indicted for Sexual Abuse of an InmateRead the Press Release
A federal grand jury returned an indictment charging a former federal correctional officer with one count of sexual abuse of an individual in federal custody.
The indictment alleges that, between October 2021 and August 2022, Lenton Jerome Hatten, 54, of Tallahassee, Florida, engaged in sexual acts with an inmate while employed as a sports specialist for the Bureau of Prisons.
Hatten made his initial appearance in federal court this afternoon.
Trial for Hatten is set for June 5 at 8:15 a.m., at the U.S. Courthouse in Tallahassee before the Honorable Senior U.S. District Judge Robert L. Hinkle.
If convicted, Hatten faces a maximum sentence of 15 years in federal prison, five years to life on supervised release, and a maximum $250,000 fine.
U.S. Attorney Jason R. Coody for the Northern District of Florida made the announcement.
The FBI and the Justice Department’s Office of the Inspector General investigated the case.
Assistant U.S. Attorney James A. McCain for the Northern District of Florida is prosecuting this case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Federal Correctional Officer Indicted for Sexual Abuse of an InmateRead the Press Release
TALLAHASSEE, FLORIDA – Lenton Jerome Hatten, 54, of Tallahassee, Florida, was indicted by a federal grand jury charging him with one count of sexual abuse of an individual in federal custody. The indictment was announced by Jason R. Coody, United States Attorney for the Northern District of Florida. Hatten made his initial appearance in federal court to face the charge this afternoon.
The indictment alleges that, between October 2021, and August 2022, Hatten engaged in sexual acts with an inmate while employed as a sports specialist for the Bureau of Prisons.
Trial for Hatten is set for June 5, 2023, at 8:15 a.m., at the United States Courthouse in Tallahassee before the Honorable Senior United States District Judge Robert L. Hinkle.
If convicted, Hatten faces a maximum sentence of 15 years in federal prison, 5 years to Life on supervised release, and a maximum $250,000 fine.
The case was investigated by the Federal Bureau of Investigation and the Department of Justice Office of the Inspector General. The case is being prosecuted by Assistant United States Attorney James A. McCain.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office for the Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Former D.A.R.E. officer sentenced to over 15 years in prison for child pornography crimesRead the Press Release
DAYTON, Ohio – A former longtime Beavercreek police officer was sentenced in U.S. District Court here today to 181 months in prison for committing two federal child pornography crimes.
Kevin A. Kovacs, 60, of Fairborn, was arrested in April 2020 and indicted by a federal grand jury in June 2020. He pleaded guilty in February 2022 to transporting and possessing child pornography.
“The law holds everyone accountable, no matter who they are or what their profession is,” said U.S. Attorney Kenneth L. Parker. “As a law enforcement officer, Kovacs should have been a trusted member of society, but instead he victimized children. He deserves this time in federal prison.”
Kovacs was employed as a police officer with the Beavercreek Police Department from 1992 until his retirement in 2018. He spent the last six years of his police career as the D.A.R.E. officer in the Beavercreek City Schools.
According to court documents, between April 2015 and July 2017, Kovacs uploaded more than 300 images and 2,200 videos depicting child pornography to his Dropbox account. Videos featured the sexual abuse of children as young as toddler-aged. One video depicted a toddler lying on a diaper whose arms and legs were bound by black tape.
Kovacs also used online messenger, social media, cloud storage and email accounts to transport and possess child pornography.
In total, as of December 2019, Kovacs possessed more than 780 images and 5,100 videos of child pornography.
He was further sentenced to 15 years of supervised release after completion of his prison term and ordered to pay $45,000 in restitution to victims.
Kenneth L. Parker, United States Attorney, Southern District of Ohio; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Fairborn Police Chief Terry Bennington and Beavercreek Police Chief Jeff Fiorita announced the sentence imposed today by U.S. District Judge Michael J. Newman. Assistant United States Attorney Dwight K. Keller is representing the United States in this case.
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Former City of Kenner Director of Inspection and Code Enforcement Sentenced to 46 Months ImprisonmentRead the Press Release
NEW ORLEANS, LA – The U.S. Attorney’s Office announced today that United States District Court Judge Lance M. Africk sentenced JAMES MOHAMAD, 54, of Kenner, to forty-six (46) months imprisonment. MOHAMAD pleaded guilty to conspiracy to using an interstate facility with intent to carry on unlawful activity (Title 18, United States Code, Sections 371 and 1952(a)(3)) and filing false tax returns (Title 26, United States Code, Section 7206(1)). Additionally, MOHAMAD was ordered to pay a $100,000 fine, $314,902 in restitution to the IRS, and a mandatory $200 special assessment fee. Upon release from imprisonment, he will serve a three (3) year term of supervised release.
According to court documents, MOHAMAD, the former Director of the Department of Inspection and Code Enforcement for the City of Kenner, bribed Brian Medus, the Assistant Chief Mechanical Inspector for the City of New Orleans, Safety and Permits Department with money, in return for the issuance of fraudulent permits for MOHAMAD’s HVAC jobs. Throughout the conspiracy, MOHAMAD paid Medus and others approximately $93,000 to further the bribery scheme. Additionally, MOHAMAD filed false individual tax returns that omitted substantial amounts of income, thus understating the income tax due the IRS.
Co-defendant, Brian Medus, pleaded guilty to the conspiracy charge and is scheduled for sentencing on May 3, 2023.
“James Mohamad intentionally defrauded the government by filing false individual tax returns which omitted substantial amounts of income and paying bribes to public officials” said James E. Dorsey, Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “The sentencing shows that no one is above the law and that those who abuse their public positions and trust to commit illegal acts will be held accountable.”
"James Mohamad jeopardized the safety of countless homeowners who trusted him for more than a decade," said Douglas A. Williams, Jr. Special Agent in Charge of FBI New Orleans. "Those homeowners were unaware he was taking dangerous shortcuts in bribing a city official, hiding behind the legitimate permits of other contractors, and further concealing the dangers by inspecting his own work. We thank our partners, the United States Attorney's Office for the Eastern District, Internal Revenue Service, Louisiana State Licensing Board for Contractors and the New Orleans Office of Inspector General, who helped construct a strong case to put this con man out of business."
This matter was investigated by the Federal Bureau of Investigation, the Internal Revenue Service-Criminal Investigations, and the City of New Orleans/Office of Inspector General. Assistance was also provided by the Louisiana State Licensing Board for Contractors. Assistant United States Attorney Tracey N. Knight is prosecuting the matter.
Foreign National and Former Utah State University Student Club President Facing Federal Charges Relating to CARES Act COVID-19 FraudRead the Press Release
Salt Lake City, Utah – A federal grand jury in Utah returned an indictment charging a foreign national and former religious club president at Utah State University with CARES Act fraud.
According to the indictment, Mubarak Sulaiman Ukashat, 36, of Kaysville, Utah, who was living in Taylorsville, Utah, at the time of the alleged crime, executed a scheme to steal money intended for small businesses seeking COVID-19 economic relief loans through the Economic Injury Disaster Loan (EIDL) Program. As stated in the indictment, between June 2020 and July 2020, Ukashat, a former Utah State University Student Association Muslim Students Club President, submitted four fraudulent EIDL applications to the U.S. Small Business Association (SBA). He used the names of four people he had no connection to and directed the proceeds to be sent to the USUSA Muslim Students Club bank account at America First Credit Union, over which Ukashat had custody and control. Ukashat then used wire transfers to move the EIDL proceeds into another America First Credit Union account, over which he had ownership and control and held jointly with a relative before spending the CARES Act funds on unauthorized personal expenses. In total, the former USU graduate student allegedly applied for, illegally obtained, and misused over $300,000 in EIDL funds, for his own personal expenses. Ukashat’s expenses included purchasing a $45,900 GMC Yukon in cash; paying personal expenses, including at least $27,000 to electronic retailers; $21,000 to pay off a car loan; $20,000 in apparent debt payments; $10,000 in earnest money to buy a house; $5,200 for college expenses; other cash withdrawals, wires, and miscellaneous household purchases; and the wiring of approximately $15,000 to someone in Nigeria and $20,000 to someone in Dubai.
Ukashat is charged with four counts of wire fraud, one count of aggravated identity theft, and two counts of money laundering. The defendant is scheduled for his initial court appearance April 7, 2023, at 2:15 p.m. in courtroom 8.4 before a U.S. Magistrate Judge at the Orrin G. Hatch United States District Courthouse in Salt Lake City, Utah.
U.S. Attorney Trina A. Higgins for the District of Utah made the announcement.
The case is being investigated by IRS – Criminal Investigation (CI).
Assistant U.S. Attorney, Todd Bouton, of the District of Utah is prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus and https://www.justice.gov/coronavirus/combatingfraud.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.Foreign National Sentenced to 33 Months in Prison for Participating in an International Scheme to Defraud Elderly VictimsRead the Press Release
NEWARK, N.J. – An Indian national was sentenced today to 33 months in prison, two years of supervised release and ordered to pay $2.4 million in restitution for his role in an international conspiracy that preyed on elderly victims in New Jersey and throughout the United States. Ashish Bajaj, 29, pleaded guilty on Aug. 4, 2022, before U.S. District Judge Kevin McNulty in Newark federal court to an information charging him with conspiracy to commit wire fraud.
Foot Guide Charged with Sexual Abuse of 17-Year-Old GirlRead the Press Release
NEWS RELEASE SUMMARY – April 6, 2023
SAN DIEGO – Cecilio Jimenez-Bautista of Mexico appeared in federal court today to face charges that he sexually abused a 17-year-old unaccompanied minor who he and his brother guided from Tijuana, Mexico into the United States in June 2022.
According to allegations in a grand jury indictment, Jimenez-Bautista and his brother, Alexander Jimenez-Bautista, guided the girl and other Mexican citizens from Mexico to the United States through the Otay Mountain Wilderness area with the intent to violate the immigration laws of the United States. Over the course of three days, the group was taken along remote, rugged and desolate paths before being apprehended by U.S. Border Patrol agents at an area near Otay Lakes Road.
During those three days, Cecilio Jimenez-Bautista repeatedly isolated the girl from the group and placed her in fear, and sexually abused her, the indictment said. He ultimately used her fear of him to cause her to engage in sex with him, causing her serious bodily injury.
Both brothers face charges related to their role as foot guides for an alien smuggling organization from June 2022 to February 2023.
“We will do everything in our power to protect children from harm,” said U.S. Attorney Randy Grossman. “The United States is committed to protecting the rights of all individuals on our soil, especially the most vulnerable.” Grossman thanked the prosecution team and investigating agencies for their excellent work on this case.
“The dangers of human smuggling cannot be overstated,” said Chad Plantz, special agent in charge, HSI San Diego. “According to the complaint, this child entrusted her safety to smugglers. They, in turn, demonstrated that they value profit over human life. HSI and its law enforcement partners are committed to investigating organizations and individuals involved in the exploitation of migrants.”
“We are continuously watchful and alert to deter, detect and prevent threats to any individual,” said San Diego Sector Chief Patrol Agent Aaron M. Heitke. “This includes working together with our law enforcement partners to identify smugglers, and their organizations, who take advantage and profit by placing human lives at risk.”
Assistant U.S. Attorneys Katherine McGrath and Edward Chang of the Southern District of California, and Trial Attorney Danielle L. Hickman of the Human Rights and Special Prosecutions Section of the Criminal Division of the Department of Justice are prosecuting the case.
DEFENDANTS Case Number 22cr1550-LL
Cecilio Yonatan Jimenez-Bautista Age: 26
Alexander Jimenez-Bautista Age: 20
SUMMARY OF CHARGES
Cecilio Jimenez Bautista
Conspiracy to Bring in Aliens Resulting In Serious Bodily Injury, 8 U.S.C. §§ 1324(a)(1)(A)(i), (v)(1), and (a)(1)(B)(iii)
Maximum Penalty: Twenty years
Abusive Sexual Contact, 18 U.S.C. § 2244(b)
Maximum Penalty: Two years
Sexual Abuse by Fear, 18 U.S.C. § 2242(1)
Maximum Penalty: Life in prison
Bringing an Alien to the United States for Financial Gain and Aiding and Abetting,
8 U.S.C. § 1324(a)(2)(B)(ii), and 18 U.S.C. § 2
Maximum Penalty: Fifteen years (Five years mandatory minimum)
Alexander Jimenez-Bautista
Conspiracy to Bring in Aliens Resulting In Serious Bodily Injury, 8 U.S.C. §§ 1324(a)(1)(A)(i), (v)(1), and (a)(1)(B)(iii)
Maximum Penalty: Twenty years
Bringing an Alien to the United States for Financial Gain and Aiding and Abetting,
8 U.S.C. § 1324(a)(2)(B)(ii), and 18 U.S.C. § 2
Maximum Penalty: Fifteen years (Five years mandatory minimum)
AGENCY
Homeland Security Investigations
U.S. Border Patrol
Joint Task Force Alpha
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
This case was supported by Joint Task Force Alpha (JTFA). JTFA was created by the Attorney General in June 2021 in partnership with the Department of Homeland Security (DHS), to strengthen the Department’s overall efforts to combat these crimes based on the rise in prolific and dangerous smuggling from and through Central America and impacting our border communities. JTFA’s goal is to disrupt and dismantle those human smuggling and trafficking networks operating in El Salvador, Guatemala, Honduras, and Mexico, with a focus on networks that endanger, abuse or exploit migrants, present national security risks, or engage in other types of transnational organized crime.
The U.S. Attorney’s Office for the Southern District of California helps lead JTFA, which is comprised of detailees from southwest border U.S. Attorney’s Offices, including the Southern District of Texas, the Western District of Texas, the District of New Mexico, the District of Arizona, and the Southern District of California, and dedicated support for the program is also provided by numerous components of the Criminal Division that are part of JTFA – led by the Human Rights and Special Prosecutions Section (HRSP), and supported by the Office of Prosecutorial Development, Assistance, and Training (OPDAT), the Narcotic and Dangerous Drug Section (NDDS), the Money Laundering and Asset Recovery Section (MLARS), the Office of Enforcement Operations (OEO), the Justice Department’s Office of International Affairs (OIA), and the Organized Crime and Gang Section (OCGS). JTFA is made possible by substantial law enforcement commitment from DHS, FBI, Drug Enforcement Administration (DEA), and other partners.
Florida Man Admits Buying Gift Cards with Stolen Bank Account InformationRead the Press Release
ST. LOUIS – A man from Florida caught with more than $12,000 in Walmart gift cards that he’d bought using stolen bank account information pleaded guilty Thursday to a federal felony.
Juseph Eugene Suero-Olmeda, 23, admitted using stolen bank information to purchase Walmart gift cards. He then shipped the cards to an associate in Florida.
The Wright City Police Department stopped Suero-Olmeda’s vehicle for speeding on Oct. 3, 2021, and found the gift cards, which had recently been purchased from Walmart stores in Wentzville, Lake St. Louis and St. Peters, Missouri. Each gift card had a value of $480.
Suero-Olmeda pleaded guilty in front of U.S. District Judge John A. Ross. to one count of unauthorized use of an access device.
He is scheduled to be sentenced July 11. The crime carries a maximum penalty of 10 years in prison, a $250,000 fine, or both. Suero-Olmeda has also agreed to pay restitution.
The case was investigated by the U.S. Secret Service, the Wright City Police Department, the Warren County Sheriff’s Department, the St. Peters Police Department, the Wentzville Police Department and the Lake St. Louis Police Department. Assistant U.S. Attorney Jennifer Roy is prosecuting the case.
Five current and former police officers convicted in multi-million-dollar COVID-19 loan schemeRead the Press Release
NEWNAN, Ga. – Former Fulton County Sheriff’s Office deputy Katrina Lawson has been found guilty by a federal district court jury of conspiracy to commit wire fraud, wire fraud, bank fraud, mail fraud, and money laundering in connection with a wide-ranging Paycheck Protection Program and Economic Injury Disaster Loan program small business loan scheme.
“The jury found Lawson guilty on all charges brought against her, adding to the previous convictions of 11 of her co-conspirators,” said U.S. Attorney Ryan K. Buchanan. “In a time of crisis when the federal government sought to save small businesses from the significant, negative impacts of COVID-19, Katrina Lawson and her co-conspirators stole funds intended for these vulnerable businesses.”
“The verdict clearly illustrates that individuals who engage in fraudulent activities will be held accountable for their actions,” said Tommy D. Coke, Inspector in Charge of the Atlanta Division. “An extensive investigation by Postal Inspectors revealed the defendant and her co-conspirators took advantage of COVID-19 funds that were designated to assist small businesses for their own financial gain.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: On August 11, 2020, agents from the U.S. Postal Inspection Service (USPIS) conducted a search at Alicia Quarterman’s residence in Fayetteville, Georgia related to an ongoing narcotics trafficking investigation. Inspectors seized Quarterman’s cell phone and a notebook during the search.
In the phone and notebook, law enforcement discovered evidence of a Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program scheme masterminded by Lawson (Quarterman’s distant relative and best friend). Lawson’s cell phone was also seized later as a part of the investigation.
The text messages found in Lawson’s and Quarterman’s cell phones revealed that Lawson had identified a vulnerability in the PPP and EIDL programs and exploited it. Because of Congress’s goal of getting CARES Act funding into the hands of small businesses as quickly as possible, both programs relied heavily on the honesty of the applicants seeking funds. As a result, Lawson and Quarterman recruited several other people, who did not actually own registered businesses, to provide them with their personal and banking information. Once Lawson ultimately obtained that information, she completed fraudulent applications and submitted them to the Small Business Administration and banks for forgivable small business loans and grants.
Lawson was responsible for recruiting more than 200 individuals to participate in this PPP and EIDL fraud scheme. Three of the individuals she recruited were active sheriff’s deputies and one was a former U.S. Army military policeman. Lawson submitted PPP and EIDL applications seeking over $6 million in funds earmarked to save small businesses from the impacts of COVID-19. She and her co-conspirators ultimately stole more than $3 million. Lawson used a portion of these funds to purchase a $74,492 Mercedes Benz, a $13,500 Kawasaki motorcycle, $9000 worth of liposuction, and several other expensive items.
Several of Lawson’s co-defendants were previously convicted as a part of this case on charges of conspiracy to commit wire fraud and theft of government funds, mail fraud, money laundering, or related offenses:
- Alicia Quarterman, 40, of Fayetteville, Georgia;
- Tranesha Quarterman, 35, of Atlanta, Georgia, a former U.S. Army military policeman;
- Nikia Wakefield, 44, of Rockville, Maryland;
- Darryl Washington, 68, of Atlanta, Georgia;
- Adarin Jones, a/k/a Adrian Jones, 44, of Atlanta, Georgia;
- Katie Quarterman, 30, of Atlanta, Georgia;
- Victor Montgomery, 45, of Washington, D.C.;
- India Middleton, 36, of Accokeek, Maryland, a former Arlington County Sheriff’s Office deputy;
- Jeffrey Moffett, 54, of Jonesboro, Georgia, a former Fulton County Sheriff’s Office deputy; and
- Stephanie R. Cooper, 50, of Decatur, Georgia, a current Fulton County Sheriff’s Office deputy.
Sentencing for Katrina Lawson, 43, of Houston, Texas, is scheduled for July 6, 2023, at 10:00 a.m., before U.S. District Judge Timothy C. Batten, Sr. In determining the actual sentence, the Court will consider the U.S. Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
This case is being investigated by the U.S. Postal Inspection Service.
Assistant U.S. Attorneys Miguel R. Acosta, Alex Sistla, Radka Nations, and Chris Huber are prosecuting the case.
This effort is 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.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Federal prosecutor named as First Assistant U.S. Attorney for Southern District of GeorgiaRead the Press Release
SAVANNAH, GA: Southern District of Georgia U.S. Attorney Jill E. Steinberg has announced the appointment of Tara M. Lyons as First Assistant U.S. Attorney, effective April 9.
First Assistant U.S. Attorney Lyons currently is the Deputy Criminal Chief and an Assistant U.S. Attorney serving in the Southern District’s Augusta Office and a 20-year veteran prosecutor for the U.S. Department of Justice (DOJ).
“Tara’s ability, drive, and passion to advance the DOJ mission makes her a clear choice for an executive role in this District,” U.S. Attorney Steinberg said. “The office will benefit enormously from her exceptional insight, leadership acumen, and depth and breadth of experience.”
A native of New York, Lyons is a graduate of South Carolina State University and the University of South Carolina School of Law. She started her professional career as a law clerk for the Honorable Henry F. Floyd during his service as a South Carolina Circuit Court Judge with the 13th Judicial Circuit of South Carolina, followed by more than three years as a public defender in Richland County, S.C. Lyons joined DOJ in 2003, serving as an Assistant U.S. Attorney in the District of South Carolina before transferring to the Southern District of Georgia as a criminal prosecutor.
“I am deeply honored to be chosen to serve in a greater leadership role with the exceptional team in the Southern District U.S. Attorney’s Office,” Lyons said. “It is a humbling experience to fight for justice on behalf of victims in the courtroom, and I am excited to take on a role that allows higher-level advocacy on behalf of all victims served in our judicial circuit.”
In the Southern District of Georgia, Lyons has served as Deputy Chief of the Criminal Division, Project Safe Childhood Coordinator, and Criminal Civil Rights Coordinator. She served as lead counsel in the first federal hate crimes prosecution in the Southern District of Georgia, United States v. McMichael et al., securing a conviction for the murder of Ahmaud Arbery in Brunswick, Ga.
As First Assistant U.S. Attorney, Lyons joins Criminal Division Chief Patricia M. Rhodes and Civil Division Chief Shannon H. Statkus as senior leadership in the Southern District U.S. Attorney’s Office.
U.S. Attorney Steinberg also announced Karl Knoche will remain in the front office of the U.S. Attorney’s Office as Senior Counsel to the U.S. Attorney. Knoche previously served as First Assistant U.S. Attorney, Senior Counsel to the U.S. Attorney, and Criminal Division Chief during his 34-year career at the U.S. Attorney’s Office in the Southern District.
Federal Way armed fentanyl dealer sentenced to 15 years in prisonRead the Press Release
Seattle – A 27-year-old Federal Way, Washington, resident was sentenced today in U.S. District Court in Seattle to 180 months in prison for distribution of fentanyl and carrying a firearm in commission of a drug trafficking crime, announced U.S. Attorney Nick Brown. Fernando Lopez-Armenta has been in custody since his arrest on August 4, 2021.
According to records filed in the case, a confidential source received a phone call from Lopez-Armenta on August 4, 2021, stating that he was willing to sell him fentanyl. Later that day, Lopez-Armenta met the confidential source in his car in Federal Way, intending to sell the source 10,000 fentanyl pills, with 4,000 more stashed in his car.
Once it was confirmed that Lopez-Armenta possessed illegal narcotics, agents moved in to arrest him. Upon seeing the agents, Lopez-Armenta stepped out of his car and pointed his loaded pistol in the direction of agents and the confidential source. Lopez-Armenta finally put his pistol down on the hood of his car after a verbal order from another agent. He was subsequently arrested. At the sentencing hearing, U.S. District Judge Coughenour stated, “The Court commends the arresting officers. The fact that Lopez-Armenta pointed a loaded gun at the officers, and they did not fire, shows tremendous restraint. He is lucky to be alive today.”
At trial in August, the jury found Lopez-Armenta guilty of one count of possessing fentanyl with the intent to distribute and one count of carrying a firearm in commission of that crime.
In asking for a prison sentence of 180 months plus five years of supervised release, Assistant United States Attorney Erika Evans argued to the Court, “The 10,000 fentanyl pills that Lopez-Armenta brought to this drug deal represented thousands of potential overdose deaths. And he did not just traffic deadly drugs—he did so while carrying a gun.”
The case was investigated by Homeland Security Investigations (HSI) and the Drug Enforcement Administration (DEA).
The case was prosecuted by Assistant United States Attorneys Erika Evans and Rebecca Cohen.
Elkhorn Man Sentenced to 102 Months for Distributing Child PornographyRead the Press Release
United States Attorney Steven A. Russell announced that John R. Steier, age 32, was sentenced in federal court today in Omaha, Nebraska, for distributing child pornography. Chief United States District Judge Robert F. Rossiter sentenced Steier to 102 months of imprisonment. There is no parole in the federal system. After completing his term of imprisonment, Steier will begin a 10-year term of supervised release. Steier was also ordered to pay $6,000 in restitution and a $4,000 assessment.
Between October 28, 2019, and April 29, 2021, from his Elkhorn, Nebraska, residence, Steier made child pornography available for download on the internet program eMule. On July 19, 2021, from the Glenwood, Iowa, fire department, Steier made child pornography available for download from the same eMule account. Steier was a fireman in Glenwood. On October 14, 2021, agents searched Steier’s Elkhorn residence. During the search, Steier took agents to the Glenwood fire department and agents obtained his laptop. Agents located approximately 80 videos of child pornography (40 unique) on the laptop.
This case was investigated by the Federal Bureau of Investigation and 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 CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Dominican National Sentenced to 30 Months in Federal Prison for Trafficking Fentanyl and HeroinRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that JEFFREY AMARANTE-PEREZ, 29, of the Dominican Republic, was sentenced yesterday by U.S. District Judge Vanessa L. Bryant in Hartford to 30 months of imprisonment, followed by three years of supervised release, for trafficking fentanyl and heroin.
According to court documents and statements made in court, this matter stems from a joint investigation headed by the DEA New Haven Task Force and the Waterbury Police Department into a Waterbury-based drug trafficking operation headed by Nestor Sosa-Ortiz. The investigation, which included the use of court-authorized wiretaps, physical surveillance, and controlled purchases of narcotics, revealed that Sosa-Ortiz’s organization received large quantities of fentanyl and heroin from suppliers in Connecticut and New York and distributed the narcotics through a network of co-conspirators, including Sanchez-Martinez. After Sosa-Ortiz was arrested in New York City on a separate federal heroin and fentanyl trafficking charge in May 2019, he continued to control his drug network while incarcerated by using smuggled cell phones to communicate with various co-conspirators.
The Sosa-Ortiz organization used an apartment located at 330 Bishop Street in Waterbury to store kilogram-quantities of fentanyl and heroin, and to process and package the drugs for street sale. On October 29, 2019, investigators arrested several members of the organization, executed search warrants at the Bishop Street apartment and four other locations, and seized approximately six kilograms of fentanyl and heroin, approximately 100,000 bags of fentanyl/heroin packaged for street distribution, approximately 1,000 fentanyl pills disguised as Percocet pills, one firearm, approximately $50,000 in cash, drug ledgers, and other items.
As the investigation continued, it revealed that Jeffrey Amarante-Perez and his brother, Jeisson Amarante-Perez, served as an alternate source of drug supply to the Sosa-Ortiz organization, and that Edwin Rivas-Cruz was a drug courier for the Amarante-Perez brothers. Jeisson Amarante-Perez and Rivas-Cruz were intercepted over a wiretap coordinating narcotics transactions, and drug ledgers seized from the Sosa-Ortiz organization in October 2019 indicated drug debts to Jeffrey Amarante-Perez of more than $30,000.
Jeffrey Amarante-Perez has been detained since his arrest on July 1, 2022. On November 15, 2022, he pleaded guilty to conspiracy to possess with intent to distribute heroin and fentanyl.
Jeisson Amarante-Perez, Rivas-Cruz, and Sosa-Ortiz have pleaded guilty and await sentencing.
This investigation has been conducted by the Drug Enforcement Administration New Haven Task Force and the Waterbury Police Department. The DEA New Haven Task Force includes participants from the DEA, U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division, Connecticut State Police and the New Haven, Waterbury, East Haven, Branford, West Haven, Ansonia, Meriden, Naugatuck, and Shelton Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys Lauren C. Clark and Jocelyn Courtney Kaoutzanis through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Dominican National Pleads Guilty to Possession with Intent to Distribute 630 Kilograms of CocaineRead the Press Release
St. Croix, VI – United States Attorney Delia L. Smith announced that Leandro De Los Santos, 33, of the Dominican Republic, pleaded guilty before Magistrate Judge Emile A. Henderson, III, to conspiracy to possess with intent to distribute cocaine while on board a vessel subject to the jurisdiction of the United States. A sentencing date for De Los Santos has been set by the Court for August 4, 2023, where he faces a maximum of 20 years in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
According to court documents, on September 11, 2022, while on routine patrol south of the Dominican Republic, a maritime patrol aircraft detected a go-fast vessel navigating on a northerly course approximately 80 nautical miles south of Bani, Dominican Republic. The U.S.S. Billings was dispatched to the area when crew members observed that the vessel had no flag flown, no registration numbers and no name painted on its hull. The Dominican Republic Navy later advised that the vessel was not registered with their country. The vessel was therefore treated as one without nationality thereby subjecting it to laws of the United States. Onboard the vessel, the U.S.S. Billings boarding team detained De Los Santos and another individual and located 18 bales of cocaine weighing approximately 630 kilograms.
The United States Coast Guard, Homeland Security Investigations and Drug Enforcement Administration are investigating this case, and Assistant United States Attorney Evan Rikhye is prosecuting the case. 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.
Cryptocurrency Founder “Bruno Block” Pleads Guilty to Tax CrimesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that AMIR BRUNO ELMAANI, a/k/a “Bruno Block,” the founder of the cryptocurrency “Oyster Pearl,” pled guilty yesterday to tax offenses. In connection with his guilty plea, ELMAANI admitted that he had secretly minted and sold for his own gain Pearl cryptocurrency tokens, which caused the price of Pearl tokens to plummet, and that he did not pay income tax on certain cryptocurrency profits. ELMAANI agreed that he caused a tax loss of over $5.5 million. ELMAANI pled guilty before United States District Judge Colleen McMahon.
U.S. Attorney Damian Williams said: “Amir Elmaani violated the duty he owed to pay taxes on millions of dollars of cryptocurrency profits. As he admitted, he also violated the trust of investors in the cryptocurrency he founded. Our Office will continue to bring groundbreaking cases, like this one, to ensure participants in cryptocurrency markets play by the rules.”
Based on the allegations in the Indictment, in the Superseding Information to which ELMAANI pled guilty, the plea agreement, and other statements made and documents filed in court:
In September and October 2017, ELMAANI began promoting online a new cryptocurrency known as Pearl tokens. Using a variation of his online pseudonym “Bruno Block,” ELMAANI stated that he planned to develop an online data-storage platform, known as Oyster Protocol, which would allow users to purchase online data storage with Pearl tokens. Instead of using his real name, ELMAANI operated almost exclusively online under the pseudonym “Bruno Block.” ELMAANI concealed his true identity from his prospective employees and business associates and never met them in person.
In late October 2018, although the number of Pearl tokens was purportedly fixed, ELMAANI used his access to the blockchain technology used to create Pearl tokens to mint new tokens, which he took for his own personal use (the “Exit Scheme”). ELMAANI thereby increased the total volume of Pearl tokens. Shortly after creating the new tokens, ELMAANI converted the Pearl tokens he had obtained to other types of cryptocurrency on an online marketplace or exchange. As a result of ELMAANI’s conduct, trading in Pearl tokens halted on that exchange and the price of Pearl tokens held by investors dropped substantially. Pearl tokens were subsequently de-listed from the primary exchange where they were traded. Subsequent to the Exit Scheme, ELMAANI used his friends and family to receive cryptocurrency and to transfer funds to a bank account in his name.
While ELMAANI initially attempted to hide even “Bruno Block’s” involvement in the Exit Scheme, he later effectively admitted to the conduct online under his “Bruno Block” pseudonym. In a recorded call with the then-chief executive officer (“CEO”) of Oyster Protocol Inc., after the Exit Scheme, the CEO asked ELMAANI why he had to take the additional new Pearl tokens if he had already cashed out millions of dollars’ worth of Pearl tokens in the past. ELMAANI responded, in part, that “taxes are pretty nasty.” ELMAANI carried out the Exit Scheme only days before the exchange he had used to cash out his Pearl tokens was set to require “know your customer” personal identifying information from its users.
In connection with his plea, ELMAANI admitted in the plea agreement that:
In or about 2017, using the alias “Bruno Block,” I began an online project called the “Oyster Protocol.” In support of this project, an initial coin offering (“ICO”) was held in or about October 2017, in which a token named “Pearl” (“PRL”) was issued. I stated in public forums that after the ICO, the supply of PRL would not increase, and that the smart contract that created PRL would be “locked.” Contrary to these statements, on or about October 29, 2018, I used the smart contract to mint new PRL, without telling anyone, including others who worked on the Oyster Protocol project. I then sold these newly minted PRL on a digital trading platform. I was aware that the counterparties who were buying these newly minted PRL likely were not aware of my reopening of the smart contract, and did not know that I had just substantially increased the total supply of PRL. After Oyster management learned of my reopening of the smart contract and alerted the public, the price of PRL plummeted.
ELMAANI filed a false 2017 tax return stating that he had only approximately $15,000 of income from a “patent design” business, and he filed no return and reported no income to the Internal Revenue Service (“IRS”) in 2018. Nevertheless, ELMAANI spent, in 2018, over $10 million for the purchase of multiple yachts, $1.6 million at a carbon-fiber composite company, hundreds of thousands of dollars at a home improvement store, and over $700,000 for the purchase of two homes, one of which was titled in the name of a shell company and the other in the name of two of his associates. The tax loss to the United States from ELMAANI’s conduct was approximately $5,523,794.
* * *
ELMAANI, 31, of Martinsburg, West Virginia, pled guilty to one count of subscribing to a false tax return for the year 2017, which carries a maximum sentence of three years in prison, and one count of failure to file a tax return for the year 2018, which carries a maximum sentence of one year in prison. ELMAANI also agreed to pay restitution in the amount of at least $5,523,794.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the investigative work of the Federal Bureau of Investigation and the IRS and also thanked the Securities and Exchange Commission and the Commodity Futures Trading Commission for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Margaret Graham, Adam Hobson, and Drew Skinner are in charge of the prosecution.
Copiah County Man Sentenced to 30 Years in Prison for Distribution of Crystal Meth and Heroin Laced with FentanylRead the Press Release
Jackson, Miss – A Crystal Springs man was sentenced to 30 years in prison for operating a drug trafficking organization that distributed heroin laced with fentanyl in addition to kilogram quantities of crystal methamphetamine throughout the metropolitan area.
Gregory Jamal Williams, a/k/a “Grip”, 43, was sentenced on April 5, 2023 in U.S. District Court in Jackson.
According to court documents, from as early as February 2019 through the date of his indictment in November 2020, Williams conspired with others and possessed with the intent to distribute crystal methamphetamine as well as heroin. Evidence demonstrated that the heroin was mixed with fentanyl.
In October 2022, Williams pled guilty to all counts in his federal indictment. Williams’s 30-year sentence includes penalties for acting as a supervisor or manager of the organization’s drug trafficking activities, for possession of firearms in connection with his drug trafficking activities, for committing his drug crimes as part of a pattern of criminal conduct engaged in as his livelihood, and for importation of methamphetamine from Mexico. Williams was previously convicted of various state drug crimes, including sale of drugs within 1500 feet of a church.
Williams’s son and co-defendant, Sage Braddy, is currently serving an 87-month federal sentence for his role in the drug trafficking operation.
U.S. Attorney Darren J. LaMarca of the Southern District of Mississippi and DEA Special Agent in Charge Brad Byerly made the announcement.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. 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.
This OCDETF case is the result of an extensive investigation by the Drug Enforcement Administration, the Mississippi Bureau of Narcotics, the U.S. Postal Inspection Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Mississippi Highway Patrol.
Assistant U.S. Attorney Carla J. Clark prosecuted the case.
Charlotte Man Indicted for International Multi-Million Dollar Tech Support Fraud ScamRead the Press Release
CHARLOTTE, N.C. – Nachiket Banwari, 34, of Charlotte, was indicted by a federal grand jury for conspiracy to commit mail fraud, wire fraud, and money laundering, for his involvement in an international multi-million dollar tech support fraud scam, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. The federal indictment was unsealed today, following Banwari’s initial appearance in federal court.
Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, joins U.S. Attorney King in making today’s announcement.
According to allegations in the indictment, Banwari was part of a conspiracy with other individuals that carried out an international internet technical support fraud scam, through his management of Capstone Technologies LLC (Capstone), a company headquartered in Charlotte that claimed to provide computer-related services to its customers. Capstone allegedly conducted business using several different aliases, including Authenza Solutions LLC, MS-Squad Technologies, MS-Squad.com, MS Infotech, United Technologies, and Reventus Technologies.
According to allegations in the indictment, fraudulent internet pop-up “ads” were a central part of the conspiracy’s tech support scam. It is alleged that the fraudulent pop-ups suddenly appeared on victims’ computers freezing their screens and containing misrepresentations designed to trick the victims into believing their computer needed technical support to fix a problem, prompting victims to contact Capstone at a number shown on the pop-ups. When victims called Capstone’s India-based call center for assistance, the indictment alleges that victims were tricked into purchasing unnecessary technical support services from Capstone. The indictment further alleges that the conspirators defrauded thousands of victims throughout the United States, some of whom were elderly, of more than $7 million.
According to allegations in the indictment, Banwari agreed to obtain payment-processing services in his name on behalf of Capstone, in order to process victims’ payments to the conspirators, and laundered the proceeds domestically and internationally to bank accounts located in India. For his participation in the scheme, Banwari allegedly received three percent of the Capstone revenue.
The indictment also contains a notice of forfeiture, which gives notice that the defendant must forfeit to the United States all of the property, currency and monetary instruments involved in the offenses charged in the indictment. The government will pursue a forfeiture money judgment in the amount of at least $211,000, which the government contends constitutes the proceeds of the violations alleged in the charging document.
Banwari remains in federal custody. The mail fraud and wire fraud conspiracy charge and the money laundering conspiracy charge each carry a maximum prison term of 20 years.
The charges against Banwari are allegations. The defendant is innocent until proven guilty beyond reasonable doubt in a court of law.
The FBI conducted the investigation.
Assistant U.S. Attorney Matthew Warren of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
Central Iowa Man Charged for Preparing and Filing False Tax ReturnsRead the Press Release
Des Moines, IA – A Central Iowa man made his initial appearance today in federal court for numerous tax charges.
Bakou Kees Vonty (also known as Bob Vonty), 40, is charged in a 39-count indictment returned on March 21, 2023. As alleged in the indictment, from at least 2015 through 2021, Vonty prepared Individual Income Tax Returns for numerous customers who paid him to prepare and file their tax returns. Vonty acted as a “ghost preparer,” meaning that Vonty did not sign his customers’ tax returns when he prepared and filed them. Vonty prepared the customers’ tax returns but did not explain the contents of the returns to the customers, review the returns with the customers, or provide copies of the returns to the customers before Vonty electronically filed the returns with the Internal Revenue Service. Instead, Vonty would typically inform the customer of the amount of their anticipated refund. It is alleged that Vonty often included on his customers’ federal tax returns, schedules, and forms, items that Vonty knew to be false, such as false claims for business-expense deductions and education expenses. The effect of Vonty including false items on the tax documents was to increase the refunds his clients received.
In addition, it is alleged that Vonty also filed several of his own federal income tax returns knowing that they contained false information.
Vonty is charged with thirty-six counts of Preparing and Presenting a False Tax Return and three counts of Making and Subscribing a False Tax Return. If convicted, he faces a maximum penalty of three years in prison on each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. Internal Revenue Service Criminal Investigation is investigating the case. Assistant United States Attorney Adam J. Kerndt 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.
Career Offender Who Carjacked, Sexually Assaulted, and Stabbed Woman Sentenced to over 24 Years in PrisonRead the Press Release
RALEIGH, N.C. –David Earl Page, 54, of Maxton, North Carolina was sentenced yesterday to 293 months in prison for carjacking resulting in serious bodily injury after forcing a woman into a car at knifepoint and driving her to a remote location where he sexually assaulted her and then stabbed her when she attempted to escape. Page pled guilty on January 3, 2023.
According to court documents and other information presented in court, on March 11, 2021, a Robeson County Sheriff’s Deputy was approached by a female who was suffering from multiple stab wounds. The victim advised that while she was working at the South of the Border shopping center in Dillon, South Carolina, she was approached on a smoke break by a black male, later identified as Page, who put a knife to her throat—forcing her into her own vehicle. Page then drove the vehicle into Rowland, North Carolina, where he tied her hands and feet with a sheet. They traveled down a series of roads before stopping in a rural area where the victim was forced out of her vehicle and sexually assaulted. When she attempted to escape, Page grabbed her by her hair, beat her, and stabbed her with a knife. He then forced her back into the vehicle and drove around to different convenience stores to purchase different items, which was captured on video surveillance.
Page has a history of committing armed robberies and is a career offender.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina, made the announcement after sentencing by U.S. District Judge Terrence W. Boyle. The Bureau of Alcohol, Tobacco, Firearms, and Explosives, Robeson County Sheriff’s Office, and Dillon County Sheriff’s Office investigated the case and Assistant U.S. Attorney Chad Rhoades prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:21-CR-87-BO.
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Caldwell Man Sentenced to over 11 Years in Federal Prison for Possession of Child PornographyRead the Press Release
BOISE – Juan Salinas Jr., 48, of Caldwell, Idaho, was sentenced to 143 months in federal prison for possession of child pornography, U.S. Attorney Josh Hurwit announced today. Senior U.S. District Judge B. Lynn Winmill also sentenced Salinas to a lifetime of supervised release and entered an order forfeiting the electronic devices used to commit the offense. Salinas was ordered to pay $45,000 restitution to the victims in the images he possessed and will be required to register as a sex offender as a result of the conviction.
According to court records, the investigation began when Homeland Security Investigations (“HSI”) received a report that child pornography had been uploaded to a social media account that was later identified as belonging to Salinas. In March of 2022, HSI executed a federal search warrant at Salinas’ residence in Caldwell and seized a cellphone belonging to Salinas. During a forensic examination of the cellphone, HSI located hundreds of images and videos of child pornography, including files depicting infants and toddlers.
U.S. Attorney Hurwit, of the District of Idaho commended the cooperative efforts of Homeland Security Investigations, the Idaho Internet Crimes Against Children Task Force, the Caldwell Police Department, and Idaho Department of Corrections Probation and Parole, which led to charges.
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. As part of Project Safe Childhood, the U.S. Attorney’s Office for the District of Idaho and the Idaho Attorney General’s Office partner to marshal 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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CPA Sentenced for Securities FraudRead the Press Release
CHARLOTTE, N.C. – United States District Judge Kenneth D. Bell sentenced Mac Wayne Billings, 49, of Raleigh, N.C. to 41 months in prison for defrauding investors in his company Alpha Finance Company (ALPHA) of at least $1.3 million, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, joins U.S. Attorney King in making today’s announcement.
On June 21, 2022, Billings was indicted by a grand jury in Charlotte for securities fraud. On September 13, 2022, Billings pleaded guilty and admitted that from 2016 through 2019, he made false representations to ALPHA investors concerning the use of their money and deliberately withheld important information about ALPHA’s business. Billings incorporated ALPHA on October 22, 2008, and opened its first office in Sparta, N.C. ALPHA made small loans—usually less than $7,000—to consumers, secured by used vehicles and other property that could be repossessed. Billings financed ALPHA with loans from local community residents that Billings promised to pay back with interest. At least 19 residents of Alleghany, Wilkes and Surry Counties, invested over $3.6 million in ALPHA “notes.”
Billings admitted that in 2016 he knew ALPHA was operating at loss, but was still soliciting new investors and telling existing investors that ALPHA was “doing well.” Billings used investment statements, emails and meetings to mislead and deceive victim-investors into believing that ALPHA was a profitable company and that the victims’ investments were safe. Billings also admitted that he failed to disclose material information to investors concerning ALPHA’s financial and business troubles, including that he had sold or mortgaged most of ALPHA’s assets to hard money lenders. Based on the fraudulent information provided by Billings, many of the victim-investors renewed and/or made additional investments with ALPHA, causing them to incur further financial losses.
As part of Billings sentence, Billings was ordered to pay approximately $3.5 million in restitution to investors who lost their retirement savings when ALPHA was closed by the North Carolina Commissioner of Banks (NCCOB) in June 2019.
On March 23, 2023, the North Carolina Board of Certified Public Accountant (CPA) Examiners revoked Billings’ CPA certification.
In making today’s announcement, U.S. Attorney King commended the FBI for their investigation of the case and thanked the Securities and Exchange Commission, the North Carolina Commissioner of Banks, and the North Carolina Attorney General’s Office for their cooperation.
Assistant U.S. Attorney Michael E. Savage of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Browning man sentenced for theft of artifacts from Museum of the Plains Indian on Blackfeet Indian ReservationRead the Press Release
GREAT FALLS — A Browning man who worked at the Museum of the Plains Indian on the Blackfeet Indian Reservation was sentenced today for stealing culturally significant artifacts, including a grizzly bear claw necklace, beaded moccasins and golden eagle feathers from a war bonnet, U.S. Attorney Jesse Laslovich said.
Chief U.S. District Judge Brian M. Morris sentenced Preston Jay Spotted Eagle, 32, to five years of probation, as recommended by both parties in a plea agreement, 250 hours of community service and ordered him to pay $16,860 restitution.
Spotted Eagle pleaded guilty in October 2022 to theft of government property.
“As an aide employed by the Museum of the Plains Indian, Spotted Eagle was entrusted with caring for culturally significant, sacred and priceless artifacts of the Blackfeet Nation, Crow, Lakota, and other Northern Plains tribes,” U.S. Attorney Laslovich said. “Instead, Spotted Eagle plundered the museum’s collection for his own benefit—damaging, as well as stealing, claws from a grizzly bear claw necklace, taking a pair of beaded moccasins, and removing golden eagle tail feathers from a rare full-length eagle headdress. Perhaps Spotted Eagle’s most egregious conduct was to rifle through sacred medicine bundles, not only causing physical damage, but also desecrating them. These irreplaceable cultural items represent the brave and valued history of our Native American brothers and sisters, which is why we will hold accountable anyone who seeks to engage in similar criminal conduct.”
“Protecting and preserving Indian art, culture, and heritage is of the utmost importance to the Indian Arts and Crafts Board (IACB), including through its Museum of the Plains Indian operations and programs,” stated IACB Director Meridith Stanton. “The IACB shares the outrage expressed by Blackfeet community members regarding the mishandling, destruction, and theft from the Museum of the Plains Indian of culturally significant and sacred Blackfeet collections by Mr. Spotted Eagle -- someone entrusted with their care and protection as a then Museum employee. The IACB is grateful for the outstanding work of the U.S. Fish and Wildlife Service Office of Law Enforcement and the Office of the U.S. Attorney – District of Montana in bringing Mr. Spotted Eagle to justice for his destructive and reckless actions.”
“Mr. Spotted Eagle not only stole from the museum, but also from the people of the Northern Plains Tribes,” said Edward J. Grace, Assistant Director of the U.S. Fish and Wildlife Service’s Office of Law Enforcement. “He also wore and damaged culturally significant items that are irreplaceable in spirit and value and his actions have robbed current and future generations of seeing these items intact and enjoying their significance. Today’s sentence was the result of the strong collaboration between our special agents, the Indian Arts and Crafts Board, and the U.S. Attorney’s Office.”
The government alleged in court documents that the thefts occurred between May and August 2021 from the Museum of the Plains Indian, in Browning, where Spotted Eagle was employed as an aide. None of the stolen items has been recovered. The Museum of the Plains Indian displays the arts of various Northern Plains Tribes and is managed by the U.S. Department of Interior’s Indian Arts and Crafts Board. All art held by the museum is property of the federal government. In August 2021, museum staff noticed that a bear claw necklace was missing from a display. The U.S. Fish and Wildlife Service investigated and identified Spotted Eagle as the thief.
The government alleged that the first item found to be missing was a grizzly bear necklace that contained 11 large claws. An employee assumed Spotted Eagle had removed it because she had given him an inventory assignment. When asked about the necklace, Spotted Eagle reported not knowing what happened to it. A review of security system video led to Spotted Eagle. When confronted again, Spotted Eagle said he believed he removed the necklace after seeing that it had fallen off its hanger. Spotted Eagle told the employee that nobody else needed to review the video and that he could guarantee the necklace was still in the museum. That afternoon, Spotted Eagle said he found the necklace under some papers in a collection room. The necklace was heavily damaged and appeared to have had four of the 11 claws removed and replaced with smaller claws.
Court documents further alleged that museum staff conducted an inventory to determine if there were other items missing and learned that an additional four loose grizzly bear claws, a pair of beaded moccasins and 26 golden eagle feathers from a war bonnet were gone. A review of surveillance footage showed that Spotted Eagle removed the pair of stolen moccasins, but first he held several different pairs of moccasins up to the bottom of his shoe for a size comparison. He later took the pair of moccasins and rearranged the other moccasins they were stored with so the missing pair would not be easy to detect. Video further showed Spotted Eagle handling a war bonnet that was later found with 26 missing golden eagle feathers. Investigators identified additional video of Spotted Eagle removing artifacts and photographing them with his cell phone. He was observed trying on historic clothing, including a ceremonial Crazy Dog Society shirt that was too small for him but did not rip during the struggle. And he was observed rummaging through many sacred bundles, even breaking a strap on the parfleche tube case of one of the bundles. In addition to physically damaging the bundles, Spotted Eagle caused spiritual harm to them and to the community by violating cultural protocols associated with the care and handling of sacred medicine bundles.
When interviewed by agents, the government alleged, Spotted Eagle claimed that he found the bear claw necklace damaged, removed it and attempted to repair it, but that he was unable to notify other employees because they were absent. Agents confirmed the employees were present on the date Spotted Eagle removed the necklace. Agents confronted Spotted Eagle about removing four claws from the necklace and replacing them, which he denied. Spotted Eagle abruptly ended the interview, swore at the agent and left after making an obscene gesture.
Investigators later confirmed that Spotted Eagle posted on social media a photo of 33 immature golden eagle feathers that are similar to the 26 feathers stolen from the museum headdress. Spotted Eagle has never applied for or received golden eagle parts from the National Eagle Repository.
An appraisal of the missing and damaged items determined the following values:
- Grizzly bear claw necklace, $3,200 fair market value before being damaged.
- Beaded moccasins, $350 fair market value and $425 replacement cost.
- Four grizzly bear claws, $800 market value and $1,700 replacement cost.
- 26 golden eagle feathers, no fair market value because the trade is illegal. The valuation of a feather under the uniform collateral forfeiture is $300 each, for a total of $7,800.
- The smaller bear claws found on the damaged necklace were determined to be one black bear claw and three grizzly bear claws, which were significantly newer than the other seven original claws.
- The damage to the war bonnet was not calculated because no legal market exists. A war bonnet similar to the one damaged was sold overseas for $18,172 in 2012.
The U.S. Attorney’s Office prosecuted the case, which was investigated by the U.S. Fish and Wildlife Service, Office of Law Enforcement.
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Boston Man Pleads Guilty to Distributing MethamphetamineRead the Press Release
BOSTON – A Boston man pleaded guilty yesterday to methamphetamine distribution.
Joshua Westbrook, 26, pleaded guilty to one count of distribution and possession with intent to distribute 50 grams or more of methamphetamine. U.S. District Court Judge Angel Kelley scheduled sentencing for Aug. 2, 2023. Westbrook was indicted by a federal grand jury in December 2021.
In November 2021, Westbrook distributed over 360 grams of pure methamphetamine in Dorchester. An additional 500 grams of pure methamphetamine and a machete were also seized from Westbrook over the course of the investigation.
The charge of distribution and possession with intent to distribute 50 grams or more of methamphetamine provides for a sentence of at least 10 years and up to life years in prison, at least five years and up to a lifetime of supervised release and a fine of up to $10 million. 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; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Commissioner Carol Mici of the Massachusetts Department of Correction made the announcement today. Valuable assistance was provided by the United States Postal Service; Plymouth County and Norfolk County Sheriff’s Offices; Massachusetts State Police; and the Portland (Maine), Watertown, Waltham, Concord, Reading, Peabody and Hudson Police Departments. Assistant U.S. Attorney Alathea Porter of Rollins’ Narcotics & Money Laundering Unit is prosecuting the case.
This case is 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.
Billings man sentenced to five years in prison for attempted transfer of obscene material to a minor in undercover investigationRead the Press Release
BILLNGS — A Billings man who admitted having sexual conversations through social media with an undercover agent posing as a minor girl and was arrested when he showed up to meet the girl, was sentenced today to five years in prison, to be followed by three years of supervised release, U.S. Attorney Jesse Laslovich said.
Kyle Jason Swindler, 42, pleaded guilty in October 2022 to attempted transfer of obscene material to a minor.
U.S. District Judge Susan P. Watters presided. The court also ordered $2,000 restitution.
The government alleged in court documents that in October 2021, law enforcement conducted an undercover operation in Billings to identify and arrest individuals who were attempting to have sex with children. Swindler responded to a social media post by an undercover agent who was posing as a 13-year-old girl. When the undercover agent identified herself as 13 years old, Swindler responded, “Ouch you’re a young one.” The conversation became sexual in nature. Swindler and the undercover agent arranged to meet in a public park for a sexual encounter. Swindler drove to the park, where he was arrested. Law enforcement searched Swindler’s vehicle and found sex-related items. Officers also searched Swindler’s cell phone and recovered the original social media conversation.
Assistant U.S. Attorney Benjamin D. Hargrove prosecuted the case, which was investigated by the FBI, Homeland Security Investigations, Billings Police Department, Yellowstone County Attorney’s Office and Yellowstone County Sheriff’s Office.
This case was initiated under the Department of Justice’s Project Safe Childhood initiative, which was launched in 2006 to combat the proliferation of technology-facilitated crimes involving the sexual exploitation of children. Through a network of federal, state and local law enforcement agencies and advocacy organizations, Project Safe Childhood attempts to protect children by investigating and prosecuting offenders involved in child sexual exploitation. It is implemented through partnerships including the Montana Internet Crimes Against Children Task Force. The ICAC Task Force Program was created to assist state and local law enforcement agencies by enhancing their investigative response to technology facilitated crimes against children.
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Assault with hammer sends Browning man to prison for 20 monthsRead the Press Release
GREAT FALLS — A Browning man who admitted beating a man in the head with a claw hammer was sentenced today to 20 months in prison, to be followed by three years of supervised release, U.S. Attorney Jesse Laslovich said.
Calvin Lame Bull Juneau, 37, pleaded guilty in November 2022 to assault resulting in serious bodily injury.
Chief U.S. District Judge Brian M. Morris presided.
The government alleged in court documents that on Nov. 19, 2021, Juneau and co-defendant, Dale Ray Racine, entered a residence in Browning, on the Blackfeet Indian Reservation, and assaulted the victim, identified as John Doe, who was sleeping in a bedroom. Doe awoke and saw Juneau and Racine rushing toward him. Juneau had a claw hammer in his hands. The victim received multiple strikes in the head, one to his hand and one to his leg. The victim was treated for head injuries at the Indian Health Service in Browning. Racine was sentenced previously to two years in prison for his conviction in the case.
The U.S. Attorney’s Office prosecuted the case, which was investigated by the FBI and Blackfeet Law Enforcement Services.
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Arizona man pleads guilty to travel with intent to engage in illicit sexual conductRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced today that Jonathan John James pleaded guilty to travel with intent to engage in illicit sexual conduct. James, 58, of Tsaile, Arizona, will remain on conditions of release pending sentencing, which has not been scheduled.
According to the plea agreement and other court documents, on April 20, 2022, James followed a child as she shopped with a grandparent at a Home Depot in Gallup, New Mexico. James approached the minor, told her she was attractive and gave her his telephone number, written on a wet wipe package, in hopes they would communicate. On April 27, James received a text message from a person he believed to be the minor he had contacted and began exchanging sexually explicit messages with them. On May 5, James traveled from Arizona to a park in Gallup to meet the victim. He was detained by the FBI upon arrival.
Under the terms of his agreement, James can be sentenced to up to 30 years in prison and must register as a sex offender upon his release from prison.
The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the FBI Child Exploitation Human Trafficking Task Force. Assistant United States Attorney Nicholas J. Marshall is prosecuting the case.
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Ansonia Man Admits Stealing and Selling Catalytic ConvertersRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that FRANCISCO AYALA, 22, of Ansonia, has pleaded in Hartford federal court 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.
The investigation revealed that Ayala engaged in numerous catalytic converter thefts throughout Connecticut, and he was caught on surveillance video stealing converters from two vans at a business in Stratford on March 9, 2022. Between December 2021 and May 2022, Ayala and an associate sold approximately $150,000 worth of stolen catalytic converters to a co-conspirator who transported the converters to other businesses, including businesses in New York and New Jersey, for further resale and profit.
On April 4, 2023, Ayala 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 one count of interstate transportation of stolen property, an offense that carries a maximum term of imprisonment of 10 years. He is scheduled to be sentenced by U.S. District Judge Sarala V. Nagala on July 13, 2023.
Ayala is detained 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.
Alleged Firearm Traffickers Arrested in ATF BustRead the Press Release
Three men accused of selling guns illegally were arrested in an ATF takedown on Wednesday, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Michael Smith, 36, Khalid Amill, 27, and Rondell Jones, 27, were arrested in Fort Worth on Tuesday, charged via criminal complaint with conspiracy to deal in firearms without a license and felon in possession of a firearm.
Smith and Amil were also charged with drug offenses, as were three other men arrested during the bust: William Davis, 42, and Dwayne Purnell, 54, both charged with possession with intent to distribute methamphetamine, and Jaquan Thomas, 23, charged with conspiracy to possess with intent to distribute cocaine.
All six defendants made their initial appearances before U.S. Magistrate Judge Jeffrey L. Cureton in Fort Worth on Thursday.
According to court documents, Smith, Amill, Jones, and their co-conspirators sold more than two dozen firearms to undercover agents over the course of a month and a half. On multiple occasions, co-conspirators were informed that the guns they sold would be trafficked across the border into Mexico, where they would be resold illegally.
Court documents allege they repeatedly bragged that they could obtain fully automatic AK- and AR-style rifles, referred to as “choppers.” On one occasion, Smith and a coconspirator allegedly attempted to sell a Smith & Wesson pistol that they claimed was equipped with a custom firing pin that made it automatic. When an undercover agent expressed skepticism, they claimed the firing pin was “internal.” On another occasion, Smith allegedly acted as middleman for the sale of a short-barreled Seekins Precision rifle equipped with a selector switch that moved from safe, to single shot, to automatic.
Smith also allegedly brokered the sale of a privately manufactured firearm (PMF), commonly referred to as a “ghost gun,” that contained an extended magazine.
A complaint is merely an allegation of wrongdoing, not evidence. Defendants are presumed innocent until proven guilty in a court of law.
If convicted, Smith and Amil face up to 35 years in federal prison, while Jones faces up to 15 years in prison. Davis faces up to 40 years in prison, and Thomas faces up to 20 years in prison.
The Bureau of Alcohol, Tobacco, Firearms, & Explosives’ Dallas Field Division conducted the investigation in partnership with the Fort Worth Police Department’s Gang Unit. Assistant U.S. Attorney Levi Thomas is prosecuting the case.
5 Individuals Charged in Superseding Indictment for Conspiracy to Import Cocaine into the United StatesRead the Press Release
SAN JUAN, Puerto Rico – A federal grand jury in the District of Puerto Rico returned a 14-count superseding indictment charging three men and two women with trafficking cocaine in the District of Puerto Rico beginning in 2021. This is a joint investigation between the Federal Bureau of Investigation (FBI) and Homeland Security Investigations (HSI) with collaboration from U.S. Customs and Border Protection Air and Marine Operations (CBP), the Drug Enforcement Administration (DEA), the United States Postal Inspection Service (USPIS), and the Puerto Rico Police Bureau (PRPB).
According to the charging document, the defendants conspired to import cocaine into the United States from the Dominican Republic from November 2021 through April 2023. The defendants and the counts in which they are charged are:
[1] Osvaldo Hernández-Camacho, a.k.a. “Shaq/Oso”: Counts 1 through 13
[2] Nelson Rivera-Suárez, a.k.a. “Papo”: Counts 1 through 9
[3] Edgardo Luis Matos-Santos, a.k.a. “Bebi”: Counts 1 through 12
[4] Xiomarie Marrero-Álvarez, a.k.a. “Xiomy”: Counts 1, 4, 7, 10, 13, 14
[5] Yahaira Santos-Castillo, a.k.a. “Yaja”: Counts 1, 4, 7, 10
The counts charged are:
Count One - Conspiracy to Import a Controlled Substance into the United States – not later than November 2021
Count Two - Importation of a Controlled Substance into the United States – October 15, 2022
Count Three - Importation of a Controlled Substance into the United States – November 17, 2022
Count Four - Conspiracy to Distribute and to Possess with Intent to Distribute a Controlled Substance - not later than November 2021
Count Five - Possession with Intent to Distribute a Controlled Substance – October 15, 2022
Count Six - Possession with Intent to Distribute a Controlled Substance – November 17, 2022
Count Seven - Conspiracy to Possess with Intent to Distribute a Controlled Substance on Board a Vessel of the United States – November 2021
Count Eight - Possession with Intent to Distribute a Controlled Substance on Board a Vessel of the United States – October 15, 2021
Count Nine - Possession with Intent to Distribute a Controlled Substance on Board a Vessel of the United States – November 17, 2022
Count Ten - Possession of Firearms in Furtherance of a Drug Trafficking Crime – November 2021
Count Eleven - Firearm Related Murder in Furtherance of a Drug Trafficking Crime – November 17, 2022
Count Twelve - Murder of a Federal Law Enforcement Officer in Furtherance of Drug Trafficking – November 17, 2022
Count Thirteen - Conspiracy to Commit Money Laundering – year 2022
Count Fourteen - Obstruction of Justice – November 17, 2022
The indictment includes controlled substances and money laundering forfeiture allegations regarding the following property:
- $10,000,000 in United States currency
- Two 1999 Boston Whaler vessels
- One 1974 Uniflite 42’ vessel
- Lot of land in the municipality of Lajas, Puerto Rico
- Two lots of land in the municipality of Carolina, Puerto Rico
- One 2014 black Toyota Tundra
- 2009 Ford Econoline E350 Super Duty Van White
- A 2007 white Dutchcraft Camp Trailer
- 2015 white Jayco Inc. Trailer
- White and black framed Star Stream trailer
- All United States currency in three different bank accounts
The indictment also includes firearms forfeiture allegations regarding the following items:
- Four Glock pistols
- One Sig Sauer pistol
- One Remington Shotgun
- One Springfield multicaliber rifle
- Seventy-Six 9mm caliber cartridges
- 239 5.56 caliber cartridges
- 226 .40 caliber cartridges
- 148 .45 caliber cartridges
The indictment alleges that the defendants made multiple trips between Puerto Rico and the Dominican Republic to transport narcotics. It also claims that on November 17, 2022, defendants Osvaldo Hernández-Camacho and Edgardo Luis Matos-Santos, aiding and abetting Joseamid Vázquez-Torres, a.k.a. “El Pana/El Capi/Jose”, not charged herein, did knowingly and intentionally kill, and counsel, command, induce and cause the intentional killing of Michel Maceda, a Federal Law Enforcement Officer engaged in the performance of his official duties.
“The conduct charged in this Superseding Indictment proves that firearms in the hands of drug traffickers pose a grave threat to our community and to our law enforcement partners,” said W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. “For that reason, the U.S. Attorney’s office remains committed to the investigation and prosecution of transnational drug traffickers. We will find them and bring them before the courts to face the consequences of their crimes.”
“One of the things we in the FBI take pride in is our expertise in investigating the big picture scheme. That is, doing the painstaking, technical, and often tedious work of playing the long game to understand criminal enterprises, and then taking them down. These arrests are the results of that process, and we are committed to continue to do this work, together with our partners, to bring all those responsible to justice,” said Joseph González, Special Agent in Charge of the FBI San Juan Field Office. “Drug trafficking is the root of many of the evils that plague our society and sometimes, even the men and women sworn to serve and protect the people, become the victims of the violence that stems from it. This makes our work more important and more urgent. This is why we can’t and won’t ever tire of bringing our best to these cases, no matter how long they take to complete.”
“The responsibility of our law enforcement officers is to safeguard our borders, they leave their homes daily to enforce the federal laws and protect the United States, unfortunately that is a dangerous job,” stated HSI Acting Special Agent in Charge Rebecca González-Ramos. “It is our duty to protect each other as Law Enforcement, any assaults or threats to the ones risking their lives to protect our borders is a direct attack to the United States and will not be tolerated.”
“I am proud of the work of CBP Air and Marine Operations Agents, along with our federal partners, for their relentless work to bring the defendants to justice,” stated Troy Miller, Acting Commissioner for U.S. Customs and Border Protection. “Marine Interdiction Agent Maceda’s sacrifice is a testament to CBP’s unwavering commitment to protecting our nation.”
“CBP Air and Marine Operations agents remain committed to interdict and deter transnational criminal organizations that continue to smuggle their contraband into our shores,” indicated Augusto Reyes, Director of Air and Marine Operations for Puerto Rico and the U.S. Virgin Islands.
If convicted, the defendants face a minimum sentence of 10 years in prison, and a maximum sentence of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant United States Attorney (AUSA) and Chief of the Transnational Organized Crime Section Max J. Pérez-Bouret; Deputy Chief of the Transnational Organized Crime Section, AUSA María L. Montañez-Concepción; and AUSA Ryan R. McCabe are in charge of the prosecution of the case.
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.
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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Wednesday 5 April 2023
Zuni man charged with assault and firearms offensesRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced today that Ian Channing Lasiloo was charged with assault with a dangerous weapon, being a prohibited person in possession of a firearm and ammunition, and using and carrying a firearm during and in relation to a crime of violence. Lasiloo, 30, of Zuni, and an enrolled member of the Zuni Tribe, appeared in federal court today for a detention hearing and will remain in the custody of a halfway house pending trial, which has not been scheduled.
According to an indictment, on Aug. 15, 2022, Lasiloo assaulted a victim, identified as John Doe, with a .22 caliber revolver with the intent to cause bodily harm.
An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Lasiloo faces up to life in prison.
The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Zuni Police Department. Assistant United States Attorney Robert James Booth II is prosecuting the case.
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23-64
West Hartford Man Sentenced to More Than 10 Years in Prison for Fentanyl Distribution and Gun Possession OffensesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that JAYVIAN RODRIGUEZ, 25, of West Hartford, was sentenced today by U.S. District Judge Sarala V. Nagala in Hartford to 126 months of imprisonment, followed by five years of supervised release, for fentanyl distribution and firearm possession offenses.
According to court documents and statements made in court, in the summer of 2021, West Hartford Police developed information that Rodriguez was distributing narcotics. Rodriguez was arrested on state charges on September 3, 2021, after a court authorized search of his Prospect Avenue residence revealed nearly 600 grams of fentanyl, approximately 18 grams of crack cocaine, and items used to process and package narcotics for street sale. The search also revealed a 9mm Glock-style privately manufactured firearm (“ghost gun”) with an attached laser sight and a “Glock switch” auto sear device, a handgun magazine containing 28 rounds ammunition, and approximately 200 rounds of additional ammunition. The Glock switch enabled the handgun to fire fully automatically as a machinegun.
Rodriguez was on state probation for prior gun and drug convictions at the time of the search.
Rodriguez, who was released on bond after his state arrest, has been detained since his federal arrest on December 15, 2021. On November 2, 2022, he pleaded guilty to one count of possession with intent to distribute 400 grams or more of fentanyl, and one count of unlawful possession of a firearm by a felon.
This case was investigated by the FBI’s Northern Connecticut Gang Task Force, the West Hartford Police Department, and the Connecticut State Police, with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, New Britain Police Department, West Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.
This case was prosecuted by Assistant U.S. Attorney Robert S. Ruff through the Project Safe Neighborhoods (PSN) initiative. PSN is a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. In May 2021, the Justice 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.
Walthill Man Sentenced to 110 Months for Drug and Firearm OffensesRead the Press Release
United States Attorney Steven Russell announced that Collin Parker, 29, of Walthill, Nebraska, was sentenced in federal court today in Omaha, Nebraska, for conspiracy to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime. United States District Judge Brian C. Buescher sentenced Parker to 110 months of imprisonment. There is no parole in the federal system. After completing his term of imprisonment, Parker will begin a 5-year term of supervised release.
On August 20, 2021, officers stopped a vehicle in Macy, Nebraska, containing four people, including Parker and co-defendant Terrence Sherman. Officers located approximately 123.18 grams of methamphetamine, scales, baggies, and a 12-gauge shotgun. Parker and Sherman had conspired to distribute methamphetamine and they possessed the shotgun in furtherance of that conspiracy. Sherman pled guilty on February 23, 2023, and is scheduled to be sentenced on May 24, 2023.
This case was investigated by the Omaha Nation Law Enforcement Services, the Thurston County Sheriff’s Office, and the Federal Bureau of Investigation.
Virginia Man Sentenced to Federal Prison for Sex TraffickingRead the Press Release
Defendant Coerced and Sexually Exploited Three Women in Northwest Washington
WASHINGTON – Michael Jabaar Wilkins, 39, of Norfolk, Virginia, was sentenced today to 20 years in prison for a federal sex trafficking conviction stemming from his sexual exploitation of three women, announced United States Attorney Matthew M. Graves, FBI Special Agent in Charge Wayne Jacobs of the Washington Field Office Criminal and Cyber Division, and Chief Robert J. Contee III, of the Metropolitan Police Department (MPD). In addition to the prison term, U.S. District Court Judge Rudolph Contreras ordered 10 years of supervised release.
Wilkins pleaded guilty on July 21, 2021, in the U.S. District Court for the District of Columbia, to a charge of sex trafficking by force, fraud, or coercion.
According to the government’s evidence, between 2011 and 2019, Wilkins separately induced and coerced women to travel from Virginia to the District of Columbia to engage in commercial sex acts for his financial benefit. He took sexually explicit photographs of these women that he used in online advertisements for commercial sex. The activities took place in the Logan Circle neighborhood of Northwest Washington. According to the evidence, Wilkins repeatedly physically assaulted two of the women, knocking one of them unconscious in one instance, and causing a severe injury to the woman’s eye. One of these assaults was captured on a home security camera. Wilkins also used verbal abuse, threats to harm, and emotional manipulation in order to entice and coerce these women into commercial sex work for his financial gain. and
Wilkins was arrested on Nov. 5, 2019, following an investigation by the Metropolitan Police Department and the FBI Child Exploitation and Human Trafficking Task Force, which is composed of FBI agents and local, state, and federal partners. He has been detained ever since. He pleaded guilty less than a week before his trial was scheduled to begin.
In announcing the plea, U.S. Attorney Graves, Special Agent in Charge Jacobs, and Chief Contee commended the work of those who investigated the case from the FBI and MPD.. They acknowledged the efforts of those who handled the case for the U.S. Attorney’s Office, including Paralegal Specialist Alexis Spencer-Anderson, Victim Witness Program Specialist Yvonne Bryant, Victim Witness Service Coordinator Tonya Jones, and Witness Security Specialist Lesley Slade. Finally, they commended the work of Assistant U.S. Attorney Amy E. Larson and Trial Attorney Jessica Arco, from the Human Trafficking Prosecution Unit of the Department of Justice, who investigated and prosecuted the case.
Two Detroit Men Sentenced to Prison for Spree of Three CarjackingsRead the Press Release
DETROIT – Two Detroit men were sentenced to multiple years in federal prison after having pleaded guilty to a series of three carjackings occurring in a three-day period, announced United States Attorney Dawn N. Ison.
Ison was joined in the announcement by James A. Tarasca, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.
Damario Howell, 21, was sentenced today to 14 years in federal prison. Seandre Braxton, 24, was sentenced in February of this year to 15 years in federal prison. Both were sentenced before United States District Judge Judith Levy.
According to court records, Braxton and Howell committed the first carjacking on September 29, 2021, and the second and third carjackings on October 1, 2021, all in Detroit. In the first carjacking, Braxton and Howell pointed handguns at the victim seated in his car and removed the victim from the vehicle before Howell drove off. In the second carjacking, Braxton and Howell, while armed with handguns, confronted a victim outside his car and demanded the keys before Braxton drove off in the victim’s car. In the third carjacking, Braxton and Howell seized a third car after confronting the victims at gunpoint, with Braxton driving off with their car.
Minutes after the third carjacking, Howell fled from police by smashing the car from the second carjacking into a police car, driving off in a highspeed chase, exiting the car, and entering the car from the third carjacking driven by Braxton. Braxton drove off in another highspeed chase that ended when Braxton crashed the car into two other vehicles. Following a short foot chase, both Braxton and Howell were arrested.
Braxton and Howell both pleaded guilty to three counts of carjacking, one count of carrying a firearm while committing a carjacking, and one count of brandishing a firearm while committing a carjacking. Braxton and Howell’s sentencing guidelines were increased for reckless endangerment during flight because of the highspeed chases.
“Carjacking is one of the most brazen crimes. These defendant’s carjacking spree not only endangered their victims, but their reckless indifference also created a significant risk of harm across the community,” said U.S. Attorney Ison. “We will seek significant federal penalties against those who prey on motorists in our communities.”
Armed carjacking poses an unacceptable danger to public safety and creates a climate of fear for residents in our community," said James A. Tarasca, Special Agent in Charge of the FBI's Detroit Field Office. "The FBI remains committed to working alongside the Detroit Police Department and Michigan State Police to curb these violent offenses and bring the perpetrators to justice."
This case was investigated by the FBI Violent Crime Task Force, Detroit Police Department, and Michigan State Police, and prosecuted by Assistant United States Attorney Paul Kuebler.
Two Companies Agree to Pay $1.24 Million to Resolve Allegations of Fraud in Whittier Bridge/I-95 Improvement ProjectRead the Press Release
BOSTON – Walsh Construction Company (Walsh) and Melo’s Rodbusters, Inc. (Melo’s) have agreed to pay $1.24 million collectively to resolve False Claims Act allegations that they participated in a fraudulent scheme designed to take advantage of the Disadvantaged Business Enterprise (DBE) program in connection with their work on the federally funded Whittier Bridge/I-95 Improvement Project.
Walsh, an Illinois corporation, is a general contracting and construction management firm. Melo’s is a Massachusetts corporation and a certified DBE that subcontracted with Walsh on the project to perform furnishing and installation of steel rebar.
The DBE program provides opportunities for businesses owned by socially and economically disadvantaged individuals to work on projects financed by the federal government. The program requires contractors to award, or make good faith efforts to award, a percentage of subcontracts on a given project to DBEs that serve a “commercially useful function.” A DBE does not serve a commercially useful function if it acts as a mere pass-through—that is, a DBE through which funds are passed to create the appearance that historically disadvantaged persons did the work, when they did not. Companies regularly certify their compliance with the DBE regulations when making claims for payment on federally funded contracts.
In February 2013, the Massachusetts Department of Transportation (MassDOT) selected Walsh, along with its joint venture partner, to be the prime contractor for a federally funded MassDOT project known as the Whittier Bridge/I-95 Improvement Project. Walsh, in turn, subcontracted with DBEs, including Melo’s, for portions of the work. The project was completed in 2018.
As part of the settlement agreement, Walsh admitted that it assisted with certain work functions for Melo’s, and for another DBE on the project that is not a party to the settlement, including assistance in the selection of suppliers and participation in price discussion and negotiation. As part of its own settlement agreement, Melo’s admitted that Walsh performed these functions even though they should have been performed by Melo’s. Melo’s also admitted to providing inaccurate information in response to a MassDOT inquiry regarding Melo’s price negotiation with suppliers. Melo’s has agreed to pay $146,102 to resolve the government’s investigation and Walsh has agreed to pay $1,099,000.
First Assistant United States Attorney Joshua S. Levy and U.S. Department of Transportation, Office of Inspector General’s Special Agent-in-Charge Christopher A. Scharf made the announcement today. Assistant U.S. Attorney Alexandra Brazier of the Affirmative Civil Enforcement Unit and Assistant U.S. Attorney Elianna J. Nuzum of the Major Crimes Unit handled the matter.
Two California Men Sentenced for Trafficking Large Quantities of Methamphetamine and FentanylRead the Press Release
Eric Roberto Nechochea, age 24, and Steve Heriberto Ordonez, age 21, of San Bernadino, California, were recently sentenced for possession with intent to distribute methamphetamine and fentanyl.
Nechochea was sentenced on March 21, 2023, to 80 months’ imprisonment with three years of supervised release and a $100 special assessment. Ordonez was sentenced on February 24, 2023, to 80 months’ imprisonment with five years of supervised release and a $100 special assessment. Chief United States District Court Judge Scott W. Skavdahl imposed both sentences. Neither man had a previous criminal history.
According to court documents and statements made in court, the Wyoming Highway Patrol pulled over a truck on July 16, 2022, for speeding outside of Casper. Nechochea was driving and Ordonez was the passenger. Suspicious, the trooper asked for consent to search the vehicle and they agreed. During the search, the trooper noticed that the truck’s interior had mismatched parts and tool marks. A Casper Police Department canine officer and his canine partner responded to aid with the search. The drug dog alerted to the presence of controlled substances, which led to a thorough search of the truck.
Inside a hidden compartment in the truck, investigators found 10 vacuum sealed bags of controlled substances. Six of the bags contained nearly 5 kilograms of methamphetamine and three of the bags had a combined total of over 10,000 fentanyl pills, weighing approximately 1.5 kilograms. The last bag contained approximately 1 kilogram of what officers initially thought was cocaine but later tested as fentanyl.
This crime was investigated by the Casper Police Department, Natrona County Sheriff’s Department, Wyoming Highway Patrol, and Homeland Security Investigations. Assistant United States Attorney Christyne M. Martens prosecuted the case.
Case No. 21-cr-00100-SWS
Troy Felon Sentenced for Ammunition PossessionRead the Press Release
ALBANY, NEW YORK – Adam Middleton, age 40, of Troy, New York, was sentenced today to 12 months and a day in prison for the unlawful possession of ammunition. United States Attorney Carla B. Freedman and Ketty Larco-Ward, Postal Inspector in Charge of the Boston Division of the U.S. Postal Inspection Service (USPIS), made the announcement.
Middleton admitted that on December 7, 2021, he possessed a Glock magazine loaded with 17 rounds of 9 mm ammunition, in addition to numerous additional rounds of ammunition, at his residence in Troy. At the time, Middleton had a felony conviction for criminal possession of a controlled substance in the fifth degree. Under federal law, that conviction prevented Middleton from lawfully possessing the ammunition.
Senior United States District Judge Gary L. Sharpe also ordered Middleton to serve a 1-year term of supervised release when he is released from prison.
This case was investigated by the USPIS and its Capital Region Task Force, led by the USPIS and including the Albany Police Department, the Albany County Sheriff’s Office, and the Schenectady Police Department, as well as the U.S. Drug Enforcement Administration, and was prosecuted by Assistant U.S. Attorney Benjamin S. Clark.
Three Former Executives for Magellan Diagnostics Charged with Conspiracy, Wire Fraud and FDA ViolationsRead the Press Release
BOSTON – The former CEO, COO, and Director of Quality Assurance and Regulatory Affairs for Magellan Diagnostics, Inc. (Magellan), a medical device company headquartered in Billerica, Mass., have been charged in connection with concealing a device malfunction that allegedly produced inaccurately low lead test results for tens of thousands of children and other patients.
Amy Winslow, 51, of Needham Heights, Mass.; Hossein Maleknia, 64, of Bonita Springs, Fla.; and Reba Daoust, 66, of Amesbury, Mass., were charged with conspiracy to commit wire fraud; wire fraud; conspiracy to defraud an agency of the United States; and introduction of misbranded medical devices into interstate commerce with intent to defraud and mislead. Winslow and Daoust will make an initial appearance in federal court in Boston later today. Maleknia is expected to make an initial appearance in federal court in Tampa later today.
Magellan’s devices – LeadCare Ultra, LeadCare II and LeadCare Plus – detected lead levels and lead poisoning in the blood of children and adults using either venous (i.e., blood draws through the arm) or fingerstick samples. LeadCare II, which was predominantly used to test fingerstick samples, accounted for more than half of all blood lead tests conducted in the United States from 2013 through 2017. LeadCare Plus and LeadCare Ultra were predominantly used to test venous samples.
According to the indictment, Winslow, Maleknia and Daoust – Magellan’s former CEO, COO, and Director of Quality Assurance and Regulatory Affairs, respectively – repeatedly misled Magellan customers and the FDA about a serious malfunction that affected Magellan’s LeadCare devices when they were used to test venous blood samples. By allegedly hiding the malfunction and later deceiving customers and the FDA about when they discovered the malfunction, the nature, extent and frequency of the malfunction, and the risks associated with the malfunction, the defendants caused an estimated tens of thousands of children and other patients to receive inaccurately low lead test results.
“According to the CDC, there is no safe level of lead in the blood. Additionally, young children and pregnant mothers from low-income households living in public housing are the most vulnerable to lead exposure. We allege that these defendants deceived customers and the FDA about the reliability of medical tests that detected lead levels. By doing so, we assert that they endangered the health and lives of incredibly vulnerable victims,” said United States Attorney Rachael S. Rollins. “This office, along with our other law enforcement partners, will vigorously investigate and prosecute those who put corporate profits before patient health. Here, we allege the personal gain is at the expense of poor people, children, and individuals who are pregnant. We pledge to advocate on these victims’ behalf and hold bad corporate actors accountable.”
“Individuals and companies whose lead testing devices provide inaccurate results can put the health of all patients, and especially vulnerable children, at significant risk,” said Special Agent in Charge Fernando P. McMillan, FDA Office of Criminal Investigations New York Field Office. “We will continue to pursue and bring to justice those who jeopardize the health of patients and the public.”
“Today, we arrested three former senior executives at Magellan Diagnostics for hiding a serious flaw in the lead testing devices the company produced, resulting in inaccurate test results for tens of thousands of children and other patients. We believe these executives knew about this malfunction for years, but failed to come clean to their customers and the FDA about it in order to boost their company’s bottom line,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “The last thing sick children and their parents should have to worry about is whether diagnostic tests and devices live up to their manufacturer’s claims. This case should make it crystal clear to all companies that do business in Massachusetts, healthcare or otherwise, that they will be brought to justice for misleading consumers with false promises about their products.”
“Concealing the fact that a device is producing inaccurate lead test results to boost profits while knowing that there is no safe level of lead in the blood, as alleged in this case, is a brazen disregard to the health and safety of our program beneficiaries,” said Phillip M. Coyne, Special Agent in Charge for the U.S. Department of Health and Human Services, Office of Inspector General. “Today’s arrests should serve as strong reminder that we will never tolerate such behavior that puts patients at risk.”
It is alleged that the defendants first learned that a malfunction in their LeadCare Ultra device could cause inaccurate lead test results –specifically, lead test results that were falsely low – during the FDA clearance process in or around June 2013. The defendants, however, allegedly released LeadCare Ultra to the market in December 2013 without informing customers or the FDA of the malfunction. Several months after the release, LeadCare Ultra customers independently discovered the malfunction and complained about inaccurate results. It is further alleged that the defendants drafted and caused Magellan to provide false and misleading statements to customers that they “recently identified cases” of the malfunction and they did not observe the malfunction “in our clinical trials prior to the product release.” According to court documents, the defendants, in fact, had known about the malfunction for over a year, including before the product release.
Magellan’s testing in 2013 also indicated that the same malfunction affected the LeadCare II device, which was by far Magellan’s highest-revenue product. Winslow and Maleknia, however, were positioning Magellan for sale, which could have been put in jeopardy if there was a malfunction affecting LeadCare II. It is alleged that Winslow told a Magellan employee to stop studying the malfunction in LeadCare II devices because Magellan needed to maintain “plausible deniability.” Only after Magellan was acquired by Meridian Bioscience, Inc. for $66 million in March 2016, did the defendants notify customers and the FDA about the LeadCare II malfunction. Magellan’s report to the FDA about LeadCare II allegedly made materially false and misleading statements and concealed material facts about Magellan’s discovery of the malfunction in LeadCare II (after Meridian acquired Magellan, Winslow received a bonus of approximately $2 million and Maleknia received a bonus of approximately $448,000).
According to court documents, the defendants delayed notifying the FDA and then misled the FDA about the malfunction. The defendants only filed an FDA report for LeadCare Ultra after an outside consultant told Magellan that if they did not notify the FDA about the malfunction, the consultant would. In 2017, the FDA contacted Magellan and asked when the company first discovered the malfunction. It is alleged that, at Daoust and Maleknia’s instruction, Magellan’s representative falsely told the FDA that Magellan first discovered the problem after receiving customer complaints in late 2014 and shortly before Magellan notified the FDA in 2015 – even though Magellan actually discovered the malfunction almost four years earlier, in 2013. Winslow also caused Magellan to send a false timeline to the FDA, which omitted the company’s internal 2013 studies about the malfunction.
The FDA ultimately found that the LeadCare Devices could not accurately test venous samples, leading to a recall of all LeadCare Devices using venous samples and a warning to the public not to use LeadCare Ultra, LeadCare II and LeadCare Plus for venous blood samples because of the malfunction.
According to court documents, as referenced by the Centers for Disease Control and Prevention (CDC), there is no safe level of lead in the blood. Lead exposure may cause irreversible lifelong physical and mental health problems. Young children and pregnant women are most vulnerable to lead exposure, especially those from low-income households and those who live in housing built before 1978 because those homes are more likely to contain lead-based paint and have fixtures containing lead.
If you or a family member believe you received an inaccurate blood lead test result from a LeadCare device between 2013-2017, please complete the questionnaire located on the FBI’s website at https://www.fbi.gov/MagellanCaseInquiry. Information about the status of the case is located on the U.S. Attorney’s Office website https://www.justice.gov/usao-ma/press-highlights.
The charges of wire fraud and wire fraud conspiracy as alleged in the indictment provide for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. The charge of conspiracy to defraud an agency of the United States provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of up to $250,000. The charges of introduction of misbranded medical devices provide for a sentence of up to three years in prison, up to one year of supervised release and a fine of up to $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; Fernando McMillan, Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations, New York Field Office; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Phillip M. Coyne, Special Agent in Charge for the U.S. Department of Health and Human Services, Office of Inspector General made the announcement today. Assistant U.S. Attorneys Elysa Wan, David Derusha, and James Herbert of Rollins’ Criminal Division and Kelly Lawrence, Chief of Rollins’ Healthcare Fraud Unit, are prosecuting the case.
Statement from the U.S. Attorney’s Office Regarding the Police-Involved Shooting on March 18, 2023Read the Press Release
The loss of a life is always tragic but is especially heartbreaking when it involves a child. On Saturday, March 18th, 17-year-old Dalaneo Martin tragically died after a shooting involving the U.S. Park Police, and we recognize that the body-worn camera footage just released of his death is extremely upsetting. We extend our condolences to Mr. Martin’s family and friends. In coordination with the FBI Washington Field Office, the United States Attorney’s Office has opened a civil rights investigation into the circumstances leading to Mr. Martin’s death. That investigation—which we are committed to conducting diligently and thoroughly—is ongoing. As this is an open matter, we are not able to provide additional comment or release further information at this time.
Springfield Man Involved in Drive-By Shootings Sentenced for Illegal FirearmsRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Mo., man has been sentenced in federal court for illegally possessing firearms following his involvement in two drive-by shootings.
Cartevion Marquis Chapman, 34, was sentenced by U.S. District Judge Roseann Ketchmark on Tuesday, April 4, to nine years and seven months in federal prison without parole.
On March 24, 2022, Chapman pleaded guilty to being a felon in possession of firearms. Chapman admitted he was in possession of a Smith & Wesson 9mm semi-automatic pistol and a Kel-Tec pistol with an extended 30-round magazine on Dec. 6, 2020.
According to court documents, Chapman was involved in a shooting and retaliatory shooting that occurred on Dec. 5 and 6, 2020, over allegations of stolen drugs.
Chapman’s vehicle was damaged in a drive-by shooting at a nightclub in downtown Springfield on Dec. 5, 2020. After leaving the nightclub, Chapman met with co-defendant Darris Lamar Mull, 38, of Springfield. Mull received a phone call from his girlfriend, who said there were people with guns inside their house looking for Mull. Mull was upset because they went to his house when his kids were present. They went to check on Mull’s girlfriend and children, then co-defendant Nicholas David Caligone, 44, of Springfield, drove Chapman and Mull to find the people who had been at his house, who were at an address on Kerr Street in Springfield.
When they arrived at the Kerr Street residence at about 6 a.m. on Dec. 6, 2020, Chapman told investigators, they got out of the car and “bullets went flying.”
Chapman, Mull and others fired multiple rounds; police officers recovered 40 spent shell casings from the area of the shooting. Shell casing were found in front of at least eight separate residences, indicating that Chapman and Mull sprayed the neighborhood with bullets. At least two of the homes had damage consistent with being struck by gunfire.
Chapman and Mull got into Caligone’s Volkswagen immediately after the shooting and left the area. Chapman hid his Kel-Tec firearm under the front passenger seat, and put Mull’s Smith & Wesson pistol, which was stolen, in the glovebox. Springfield police officers who heard the gunshots saw Caligone’s vehicle at the intersection of East Kearney and North Delaware and conducted a felony stop. Caligone, who was driving, Chapman, who was in the front passenger seat, and Mull, who was in the back passenger seat, were arrested.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Chapman has two prior felony convictions for burglaries at businesses and prior felony convictions for aggravated assault and being a felon in possession of a firearm for pointing a gun at the victim and her boyfriend and threatening them. Chapman, who was on probation for that firearm offense at the time of his arrest in this case, also has 20 misdemeanor criminal convictions and multiple arrests that did not result in charges.
Mull pleaded guilty to four counts of being a felon in possession of a firearm and awaits sentencing. Caligone pleaded guilty to one count of being a felon in possession of a firearm and awaits sentencing.
Chapman is also charged in a separate case in Greene County Circuit Court with unlawful use of a weapon and unlawful possession of a firearm related to this incident.
This case is being prosecuted by Assistant U.S. Attorney Stephanie L. Wan. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI, and the Springfield, Mo., Police Department.
Project Safe Neighborhoods
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.
Six Individuals Indicted by Federal Grand Jury for perpetrating a Multimillion Dollar Fraudulent Scheme to obtain COVID recovery assistance funds under the Federal CARES ActRead the Press Release
SAN JUAN, Puerto Rico – W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico, announced the indictment of six individuals for a multi-million-dollar fraudulent scheme to illegally obtain federal recovery funds under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The Grand Jury charged the defendants with multiple counts of wire fraud, money laundering, Paycheck Protection Program (PPP) fraud, and Economic Injury Disaster Loan (EIDL) fraud. The charging documents claim that from April 2020 through April 2023, the defendants and their co-conspirators caused the submission of at least 272 EIDL and PPP loan applications seeking the illegal disbursement of at least $9,020,590.33 in federal recovery funds from the U.S. Small Business Administration (SBA) and Bank 1.
“This case demonstrates the brazenness with which the defendants took advantage of federal programs meant to help businesses that were severely affected by the COVID-19 pandemic. The U.S. Attorney’s Office will continue to work together with our law enforcement partners to find and prosecute those who have fraudulently stolen taxpayer money that was meant to help our citizens,” said U.S. Attorney Muldrow.
The United States Secret Service, Small Business Administration Office of the Inspector General, Treasury Inspector General for Tax Administration, and Internal Revenue Service Criminal Investigations conducted the investigation with the collaboration of the Puerto Rico Treasury Department, Puerto Rico Bureau of Special Investigations, Puerto Rico Police Bureau, and Guaynabo Municipal Police.
According to court documents, Manfred A. Pentzke Lemus, a.k.a. “Man/Contable/El Gestor”; Rodolpho R. Pagesy Roussel, a.k.a. “El Banquero”; Augusto A. Lemus Berríos, a.k.a. “Primo”; Jonatan Ben David Prieto Ruiz De Val, a.k.a. “Johnny Millones”; Ligia María Lemus De Pentzke, a.k.a. “Ligia Lemus Lanuza”; and Carlos Manfredo Pentzke Chamorro, a.k.a. “El Doctor”, knowingly devised a scheme to defraud the SBA and Bank 1 to obtain federal money and property by means of materially false and fraudulent pretenses, representations, and promises submitted through applications for EIDL and PPP loans made available to help small businesses recover from the impact of the pandemic through the CARES Act.
The CARES Act authorized federal assistance through the issuance of SBA loans to small businesses and non-profit entities that experienced revenue loss due to the COVID-19 worldwide pandemic. The EIDL program was one such loan assistance program for small businesses. To procure the loan, applicants had to fill out an online application detailing operational information for the 12‑month period prior to the COVID-19 pandemic, such as the number of employees in the business, the gross business revenues realized, and the cost of goods sold. The applicant also had to certify that the information provided in the application was true and correct under penalty of perjury and applicable criminal statutes. The information submitted by the applicant was then used by the SBA to calculate the amount of money to be made available to the applicant for economic relief.
Non-profit applicants and non-agricultural for-profit applicants were both generally eligible to receive an EIDL loan of up to $150,000, with a 30-year scheduled repayment, deferred for 12 months. Some applicants were also eligible for advance funds of up to $15,000. Pursuant to the provisions governing the EIDL program, loan proceeds could only be used by the affected business receiving EIDL loans to pay fixed debts, payroll, accounts payable, and other bills that could have been paid had the COVID-19 disaster not occurred.
Another form of assistance provided by the CARES Act was the authorization of United States taxpayer funds in forgivable loans to small businesses for job retention and certain other expenses, such as interest on mortgages, rent and utilities, through the Paycheck Protection Program (PPP). To procure a PPP loan, the small business was required to submit an application, through its authorized representative, where it provided, among other things, its average monthly payroll expenses, and number of employees. These figures were used to calculate the amount of money the small business was eligible to receive under a PPP loan. The PPP allowed the interest and principal on the PPP loan to be entirely forgiven if the business spent a certain percentage of the PPP loan proceeds to satisfy payroll expenses and the remainder of the loan proceeds on allowable expenses within a designated period.
The indictment alleges that the defendants and their co-conspirators submitted at least 272 fraudulent EIDL and PPP loan applications containing materially false and fraudulent information and false documents, including false and fictitious tax documents, payroll records, bank records, and identification documents, to procure the disbursement of EIDL and PPP assistance loans by Bank 1. The indictment further alleges that the defendants and their co-conspirators directed the recipients of the fraudulently obtained PPP and EIDL loans to remit a portion of the proceeds of the loans to the defendants and their co-conspirators and used the loan proceeds to benefit themselves and others, and to pay for expenses prohibited under the requirements of the EIDL and PPP programs.
The court documents claim that defendant Manfred A. Pentzke Lemus was the principal organizer of the fraudulent scheme to obtain the federally subsidized loans and the efforts to launder the proceeds; defendant Rodolpho R. Pagesy Roussel worked at Bank 1 in San Juan, Puerto Rico and used his position to obtain the approval of fraudulent PPP applications by Bank 1; defendant Augusto A. Lemus Berríos assisted in the preparation of fraudulent PPP applications by, amongst other things, preparing false documents to submit to the bank; defendant Jonatan Ben David Prieto Ruiz De Val acted as a money courier and coordinated the delivery of “kickback” payments to further the fraudulent scheme to obtain PPP and EIDL loans; defendant Ligia María Lemus De Pentzke received “kickback” payments from proceeds of the fraudulent scheme and forwarded them to her co‑conspirators; and defendant Carlos Manfredo Pentzke Chamorro received fraudulent PPP and EIDL loans in furtherance of the conspiracy. The defendants are also alleged to have recruited other un-indicted co-conspirators to obtain the EIDL and PPP loans under false pretenses.
The United States seized approximately $848,957.96 in proceeds of this scheme from Bank 1, which are currently subject to forfeiture.
If convicted, the defendants are facing up to 30 years in prison for the wire fraud counts; and up to 20 years of imprisonment for the money laundering count.
This case is being prosecuted by Assistant U.S. Attorneys Timothy R. Henwood, Daniel J. Olinghouse and María L. Montañez Concepción.
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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