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16 May 2023
Mission Man Sentenced for LarcenyRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange, U.S. District Court, has sentenced a Mission, South Dakota, man convicted of Larceny. The sentencing took place on May 8, 2023.
Dustin Gallegos, Jr., age 25, was sentenced to all time served through November 8, 2023, equal to approximately 10 months in custody, followed by three years of supervised release. He was further ordered to pay restitution of $9,908.13, and a $100 special assessment to the Federal Crime Victims Fund.
Gallegos was indicted by a federal grand jury in May of 2022. He pleaded guilty on February 2, 2023.
The conviction stemmed from an incident that occurred on March 7, 2022, in Todd County, South Dakota. On that date, Gallegos was driving a motor vehicle on U.S. Highway 83, when he lost control of his vehicle and wrecked. A passing motorist stopped to assist and let Gallegos wait with her in her vehicle for first responders to arrive. When law enforcement arrived at the scene, the woman got out of her vehicle to speak to an officer, at which point Gallegos got in the driver seat and stole the vehicle and drove away. The vehicle was later recovered in Mission.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Gallegos was immediately remanded to the custody of the U.S. Marshals Service.
Miami Man Sentenced to 30 Months in Federal Prison for Possession of Stolen MailRead the Press Release
Montgomery, Alabama – Today, United States Attorney Sandra J. Stewart announced that Alberto Carlos Varona, 30, from Miami, Florida, received a sentence of 30 months in prison after pleading guilty to possession of stolen mail.
According to his plea agreement and other court records, in February of 2021, Prattville, Alabama law enforcement officers received information about attempts to cash stolen checks at various banks. On February 26, 2021, officers from the Prattville Police Department initiated a traffic stop on a vehicle they suspected to be involved in the scheme. Officers identified Varona as the driver and, upon searching the vehicle, found 37 stolen checks. Soon after, a federal grand jury indicted Varona on four counts of possession of stolen mail matter. Varona pleaded guilty to these charges on September 29, 2021. During the May 10, 2023, sentencing hearing, the court considered the significant amount of potential loss from all 37 of the stolen checks when determining Varona’s sentence.
The Prattville Police Department, the United States Secret Service, and the United States Postal Inspection Service investigated this case, with assistance from the United States Marshals Service. Assistant United States Attorney Justin L. Jones prosecuted the case.
Mexican Man Sentenced for Drug TraffickingRead the Press Release
United States Attorney Steven Russell announced that Jose Adan Rodriguez-Meza, 39, of Mexico, was sentenced today in federal court in Omaha, Nebraska, for his participation in methamphetamine drug trafficking. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Rodriguez-Meza to 135 months’ imprisonment. There is no parole in the federal system. After his release from prison, Lorenzo-Cruz will begin a five-year term of supervised release.
In February 2022, Rodriguez-Meza was identified by the Drug Enforcement Administration and the Omaha Police Department as a bulk distributor of methamphetamine. Using a confidential informant, investigators purchased a total of six pounds of methamphetamine on February 28, 2022, March 23, 2022, and April 8, 2022. On April 8, 2022, a search warrant was executed on Rodriguez-Meza’s residence and an additional four pounds of pure methamphetamine were seized.
This case was investigated by the Drug Enforcement Administration and the Omaha Police Department.
Marrero Man Pleads Guilty to a Violation of the Federal Gun Control ActRead the Press Release
NEW ORLEANS, LOUISIANA – On May 11, 2023, MELVIN WALKER, age 34, a resident of Marrero, Louisiana, pled guilty to a one-count indictment, charging him with being a felon in possession of a firearm and ammunition, in violation of 18 U.S.C. §§ 922(g)(1) and 924(a)(8), announced U.S. Attorney Duane A. Evans.
WALKER faces a maximum sentence of 15 years imprisonment, a fine of up to $250,000.00, a period of supervised release of up to 3 years, and a mandatory special assessment fee of $100.00.
According to court records, the Jefferson Parish Sheriff’s Office arrested WALKER after he discharged a nine-millimeter firearm at the occupant(s) of a white SUV during a drive by shooting. Prior to WALKER discharging the firearm, the occupant(s) of the white SUV fired a .223 caliber firearm at WALKER as he stood outside of his residence. During a search of WALKER’s residence, a nine-millimeter magazine, loaded with nine-millimeter caliber ammunition, was recovered from WALKER’s residence. WALKER is a convicted felon and is prohibited from possessing a firearm and ammunition.
The Honorable Jay C. Zainey, United States District Judge, will sentence WALKER on August 15, 2023.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the federal Bureau of Alcohol, Tobacco, Firearms, and Explosives. It is being prosecuted by Assistant United States Attorney Brittany Reed of the Public Integrity Unit.
Man Pleads Guilty to Conspiracy to Sell Stolen Financial Information on Dark WebRead the Press Release
An Illinois man pleaded guilty yesterday to leading a conspiracy to sell stolen financial information on the dark web, aka darknet.
According to court documents, Michael D. Mihalo, aka Dale Michael Mihalo Jr., 40, of Naperville, was the founder of a darknet “carding” site called Skynet Market, which was used to sell stolen financial information on the internet. Operating under the moniker ggmccloud1, Mihalo and his co-conspirators were also prominent vendors on additional darknet markets, including AlphaBay Market, Wall Street Market, and Hansa Market. Each market required users to conduct transactions in digital currencies, including Bitcoin. Through these markets, Mihalo and his co-conspirators sold the stolen financial information, primarily the credit and debit card numbers and associated information, of tens of thousands of U.S. victims between Feb. 22, 2016, and Oct. 1, 2019.
Mihalo assembled and directed the team that helped him sell this stolen financial information on the darknet. Each of the co-conspirators benefitted from the trusted reputation Mihalo, as ggmccloud1, had built on the darknet sites to sell more stolen financial information than they would have been able to sell individually. Taylor Ross Staats, 40, of Texas, conspired with Mihalo and others to sell stolen financial information on the internet. Staats served as a “card-checker,” who ensured the financial information sold by Mihalo and others on multiple darknet sites remained active and had not been canceled by the relevant financial institutions. Staats personally earned at least $21,000 worth of Bitcoin for these services.
Mihalo personally possessed, sent, and received the information associated with 49,084 stolen payment cards with the intent that the payment card information would be trafficked on darknet sites, all in furtherance of the conspiracy. Mihalo earned at least $1 million worth of cryptocurrencies at the time of the sales, including Bitcoin, Ethereum, and Monero. These funds have significantly appreciated since that time.
Mihalo pleaded guilty to one count of conspiracy to commit access device fraud, one count of access device fraud, and six counts of money laundering. He will be sentenced on a later date. He faces a maximum penalty of five years in prison for the conspiracy count and a maximum penalty of 10 years in prison on each of the remaining counts. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Under the terms of his plea agreement, Mihalo must also forfeit to the government any property he personally obtained through the offenses, including several million dollars’ worth of cryptocurrency, financial accounts, and real property, and has agreed to entry of a money judgment of an amount to be determined by the judge at sentencing.
Mihalo is the second defendant to plead guilty in this case. Staats pleaded guilty on Dec. 14, 2022, to one count of conspiracy to commit access device fraud in connection with his role as “card-checker” for Mihalo and the other co-conspirators. He faces a maximum penalty of five years in prison for the conspiracy count and will be sentenced on a later date.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Teresa A. Moore for the Western District of Missouri, Assistant Director Bryan Vorndran of the FBI’s Cyber Division, and Special Agent in Charge Charles Dayoub of the FBI Kansas City Field Office made the announcement.
The FBI Kansas City Field Office investigated the case.
Senior Counsel Louisa Becker of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Matthew Blackwood for the Western District of Missouri are prosecuting the case. The Justice Department’s Office of International Affairs provided significant assistance.
The Justice Department also thanks its law enforcement colleagues at the Royal Canadian Mounted Police in Canada for their assistance in this case.
Stolen victim payment card information obtained over the course of the investigation has been and/or will continue to be provided to the financial institutions that issued the payment cards. If you were active on Skynet Market, AlphaBay Market, Wall Street Market, or Hansa Market; have been in contact with any of Skynet Market’s administrators; or believe your financial information may have been stolen and sold on any of these markets between Feb. 22, 2016, and Oct. 1, 2019, please file a report with the FBI’s Internet Crime Complaint Center (ic3.gov) and reference this press release.
Man Accused of Setting Fire at Ex-Girlfriend’s St. Louis County HomeRead the Press Release
ST. LOUIS – A man appeared in U.S. District Court in St. Louis Tuesday to face an indictment accusing him of setting fire to a St. Louis County home last month.
Christopher Willis, 39, pleaded not guilty to the felony charge of maliciously damaging or destroying by means of fire. The indictment says the fire occurred in a rental home on April 29 on Nero Drive in unincorporated St. Louis County.
A motion seeking to have Willis held in jail until trial says that six days after Willis and his girlfriend broke up, Willis entered her home with a key, took her cellular phone and piled some of her clothing in the basement. Willis then set fire to the clothing and walked away as the girlfriend, her daughter and her aunt slept, the motion says. Smoke alarms sounded and the three were able to escape the home, the motion says.
The charge carries a potential penalty of at least five years in prison and a maximum of 20 years, a $250,000 fine or both.
A charge 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 St. Louis regional Bomb and Arson Unit and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Ryan Finlen is prosecuting the case.
Madison Man Sentenced to 7 Years for Methamphetamine TraffickingRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Matthew J. Yancey, 23, Madison, Wisconsin, was sentenced today by Chief U.S. District Judge James D. Peterson to 7 years in federal prison for distributing 50 grams or more of methamphetamine. Yancey pled guilty to this charge on February 24, 2023.
Between June 13 and July 20, 2022, Yancey sold methamphetamine to an undercover officer in Madison, including a sale on July 7 that totaled 55.6 grams. Following Yancey’s arrest, officers searched the residence where he was staying and found fentanyl, cocaine, and methamphetamine.
At sentencing, Judge Peterson stated that protection of the public “is the primary driver” of his sentence. The judge addressed the gravity of the conduct, calling this a “serious drug crime.” The judge remarked that Yancey had an “unrelenting criminal history.” The judge observed that Yancey had not “demonstrated yet a real ability to succeed in the community.” This is Yancey’s second federal conviction.
The charges against Yancey were the result of an investigation conducted by the Madison Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Dane County Narcotics Task Force. The prosecution of the case has been handled by Assistant U.S. Attorney Kathryn E. Ginsberg.
Lohman Man Indicted for Producing Child PornographyRead the Press Release
KANSAS CITY, Mo. – A Lohman, Mo., man was indicted by a federal grand jury today on charges related to producing child pornography.
Anthony D. Pitts-Fugate, 30, was charged in a three-count indictment returned by a federal grand jury in Kansas City, Mo. Today’s indictment replaces a criminal complaint filed against Pitts-Fugate on April 17, 2023.
According to an affidavit filed in support of the original federal criminal complaint, Pitts-Fugate engaged in a Kik chat group that was being monitored by an undercover law enforcement officer. Pitts-Fugate allegedly produced and sent to the undercover officer a video and a photo of a child being sexually assaulted.
Pitts-Fugate was arrested at his residence on April 17, 2023, and remains in federal custody pending a detention hearing.
Today’s indictment charges Pitts-Fugate with one count of producing child pornography, one count of distributing child pornography, and one count of possessing child pornography.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Ashley S. Turner. It was investigated by the FBI, the Cole County, Mo., Sheriff’s Department, and the Boone County, Mo., Sheriff’s Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Local Prosecutor Brings African Cybercrime Delegation to Greensboro & Washington, D.C.Read the Press Release
GREENSBORO – United States Attorney Sandra Hairston announced today that a delegation of African judges, prosecutors, and investigators arrived in Greensboro as part of an international exchange program. The visit is taking place from May 14 to 19, 2023, and will involve meetings with government officials, local law enforcement, and crime analysts with the goal of sharing information and strengthening transnational partnerships among the United States and multiple African governments.
The study visit was organized by Assistant U.S. Attorney (AUSA) Anand Ramaswamy, in his capacity as the International Computer Hacking and Intellectual Property (ICHIP) Attorney Advisor for sub-Saharan Africa in Addis Ababa, Ethiopia, from the U.S. Department of Justice Criminal Division’s Office of Overseas Prosecutorial Development, Assistance and Training (OPDAT). AUSA Ramaswamy has been detailed overseas as part of the U.S. Transnational High-Tech Crime Global Law Enforcement Network (GLEN) as an International Computer Hacking and Intellectual Property (ICHIP) attorney advisor focused on combating cybercrime. The GLEN is a worldwide law enforcement capacity building network of ICHIP attorney advisors and others who deliver training and technical assistance to foreign law enforcement, prosecutorial, and judicial partners to combat intellectual property and cybercrime activity as well as to help strengthen foreign partners’ ability to collect and use electronic evidence to combat all types of crime, including transnational organized crime. The GLEN is a partnership between the U.S. Department of State, the Bureau of International Narcotics and Law Enforcement Affairs (INL), the U.S. Department of Justice’s Computer Crime and Intellectual Property Section (CCIPS), and the Office of Overseas Prosecutorial Development, Assistance, and Training (OPDAT). INL provides the funding for the ICHIPs and their assistance activities, including this study tour.
The objective of the GLEN is to promote the rule of law and to protect Americans from criminal threats emanating from abroad by delivering targeted training to encourage both immediate assistance as well as long-term institutional change. This assistance includes training workshops, legislative review, case-based mentoring, skills-development, and promoting institutional reform, such as the formation of specialized units to address these criminal threats. There are currently 12 ICHIP attorney advisors in Sao Paulo, Brazil; Panama City, Panama; Eurojust at The Hague; Bucharest, Romania; Zagreb, Croatia; Abuja, Nigeria; Addis Ababa, Ethiopia; Hong Kong; Kuala Lumpur, Malaysia; Bangkok, Thailand; two global ICHIPs, based in the United States, one for dark web/cryptocurrency and the other focused on internet-based fraud/public health; as well as a Global Cyber Forensic Advisor based in Washington, DC.
AUSA Ramaswamy previously served as an Assistant District Attorney in Alamance, Orange, and Rockingham counties before joining the U.S. Attorney’s Office (USAO) for the Middle District of North Carolina in 2007. During his tenure in the USAO, Ramaswamy prosecuted both national and international cybercrimes, online human trafficking and exploitation, and many other federal crimes. Since 2020, he has served the Department of Justice overseas as an ICHIP attorney advisor working to build a stronger international front against cybercrime.
The visit includes representatives from Angola, Botswana, Egypt, Ethiopia, Ghana, Kenya, Morocco, Nigeria, Sierra Leone, Tanzania, and Zambia. After spending Monday and Tuesday in Greensboro, delegates will travel to Washington, DC for the remainder of the visit.
Learn more about the ICHIP program, here.
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Lewiston Man Faces up to 10 Years Following Guilty Plea to Being a Felon in Possession of AmmunitionRead the Press Release
PORTLAND, Maine: A Lewiston man pleaded guilty today in U.S. District Court in Portland to being a felon in possession of ammunition.
According to court records, in December 2021, Shaiquan Moran-Stenson, 27, fired multiple shots near Bartlett Street in Lewiston. Video cameras at two residences recorded Moran-Stenson firing shots across the street before he ran into a parked car and fired additional shots as the vehicle drove away. Investigators recovered .40 caliber shell casings from the area. At the time of the shooting, Moran-Stenson was on supervised release for a prior conviction and was prohibited from possessing ammunition.
Moran-Stenson faces up to 10 years in prison, a fine of up to $250,000, and up to three years of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The Lewiston Police Department, Portland Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation.
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. To learn more information about Project Safe Neighborhood, visit www.justice.gov/psn.
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Kennett Man Sentenced to Serve 120 Months in Federal Prison on Gun and Drug ChargesRead the Press Release
CAPE GIRARDEAU – Senior U.S. District Judge Stephen N. Limbaugh Jr. on Tuesday sentenced a man from Kennett, Missouri to 10 years in federal prison on drug and gun charges.
Steven Chunn, 40, pleaded guilty in February to possession with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime. He admitted that on July 11, 2022, he was found to be in possession of 59 grams of methamphetamine and a Hi Point C9 9mm semi-automatic pistol following a traffic stop in Portageville, Missouri. Chunn further admitted he possessed the methamphetamine for distribution and the firearm was for protection of the drugs and money obtained from drug sales. The firearm was located underneath the driver seat and was loaded and ready to fire with eight rounds of hollow point ammunition in the magazine and a round in the chamber.
At the time of his arrest, Chunn had an active warrant for a parole violation on a felony drug case out of New Madrid County. Judge Limbaugh ordered Chunn’s federal sentence to run consecutive to his state case.
This case was investigated by the Portageville Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Julie Hunter handled the prosecution for the government.
Kanawha County Woman Pleads Guilty to Federal Fraud CrimeRead the Press Release
CHARLESTON, W.Va. – Kathy Darlene Strickmaker, 63, of Dry Branch, pleaded guilty today to bank fraud.
According to court documents and statements made in court, from on or about January 15, 2015, through on or about November 21, 2018, Strickmaker devised a scheme to defraud a financial institution by writing fraudulent checks on accounts of a Charleston business where she was employed as an administrative assistant. Strickmaker’s duties as administrative assistant included paying bills on behalf of the business, which maintained multiple accounts at a bank in Charleston, and managing the business’s payroll and accounts payable. Strickmaker admitted that she wrote at least 80 unauthorized checks drawn from the business’s bank accounts and forged her employer’s signature on them. Strickmaker further admitted that she made the unauthorized checks payable to three individuals in amounts of between approximately $800 to $3,300. These individuals cashed or deposited the checks at local banks within the Southern District of West Virginia, keeping $100 per check and transferring the balance to another individual at Strickmaker’s direction.
Strickmaker also admitted to writing fraudulent and unauthorized checks from the business’s bank accounts from 2016 through 2018 that she made payable to herself. Strickmaker also forged her employer’s signature on those checks.
Strickmaker is scheduled to be sentenced on August 30, 2023, and faces a maximum penalty of 30 years in prison, three years of supervised release, and a $1 million fine. Strickmaker also owes at least $250,000 in restitution.
United States Attorney Will Thompson made the announcement and commended the investigative work of the West Virginia State Police-Bureau of Criminal Investigations (BCI) and the West Virginia State Auditor’s Office (WVSAO).
Chief United States District Judge Thomas E. Johnston presided over the hearing. Assistant United States Attorney Holly Wilson is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:23-cr-57.
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Justice Department Announces Five Cases as Part of Recently Launched Disruptive Technology Strike ForceRead the Press Release
The Justice Department today announced criminal charges in five cases and four arrests from five different U.S. Attorney’s offices in connection with the recently launched multi-agency Disruptive Technology Strike Force.
The Disruptive Technology Strike Force is co-led by the Departments of Justice and Commerce to counter efforts by hostile nation-states to illicitly acquire sensitive U.S. technology to advance their authoritarian regimes and facilitate human rights abuses. The Strike Force’s work has led to the unsealing of charges against multiple defendants in five cases accused of crimes including export violations, smuggling and theft of trade secrets.
Two of these cases involve the disruption of alleged procurement networks created to help the Russian military and intelligence services obtain sensitive technology in violation of U.S. laws. In the Eastern District of New York, a Greek national was arrested on May 9 for federal crimes in connection with allegedly acquiring more than 10 different types of sensitive technologies on behalf of the Russian government and serving as a procurement agent for two Russian Specially Designated Nationals (SDNs) operating on behalf of Russia’s intelligence services. In the District of Arizona, two Russian nationals were arrested for their involvement in a procurement scheme to supply multiple Russian commercial airline companies – which were subject to bans from engaging in certain type of commercial transactions – with export-controlled parts and components, including braking technology.
Two of the other cases announced today charge former software engineers with stealing software and hardware source code from U.S. tech companies in order to market it to Chinese competitors. In the Central District of California, a senior software engineer was arrested on May 5 for theft of trade secrets for allegedly stealing source code used in metrology software which is used in “smart” automotive manufacturing equipment. The defendant then allegedly marketed the stolen technology to multiple Chinese companies. In the Northern District of California, a citizen of the People’s Republic of China (PRC) and former Apple engineer is accused of allegedly stealing thousands of documents containing the source code for software and hardware pertaining to Apple’s autonomous vehicle technology. This defendant fled to China and is believed to be working for a PRC-based autonomous vehicle competitor.
The fifth and final case involves a Chinese procurement network established to provide Iran with materials used in weapons of mass destruction (WMDs) and ballistic missiles. In the Southern District of New York, a PRC national is charged with allegedly participating in a scheme to use his employer to conduct transactions with a U.S. financial institution for the benefit of a purported Iranian entity, as part of an effort to provide isostatic graphite, a material used in the production of WMDs, to Iran.
“These charges demonstrate the Justice Department’s commitment to preventing sensitive technology from falling into the hands of foreign adversaries, including Russia, China, and Iran,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “We will not tolerate those who would violate U.S. laws to allow authoritarian regimes and other hostile nations to use advanced technology to threaten U.S. national security and undermine democratic values around the world.”
“Protecting sensitive American technology – like source code for ‘smart’ automotive manufacturing equipment or items used to develop quantum cryptography – from being illegally acquired by our adversaries is why we stood up the Disruptive Technology Strike Force,” said Matthew S. Axelrod, Assistant Secretary for Export Enforcement at the Department of Commerce. “The Strike Force actions announced today reflect the core mission of our Export Enforcement team – keeping our country’s most sensitive technologies out of the world’s most dangerous hands.”
“The theft of technology and trade secrets from U.S. companies is a threat to our economic and national security,” said Assistant Director Suzanne Turner of the FBI’s Counterintelligence Division. “The charges announced today aren’t the only instances of foreign adversaries trying to steal our technology. Combating the illegal transfer of technology is one of the FBI’s highest priorities, and we will continue to work with our federal partners, including the Department of Commerce, to investigate those who steal U.S. technology to ultimately use it in weapons that threaten us and our allies.”
“The protection of sensitive U.S. technologies has been and continues to be a top priority for HSI,” said Assistant Director James Mancuso of Homeland Security Investigations. “HSI and the partners of the Strike Force will ensure that the U.S. maintains its technologic edge to protect the economic and national security interests of the United States. The Strike Force will be relentless in its pursuit of bad actors that attempt the theft of any sensitive U.S. technologies.”
United States v. Bogonikolos, Eastern District of New York
A criminal complaint was unsealed today in federal court in Brooklyn charging Dr. Nikolaos “Nikos” Bogonikolos, 59, of Athens, Greece, with wire fraud conspiracy and smuggling. Bogonikolos was arrested in Paris on May 9 and remains in custody pending the resolution of extradition proceedings.
“As alleged, while ostensibly operating as a defense contractor for NATO and other ally countries, the defendant and his Aratos Group were double dealing, helping to fuel Russia’s war effort and their development of next generation weapons,” said U.S. Attorney Breon Peace for the Eastern District of New York. “Our office continues to work tirelessly to ensure that disruptive technologies do not fall into the wrong hands.”
As alleged in the complaint, the defendant headed the Aratos Group (Aratos), a collection of defense and technology companies in the Netherlands and Greece, which are both member countries of the North Atlantic Treaty Organization (NATO). According to Aratos’s website, the companies’ areas of expertise included space technologies, homeland security, blockchain, and counter-drone systems. One of Aratos’ subsidiaries, Aratos Systems BV, was a finalist in the NATO Innovation Challenge for space applications in 2021 for a proposal involving the use of artificial intelligence and blockchain technology for satellites and spacecraft. The defendant presented himself having experience advising the European Parliament and “governments worldwide,” and Aratos supplied defense equipment and related technologies to countries in the Middle East, Africa and Asia.
However, as alleged in the complaint, since 2017 the defendant has been involved in smuggling U.S.-origin military and dual-use technologies to Russia in violation of U.S. law. These highly regulated and sensitive components included advanced electronics and sophisticated testing equipment used in military applications, including quantum cryptography and nuclear weapons testing, as well as tactical battlefield equipment. The defendant claimed that these items were to be used by Aratos, when in reality they were reshipped and sent to Russia in violation of U.S. law. Some of the Russian end users included nuclear and quantum research facilities, as well as Military Unit 33949, part of the Russian Foreign Intelligence Service, known as the SVR.
As described in the complaint, many of these orders were solicited by Serniya Engineering and Sertal LLC (the Serniya Network), Moscow-based companies that operate under the direction of Russian intelligence services. Following Russia’s invasion of Ukraine in February 2022, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) and the Department of Commerce (DOC) Bureau of Industry and Security (BIS) levied sanctions against Serniya, Sertal, and several individuals and companies used in the scheme, calling them “instrumental to the Russian Federation’s war machine.”
As alleged in the complaint, the defendant was recruited as a procurement agent for Russia in 2017. In an email message with a Serniya affiliate, on Dec. 27, 2017, the defendant was told to come to Moscow alone “since the agenda will be a very sensitive one.” Regarding one subsequent order, the defendant advised that he would falsify an export license, saying “I sign that the items are only for Netherlands ;) . . . Sensitive case . . . For the same reason I cannot press the [U.S.] supplier.” The defendant also signed several false end use statements and provided them to U.S. companies, certifying that Aratos was the end user of the requested items, that Aratos would not reexport the goods elsewhere, and that the goods would not be used for weapons development.
The FBI New York Field Office is investigating the case.
Assistant U.S. Attorney Artie McConnell and Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case, with assistance provided by Litigation Analyst Ben Richmond.
The Justice Department’s Office of International Affairs provided valuable support to the investigation. The United States thanks French authorities for their assistance.
The investigation was also coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing sanctions, export controls and economic countermeasures imposed in response to Russia’s unprovoked military invasion of Ukraine. For more on the work of Task Force KleptoCapture, see here.
United States v. Besedin and Patsulya, District of Arizona
On May 11, two Russian nationals, Oleg Sergeyevich Patsulya and Vasilii Sergeyevich Besedin were arrested in the District of Arizona and charged via criminal complaint with conspiracy to violate the Export Control Reform Act (ECRA) and conspiracy to commit international money laundering.
The complaint alleges that Patsulya and Besedin, both of whom reside in Miami-Dade County, Florida, used their Florida limited liability company, MIC P&I, LLC, and worked with others to evade U.S. export laws and regulations to send aircraft parts to Russian airline companies. The complaint alleges that Patsulya and Besedin fielded requests for parts directly from the Russian airlines — many of which were already subject to increased export sanctions as a result of Russia’s further invasion of Ukraine — and then used intermediary companies and foreign bank accounts in third-party countries to mask the true identity of the customers and the source of payments. Patsulya and Besedin then approached aircraft parts suppliers in the United States, lied about who their customers were, and lied about where the parts would be going. In furtherance of their criminal conspiracy, Patsulya and Besedin traveled to the District of Arizona in September 2022 and attempted to purchase export-controlled aircraft brake systems from an Arizona aircraft parts supply company.
If convicted, the defendants face up to 20 years in prison for violating the ECRA and up to 20 years in prison for conspiring to commit international money laundering.
The BIS Phoenix Field Office and the FBI Phoenix Field Office are conducting the joint investigation. The BIS Boston Field Office, FBI Miami Field Office, HSI Phoenix Field Office, Customs and Border Protection-Phoenix Field Office, and the U.S. Marshals Office in Miami provided valuable assistance.
Assistant U.S. Attorneys Todd M. Allison and William G. Voit for the District of Arizona and Trial Attorney Christopher M. Rigali of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case. The U.S. Attorney’s Office for the Southern District of Florida provided valuable assistance.
The investigation was also coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing sanctions, export controls and economic imposed in response to Russia’s unprovoked military invasion of Ukraine.
United States v. Li, Central District of California
A California man was arrested on May 6 in the Central District of California on criminal charges related to his alleged theft of sensitive technologies from his Southern California-based employers and use of them to market his own competing company to businesses in the PRC.
According to court documents, Liming Li, 64, of Rancho Cucamonga, stole trade secrets belonging to two of his former employers based in Southern California then used them to build his own competing business in China.
Li was arrested at Ontario International Airport on May 6 after arriving on a flight from Taiwan pursuant to a criminal complaint that charges him with theft of trade secrets. Since his arrest, Li has been in federal custody, and he has a detention hearing scheduled for May 22.
“Li stole thousands of files of sensitive technology that did not belong to him and used it to help foreign companies build competing technology – technology that could be used in the manufacture of nuclear submarines and military aircraft,” said U.S. Attorney Martin Estrada for the Central District of California. “Protecting our nation’s national security is paramount, and my office will aggressively investigate and prosecute those who misappropriate sensitive intellectual property to the benefit of foreign actors.”
According to an affidavit filed with the complaint, from 1996 to November 2019, Li worked in various engineering, management, and software development roles for two companies in Southern California software businesses. The companies are identified in court documents as “Company #1” and “Company #2.”
These software programs are related to high precision measurement studies interpretation and point cloud technology, which often are used in making 3D models. They can be used in various sensitive manufacturing contexts, including manufacturing parts for nuclear submarines and military aircraft, and are subject to U.S. export controls for national security, nuclear nonproliferation and anti-terrorism reasons. As a result of its military application, federal law mandates that this software cannot be exported to the PRC without a license from the Department of Commerce.
Li worked for Company #1 from 1996 to 2018 and then worked at Company #2 from 2018 until November 2019. Shortly before beginning his employment with the Company #2, Li and his wife established their own business, JSL Innovations, which was based out of their Rancho Cucamonga home.
After Company #2 terminated Li, company security discovered that Li was using his company-issued laptop to attempt to download files from Company #2’s root directory onto his personal external hard drive, according to the complaint affidavit. Company security searched Li’s company-issued laptop and found a folder labeled “ChinaGovernment.” That folder allegedly contained numerous documents showing Li’s efforts to participate in the PRC’s Thousand Talents Program and to use JSL Innovations to provide services and technology to PRC business and government entities related to the export-controlled and trade secret technology that Li took from his former employers in Southern California.
In March 2020, Li entered into an agreement with a PRC-based manufacturing company to serve as its chief technology officer. Li’s agreement with this employer required him to spend at least six months per year in the PRC.
Six months later, FBI agents executed a search warrant at Li’s home and found numerous digital devices containing millions of files belonging to Company #1 and Company #2 and containing the source code for those companies’ proprietary software, the complaint alleges. Although the source code files had been developed by and belonged to these companies, some of the files had been moved into folders labeled “JSL” or “JSL Projects.”
Both Company #1 and Company #2 derive significant value from the secrecy of their proprietary software source code and take extensive steps to protect the source code from discovery by competitors.
If convicted, Li faces a statutory maximum sentence of 10 years in federal prison.
The FBI is investigating this matter with substantial assistance from the Department of Commerce BIS.
Assistant U.S. Attorneys Solomon Kim of the Terrorism and Export Crimes Section; David Ryan, Chief of the Terrorism and Export Crimes Section; Aaron Frumkin of the Cyber and Intellectual Property Crime Section; and Trial Attorney Stephen Marzen of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
United States v. Wang, Northern District of California
Today, a federal court in the Northern District of California unsealed an indictment of former Apple Incorporated (Apple) employee Weibao Wang, 35, formerly of Mountain View, California, for charges related to his alleged theft and attempted theft of trade secrets in connection with a scheme to access, download, and steal Apple technology related to autonomous systems.
According to the indictment, Apple hired Wang to work as a software engineer beginning in March 2016. The indictment describes how Wang signed a confidentiality agreement with Apple. The indictment further states that Apple provided Wang with in-person secrecy training that covered the appropriate handling of confidential material and established rules prohibiting the transfer and transmission of the company’s intellectual property without Apple’s consent. Wang was assigned to work with a team at Apple that designed and developed hardware and software for autonomous systems, which can have a variety of applications, such as self-driving cars.
According to the indictment, in November 2017, Wang signed a letter accepting an offer of full-time employment as a staff engineer with the U.S.-based subsidiary of a company headquartered in the PRC. The parent company is described in the indictment as “COMPANY ONE” and allegedly was working to develop self-driving cars. The indictment alleges Wang waited more than four months after signing the new employment agreement before informing Apple that he was resigning.
After Wang’s last day at Apple on April 16, 2018, Apple representatives reviewed access logs documenting historical activity on Apple’s network. Apple identified Wang as having accessed large amounts of sensitive proprietary and confidential information in the days leading up to his departure from Apple.
The indictment describes the June 27, 2018, search by law enforcement of Wang’s Mountain View residence and the discovery of large quantities of data taken from Apple prior to his departure. Wang was present during the search and told agents he had no plans to travel. Nevertheless, Wang purchased a one-way plane ticket from San Francisco International Airport to Guangzhou, China and boarded a flight that night.
The indictment describes six categories of trade secrets that Wang allegedly stole, or attempted to steal, and charges him with one count for each category.
Wang faces a maximum statutory sentence of 10 years in prison and a fine in the amount of $250,000 (or twice the gross gain or loss resulting from the scheme) for each count of theft or attempted theft of trade secrets.
The FBI is investigating the case.
Assistant U.S. Attorneys Sloan Heffron and Marissa Harris for the Northern District of California are prosecuting the case. Within the National Security Division, this matter is being handled by Brendan Geary of the National Security Division’s Counterintelligence and Export Control Section.
United States v. Xiangjiang Qiao, Southern District of New York
Today, a federal court in the Southern District of New York unsealed an indictment charging Xiangjiang Qiao aka Joe Hansen, 39, of the People’s Republic of China with sanctions evasion, money laundering, and bank fraud offenses based on Qiao’s alleged participation in a scheme to use a sanctioned Chinese company to provide materials used in the production of WMDs to Iran, in exchange for payments made through the U.S. financial system. Qiao is at large in China.
“As alleged, Xiangjiang Qiao conspired to send isostatic graphite to Iran, in violation of U.S. sanctions. Isostatic graphite is a high-tech material used in the nose tips of intercontinental ballistic missiles,” said U.S. Attorney Damian Williams for the Southern District of New York. “The Iranian regime of terror and repression, and those who facilitate it, pose a grave threat to our national security. This office will continue to work relentlessly to bring to justice those who advance the interests of the Iranian regime and thereby threaten the safety and security of the American people.”
According to court documents, Qiao is a Chinese national and an employee of the China-based company Sinotech Dalian Carbon and Graphite Manufacturing Corporation (Sinotech Dalian). Sinotech Dalian is part of a network of Chinese companies involved in the proliferation of WMDs and that, in particular, provide assistance in the procurement of materials for Iran’s ballistic missile program. In 2014, OFAC sanctioned Sinotech Dalian, adding the company to OFAC’s SDN and Blocked Persons list, explaining that Sinotech Dalian is part of a network of China-based entities used to proliferate WMDs and, specifically, to aid Iranian ballistic missile procurement. Sinotech Dalian’s inclusion on the SDN list prohibits it from using the U.S. financial system to conduct transactions without authorization from OFAC. Qiao is an associate of Li Fangwei, aka Karl Lee, who managed the Sinotech Dalian network of companies and was charged in 2014 with sanctions evasion and other offenses based on his alleged illicit activities as a principal contributor to Iran’s ballistic missile program through China-based entities.
In willful violation of U.S. sanctions on Iran and Sinotech Dalian, between at least March 2019 and September 2022, Qiao participated in a scheme to use Sinotech Dalian, including through transactions involving the U.S. financial system, to supply isostatic graphite to Iran for the production of WMDs. Isostatic graphite is a type of graphite with an ultra-fine grain that is used in the manufacture of WMDs. In particular, isostatic graphite is used in the manufacture of rocket nozzles and reentry vehicle nose tips in intercontinental ballistic missiles. Qiao further took steps to conceal Sinotech Dalian’s involvement in the transaction by creating a bank account in the name of a front company to receive two transfers from a U.S. bank totaling over $15,000 as part of his efforts to facilitate the supply of isostatic graphite to Iran.
Qiao is charged with one count of conspiracy to violate U.S. sanctions against Iran and Sinotech Dalian, in violation of the International Emergency Economic Powers Act (IEEPA), which carries a maximum sentence of 20 years in prison; two counts of violating the IEEPA, which each carry a maximum sentence of 20 years in prison; one count of conspiracy to commit bank fraud, which carries a maximum sentence of 30 years in prison; two counts of attempted bank fraud, which each carry a maximum sentence of 30 years in prison; one count of conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison; and two counts of money laundering, which each carry a maximum sentence of 20 years in prison.
The FBI New York Field Office and Counterintelligence Division are investigating the case.
Assistant U.S. Attorneys Gillian S. Grossman and Nicholas S. Bradley for the Southern District of New York are prosecuting the case. Within the National Security Division, this matter is being handled by Trial Attorney S. Derek Shugert of the Counterintelligence and Export Control Section.
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Today’s actions were coordinated through the Disruptive Technology Strike Force, an interagency law enforcement strike force co-led by the Departments of Justice and Commerce designed to target illicit actors, protect supply chains, and prevent critical technology from being acquired by authoritarian regimes and hostile nation-states. Under the leadership of the Assistant Attorney General for National Security and the Assistant Secretary of Commerce for Export Enforcement, the Strike Force leverages tools and authorities across the U.S. Government to enhance the criminal and administrative enforcement of export control laws.
An indictment, complaint or criminal information is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Inland Empire Man Arrested for Allegedly Stealing Sensitive Software from His U.S. Employers to Build a Competing Business in ChinaRead the Press Release
LOS ANGELES – An Inland Empire man has been arrested on a criminal complaint alleging he stole sensitive technologies from his Southern California-based employers and used them to market his own competing company to businesses in the People’s Republic of China (PRC).
Liming Li, 64, of Rancho Cucamonga, is charged with theft of trade secrets. Li was arrested at Ontario International Airport on May 6 after arriving on a flight from Taiwan. Since his arrest, Li has been in federal custody, and he has a detention hearing scheduled for May 22.
“Li stole thousands of files of sensitive technology that did not belong to him and used it to help foreign companies build competing technology – technology that could be used in the manufacture of nuclear submarines and military aircraft,” said United States Attorney Martin Estrada. “Protecting our nation’s national security is paramount, and my office will aggressively investigate and prosecute those who misappropriate sensitive intellectual property to the benefit of foreign actors.”
“The FBI Los Angeles Field Office takes the protection of our national security and critical technology extremely seriously,” said FBI Assistant Director in Charge Donald Alway. “Foreign adversaries, including the Chinese government, actively seek to erode American competitiveness in the global economy, diminish trust in fair market competition, and use stolen knowledge to increase their military modernization capabilities. Stealing proprietary information not only affects U.S. businesses, but, over time destabilizes American economic security. The FBI is dedicated to countering efforts of those seeking to illegally acquire sensitive information.”
The case against Li was brought under the auspices of the Disruptive Technology Strike Force, which is co-led by the Departments of Justice and Commerce. The Strike Force seeks to counter efforts by hostile nation-states to illicitly acquire sensitive U.S. technology to advance their authoritarian regimes and facilitate human rights abuses. The case against Li is one of five announced this morning at a news conference at the Department of Justice where officials detailed cases against defendants accused of crimes that include export violations, smuggling and theft of trade secrets.
According to an affidavit filed with the complaint filed in Los Angeles, from 1996 to November 2019, Li worked in various engineering, management and software development roles for two companies in Southern California. The companies are identified in court documents as “Company #1” and “Company #2.”
These software programs are related to high precision measurement studies interpretation and point cloud technology, which often are used in making 3D models. They can be used in various sensitive manufacturing contexts, including manufacturing parts for nuclear submarines and military aircraft, and are subject to United States export controls for national security, nuclear nonproliferation and anti-terrorism reasons. As a result of its military application, federal law mandates that this software cannot be exported to the PRC without a license from the Department of Commerce.
Li worked for Company #1 from 1996 to 2018 and then worked at Company #2 from 2018 until November 2019. Shortly before beginning his employment with the Company #2, Li and his wife established their own business, JSL Innovations, which was based out of their Rancho Cucamonga home.
After Company #2 terminated Li, company security discovered that Li was using his company-issued laptop to attempt to download files from Company #2’s root directory onto his personal external hard drive, according to the complaint affidavit. Company security searched Li’s company-issued laptop and found a folder labeled “ChinaGovernment.” That folder allegedly contained numerous documents showing Li’s efforts to participate in the PRC’s Thousand Talents Program and to use JSL Innovations to provide services and technology to PRC business and government entities related to the export-controlled and trade secret technology that Li took from his former employers in Southern California.
In March 2020, Li entered into an agreement with a PRC-based manufacturing company to serve as its chief technology officer. Li’s agreement with this employer required him to spend at least six months per year in the PRC.
Six months later, FBI agents executed a search warrant at LI’s home and found numerous digital devices containing millions of files belonging to Company #1 and Company #2 and containing the source code for those companies’ proprietary software, the complaint alleges. Although the source code files had been developed by and belonged to these companies, some of the files had been moved into folders labeled “JSL” or “JSL Projects.”
Both Company #1 and Company #2 derive significant value from the secrecy of their proprietary software source code and take extensive steps to protect the source code from discovery by competitors.
A criminal complaint is merely an accusation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
If convicted, Li would face a statutory maximum sentence of 10 years in federal prison.
The FBI is investigating this matter with substantial assistance from the Department of Commerce, Office of Export Enforcement, Bureau of Industry and Security.
Assistant United States Attorneys Solomon Kim of the Terrorism and Export Crimes Section; David Ryan, Chief of the Terrorism and Export Crimes Section; Aaron Frumkin of the Cyber and Intellectual Property Crime Section; and Trial Attorney Stephen Marzen of the Justice Department’s National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
The Disruptive Technology Strike Force is an interagency law enforcement strike force co-led by the Departments of Justice and Commerce. It is designed to target illicit actors, protect supply chains, and prevent critical technology from being acquired by authoritarian regimes and hostile nation-states. Under the leadership of the Assistant Attorney General for National Security and the Assistant Secretary of Commerce for Export Enforcement, the Strike Force leverages tools and authorities across the U.S. Government to enhance the criminal and administrative enforcement of export control laws.
Independence Man Sentenced to 15 Years for Meth ConspiracyRead the Press Release
KANSAS CITY, Mo. – An Independence, Mo., man was sentenced in federal court today for his role a conspiracy to distribute methamphetamine.
Louis Melvin Williamson, 51, was sentenced by U.S. District Judge Greg Kays to 15 years in federal prison without parole. The court also ordered Williamson’s sentence to be served consecutively to any sentence imposed in a separate case in Clay County, Mo.
On Oct. 4, 2022, Williamson pleaded guilty to participating in a conspiracy to distribute methamphetamine from Aug. 11 to Oct. 14, 2020.
Co-defendant Kurt Thomas Kingsley, 40, of Independence, was sentenced on April 6, 2023, to seven years in federal prison without parole after pleading guilty to his role in the drug-trafficking conspiracy and to one count of possessing methamphetamine with the intent to distribute. The court ordered his sentence to be served consecutively to any sentence imposed in a separate case in the District of Kansas.
Co-defendant Kenneth James Paulson, 52, of Blue Springs, Mo., pleaded guilty on Nov. 16, 2022, to his role in the drug-trafficking conspiracy and awaits sentencing.
Williams sold bulk quantities of methamphetamine to other dealers, including Kingsley, who in turn sold to Paulson. Williamson also sold smaller quantities to methamphetamine users. Paulson admitted that he purchased methamphetamine from Kingsley and sold bulk quantities to lower level dealers.
Agents from the Drug Enforcement Administration, through undercover agents and confidential informants, made controlled purchases of methamphetamine from Paulson at his home and at a movie theater parking lot in Grain Valley, Mo. On Oct. 13, 2020, DEA agents stopped Paulson’s car in Blue Springs while he was on his way to another undercover controlled purchase. Agents found 145 grams of 99 percent pure methamphetamine in his car. Agents also searched his residence and found 226 grams of 99 percent pure methamphetamine in his garage. Agents also found a Smith & Wesson 9mm semi-automatic handgun and a Smith & Wesson .38-caliber revolver in his garage.
On Oct. 14, 2020, Kingsley arrived at Paulson’s residence for an arranged drug sale. DEA agents found a black backpack on the passenger’s seat of Kingsley’s Ford F-150 that contained 46.7 grams of pure methamphetamine.
This case is being prosecuted by Assistant U.S. Attorney Brandon Gibson. It was investigated by the Drug Enforcement Administration.
Honduran National Indicted for Illegal Re-EntryRead the Press Release
NEW ORLEANS –HUGO BRIAN FUENTAS-EGUIGURENS, a/k/a “Brian Pineda,” a/k/a “Hugo B. Fuentes,” a/k/a “Hugo Fuentesesguigrens,” age 27, was indicted on May 12, 2023 for illegal reentry of a removed alien in violation of Title 8, United States Code, Section 1326(a), announced U.S. Attorney Duane A. Evans.
According to the indictment, HUGO BRIAN FUENTAS-EGUIGURENS, (“FUENTAS-EGUIGURENS”) reentered the United States after being previously deported on April 26, 2019. If convicted, FUENTAS-EGUIGURENS faces a maximum term of imprisonment of two years, a maximum fine of up to $250,000, a maximum term of supervised release of up to one year, and a mandatory $100 special assessment fee.
U.S. Attorney Evans reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the United States Immigration and Customs Enforcement in investigating this matter. Assistant U.S. Attorney Carter K.D. Guice, Jr. of the General Crimes Unit is in charge of the prosecution.
Havre man admits assaulting woman on Rocky Boy’s Indian ReservationRead the Press Release
GREAT FALLS —A Havre man suspected of punching and strangling a woman on the Rocky Boy’s Indian Reservation admitted to an assault crime today, U.S. Attorney Jesse Laslovich said.
Titus Lee Pedraza, 40, pleaded guilty to assault resulting in substantial bodily injury of a spouse, intimate or dating partner. Pedraza faces a maximum of five years in prison, a $250,000 fine and not more than three years of supervised release.
Chief U.S. District Judge Brian M. Morris presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for Oct. 12. Pedraza was detained pending further proceedings.
The government alleged in court documents that on November 23, 2022, Pedraza was home with the victim, identified as Jane Doe, and the victim’s children. Jane Doe told Pedraza she wanted a babysitter so they could go gamble together. Pedraza, who was drunk, became enraged and accused Jane Doe of wanting to cheat on him. As Jane Doe walked out of the room, Pedraza assaulted her by strangling her and punching her, causing substantial injury.
Assistant U.S. Attorney Amanda L. Myers is prosecuting the case. The FBI and Rocky Boy’s Police Department conducted the investigation.
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Hartford Man Sentenced to 54 Months in Federal Prison for Fentanyl Distribution and Firearm Possession OffensesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that JAMIE PATTERSON, also known as “Diddy,” 25, of Hartford, was sentenced yesterday by U.S. District Judge Sarala V. Nagala in Hartford to 54 months of imprisonment, followed by three years of supervised release, for fentanyl distribution and firearm possession offenses.
According to court documents and statements made in court, on June 4, 2021, New Britain Police responded to Devens Street on reports of shots fired. At the scene, officers found numerous empty shell casings near a disabled vehicle containing an abandoned firearm. Patterson was located hiding underneath a nearby car, and an officer found a loaded 9mm handgun in the spare tire well of car. Forensic analysis of the handgun revealed the presence of Patterson’s DNA.
On July 13, 2021, Hartford Police arrested Patterson after they observed him placing items into a parked car on Hazel Street, and a subsequent search of the car revealed 170 sleeves (doses) of fentanyl and a loaded .380 pistol.
Patterson’s criminal history includes state convictions for felony drug and firearm offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
On February 27, 2023, Patterson pleaded guilty to possession with intent to distribute fentanyl, and possession of a firearm by a felon.
Patterson has been detained in state custody since his arrest on July 13, 2021. He will not receive credit on his federal sentence for his time served to date in state custody.
This investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the New Britain Police Department, and the Hartford Police Department. The case was prosecuted by Assistant U.S. Attorney Robert S. Ruff through the Project Safe Neighborhoods (PSN) initiative, 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.
Gymnastics coach gets max in disturbing child pornography caseRead the Press Release
GALVESTON, Texas – A 55-year-old McKinney resident has been sentenced to 20 years in prison for transportation of child pornography, announced U.S. Attorney Alamdar S. Hamdani.
Darren Frank McCoy pleaded guilty Dec. 1, 2022, admitting he was previously a gymnastics and cheerleading coach in Texas and Alabama. He had recorded teens in various stages of undress without their knowledge or consent and had unlawfully transported those images and videos as well as disturbing images of child pornography.
Today U.S. District Judge Jeffery V. Brown ordered him to serve a total of 240 months in federal prison to be immediately followed by a 10 years of supervised release. At the hearing, the court heard from one woman whom McCoy recorded while she was a minor. She discussed how her life has been seriously impacted by McCoy’s conduct, describing how he stole her childhood experiences without her even knowing it and that she feels rage, anger and sadness and lack of empathy toward him. Another victim described how McCoy sexually abused her from the time she was 12 until the age of 18. She detailed how she suffers from post-traumatic stress disorder and anxiety. McCoy was a gymnastics coach to these women.
“Darren McCoy is the definition of a predator,” said Hamdani. “We encourage our children to engage in sports, believing that they will be safe when doing so. Instead, these athletes were betrayed. This so-called coach surreptitiously recorded teens and sexually abused a minor for several years. Hopefully, knowing the only bars he will see now are behind a federal prison cell will give his victims some long-awaited peace.”
On Nov. 30, 2019, McCoy had been on a cruise ship which docked in the Galveston Port of Entry. Authorities sent him to secondary inspection after learning of a prior child pornography investigation from 2015.
There, they found images of child pornography on his laptop which led them to seize other electronic devices including his phone which also yielded numerous pornographic images.
They also found nine videos on McCoy’s flash drive which appeared to be taken with a hidden camera. These videos, which appeared to be taken approximately a decade ago, were of teens changing their clothes or showering in a residential bathroom, a gym and at a hotel for a cheerleading competition. One of the teens was found to be a minor at the time.
A subsequent search at McCoy’s residence in McKinney led authorities to discover two covert recording devices. Through the investigation, law enforcement learned McCoy was a gymnastics and cheerleading coach at Metroplex Gymnastics and Swim in Allen and had previously been a coach at Top Dog Cheer in Montgomery, Alabama.
In total, authorities found 10 videos and 290 images of child pornography on McCoy’s devices. His collection included children between the ages of 1 and 8 in various stages of undress in a hospital, mortuary or morgue-type setting.
McCoy will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations (HSI) – Galveston conducted the investigation with the assistance of police departments in Galveston and Pearland, Customs and Border Protection and HSI – Dallas.
Assistant U.S. Attorneys Kimberly Ann Leo and Sherri Zack are prosecuting the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources link on that page.
Guatemalan Man Sentenced to Probation for Illegally Using Social Security NumberRead the Press Release
NEW ORLEANS – FIDADELFO ANTONIO CAMEY-ESPANA, age 36, was sentenced on May 11, 2023 for illegally using a social security number to enroll in a safety class to qualify for employment, in violation of Title 42, United States Code, Section 408(a)(7)(B), announced U.S. Attorney Duane A. Evans.
According to court documents, FIDADELFO ANTONIO CAMEY-ESPANA (“CAMEY-ESPANA”) admitted to illegally using a social security number to enroll in a safety class to qualify for employment. CAMEY-ESPANA was sentenced by the Honorable Carl J. Barbier, U.S. District Judge, Eastern District of Louisiana, to one year probation.
U.S. Attorney Evans praised the work of the United States Immigration and Customs Enforcement in investigating this matter. Assistant U.S. Attorney Carter K.D. Guice, Jr. of the General Crimes Unit is in charge of the prosecution.
Greenville County Woman Indicted in Federal Court for Health Care FraudRead the Press Release
COLUMBIA, SOUTH CAROLINA — A federal grand jury in Columbia returned a 21-count indictment against Stamatina Bourret a/k/a Nina Bourret, 41, of Greenville, South Carolina, for health care fraud.
The indictment alleges that Bourret, through her company Agapi Behavior Consultants, billed Medicaid for services to treat Autism Spectrum Disorder that were either not rendered and/or a portion of the services billed to Medicaid were not provided.
Bourret faces a maximum penalty of ten years on each count.
The case was investigated by the Federal Bureau of Investigation, the Department of Health and Human Services – Office of the Inspector General, and the South Carolina Attorney General’s Medicaid Fraud Control Unit. Assistant U.S. Attorney Amy Bower is prosecuting the case.
U.S. Attorney Adair F. Boroughs stated that all charges in the indictment are merely accusations and that defendants are presumed innocent unless and until proven guilty.
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Founder and President of European Defense Conglomerate Charged with Helping the Russian Military Evade U.S. Sanctions and Export ControlsRead the Press Release
A criminal complaint was unsealed today in federal court in Brooklyn charging Dr. Nikolaos “Nikos” Bogonikolos with wire fraud conspiracy and smuggling. Bogonikolos, a Greek national, was arrested in Paris, France on May 9, 2023 and remains in custody pending the resolution of extradition proceedings.
Breon Peace, United States Attorney for the Eastern District of New York, Matthew G. Olsen of the Justice Department’s National Security Division, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), Jonathan Carson, Special Agent-in-Charge, Bureau of Industry and Security (BIS), Office of Export Enforcement, New York Field Office announced the charges.
“As alleged, while ostensibly operating as a defense contractor for NATO and other ally countries, the defendant and his Aratos Group were double dealing, helping to fuel Russia’s war effort and their development of next generation weapons,” stated United States Attorney Peace. “Our Office continues to work tirelessly to ensure that disruptive technologies do not fall into the wrong hands.”
Mr. Peace thanked the Justice Department’s Office of International Affairs for their assistance in this case, the FBI’s Legal Attaché offices in Paris and the Netherlands, and the U.S. Customs and Border Protection Attaché office in Paris for their assistance in this case. The United States thanks the French and Dutch authorities for their assistance.
“These charges demonstrate the Justice Department’s commitment to preventing sensitive technology from falling into the hands of foreign adversaries, including Russia, China, and Iran,” said Matthew G. Olsen of the Justice Department’s National Security Division. “We will not tolerate those who would violate U.S. laws to allow authoritarian regimes and other hostile nations to use advanced technology to threaten U.S. national security and undermine democratic values around the world.”
“As alleged, Bogonikolos conspired with a network of companies orchestrated by the Russian intelligence services to fraudulently acquire and then smuggle U.S.-origin military and dual-use technologies to aid the Russian defense and security sectors. Bogonikolos procured sensitive equipment meeting NATO specifications designed for tactical battlefield conditions as well as components with applications in space-based and cryptographic communications, on behalf of his Russian intelligence handlers seeking to improve their country’s warfighting capabilities. This case highlights the FBI’s commitment to keeping critical technologies away from America’s adversaries, and dismantling the criminal networks complicit in Russia’s war of aggression," stated FBI Assistant Director in Charge Driscoll.
“As alleged, the defendant and his company not only violated US law, but further assisted Russia’s illegal war of aggression to include the development of disruptive technologies,” stated BIS Special Agent-in-Charge Carson. “BIS’s Office of Export Enforcement, working with our Strike Force partners, will continue to aggressively investigate export violations and bring violators to justice wherever-located-worldwide.”
As alleged in the complaint, the defendant headed the Aratos Group (Aratos), a collection of defense and technology companies in the Netherlands and Greece, which are both member countries of the North Atlantic Treaty Organization (NATO). According to Aratos’ website, the companies’ areas of expertise included “Space Technologies,” “Homeland Security,” “Blockchain,” and “Counter-Drone Systems.”
One of Aratos’ subsidiaries, Aratos Systems BV, was a finalist in the NATO Innovation Challenge for space applications in 2021 for a proposal involving the use of artificial intelligence and blockchain technology for satellites and spacecraft. In the proposal, the defendant represented that he had experience advising the European Parliament and “governments worldwide,” and that Aratos had supplied defense equipment and related technologies to countries in the Middle East, Africa and Asia.
However as alleged in the complaint, since 2017 the defendant has been involved in smuggling U.S.-origin military and dual-use technologies to Russia in violation of U.S. law. These highly regulated and sensitive components included advanced electronics and sophisticated testing equipment used in military applications, including quantum cryptography and nuclear weapons testing, as well as tactical battlefield equipment. The defendant claimed that these items were to be used by Aratos, when in reality they were illegally reshipped and sent to Russia. Some of the Russian end users included nuclear and quantum research facilities, as well as “Military Unit 33949,” which is part of the Russian Foreign Intelligence Service, known as the “SVR.” As described in the complaint, many of these orders were solicited by Serniya Engineering and Sertal LLC (the “Serniya Network”), Moscow-based companies that operate under the direction of Russian intelligence services. Following Russia’s invasion of Ukraine in February 2022, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) and the Department of Commerce (DOC) Bureau of Industry and Security (BIS) levied sanctions against Serniya, Sertal, and several individuals and companies used in the scheme, calling them “instrumental to the Russian Federation’s war machine.”
As alleged in the complaint, the defendant was recruited as a procurement agent for Russia in and around 2017. In an email message with a Serniya affiliate, on December 27, 2017, the defendant was told to come to Moscow alone “since the agenda will be a very sensitive one.” Regarding one subsequent order, the defendant advised that he would falsify an export license, saying “I sign that the items are only for Netherlands; . . . Sensitive case . . . For the same reason I cannot press the [U.S.] supplier.” The defendant also signed false end use statements and provided them to U.S. companies, certifying that Aratos was the end user of the requested items, that Aratos would not reexport the goods elsewhere, and that the goods would not be used for weapons development.
The charges in the complaint are allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorney Artie McConnell is in charge of the prosecution, along with Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section, with assistance from Litigation Analyst Ben Richmond.
The Defendant:
NIKOLAOS BOGONIKOLOS
AGE: 59
Athens, GreeceE.D.N.Y. Docket No. 23-MJ-412
Fort Myers Man Sentenced to More Than Seven Years in Federal Prison for Distributing MethamphetamineRead the Press Release
Fort Myers, Florida – U.S. District Judge Thomas P. Barber has sentenced Jeffrey Brown (35, Fort Myers) to seven and six months in federal prison for distributing methamphetamine. Brown had pleaded guilty on February 15, 2023.
According to court documents, an undercover Special Agent with the Drug Enforcement Administration was introduced to Brown and made a small introductory purchase of powder cocaine. Brown then told the undercover agent that he could supply the agent with large quantities of methamphetamine. Over the course of two ensuing transactions in late 2020, Brown sold the undercover agent approximately three-fourths of a pound of 99% pure methamphetamine. Each of the transactions occurred at residences associated with Brown in Fort Myers. Upon his arrest, Brown admitted he had been selling drugs since his childhood. He has multiple prior convictions for drug and firearms offenses.
This case was investigated by the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney Michael V. Leeman.
Former manager of two Skagit County dialysis clinics sentenced to 30 months in prison for bank fraud and identity theftRead the Press Release
Seattle – A former Washington State resident who now resides in Texas was sentenced today in U.S. District Court in Seattle to 30 months in prison for Aggravated Identity Theft and Bank Fraud, announced U.S. Attorney Nick Brown. Jeanne Ang Rather, 51, was indicted in May 2021 for stealing the personally identifying information of at least ten people who worked under her at dialysis clinics. Between September 2019 and March 2020, she used the information to fraudulently open credit accounts and charge expenses for her family. She also stole and deposited checks from the clinics into her own bank accounts. U.S. District Judge John C. Coughenour ordered Rather to be on three years of supervised release following the prison sentence.
According to records filed in the case, Rather was the manager of two dialysis clinics in Skagit County. In addition to stealing the identities of her subordinates, she stole 20 checks from insurance companies written to one of the clinics and deposited the checks into her personal bank accounts. She defrauded the clinic of $98,511 and ran up credit card charges that defrauded a bank of $106,089 for a total loss amount of more than $204,000. In her plea agreement in February 2022, Rather agreed to make full restitution to the bank and clinic.
The case was investigated by the U.S. Postal Inspection Service (USPIS)..
The case was prosecuted by Assistant United States Attorneys Sok Tea Jiang and Yunah Chung.
Former Tribal Official Sentenced for Bribery SchemeRead the Press Release
A former Tribal government official of the Three Affiliated Tribes of the Mandan, Hidatsa, and Arikara Nation (MHA Nation) was sentenced yesterday to five years in prison for soliciting and accepting bribes and kickbacks from a contractor providing construction services on the Fort Berthold Indian Reservation in North Dakota, which is the home of the MHA Nation.
According to court documents, Randall Judge Phelan, 58, of Mandaree, North Dakota, was an elected representative on the Tribal Business Council – the governing body of the MHA Nation – from 2013 to 2020. Beginning around 2013 and continuing through 2020, Phelan solicited and accepted bribes and kickbacks totaling more than $645,000 from a contractor operating on the Fort Berthold Indian Reservation. In exchange for payments, Phelan used his official position to help the contractor’s business, including by awarding millions of dollars in contracts, fabricating bids during purportedly competitive bidding processes, advocating for the contractor with other Tribal officials, and facilitating the submission and payment of fraudulent invoices.
In October 2022, Phelan pleaded guilty to conspiracy to commit bribery concerning programs receiving federal funds, honest services wire fraud, and bribery concerning programs receiving federal funds.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Mac Schneider for the District of North Dakota, and Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division made the announcement.
The FBI Minnesota Field Office investigated the case.
Trial Attorneys Andrew Tyler and John J. Liolos of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Matthew Greenley for the District of North Dakota prosecuted the case.
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Former Tribal Official Sentenced for Bribery SchemeRead the Press Release
A former Tribal government official of the Three Affiliated Tribes of the Mandan, Hidatsa, and Arikara Nation (MHA Nation) was sentenced yesterday to five years in prison for soliciting and accepting bribes and kickbacks from a contractor providing construction services on the Fort Berthold Indian Reservation in North Dakota, which is the home of the MHA Nation.
According to court documents, Randall Judge Phelan, 58, of Mandaree, North Dakota, was an elected representative on the Tribal Business Council – the governing body of the MHA Nation – from 2013 to 2020. Beginning around 2013 and continuing through 2020, Phelan solicited and accepted bribes and kickbacks totaling more than $645,000 from a contractor operating on the Fort Berthold Indian Reservation. In exchange for payments, Phelan used his official position to help the contractor’s business, including by awarding millions of dollars in contracts, fabricating bids during purportedly competitive bidding processes, advocating for the contractor with other Tribal officials, and facilitating the submission and payment of fraudulent invoices.
In October 2022, Phelan pleaded guilty to conspiracy to commit bribery concerning programs receiving federal funds, honest services wire fraud, and bribery concerning programs receiving federal funds.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Mac Schneider for the District of North Dakota, and Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division made the announcement.
The FBI Minnesota Field Office investigated the case.
Trial Attorneys Andrew Tyler and John J. Liolos of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Matthew Greenley for the District of North Dakota prosecuted the case.
Former Surgical Practice Administrator Sentenced to 26 Months in Prison for Embezzling More than a Million DollarsRead the Press Release
BIRMINGHAM, Ala. – A federal judge today sentenced a Shelby County woman for stealing more than a million dollars from the surgical practice where she had worked for fifteen years, announced U.S. Attorney Prim F. Escalona and Federal Bureau of Investigation Special Agent in Charge Carlton L. Peeples.
U.S. District Court Judge Karon O. Bowdre sentenced Betty Jo “BJ” Latsis, 58, of Birmingham to 26 months in prison followed by three years of supervised release. As a condition of the plea agreement she signed last year, Latsis was required to pay $400,000 back to her victims by the time of sentencing, which she did. At sentencing she was ordered to pay an additional $600,000 in restitution. Latsis pleaded guilty in January to an information charging one count of wire fraud.
According to the plea agreement, from 2005 until 2020, Latsis, a registered nurse, worked as office manager and administrator at Colon & Rectal Surgical Associates of Birmingham. Latsis handled bookkeeping and accounting functions for the practice, and she used that position of trust to steal money in a variety of ways. According to court documents, between 2013 and 2020 Latsis transferred hundreds of thousands of dollars from practice accounts to a PayPal account she controlled. She paid herself hundreds of thousands of dollars more than she was authorized to receive. She used practice funds to pay off her personal credit card bills and those of her spouse. She used credit card accounts in doctors’ names to pay personal expenses, including a “7 Night Northern European CityScapes” Royal Caribbean cruise for her and her spouse. And she used practice funds to pay her and her spouse’s personal expenses directly—car lease payments, life insurance premiums, and even an $8,000 home entertainment system from Best Buy. In all, Latsis admitting to stealing more than $1.1 million from the practice during her tenure there.
The FBI investigated the case. Assistant U.S. Attorney J.B. Ward prosecuted the case.
Former Missouri Postal Worker Sentenced for Stealing MailRead the Press Release
CAPE GIRARDEAU – U.S. District Judge Stephen N. Limbaugh Jr. on Tuesday sentenced a former postal worker who stole cash and gift cards from mail in the Poplar Bluff, Missouri area to probation and ordered her to pay restitution and perform 200 hours of community service.
Brittney D. Bulliner, 29, was caught in a sting stealing Walmart gift cards and a gift card for Kohl’s and admitted stealing and rifling through 17 greeting cards two days before she was confronted.
The investigation began after postal customers in the Poplar Bluff area began complaining in April 2022 about mail that was missing contents. On Aug. 18, 2022, Bulliner was identified as a possible suspect. She was a sales and service distribution clerk at the time.
On Aug. 20, 2022, an agent of the U.S. Postal Service Office of Inspector General placed a blue envelope containing a greeting card and two $25 Walmart gift cards into mail which was to be worked by Bulliner. The cards, along with a third gift card, were used by Bulliner on Aug. 23, 2022 to buy two bicycles at Walmart.
On Sept. 15, 2022, the agent placed a blue greeting card containing a Kohl’s gift card with no value into mail at the Broseley, Missouri Post Office. Agents confronted Bulliner after she opened the card, and she admitted stealing it. She also admitted stealing and opening 17 greeting cards before taping them shut and returning them. Agents found those cards in the Post Office the day they confronted Bulliner. The investigation identified at least 45 Postal Service customers who were missing mail taken by Bulliner.
Bulliner, who lives near Poplar Bluff, was indicted by a federal grand jury in October on two counts of theft of mail. She pleaded guilty to both charges in February.
The case was investigated by the U.S. Postal Service Office of Inspector General. Assistant U.S. Attorney Paul Hahn prosecuted the case.
Former Head of Non-Governmental Organization Sentenced for Bribing Officials of Republic of Marshall IslandsRead the Press Release
The former president of a New York-based non-governmental entity (NGO) was sentenced today to three years and six months in prison for paying bribes to elected officials of the Republic of the Marshall Islands (RMI) in exchange for passing certain legislation.
According to court documents, beginning in or around 2016 and continuing until at least August 2020, Cary Yan, 51, conspired with others – including his assistant, Gina Zhou – in connection with a multi-year bribery scheme. Yan offered and paid tens of thousands of dollars in bribes to high-level RMI officials, including members of the RMI legislature, in exchange for supporting legislation creating a semi-autonomous region within the RMI called the Rongelap Atoll Special Administrative Region (RASAR) that would benefit the business interests of Yan and his associates. Yan carried out the bribery scheme using the New York-based NGO, including the physical use of its headquarters in Manhattan, to meet and communicate with RMI officials.
In December 2022, Yan and Zhou each pleaded guilty to one count of conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practice Act. On Feb. 16, Zhou was sentenced to two years and seven months in prison for her role in the scheme.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Damian Williams for the Southern District of New York, and Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division made the announcement.
The FBI New York Field Office investigated the case. The Royal Thai Government, the U.S. Department of State’s Diplomatic Security Service, the Embassy of the United States in Bangkok, and the Justice Department’s Office of International Affairs provided substantial assistance in securing the arrest and extradition of Yan.
Assistant Chief Gerald M. Moody, Jr. and Trial Attorney Anthony Scarpelli of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Hagan Scotten, Lara Pomerantz, and Derek Wikstrom for the Southern District of New York prosecuted the case.
The Fraud Section is responsible for investigating and prosecuting Foreign Corrupt Practices Act (FCPA) matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Former Fugitive Pleads Guilty to Laundering Money Embezzled from Kuwaiti EmbassyRead the Press Release
A Virginia man pleaded guilty today to a money laundering conspiracy involving funds embezzled from the Embassy of Kuwait’s health office in Washington, D.C.
According to court documents, from approximately January through September 2014, Ahmed El Khebki, aka Ahmed Khider El Khebki, of Lorton, conspired to launder money embezzled from the Kuwaiti Embassy. El Khebki and his co-conspirators stole money from the embassy’s health office earmarked to pay for medical care for Kuwaiti citizens who traveled to the United States to receive treatment at, among other places, Johns Hopkins Hospital and MedStar Georgetown University Hospital.
To embezzle and launder the funds, El Khebki and his co-conspirators created fake companies with names meant to mimic actual U.S. healthcare providers, including “Hopiken” and “MedStar.” The co-conspirators then submitted fraudulent invoices to the health office, claiming that they had provided medical services to real Kuwaiti citizens under the auspices of those fake companies. Employees at the health office in the embassy who were in on the scheme approved the invoices and wrote checks to El Khebki and his co-conspirators’ fake companies. During the course of the conspiracy, the health office paid more than $1.5 million in fraudulent invoices. El Khebki personally deposited hundreds of thousands of dollars of stolen funds into accounts he controlled and used the stolen funds to make numerous personal purchases.
El Khebki joins two co-conspirators, Wael Sedik and Huwida Fadl, in pleading guilty for his role in the conspiracy. El Khebki’s co-defendant and co-conspirator Hussein Fadl Osman remains at large.
El Khebki pleaded guilty to money laundering. He is scheduled to be sentenced on Aug. 24 and faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division and Special Agent in Charge Derek W. Gordon of Homeland Security Investigations (HSI) Washington, D.C. made the announcement.
HSI investigated the case.
Senior Trial Attorney Jonathan Baum and Trial Attorney Shai D. Bronshtein of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS) are prosecuting the case as part of the department’s Kleptocracy Asset Recovery Initiative.
The Kleptocracy Asset Recovery Initiative in MLARS was formed to prosecute money launderers and forfeit the proceeds of foreign official corruption and, where appropriate, to use those recovered assets to benefit the people harmed by the corruption and abuse of office. Individuals with information about possible proceeds of foreign corruption located in or laundered through the United States should contact federal law enforcement or send an email to [email protected].
Former Finance Director pleads guilty to embezzling $3 million+ from two local non-profitsRead the Press Release
Seattle – The former Finance Director at two Seattle area non-profits pleaded guilty today in U.S. District Court in Seattle to embezzling more than $3 million from her employers, announced U.S. Attorney Nick Brown. Susana Tantico, 62, of Renton, Washington committed the embezzlement over a nine-year period. Tantico will be sentenced by U.S. District Judge James L. Robart for two counts of wire fraud on August 15, 2023.
“Ms. Tantico was a trusted financial professional who sadly used her skills to steal from organizations serving those most in need of help,” said U.S. Attorney Brown. “Each time she used the organization’s credit card for trips, gambling, or clothing, she knew she was effectively stealing from people who depended on assistance from her employer. Then she used her access to the organization ledgers to cover-up the theft. The true victims are the clients who should have been served with the funds she stole.”
According to the charging information and plea agreement, in 1999 Tantico began working for a non-profit that provides healthcare to underserved populations. Ultimately, Tantico became the non-profit’s Finance Director. Between 2011 and June 2020, Tantico embezzled nearly $2.3 million from the healthcare non-profit. She used the non-profit’s debit and credit cards to withdraw $1.6 million at casinos for gambling. She also used the debit and credit cards to pay for personal vacations, such as a $26,000 family trip to Disneyworld, and trips to Las Vegas and San Diego. Tantico also used the medical non-profit’s debit and credit cards for more than $83,000 worth of purchases at Nordstrom and $40,000 worth of purchases at Apple stores.
After running up the big bills, Tantico used the non-profit’s funds to pay the credit card bills and disguised the payments as legitimate expenses, such as medical supplies. Throughout this timeframe, Tantico told the non-profit auditors that she was aware of no fraud at the non-profit.
In 2020, Tantico went to work as Finance Director for a different non-profit -- one with a focus on criminal justice issues. Tantico used more than $485,000 of the non-profit’s funds for gambling at casinos. She transferred $21,000 from the non-profit to her mortgage servicer to pay her home mortgage. She also transferred money to her personal bank account. Tantico then altered the bank records to hide the embezzlement. At one point, she was questioned by one of the organization’s banks about all the withdrawals at casinos. She claimed that the non-profit held youth programs at the casinos and claimed the withdrawals were for cash prize giveaways. In all, Tantico stole nearly $893,000 from the non-profit. The non-profit has incurred $132,000 in costs to forensically audit its books, fix its accounting procedures and records, and reply to vendors.
Prosecutors have agreed to recommend a prison sentence of no more than 41 months in prison. Judge Robart is not bound by the recommendation and can impose any sentence allowed by law.
Wire fraud is punishable by up to 20 years in prison and a $250,000 fine.
The case was investigated by the FBI.
The case is being prosecuted by Assistant United States Attorney Seth Wilkinson.
Former D.C. Police Union Vice Chairman Pleads Guilty to Time and Attendance Fraud SchemeRead the Press Release
Defendant Billed MPD While Working Outside Employment
WASHINGTON – Medgar Webster Sr., 52, of Washington, D.C., pleaded guilty yesterday, in Superior Court, to one count of first degree felony fraud for committing time and attendance fraud on the Metropolitan Police Department. U.S. Attorney Matthew M. Graves, D.C. Attorney General Brian L. Schwalb, and Chief Robert Contee III, of the Metropolitan Police Department made the announcement.
The Honorable Errol Arthur accepted Webster’s guilty plea and scheduled sentencing for July 25, 2023. As part of his plea, Webster must pay full restitution.
According to court documents, Webster, a former MPD officer and Vice Chairman of the D.C. Police Union, engaged in unauthorized outside employment at three Whole Foods Market locations in Washington, D.C. between January 2021 and April 2022, while concurrently employed by MPD. Although employment outside of MPD may be permitted in certain circumstances, Webster never submitted the necessary administrative forms or received the proper authorizations, which are required by MPD, in part, to maintain records of an MPD member’s hours worked throughout the year.
Acting unchecked during this period, Webster stole more than $33,845 from MPD after billing MPD for regular, overtime and holiday hours that he never worked. In total, Webster worked more than 1,400 hours of outside employment at Whole Foods, of which 514 hours were worked simultaneously with time he fraudulently reported working for MPD. This double-billed time included submissions by Webster for 246.5 hours in overtime pay, at an adjustable hourly rate of $79.67 per hour.
This fraud prosecution is the result of a partnership between the Office of the Attorney General and the U.S. Attorney’s Office for the District of Columbia.
In announcing the guilty plea, U.S. Attorney Graves, D.C. Attorney General Schwalb, and Chief Contee commended the work of those who investigated the case from the Metropolitan Police Department’s Internal Affairs Division. They also expressed appreciation for the work of those who investigated and prosecuted the matter, including Assistant U.S. Attorney Benjamin D. Bleiberg, and former Special Assistant U.S. Attorney Bayly Leighton, on detail from the Office of the Attorney General to prosecute local fraud and public corruption cases.
Former Commercial Pilot Found Guilty of Internet StalkingRead the Press Release
SAN ANTONIO – A federal jury convicted a Chesterfield, Missouri man today for internet stalking.
According to court documents and evidence presented at trial, from May 2020 to September 2020, Mark Joseph Uhlenbrock, 69, with the intent to harass and intimidate another person, used the internet to engage in a course of conduct that caused substantial emotional distress to his victim. This course of conduct included posting nude photographs of the victim on the internet without the victim’s consent. The conduct from this crime occurred while Uhlenbrock was still on supervised release for a 2016 federal conviction for internet stalking the same victim.
In 2016, U.S. District Judge Xavier Rodriguez sentenced Uhlenbrock to 41 months in federal prison, followed by three years of supervised release, after Uhlenbrock plead guilty to internet stalking. As part of his plea in that case, Uhlenbrock admitted that from January 2006 to August 2015, he caused substantial emotional distress by posting nude photographs of his victim on the internet without the victim’s consent.
Uhlenbrock is scheduled to be sentenced on August 30, 2023. He has remained in federal custody since his arrest on December 10, 2020, for violating conditions of his supervised release.
U.S. Attorney Jaime Esparza of the Western District of Texas and FBI Special Agent in Charge Oliver E. Rich Jr., made the announcement.
The FBI is investigating the case.
Assistant U.S. Attorneys William Calve and Karina O’Daniel are prosecuting the case.
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Former City Clerk Sentenced to 18 Months in Prison for Stealing $487,000 from Struggling North St. Louis County MunicipalityRead the Press Release
ST. LOUIS – The former city clerk of Flordell Hills, Missouri was sentenced Tuesday to 18 months in federal prison and ordered to repay the $487,673 she stole from the small, struggling city. Flordell Hills is roughly six blocks square, has an annual budget of about $400,000 and a population of about 800. Approximately 53.9% of those residents live below the poverty line, according to the U.S. Census Bureau.
U.S. District Judge Rodney W. Sippel also ordered Maureen Woodson, 68, remanded to the custody of the U.S. Marshals at the end of the sentencing hearing.
From about February 2016 to April 2022, Woodson and the former assistant city clerk, Donna Thompson, wrote about 614 city checks to themselves. Woodson then forged the signature of the mayor and/or treasurer to cash the checks or deposit them into their personal bank accounts. The checks were written and cashed without the knowledge of the mayor, the treasurer or the board of aldermen. Woodson and Thompson used the cash to gamble both in person and online and for personal expenses. Further, on about 381 occasions, Woodson and Thompson used Flordell Hills funds to directly pay for their own personal expenses, by either writing checks or wiring city funds directly to third party vendors for entertainment, restaurants, home rental payments, and personal taxes owed to the Internal Revenue Service.
Woodson stole $487,673 and Thompson took $159,903.
“Flordell Hills residents and officials trusted these two defendants completely and relied upon them to handle the city’s financial operations,” said U.S. Attorney Sayler A. Fleming. “The $650,000 that they stole could have been used for vital city services, like fixing roads and sewers, paying contractors and helping struggling residents. Instead, these defendants used it for personal expenses and gambled the rest away. This case, and the prison sentence for Ms. Woodson, should serve as a warning to those who would betray the public’s trust.”
Assistant U.S. Attorney Hal Goldsmith told Judge Sippel that while Woodson and Thompson were stealing from the city, the mayor and other officials were at times not taking salaries. Mayor Joe Noeth and others were mowing overgrown areas of the city and clearing streets and roads when they were blocked by downed trees or limbs. “She had to be aware that her criminal conduct was having adverse effects on residents,” Goldsmith said.
"It is outrageous that Maureen Woodson stole more than the entire annual budget for the City of Flordell Hills," said Special Agent in Charge Jay Greenberg of the FBI St. Louis Division. "Stealing from the community she swore to serve is public corruption."
Woodson and Thompson were terminated in May of 2022, after the embezzlement was discovered. Woodson was hired in 2010 and Thompson in 2012.
Woodson and Thompson each pleaded guilty in February to one count of mail fraud and one count of wire fraud. Thompson, 76, is scheduled to be sentenced Wednesday.
The FBI investigated the case. Assistant U.S. Attorney Hal Goldsmith prosecuted the case.
Former CEO of Connecticut Energy Cooperative Sentenced to Prison for Misusing FundsRead the Press Release
Vanessa Roberts Avery, United States Attorney, for the District of Connecticut, announced that DREW RANKIN, 62, the former chief executive officer of the Connecticut Municipal Electric Energy Corporation (“CMEEC”), was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 12 months of imprisonment, followed by three years of supervised release, for misusing CMEEC funds.
CMEEC is a cooperative public corporation that permits municipal electric utilities in Connecticut to join together to furnish electric power in the municipalities’ areas of operation. CMEEC’s members included the City of Norwich, the City of Groton, the Borough of Jewett City, the Second Taxing District of the City of Norwalk, the Third Taxing District of the City of Norwalk, and the Town of Bozrah. As the owners of CMEEC, each member town executed an agreement through its respective municipal electric utility outlining the terms and conditions under which the CMEEC members participated together in CMEEC. The CMEEC membership agreement provides that excess revenues are designated as “CMEEC Margin,” and that the excess revenues are to be returned to the member towns to help keep electricity costs stable for ratepayers.
Between 2010 and 2015, CMEEC received more than $9 million dollars from the U.S. Department of Energy. CMEEC member towns also received funds from federal grants.
According to the evidence and testimony presented during a trial in 2021, Rankin and certain members of the CMEEC Board of Directors others planned, organized, and directed lavish trips outside of Connecticut, including trips to the Kentucky Derby in 2015 and 2016, and to a luxury golf resort in West Virginia in 2015. These trips did not relate to CMEEC business, but were intended to personally benefit, compensate and reward Rankin, CMEEC Board members, their family members, friends, and associates. Costs for the trips, which totaled more than $800,000, included travel expenses, private chartered airfare, first-class hotel accommodations, meals, tickets to sporting events, golf fees, souvenirs and gifts.
In response to reporter inquiries about the Kentucky Derby and golf trips, Rankin underreported the costs of the trips, omitted the names of attendees who were not CMEEC employees or board members, and made other false statements related to how the trips were funded. After the trips were known to the general public, CMEEC canceled a reservation it had made for the 2017 Kentucky Derby, and was refunded only approximately $90,000 of the $298,960 it had prepaid for the trip in May 2016.
Restitution will be determined after additional court proceedings.
On December 10, 2021, a jury found Rankin; James Sullivan, former chairperson of the CMEEC Board of Directors; and John Bilda, former City of Norwich representative on the CMEEC Board of Directors; guilty of one count of theft concerning a program receiving federal funds.
Rankin, who is released on $100,000 bond, is required to report to prison on July 11.
Sullivan is scheduled to be sentenced tomorrow, and Bilda is scheduled to be sentenced on May 18.
This matter has been investigated by the Federal Bureau of Investigation; Internal Revenue Service, Criminal Investigation Division; with the assistance of the U.S. Department of Homeland Security – Office of Inspector General and the U.S. Department of Energy. The case is being prosecuted by Assistant U.S. Attorneys Sarah P. Karwan, Michael S. McGarry and Tara E. Levens.
Former Apple Employee Charged with Theft of Trade SecretsRead the Press Release
SAN FRANCISCO – A federal grand jury indicted former Apple Incorporated (Apple) employee Weibao Wang, charging him with theft and attempted theft of trade secrets in connection with a scheme to access, download, and steal Apple technology related to autonomous systems, announced United States Attorney Ismail J. Ramsey and FBI Special Agent in Charge Robert K. Tripp.
According to the indictment, Apple hired Wang, 35, formerly of Mountain View, Calif., to work as a software engineer beginning in March of 2016. The indictment describes how Wang signed a confidentiality agreement with Apple. The indictment further states that Apple provided Wang with in-person secrecy training that covered the appropriate handling of confidential material, and established rules prohibiting the transfer and transmission of the company’s intellectual property without Apple’s consent. Wang was assigned to work with a team at Apple that designed and developed hardware and software for autonomous systems, which can have a variety of applications, such as self-driving cars.
“Innovation is alive and well in Silicon Valley—indeed, throughout the Northern District of California,” said U.S. Attorney Ramsey. “Unfortunately, there will always be some who cheat the system by stealing and profiting from the fruits of others’ labor. The Wang prosecution is but one example. We are pleased that the Disruptive Technology Task Force renews energy and focus on securing innovation for those who actually create it.”
“The protection of intellectual property rights is crucial to the economic security of our region, which is home to world-renowned ingenuity and innovation,” said FBI Special Agent in Charge Tripp. “The FBI is committed to working with our law enforcement partners to pursue individuals who cut corners by using deceptive and illegal methods to obstruct law enforcement investigations and benefit themselves.”
According to the indictment, in November of 2017, a little more than two and a half years after being granted access to a range of Apple’s sensitive materials, Wang signed a letter accepting an offer of full-time employment as a Staff Engineer with the U.S.-based subsidiary of a company headquartered in the People’s Republic of China. The parent company is described in the indictment as “COMPANY ONE” and allegedly was working to develop self-driving cars. The indictment alleges Wang waited more than four months after signing the new employment agreement before informing Apple that he was resigning.
After Wang’s last day at Apple on April 16, 2018, Apple representatives reviewed access logs documenting historical activity on Apple’s network. Apple identified Wang as having accessed large amounts of sensitive proprietary and confidential information in the days leading up to his departure from Apple.
The indictment describes the June 27, 2018, search by law enforcement of Wang’s Mountain View residence and the discovery of large quantities of data taken from Apple prior to his departure. Wang was present during the search and told agents he had no plans to travel. Nevertheless, Wang purchased a one-way plane ticket from San Francisco International Airport to Guangzhou, China, and boarded a flight that night. Through subsequent investigation, law enforcement determined that Wang accessed Apple’s proprietary and confidential information after leaving Apple, during the period in which he was employed by the subsidiary of COMPANY ONE.
The indictment describes six categories of trade secrets that Wang allegedly stole, or attempted to steal, and charges him with one count of violating 18 U.S.C. § 1832(a)(1),(2),(3), & (4) for each category as follows:
Count
Date
Item Description
One
On or about August 11, 2016
Entire Autonomy Source Code
Two
On or about April 18, 2018
Tracking for an Autonomous System
Three
On or about April 15, 2018
Behavior Planner for an Autonomous System
Four
On or about April 14, 2018
Architecture Design for an Autonomous System
Five
In or about April 2018
Descriptions of Hardware Systems, Including Architecture, Modules, Power, and Inputs
Six
On or about April 15, 2018
Motion Planner for an Autonomous System
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. Wang faces a maximum statutory sentence of 10 years in prison and a fine in the amount of $250,000 (or twice the gross gain or loss resulting from the scheme) for each count of theft or attempted theft of trade secrets. As part of any sentence following conviction, the court also may order a term of supervised release, fines or other assessments, restitution, and forfeiture, if appropriate. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The Special Prosecutions Section of the United States Attorney’s Office for the Northern District of California is prosecuting the case. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
Former Anheuser-Busch Employee Found Guilty of 26 Felonies Connected to Disability FraudRead the Press Release
ST. LOUIS – A jury in U.S. District Court in St. Louis on Tuesday found a woman from Jefferson County, Missouri guilty on all 26 felony charges she faced for defrauding the Social Security Administration and private disability insurers with false disability claims.
Elizabeth Guetersloh, 67, was found guilty of two counts of mail fraud, 16 counts of wire fraud and eight counts of theft of government funds. The trial began May 8.
Guetersloh is one of a series of former Anheuser-Busch employees who went to a Jefferson County chiropractor as part of a scheme to falsely claim disability payments.
Guetersloh claimed she was severely restricted in her physical and mental functioning, and eventually received a total of $331,557 in disability payments. All the while, according to court exhibits and testimony, she danced, hiked through waterfalls, rode roller coasters, went to wineries, drove long distances and traveled domestically as well as internationally.
The chiropractor, Thomas G. Hobbs, 65, pleaded guilty in January to a conspiracy charge and admitted conspiring to commit the crimes of health care fraud, making false statements, theft of government funds and Social Security fraud.
Hobbs admitted exaggerating patients’ medical conditions so they would fraudulently receive more than $3.5 million in disability payments from the Social Security Administration and private disability benefit insurers.
Hobbs co-owns Power-Med Inc., a chiropractic clinic in Arnold, Missouri. Hobbs charged patients between $2,000 and $8,600 to prepare disability forms and coached them to lie about their ability to perform basic activities such as lifting, standing, walking, sitting, remembering and taking care of their personal needs.
Guetersloh advised a family member that she paid $6,000 for Dr. Hobbs’ disability services.
“Elizabeth Guetersloh lied about her physical condition to steal over $300,000 which she enjoyed on cruises, picturesque hikes, and other travel,” said Special Agent in Charge Jay Greenberg of the FBI St. Louis office. “In concert with our law enforcement partners, we remain committed to ensuring these necessary safety-net programs are available to help those truly in need.”
Hobbs’ former wife and Power-Med co-owner, Vivian Carbone-Hobbs, 60, of Fenton, as well as one current and one former employee, Christina Barrera, 63, of St. Louis, and Clarissa Pogue, 39, of DeSoto, were convicted of one count of conspiracy to defraud the Social Security Administration by a different jury in February. Carbone-Hobbs was also convicted of 10 counts of health care fraud and two counts of theft of money from the United States. Pogue was convicted of one count of theft of money from the United States.
The cases were investigated by the Social Security Administration – Office of Inspector General and the Federal Bureau of Investigation. Assistant U.S. Attorneys Tracy Berry, Diane Klocke and Dorothy McMurtry are prosecuting the case.
Fentanyl Trafficker Tied to Juvenile Overdoses Pleads GuiltyRead the Press Release
A fentanyl trafficker tied to the rash of juvenile overdoses in Carrollton and Flower Mound pleaded guilty today to a drug crime, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Magaly Mejia Cano, 29, was charged via criminal complaint in February. On Tuesday she pleaded guilty to a superseding information charging her with one count of distribution of a controlled substance (fentanyl) to a person under 21 years of age.
“Just 2mg of fentanyl can cut a young life tragically short. Peddling fentanyl pills to teenagers is one of the most callous crimes a trafficker can commit,” said U.S. Attorney Leigha Simonton. “With Ms. Cano’s plea today, we are one step closer to getting justice for parents who lost their teens to fentanyl.”
“Those who choose a path of darkness to distribute and pollute our communities with fentanyl, should always be looking over their shoulder because of the relentless efforts of DEA Dallas and our law enforcement partners,” said DEA Dallas Special Agent in Charge Eduardo A. Chávez. “Ms. Cano’s guilty plea is a clear result and warning to those that decide this same path.“
Ms. Cano is the first defendant to enter a guilty plea in the drug distribution scheme, which has been linked to at least 12 juvenile overdoses – three of them fatal – in Carrollton and Flower Mound since September 2022.
Others charged in the conspiracy include: Jason Xavier Villanueva, Luis Eduardo Navarrete, Donovan Jude Andrews, Stephan Paul Brinson, Robert Alexander Gaitan, and Rafael Soliz, Jr.
In plea papers, Ms. Cano admitted that co-defendant Luis Navarrete routinely dealt fentanyl-laced pills to juveniles from his Highland Drive residence. The round blue pills, imprinted with M/30, resembled prescription narcotics, but were in actuality clandestinely produced fakes.
In plea papers, Ms. Cano said Mr. Navarrete stored the counterfeit pills near their front door of their Carrollton residence and distributed them to customers who came by the house – including a network of juvenile dealers who dealt to other minors.
On at least three occasions, Ms. Cano admitted, she distributed pills directly to customers, including a 16-year-old, at Mr. Navarrete’s direction.
Ms. Cano now faces up to 40 years in federal prison and a $2 million fine. Her co-defendants are presumed innocent until proven guilty in a court of law.
The Drug Enforcement Administration’s Dallas Field Office and the Carrollton Police Department conducted the investigation with the assistance of School Resource Officers from the Carrollton – Farmer’s Branch Independent School District and the Lewisville Independent School District. Assistant U.S. Attorneys Phelesa Guy and Rick Calvert are prosecuting the case.
Note: Illicitly produced, fentanyl-laced pills often look similar to legitimate prescription pills like Oxycontin or Percocet, but can pose significantly more danger. On the street, these pills are often referred to as “M30s” (a reference to the markings on some of the pills), “blues,” “perks,” “yerks,” “china girls,” or “TNT.” DEA research shows that six out of ten pills laced with fentanyl contain a potentially lethal dose. One pill can kill. For resources, visit https://www.dea.gov/onepill.
Fargo, ND, Man Sentenced to Federal Prison for Pointing a Loaded Handgun at Fargo Police OfficersRead the Press Release
Fargo – United States Attorney Mac Schneider announced that Shawn Larkin, Age 40 of Fargo, ND, appeared before Chief Judge Peter D. Welte, U.S. District Court, Fargo, ND, and was sentenced to 57 months years in federal prison followed by 3 years of supervised release for the charge of Felon in Possession of a Firearm and Ammunition.
In the early morning hours of September 9, 2020, Fargo Police stopped Larkin’s vehicle because his license was suspended. Larkin was uncooperative and fought with officers as they tried to take him into custody. As Larkin was on the ground with officers, he pulled a loaded handgun out of his waistband and pointed it at officers. Officers were able to subdue Larkin and take him into custody.
Officers found two loaded handgun magazines and multiple drugs and paraphernalia on Larkin and in his vehicle. Larkin was prohibited from possessing a firearm due to felony convictions for a 2001 theft in Wisconsin, a 2012 simple assault on a peace officer in Ward County, North Dakota, and a previous felon in possession of a firearm conviction prosecuted in the District of North Dakota in 2013.
“Felons with guns are a threat to our law enforcement partners and the safety of our communities,” Schneider said. “The U.S. Attorney’s office is committed to taking felons in possession of firearms off the street. This strong sentence is a reflection of that commitment.”
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Fargo Police Department, and the Cass County Sheriff’s Office. Assistant United States Attorney Alexander J. Stock prosecuted the case.
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East St. Louis Woman Sent to Prison for 44 Months and Ordered to Pay More Than $800,000 in Restitution for Unemployment Insurance ScamRead the Press Release
EAST ST. LOUIS, Ill. – A U.S. District judge sentenced a woman from East St. Louis to spend the next 44 months in federal prison and ordered her to pay more than $800,000 in restitution for her involvement in an unemployment insurance scheme that victimized three state unemployment agencies.
Talfanita M. Cobb, 51, previously pled guilty to three counts of mail fraud, conspiracy to commit mail fraud, and aggravated identity theft.
According to court documents, Cobb conspired with other individuals to use multiple stolen identities to apply for unemployment insurance benefits in Arizona, Ohio and Texas from at least September 2020 through January 2021. The fraudsters listed Cobb’s address in East St. Louis on the applications, and once the applications were approved, debit cards containing unemployment benefits were mailed to Cobb.
Cobb used various ATMs in Belleville, Fairview Heights and O’Fallon, Illinois, to withdraw the funds from the debit cards. She then used Bitcoin to transfer most of the funds to her overseas co-conspirators. Cobb kept a percentage of the money for herself as her cut for assisting with the fraud.
The total amount of restitution Cobb was ordered to pay is $862,625. That restitution will be repaid to the following entities: $789,384 to the Arizona Department of Employment Security; $54,443 to the Ohio Department of Jobs and Family Services; and $18,798 to the Texas Workforce Commission.
“In an effort to enrich herself and dupe unemployment benefits programs, the defendant stole hundreds of thousands of dollars intended for pandemic relief support,” said U.S. Attorney Rachelle Aud Crowe. “Federal authorities and prosecutors are cracking down on unemployment insurance fraud, and the Southern District of Illinois is committed to protecting the integrity of government programs."
“Today’s sentencing closes the book on the defendant’s mail fraud scheme in which she stole the identities of over 600 victims to obtain over $800,000 in benefits ear-marked for those suffering from unemployment at the height of the Covid pandemic,” said Inspector in Charge Ruth Mendonça who leads the Chicago Division of the United States Postal Inspection Service. “The Postal Inspection Service and its law enforcement partners will continue to aggressively pursue fraudsters who are driven by greed.”
“Talfanita Cobb engaged in an unemployment insurance (UI) fraud scheme targeted at the state workforce agencies of Ohio, Arizona, and Texas. Cobb conspired to file false UI claims in the names of identity theft victims to obtain debit cards loaded with stolen UI benefits. Today’s sentencing affirms the U.S. Department of Labor, Office of Inspector General’s commitment to ensuring the integrity of the unemployment insurance program. We will continue working with our law enforcement partners to aggressively investigate these types of allegations,” said Irene Lindow, Special Agent in Charge, Great Lakes Region, U.S. Department of Labor, Office of Inspector General.
Individuals like Cobb who help move funds for foreign fraud organizations are known as “Money Mules.” The U.S. Department of Justice is cracking down on Money Mules; many are being prosecuted and sent to federal prison. Members of the public should be aware that if someone asks them to receive and transfers funds, there’s a good chance they could be assisting with a crime and could end up behind bars.
The investigation was conducted by the St. Louis offices of the U.S. Postal Inspection Service and the U.S. Department of Labor, Office of Inspector General. Assistant U.S. Attorney Scott Verseman prosecuted the case.
Defendant Sentenced to 42 Months in Prison for Conspiring to Bribe High-Level Officials of the Republic of the Marshall IslandsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that CARY YAN, a/k/a “Hong Hui Yan,” a/k/a “Chen Hong,” was sentenced today by United States District Judge Naomi Reice Buchwald to 42 months in prison. YAN led a multi-year scheme to bribe government officials in the Republic of the Marshall Islands (the “RMI”) to pass legislation that would benefit his business interests. In addition, on February 16, 2023, Judge Buchwald imposed a sentence of approximately 31 months in prison on YAN’s co-defendant GINA ZHOU, a/k/a “Chaoting Zhou,” a/k/a “Angel Zhou,” for her role in the scheme.
U.S. Attorney Damian Williams said: “Bribery of government officials erodes faith in democracy, and the effects of the corruption of government officials, whether in the United States or abroad, are felt worldwide. The defendants have now been held accountable for their corrupt and illegal conduct.”
According to court filings in the case and publicly available information:
Between 2016 and 2020, YAN and ZHOU sought to develop a semi-autonomous region within a part of the RMI known as the Rongelap Atoll. The creation of the proposed semi-autonomous region was intended by YAN, ZHOU, and those associated with them to obtain business by, among other things, allowing YAN and ZHOU to attract investors to participate in economic and social development projects that YAN, ZHOU, and others promised would occur in the semi-autonomous region.
As proposed by YAN and ZHOU, the so-called Rongelap Atoll Special Administrative Region (the “RASAR”) would be created by legislation (the “RASAR Bill”) that, if enacted by the RMI legislature, would significantly change the laws on the Rongelap Atoll to attract foreign businesses and investors, such as by lowering or eliminating taxation and relaxing immigration regulations. YAN and ZHOU offered and provided a series of cash bribes and other incentives to induce RMI legislators to support the RASAR Bill. When, despite their bribes, the initial effort to pass the RASAR bill failed, YAN and ZHOU sought, unsuccessfully, to oust the then-President of the RMI, who opposed the bill. And, in 2020, following elections that resulted in a change in presidential administration, YAN and ZHOU resumed their efforts to create the RASAR. In the course of these renewed efforts, YAN and ZHOU continued to use bribery, and in March 2020, the RMI legislature passed a resolution endorsing the concept of the RASAR, with the support of legislators to whom YAN and ZHOU had provided bribes and other incentives.
In imposing a 42-month sentence on YAN today, Judge Buchwald remarked that there was “no question that bribery of public officials undermines democracy, and that it is important as a matter of general deterrence to take crimes like this seriously. And the Court does.”
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YAN, 51, and ZHOU, 35, both of whom have traveled on passports issued by the RMI, each pled guilty to one count of conspiring to violate the Foreign Corrupt Practices Act.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation. Mr. Williams additionally thanked the Royal Thai Government, the U.S. Department of State's Diplomatic Security Service, the Embassy of the United States in Bangkok, and the Justice Department's Office of International Affairs for their assistance in securing the arrest and extradition of the defendants.
The case is being prosecuted by the Office’s Public Corruption Unit and the Criminal Division’s Fraud Section. Assistant U.S. Attorneys Hagan Scotten, Lara Pomerantz, and Derek Wikstrom are in charge of the prosecution. Assistant Chief Gerald Moody and Trial Attorney Anthony Scarpelli were also assigned to the prosecution.
Council Bluffs Man Sentenced for Drug and Firearm OffensesRead the Press Release
United States Attorney Steven Russell announced that Dirk Johnson, 58, of Council Bluffs, Iowa, was sentenced today in federal court in Omaha, Nebraska, for his participation in a methamphetamine drug conspiracy that included possessing firearms in furtherance of the conspiracy. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Johnson to 180 months’ imprisonment. There is no parole in the federal system. After his release from prison, Johnson will begin a five-year term of supervised release.
On December 19, 2019, Sarpy County Sheriff’s investigators executed a search warrant on the home of Johnson and Linda Riaski. During the search, dozens of small baggies of methamphetamine were located. Johnson and Riaski were stopped while driving past the residence while the search was ongoing. In the vehicle, more baggies of methamphetamine and a handgun were found. In a second vehicle located on the property, more baggies of methamphetamine and another firearm were located. Johnson was involved in possessing with the intent to distribute over 500 grams of methamphetamine during the conspiracy that occurred from December 1, 2019, through December 19, 2019.
Riaski was sentenced on February 16, 2023, to a term of imprisonment of 120 months for her role in the conspiracy and for possessing firearms.
This case was investigated by the Sarpy County Sheriff’s Office.
Convicted Felon Sentenced to Five Years and a Month in PrisonRead the Press Release
BIRMINGHAM, Ala. – A federal judge today sentenced a convicted felon for illegal possession of a firearm, announced U.S. Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Marcus Watson.
U.S. District Court Judge Karon O. Bowdre sentenced Dantrell Dujuan Purifoy, 30, of Warrior, to 61 months in prison. Purifoy pleaded guilty to being a felon in possession of a firearm in January.
According to the plea agreement, on July 27, 2022, a Warrior police officer received a license plate reader report on a stolen vehicle. The officer saw Purifoy pull into a residence in Warrior. The officer recognized Purifoy from prior interactions with law enforcement. The officer exited the vehicle and held Purifoy at gunpoint. Purifoy backed his vehicle up, accelerated forward, and struck the officer’s driver’s side door, causing injury to the officer’s foot. Purifoy fled in the stolen vehicle and the officer pursued him. The pursuit ended when Purifoy lost control of the vehicle and ran off a cliff. Purifoy was able to escape the vehicle and fled on foot. The Warrior Police Department canine unit was deployed, and Purifoy was apprehended by the officers. Officers recovered a Taurus 9mm pistol from the vehicle.
Purifoy was prohibited from possessing a firearm because of prior felony convictions. Purifoy was convicted on November 8, 2017, in the Circuit Court of St. Clair County, Alabama, of the offense of Unlawful Possession of a Controlled Substance; convicted on February 26, 2018, in the District Court of Jefferson County, Alabama, of the offense of Certain Persons Forbidden to Possess Pistol; convicted on March 18, 2019, in the Circuit Court of Jefferson County, Alabama, of the offense of Receiving Stolen Property, First Degree; and convicted on August 5, 2019, in the Circuit Court of Blount County, Alabama, of the offenses of Burglary, Third Degree, and Theft of Property, Second Degree.
ATF investigated the case, along with the Warrior Police Department. Assistant U.S. Attorney Michael A. Royster is prosecuted the case.
Contract Killer Sentenced to Five Consecutive Life Sentences in Prison for Committing Six Murders and One Attempted MurderRead the Press Release
CONTRACT KILLER SENTENCED TO FIVE CONSECUTIVE LIFE SENTENCES IN PRISON FOR COMMITTING SIX MURDERS AND ONE ATTEMPTED MURDER
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Ernest Pressley, 43, of Philadelphia, Pennsylvania, was sentenced to five consecutive life sentences by United States District Judge Eduardo C. Robreno on one count of conspiracy to commit murder-for-hire and four counts of use of interstate commerce facilities in the commission of murder-for-hire, in connection with Pressley's role in murdering four victims in Philadelphia between 2017 and 2018, all in exchange for money. Pressley's conduct also included his role in the killing of two other victims in 2016 and 2017 and the attempted murder of a woman in 2018.
In late 2018, the Philadelphia Police Department joined with the Federal Bureau of Investigation to investigate Pressley in connection with the murder of S.S., who was shot to death in the parking lot of a Philadelphia apartment complex near 7400 Malvern Avenue in the early morning hours of September 1, 2018. Pressley was captured on video surveillance footage near the scene and in footage retrieved from a bar in Philadelphia the evening before when he was with S.S. and several other men. Pressley was arrested in connection with this crime on September 7, 2018.
Law enforcement's investigation revealed that Pressley was responsible for other murders in Philadelphia, including the killings of two tow truck drivers for A. Bob's Towing on January 12 and 13, 2017. Pressley agreed to kill tow truck driver K.F. in exchange for money to prevent K.F. from testifying as a witness at an assault trial in Philadelphia. In an effort to distract law enforcement from the true motivation for K.F.'s murder and to make it appear as though it was connected to a feud between rival tow truck companies, Pressley selected at random one of K.F.'s co-workers, E.R., and shot him to death as he left work on January 12, 2017, near 4500 Melrose Street. The next day, Pressley approached K.F. as he left his home and entered his tow truck, which was being driven by a co-worker, at which time Pressley opened fire, fatally striking K.F. and injuring his co-worker, who was shot several times in his lower body.
As the investigation developed further, Pressley was also identified as the person who shot M.R. to death in Philadelphia on January 11, 2017, near the intersection of East Sharpnack and Baldwin Streets, while M.R. worked on his vehicle at a garage in the area.
In September 2022, during his guilty plea allocution before Judge Robreno, Pressley admitted that he murdered M.R., E.R., K.F., and S.S. in exchange for money and at the direction of a drug trafficker. Around the time of each crime, Pressley used his cellular phone to communicate with his co-conspirator to plan how and when each murder would be carried out.
Pressley also admitted to shooting C.Y. to death on July 19, 2016, as C.Y. sat on the porch of a residence near 1500 West Olney Avenue in Philadelphia. Pressley also admitted to his role in providing the location of a man he knew was wanted dead by a Philadelphia drug trafficker, which later resulted in the death of Y.H., who was killed as the result of mistaken identity near the intersection of 56th Street and Ithan Street on July 24, 2018. Finally, Pressley admitted that he attempted to kill a woman when he shot her in the arm as she arrived at her Philadelphia home on North Woodstock Street on July 9, 2018. While the woman survived a gunshot wound, she later discovered that her home had been ransacked and several items, including money and jewelry, were stolen. Several hours later, Pressley was identified as having sold a Rolex watch belonging to the woman at a Philadelphia pawn shop.
"Taking a cold-blooded killer like Ernest Pressley off the street for five consecutive life sentences is a prime example of why the U.S. Attorney's Office and the Department of Justice make tackling violent crime a priority,” said U.S. Attorney Romero. "Our joint partnerships with the FBI and Philadelphia Police Department make it possible to bring these cases into federal court and secure the severe punishment such a career murderer deserves.”
“Ernest Pressley is a hardened and chronic offender, a true menace to society,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “For all the lives he took and families he affected, this contract killer has duly earned each of his life sentences. The FBI and Philadelphia Police Department will continue to focus our partnership and resources on locking up the worst of the worst, like Pressley, who cause so much of the city’s bloodshed.”
"This defendant ultimately failed to escape accountability for his outrageous violent crimes due to the collaboration of law enforcement at all levels of government, which occurs each and every day," Philadelphia District Attorney Larry Krasner said. "I commend U.S. Attorney Romero and her team, the FBI, Philadelphia Police, along with our own ADA Joanne Pescatore, Supervisor of the Homicide/Non-Fatal Shootings Unit, for helping to secure a sentence of incarceration that ensures Ernest Pressley will no longer endanger our communities."
"We are grateful for the collaboration between the Philadelphia Police Department, the Federal Bureau of Investigation, and the U.S. Attorney’s Office, which led to the apprehension and conviction of Ernest Pressley,” said Philadelphia Police Commissioner Danielle Outlaw. “His heinous crimes demonstrate the utmost disregard for human life. This sentence sends a strong message that we will relentlessly pursue justice and protect our communities from those who commit acts of violence."
The case was investigated by the Federal Bureau of Investigation, the Philadelphia Police Department, and the Philadelphia District Attorney’s Office, and is being prosecuted by Assistant United States Attorney Justin Ashenfelter.
Coal Broker Charged with Filing False Returns and Obstructing the IRSRead the Press Release
A federal grand jury in Charlotte, North Carolina, returned an indictment today charging a man with filing false individual tax returns and attempting to obstruct an IRS audit and criminal investigation.
According to the indictment, Vondie Brunty owned and operated West Star Management Inc. (WSM), a company that, from 2005 to April 2015, co-owned a coal brokerage business through which WSM received income on behalf of Brunty. Brunty allegedly caused WSM to surrender its ownership of the coal brokerage in approximately April 2015, but he allegedly continued to earn income through WSM by, among other things, hauling coal for the coal brokerage and selling timber rights to a lumber business.
The indictment alleges that, despite earning income, Brunty did not file personal tax returns for 2011 through 2013. During an IRS audit of the unfiled returns, Brunty allegedly made multiple false and misleading statements and did so again during an interview with IRS criminal investigators. The indictment further charges that, after learning of the criminal investigation, Brunty late-filed a 2014 tax return in January 2021 and a 2015 tax return in August 2021, both of which allegedly underreported his income.
Brunty faces a maximum penalty of three years in prison for obstructing the IRS and for each false return count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Dena J. King for the Western District of North Carolina made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Ashley Stein and Alexander Effendi of the Justice Department’s Tax Division and Assistant U.S. Attorney Caryn Finley of the Western District of North Carolina are 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.
Cincinnati man arrested, charged with sex trafficking & exploiting teensRead the Press Release
CINCINNATI – Federal agents arrested a Cincinnati man today on charges alleging he sexually trafficked and exploited two teenage girls.
Kelly Richards, 42, appeared in federal court in Cincinnati at 1:30pm today. His case was unsealed at that time.
Richards is also known as “Scorpio” and has a tattoo of a scorpion on the left side of his face.
According to an affidavit filed in support of the criminal complaint, investigators were alerted in March 2023 that two juveniles had been screened as potential sex trafficking victims.
It is alleged that Richards picked up two minor victims who had fled a group home in Dayton and drove them to an apartment complex in Cincinnati. At the apartment, Richards allegedly provided the minors with cocaine before sexually assaulting them.
Richards also allegedly enticed the females into having sex with other men for money that was paid to Richards. It is alleged the defendant created prostitution advertisements online with explicit pictures of the minor victims and used physical violence against them. According to the affidavit, one victim was prostituted up to four times per day in hotels and homes.
Sexually exploiting children is a federal crime punishable by a range of 15 to 30 years in prison. Sex trafficking children carries a potential penalty of at least 10 years and up to life in prison.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and other members of the FBI’s Anti-Trafficking Task Force announced the charges. Assistant United States Attorney Kyle J. Healey is representing the United States in this case.
A criminal complaint merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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Chinese National Charged for Conspiring to Provide Materials for the Production of Ballistic Missiles to Iran in Violation of U.S. SanctionsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Matthew G. Olsen, the Assistant Attorney General for National Security, Michael J. Driscoll, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Matthew S. Axelrod, Assistant Secretary for Export Enforcement of the Commerce Department, announced the unsealing of an Indictment charging XIANGJIANG QIAO, a/k/a “Joe Hansen,” with sanctions evasion, money laundering, and bank fraud offenses based on QIAO’s alleged participation in a scheme to use a sanctioned Chinese company to provide materials used in the production of weapons of mass destruction (“WMDs”) to Iran, in exchange for payments made through the U.S. financial system. QIAO is at large in China.
U.S. Attorney Damian Williams said: “As alleged, Xiangjiang Qiao conspired to send isostatic graphite to Iran, in violation of U.S. sanctions. Isostatic graphite is a high-tech material used in the nose tips of intercontinental ballistic missiles. The Iranian regime of terror and repression, and those who facilitate it, pose a grave threat to our national security. This Office will continue to work relentlessly to bring to justice those who advance the interests of the Iranian regime and thereby threaten the safety and security of the American people.”
Assistant Attorney General Matthew G. Olsen said: “These charges demonstrate the Justice Department’s commitment to preventing sensitive technology from falling into the hands of foreign adversaries, including Russia, China, and Iran. We will not tolerate those who would violate U.S. laws to allow authoritarian regimes and other hostile nations to use advanced technology to threaten U.S. national security and undermine democratic values around the world.”
FBI Assistant Director in Charge Michael J. Driscoll said: “Qiao, as alleged, participated in a yearslong scheme that directly violated United States sanctions by seeking to provide components used in manufacturing Weapons of Mass Destruction to Iran. Evasions of sanctions designed to deter hostile foreign nations from producing dangerous weapons is a threat to the national security of the United States and our allies. The FBI will be aggressive in its pursuit of any individual willing to deliberately violate imposed sanctions.”
Assistant Secretary for Export Enforcement Matthew S. Axelrod said: “Protecting sensitive American technology – like source code for ‘smart’ automotive manufacturing equipment or items used to develop quantum cryptography – from being illegally acquired by our adversaries is why we stood up the Disruptive Technology Strike Force. The Strike Force actions announced today reflect the core mission of our Export Enforcement team – keeping our country’s most sensitive technologies out of the world’s most dangerous hands.”
According to the allegations contained in the Indictment unsealed today in Manhattan federal court:[1]
XIANGJIANG QIAO, a/k/a “Joe Hansen,” is a national of the People’s Republic of China (“China”) and an employee of the China-based company Sinotech Dalian Carbon and Graphite Manufacturing Corporation (“Sinotech Dalian”). Sinotech Dalian is part of a network of Chinese companies involved in the proliferation of WMDs and that, in particular, provide assistance in the procurement of materials for Iran’s ballistic missile program. In 2014, the U.S. Department of Treasury’s Office of Foreign Assets Control (“OFAC”) sanctioned Sinotech Dalian, adding the company to OFAC’s List of Specially Designated Nationals and Blocked Persons (the “SDN List”), explaining that Sinotech Dalian is part of a network of China-based entities used to proliferate WMDs and, specifically, to aid Iranian ballistic missile procurement. Sinotech Dalian’s inclusion on the SDN List prohibits it from using the U.S. financial system to conduct transactions without authorization from OFAC. QIAO is an associate of Li Fangwei, a/k/a “Karl Lee,” who managed the Sinotech Dalian network of companies and was charged in 2014 in the Southern District of New York with sanctions evasion and other offenses based on his alleged illicit activities as a principal contributor to Iran’s ballistic missile program through China-based entities that have been sanctioned by the U.S. Government. See United States v. Li Fangwei, 14 Cr. 144 (S.D.N.Y.).
In willful violation of U.S. sanctions on Iran and Sinotech Dalian, between at least March 2019 and September 2022, QIAO participated in a scheme to use Sinotech Dalian, including through transactions involving the U.S. financial system, to supply isostatic graphite to Iran for the production of WMDs. Isostatic graphite is a type of graphite with an ultra-fine grain that is used in the manufacture of WMDs. In particular, isostatic graphite is used in the manufacture of rocket nozzles and reentry vehicle nose tips in intercontinental ballistic missiles. QIAO further took steps to conceal Sinotech Dalian’s involvement in the transaction by creating a bank account in the name of a front company to receive two transfers from a U.S. bank totaling over $15,000 as part of his efforts to facilitate the supply of isostatic graphite to Iran.
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QIAO, 39, a Chinese national, is charged with one count of conspiracy to violate U.S. sanctions against Iran and Sinotech Dalian, in violation of the International Emergency Economic Powers Act (“IEEPA”), which carries a maximum sentence of 20 years in prison; two counts of violating the IEEPA, which each carry a maximum sentence of 20 years in prison; one count of conspiracy to commit bank fraud, which carries a maximum sentence of 30 years in prison; two counts of attempted bank fraud, which each carry a maximum sentence of 30 years in prison; one count of conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison; and two counts of money laundering, which each carry a maximum sentence of 20 years in prison.
The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by a judge.
Mr. Williams praised the outstanding investigative work of the FBI and its New York Field Office, Counterintelligence Division. Mr. Williams also thanked the Department of Justice’s National Security Division, Counterintelligence and Export Control Section, for their assistance.
This case is being handled by the Office’s National Security and International Narcotics Unit. Assistant U.S. Attorneys Gillian S. Grossman and Nicholas S. Bradley are in charge of the prosecution, with assistance from Trial Attorney S. Derek Shugert of the Counterintelligence and Export Control Section.
Today’s actions were coordinated through the Disruptive Technology Strike Force, an interagency law enforcement strike force co-led by the Departments of Justice and Commerce designed to target illicit actors, protect supply chains, and prevent critical technology from being acquired by authoritarian regimes and hostile nation states. Under the leadership of the Assistant Attorney General for National Security and the Assistant Secretary of Commerce for Export Enforcement, the Strike Force leverages tools and authorities across the U.S. Government to enhance the criminal and administrative enforcement of export control laws.
The charges in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Chicago Doctor and His Wife Held Liable by Jury for Taking Kickbacks and Causing False Medicare Claims; Ordered to Pay Civil Judgment of More Than $3 MillionRead the Press Release
CHICAGO — A federal judge has ordered a Chicago doctor and his wife to pay more than $3 million in civil damages and penalties for unlawfully seeking and receiving kickbacks from a home health agency as payment for the doctor’s referrals of Medicare patients. A federal jury in Chicago held them liable earlier this month.
DR. NDUDI ANIEMEKA owns Boycin Medical Clinic in Chicago, and his wife, OBIAGELI ANIEMEKA, serves as the clinic’s administrator. In 2009 and 2010, the Aniemekas asked for and received money and other items of value from the home health agency, Grand Home Health, as payment for Dr. Aniemeka’s referrals of Medicare patients, in violation of the Anti-Kickback Statute. Grand then provided home health services to those patients and billed Medicare, in violation of the False Claims Act. The Aniemekas personally took more than $80,000 in kickbacks from Grand in connection with Dr. Aniemeka’s referrals.
After a civil trial in U.S. District Court in Chicago, a federal jury earlier this month determined that the Aniemekas’ receipt of kickbacks caused 158 false claims to be submitted to Medicare, resulting in Medicare paying $425,976.32 on those claims. On May 12, 2023, U.S. District Chief Judge Rebecca R. Pallmeyer entered judgment against the Aniemekas in the amount of $3,015,928.96, made up of $1,277,928.96 in treble damages and $1,738,000 in civil penalties, pursuant to the False Claims Act.
The judgment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Office of the FBI, and Mario Pinto, Special Agent-in-Charge of the U.S. Department of Health and Human Services, Office of Inspector General, Chicago Regional Office. The government was represented by Assistant U.S. Attorneys Kate M. Flannery and Sarah J. North.
To combat fraud, the False Claims Act permits private individuals to sue for false claims on behalf of the government and to share in any recovery. The Act also allows the government to intervene or take over the lawsuit, as was done in this case, and to recover three times damages plus civil penalties of up to $11,000 for each false claim submitted during the fraud scheme.
Charges filed against San Benito man for assault with vehicleRead the Press Release
BROWNSVILLE, Texas – A 21-year-old San Benito resident has been indicted for assaulting federal agents with his vehicle, announced U.S. Attorney Alamdar S. Hamdani.
A federal grand jury returned the three-count indictment today.
According to the charges, on May 2, authorities attempted to conduct a traffic stop on Hector Eduardo Gamez. He allegedly refused to stop and fled at a high rate of speed.
Three federal agents arrived on scene, at which time Gamez nearly collided with three federal agents who arrived on scene to assist, according to the charges. Authorities allegedly apprehended him following the pursuit.
If convicted, Gamez faces up 20 years in prison and a possible $250,000 maximum fine.
The FBI conducted the investigation along with the Drug Enforcement Administration, U.S. Marshals Service, Texas Rangers and the San Benito Police Department. Assistant U.S. Attorneys Alejandra Andrade and Edgardo J. Rodriguez are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
California Woman Sentenced for Methamphetamine ConspiracyRead the Press Release
United States Attorney Steven Russell announced that Katherine Marie Tacheira, 51, of Walnut Creek, California, was sentenced today in federal court in Omaha, Nebraska, for her participation in a methamphetamine conspiracy. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Tacheira to 120 months’ imprisonment. There is no parole in the federal system. After her release from prison, Tacheira will begin a five-year term of supervised release.
In May 2020, the Holt County Sheriff's Office, Nebraska State Patrol. and the United States Postal Inspection Service began investigating Lindsey Rokahr and Dallas Rhinehart for their involvement in the distribution of methamphetamine in the Norfolk, Nebraska, area. As a result of the investigation, it was determined that Tacheira was the source of the methamphetamine, who would mail multi-ounce packages from California to recipients in Nebraska. The USPS was able to determine that three packages of methamphetamine were sent by Tacheira in July, August, and September of 2020. The September package from Tacheira to Rokahr was intercepted and contained three ounces of methamphetamine. The total amount of methamphetamine sent by Tacheira was 13 ounces.
Rhinehart was sentenced on March 13, 2023, to 130 months’ imprisonment. Rokahr has entered a guilty plea to the conspiracy and is set for sentencing on August 4, 2023.
This case was investigated by the Holt County Sheriff’s Office, Nebraska State Patrol, and United States Postal Inspection Service.