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10 May 2023
Houston area man sent to prison for smuggling 20 in locked Fedex trailerRead the Press Release
CORPUS CHRISTI, Texas – A 33-year-old Humble man has been ordered to federal prison following his conviction of smuggling 20 non-U.S. citizens, announced U.S. Attorney Alamdar S. Hamdani.
Vince Ruiz III pleaded guilty July 6, 2022.
Today, U.S. District Judge Nelva Gonzales Ramos ordered Ruiz to serve 18 months in federal prison to be immediately followed by two years of supervised release. At the hearing, the court heard that in the event of an emergency or accident, the smuggled individuals would not have been able to extricate themselves from the inside of the trailer. In discussing the factors impacting the sentence, the court remarked on Ruiz’s use of his commercial driver’s license as a special skill in committing the offense.
On Oct. 5, 2021, Ruiz drove a white Freightliner tractor pulling two trailers marked “FedEx Ground” into the primary inspection lane at the Border Patrol (BP) checkpoint located near Falfurrias. At that time, Ruiz possessed a valid commercial driver’s license. During inspection, a K-9 alerted authorities to one of the trailers.
A subsequent search of the trailer revealed 20 undocumented individuals inside behind a locked door, including a 16-year-old unaccompanied minor. Law enforcement also discovered 15 grams of marijuana and five grams of cocaine.
At the time of his plea, Ruiz admitted he drove to Edinburg to pick up the trailer and return to Cypress. During the trip, he pulled over to the side of the road in a secluded area where the undocumented individuals were then loaded into the trailer.
They were later determined to be illegally present in the country.
Ruiz has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations conducted the investigation. Former Assistant U.S. Attorney (AUSA) J. Parker Gochenour prosecuted the case. AUSA Tyler Foster handled the sentencing.
Honduran citizen latest to admit selling thousands of fraudulent temporary Texas license platesRead the Press Release
HOUSTON – A 41-year-old woman who illegally resided in Houston has admitted to conspiracy to commit wire fraud, announced U.S. Attorney Alamdar S. Hamdani.
Leidy Areli Hernandez Lopez pleaded guilty to conspiring with others residing in the Southern District of Texas and elsewhere to buying and selling thousands of fraudulent Texas-issued temporary buyer tags. None of the paper tags issued were for legitimate vehicle purchases and some were for cars outside of Texas.
Lopez and co-conspirators used the internet to buy and sell the fraudulent state-issued buyer tags and exchange proceeds from the illegal tag sales.
As part of her plea, Lopez acknowledged she and her co-conspirators communicated through email to send and deliver fraudulent buyer tags to purchasers all over the United States, including New York and Washington, D.C.
She also admitted her co-conspirators submitted falsified information to the Texas Department of Motor Vehicles to obtain a fraudulent used car dealer license in order to print and sell state-issued buyer tags and shared the fraud proceeds via electronic payment services such as Cash App and Zelle.
U.S. District Judge George C. Hanks Jr. accepted the plea and will impose sentencing Oct. 2. At that time, Lopez faces up to five years in federal prison and a possible $250,000 maximum fine.
Lopez was permitted to remain on bond pending that hearing.
Emmanuel Padilla Reyes aka Christian Hernandez Bonilla or Noel Rivera is still a fugitive. The FBI is offering a $5,000 reward to anyone providing information that directly leads to his arrest. Those with information about the fugitive’s location should call 1-800-CALL-FBI.
The FBI conducted the investigation with assistance of Travis County Precinct 3 Constable’s Office, Houston Police Department, Texas Department of Public Safety, Texas Department of Motor Vehicles, Harris County Sheriff’s Office, New York State Police and New York City Police Department. Assistant U.S. Attorneys Belinda Beek and Adam Goldman are prosecuting the case.
Group responsible for 200 kilograms of methamphetamine sentenced to prisonRead the Press Release
GAINESVILLE, Ga. - Almarud Duarte, David Garcia, Eduardo Penaloza-Pacheco, and Kevin Tello have been sentenced for their respective roles in conspiring to sell kilogram amounts of methamphetamine. Law enforcement officers seized approximately 200 kilograms of methamphetamine during the investigation.
“Illicit drugs devastatingly impact our communities, resulting in significant suffering by those addicted to the substances and the families who love them,” said U.S. Attorney Ryan K. Buchanan. “We thank our law enforcement partners for their dedication to combatting the scourge of drug trafficking and helping to keep our streets safe.”
“Finding, arresting and prosecuting the criminals trafficking illegal drugs greatly improves the safety of the community by preventing this poison from finding its way onto our streets,” said Acting Special Agent in Charge Travis Pickard, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “Disrupting and dismantling drug trafficking organizations is one of HSI’s highest priorities and we are proud of the work that we and our partners are doing.”
“I’m pleased to see these offenders will spend time behind bars for their crimes,” said Hall County Sheriff Gerald Couch. “As you can see from this case, and so many others now under investigation, it takes teamwork to get these dangerous narcotics off of our streets. The Hall County Sheriff’s Office remains committed to the fight against illegal drugs pouring into our communities.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: From May 2021 to August 2021, the defendants conspired to, and did, distribute kilogram amounts of methamphetamine. Kevin Tello and David Garcia supplied the drugs to Almarud Duarte, who then sold the methamphetamine. Additionally, on June 28, 2021, Eduardo Penaloza-Pacheco sold a kilogram of methamphetamine supplied to him by Tello. Law enforcement officers then seized approximately 200 kilograms of methamphetamine during a search of Garcia’s residence.
Duarte, Garcia, and Tello pled guilty to conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine. Penaloza-Pacheco pled guilty to distribution of methamphetamine. U.S. District Judge Richard W. Story sentenced the defendants as follows:
- Almarud Duarte, 27, of Oakwood, Georgia, pleaded guilty on January 23, 2023, and was sentenced to nine years in prison to be followed by five years of supervised release.
- David Garcia, 42, of Duluth, Georgia, pleaded guilty on June 1, 2022, and was sentenced to 14 years in prison to be followed by five years of supervised release.
- Eduardo Penaloza-Pacheco, 38, of Gainesville, Georgia, pleaded guilty on May 16, 2022, and was sentenced to five years in prison to be followed by five years of supervised release.
- Kevin Tello, 27, of Lawrenceville, Georgia, pleaded guilty on May 1, 2022, and was sentenced to eight years in prison to be followed by five years of supervised release.
This case was investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Federal Bureau of Investigation Safe Streets Task Force, the Hall County Multi-Agency Narcotics Squad, the Drug Enforcement Administration, the Gwinnett County Metro Task Force, and the Georgia State Patrol.
Assistant U.S. Attorney Jennifer Keen prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former U.S. Department of the Army Employee Indicted for Theft of Government PropertyRead the Press Release
RENO, Nev. – A former U.S. Department of the Army employee made his initial appearance in court Monday for allegedly stealing over $800,000.00 in government property.
Tamilo Pale Fe’a, also known as “T,” 60, of Sparks, Nevada, is charged with theft of government property and access device fraud. United States Magistrate Judge Carla Baldwin scheduled a jury trial to begin June 6, 2023, before United States District Judge Anne Traum.
According to allegations made in the indictment, from a time unknown but no earlier than November 1, 2021, and continuing through approximately December 31, 2021, Fe’a stole military heavy equipment, including vehicles, semi-trailers, generator trailers, flatbed trailers, refrigerator trailers, armored office trailers, tractors, and box vans from the Hawthorne Army Weapons Depot in Hawthorne, Nevada. The total value of the stolen property was over $800,000.00. From September 2020 to August 2021, Fe’a made about 69 transactions with a fuel fleet credit card for his personal benefit at various gas stations in Nevada, Arizona, New Mexico, and California.
If convicted, Fe’a faces a maximum penalty of 10 years in prison for theft of government property and a maximum of 15 years in prison for access device fraud. He also faces a period of supervised release, restitution, and monetary penalties.
United States Attorney Jason M. Frierson for the District of Nevada made the announcement.
The U.S. Department of Defense Office of Inspector General, Defense Criminal Investigative Service; U.S. Army Criminal Investigation Division; and General Services Administration—Office of the Inspector General investigated the case. Assistant United States Attorney Randolph J. St. Clair is prosecuting the case.
An indictment is merely an allegation. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Former President of Massachusetts State Police Union and Former Lobbyist Sentenced to Prison for RICO, Fraud, Obstruction and Tax ChargesRead the Press Release
UPDATE: On June 2, 2025, the First Circuit Court of Appeals reversed Dana Pullman's three wire fraud convictions and affirmed the other convictions. The case was remanded for resentencing.
UPDATE: On June 2, 2025, the First Circuit Court of Appeals reversed Anne Lynch's convictions for three counts of wire fraud, one count of obstruction of justice and one count of tax fraud and affirmed the other convictions. The case was remanded for resentencing.
BOSTON – The former President of the State Police Association of Massachusetts (SPAM) and the union’s former Massachusetts lobbyist were sentenced today in federal court in Boston for racketeering, fraud, obstruction of justice and tax crimes.
Dana A. Pullman, 60, of Worcester, was sentenced by U.S. Senior District Court Judge Douglas P. Woodlock to 30 months in prison, three years of supervised release and restitution. Anne M. Lynch, 71, of Hull, was sentenced by Judge Woodlock to two years in prison, two years of supervised release and restitution. Lynch was also ordered to pay a fine of $25,000.
In November 2022, Pullman and Lynch were convicted by a federal jury of one count of racketeering conspiracy, one count of honest services wire fraud, three counts of wire fraud, one count of obstruction of justice and one count of conspiracy to defraud the Internal Revenue Service. Pullman was also convicted of two additional counts of wire fraud and two counts of aiding and assisting the filing of a false tax return. Lynch was convicted of an additional count of obstruction of justice and four counts of aiding and assisting in the filing of a false tax return.
“Members of law enforcement have a duty to protect and serve – placing the needs of the community and others first. Mr. Pullman and Ms. Lynch’s actions violate these very obligations. The racketeering organization that these two individuals ran deprived hard working union members of honest services and defrauded vendors seeking to do business with the Massachusetts State Police. For six years, Mr. Pullman and Ms. Lynch used the State Police Association of Massachusetts as a criminal enterprise for their own personal financial benefit,” said United States Attorney Rachael S. Rollins. “Mr. Pullman was elected to represent the members of his union and put their interests above everything else. He violated that trust when he and Ms. Lynch chose to pursue their own greedy and unlawful financial gain. Today’s sentences illustrate the criminality of both Mr. Pullman and Ms. Lynch’s conduct. My office will continue to ensure that those who put their own self interest above those they are bound to serve are held accountable. Trusting our law enforcement partners is imperative for public health and safety.”
“Former Massachusetts State Police Trooper and union boss Dana Pullman failed his department, his sworn oath, and taxpayers when he and lobbyist Anne Lynch joined forces to line their pockets with thousands of dollars in bribes and kickbacks. Today’s sentences demonstrate that no one is above the law, and highlights the FBI’s ongoing efforts to preserve public confidence in law enforcement,” said Joseph Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division.
“Dana Pullman and Anne Lynch conspired to enrich themselves on the backs of the brave law enforcement professionals who placed their trust in them. For nearly a decade, through a series of bribes and kickbacks, these defendants took advantage of their access and completely disregarded their responsibility to serve honestly and fairly. Today’s sentences affirm that this conduct will not be tolerated or go unpunished,” said Joleen D. Simpson, Special Agent in Charge of Internal Revenue Service- Criminal Investigation, Boston Field Office.
SPAM is an association consisting of more than 1,500 Troopers and Sergeants from the Massachusetts State Police (MSP). SPAM acts as the exclusive bargaining agent between its members and the Commonwealth of Massachusetts regarding the terms and conditions of SPAM members’ employment. Pullman, who was an MSP trooper from 1987 to 2018, was the President of SPAM from 2012 until his resignation on Sept. 28, 2018. Lynch’s lobbying firm represented SPAM during the same time period, in exchange for monthly retainer payments.
From at least 2012 until Pullman resigned as the President in September 2018, Pullman and Lynch turned SPAM into a racketeering enterprise, using Pullman’s position and power to defraud SPAM members, the Commonwealth of Massachusetts, and vendors looking to do business with the MSP. Among other things, Pullman and Lynch defrauded SPAM members and the Commonwealth of their right to honest services from Pullman when Lynch paid Pullman a $20,000 kickback in connection with a settlement agreement between SPAM and the Commonwealth. Pullman and Lynch defrauded two different companies that sought to do business with the MSP by hiding from the vendors the fact that Lynch was paying Pullman to direct vendors to use Lynch’s services. The defendants hid the payments from Lynch and her lobbying firm to Pullman in a manner designed to avoid reporting and paying taxes on that income to the IRS. Pullman and Lynch also attempted to obstruct the grand jury’s investigation of this matter by manipulating subpoenaed records, and Lynch attempted to obstruct the grand jury’s investigation by lying to investigators.
Additionally, Pullman embezzled and misused SPAM funds for personal use by using a debit card tied to a SPAM bank account to pay for thousands of dollars of meals and travel for an individual with whom Pullman was having a romantic relationship.
U.S. Attorney Rollins, FBI SAC Bonavolonta and IRS SAC Simpson made the announcement today. Assistant U.S. Attorneys Kristina E. Barclay and Neil J. Gallagher Jr. of Rollins’ Public Corruption & Special Prosecutions Unit prosecuted the case.
Former Postal Worker Convicted of Mail FraudRead the Press Release
Salt Lake City, Utah – A federal jury convicted a Salt Lake City woman and former Express Mail Clerk with the United States Postal Service (USPS) for delaying and destroying immigration mail that was intended for delivery.
According to court documents and the evidence presented at trial, Diana K. Molyneux, was working at a USPS plant known as the Processing and Delivery Center (P&DC) in Salt Lake City, Utah. Working the nightshift, Molyneux sorted and processed Express and Priority Mail intended to be delivered locally or dispatched to Reno, Nevada. A number of immigration mailers from the United States Citizenship and Immigration Services (USCIS) had gone missing in the fall of 2017. Other mail clerks reported to supervisors that they had found USCIS mail in places that were either outside the normal delivery stream, tampered with, or placed at a location for shredding. As a result of these reports, a criminal investigation was initiated. Between April 2018 and June 2018 Molyneux was captured on camera digging through areas of pre-sorted mail. Camera footage shows Molyneux retrieving and setting aside priority immigration mail, which was never returned to its proper location for dispatch. Between August and September 2018, agents witnessed Molyneux again removing pre-sorted mail that was later identified as USCIS immigration mail. During the September surveillance, Molyneux buried six pieces of priority immigration mail deep in a shred bin that is used to destroy and recycle undeliverable bulk mail. The defendant was suspended from her position and placed on unpaid leave. The complaints to the USPS about lost USCIS type mail from USPS’ Processing and Delivery Center immediately ceased after her termination.
USPS-OIGMolyneux was found guilty of destruction of mail. Sentencing is scheduled for August 1, 2023, at 11:00 a.m. in courtroom 3.4 before a U.S. District Court Judge at the Orrin G. Hatch United States District Courthouse.
“Ms. Molyneux used her position as a U.S. Postal employee to interfere with the delivery of mail. The fact that she targeted immigration mail makes this offense more egregious,” said U.S. Attorney Trina A. Higgins of the District of Utah. “We will continue to work with law enforcement to investigate and prosecute cases where public servants abuse their position to discriminate and cause harm to our community.”
“This successful resolution of this case not only confirms that mail theft committed by Postal Service personnel is completely unacceptable, but it also demonstrates the steadfast commitment of U.S. Postal Service-Office of Inspector General Special Agents in maintaining the integrity of the U.S. Postal Service,” said U.S. Postal Service Office of Inspector General, Western Pacific Area Field Office, Acting Executive Special Agent-in-Charge Kenneth Bulle. “The USPS-OIG values our partnership with the U.S. Attorney’s Office and other Postal Service partners in holding Postal Service personnel accountable for their actions when they violate a position of trust.”
The U.S. Postal Service Office of Inspector General (USPS-OIG), is investigating the case.
Assistant U.S. Attorneys, Drew Yeates and Sam Pead are prosecuting the case.
Former Louisville Metro Police Department Officer Pleads Guilty to Using Excessive Force During 2020 ProtestRead the Press Release
A former Louisville Metro Police Department officer pleaded guilty to violating an individual’s rights by using excessive force while acting as a police officer.
During the plea hearing, Richard Ross Wiedo, 37, admitted that on or about May 30, 2020, while working as a police officer with the Louisville Metro Police Department, he deployed a foam round from his 40mm direct impact munition into a crowd of protestors after a bottle was thrown from the back of the crowd. The foam round struck an individual at the front of the crowd in the face. Wiedo admitted he had not identified who had thrown the bottle and was not deploying his 40mm direct impact munition at anyone who was being actively aggressive.
Wiedo pleaded guilty to one misdemeanor count of using unreasonable force. Wiedo’s guilty plea carries a maximum fine of $100,000. As part of the plea agreement, if it is accepted by the court, Wiedo will forfeit his Kentucky law enforcement certification and agree not to seek any future law enforcement employment.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Michael A. Bennett for the Western District of Kentucky and Special Agent in Charge Jodi Cohen of the FBI Louisville Field Office made the announcement.
The FBI Louisville Field Office and the Louisville Metro Police Department’s Public Integrity Unit investigated the case through the Louisville Public Corruption Civil Rights Task Force.
Assistant U.S. Attorney Amanda E. Gregory for the Western District of Kentucky and Trial Attorney Anita Channapati of the Civil Rights Division’s Criminal Section prosecuted the case.
Former Louisville Metro Police Department Officer Pleads Guilty to Using Excessive Force During 2020 ProtestRead the Press Release
A former Louisville Metro Police Department officer pleaded guilty to violating an individual’s rights by using excessive force while acting as a police officer.
During the plea hearing, Richard Ross Wiedo, 37, admitted that on or about May 30, 2020, while working as a police officer with the Louisville Metro Police Department, he deployed a foam round from his 40mm direct impact munition into a crowd of protestors after a bottle was thrown from the back of the crowd. The foam round struck an individual at the front of the crowd in the face. Wiedo admitted he had not identified who had thrown the bottle and was not deploying his 40mm direct impact munition at anyone who was being actively aggressive.
Wiedo pleaded guilty to one misdemeanor count of using unreasonable force. Wiedo’s guilty plea carries a maximum fine of $100,000. As part of the plea agreement, if it is accepted by the court, Wiedo will forfeit his Kentucky law enforcement certification and agree not to seek any future law enforcement employment.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Michael A. Bennett for the Western District of Kentucky and Special Agent in Charge Jodi Cohen of the FBI Louisville Field Office made the announcement.
The FBI Louisville Field Office and the Louisville Metro Police Department’s Public Integrity Unit investigated the case through the Louisville Public Corruption Civil Rights Task Force.
Assistant U.S. Attorney Amanda E. Gregory for the Western District of Kentucky and Trial Attorney Anita Channapati of the Civil Rights Division’s Criminal Section prosecuted the case.
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Former IRS Revenue Officer, Along with Five Others, Charged in Alleged Multi-Million Dollar COVID-Fraud SchemeRead the Press Release
OAKLAND – The U.S. Attorney’s Office has filed two informations charging six defendants with a variety of crimes in connection with an alleged scheme to obtain millions of dollars by submitting fraudulent loan applications through the U.S. government’s Payroll Protection Program (PPP), announced U.S. Attorney Ismail J. Ramsey, Internal Revenue Service Criminal Investigation Special Agent in Charge Darren Lian, Small Business Administration Office of Inspector General, Western Region Special Agent in Charge Weston King, and Office of Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau, Acting Western Region Special Agent in Charge Cory Nootnagel. All six defendants are scheduled to make their initial federal court appearances next week before U.S. Magistrate Judge Kandis Westmore.
Central to the allegations in the charging documents is the role of Frank Mosley, 58, of Oakland, a former IRS Revenue Officer and current City of Oakland Tax Enforcement Officer. According to the charging documents, Mosley conspired with others to submit fraudulent PPP-loan applications and then, after securing the proceeds from the loans, used his share of the illegally-obtained proceeds for personal investments and expenses. The PPP is administered by the U.S. Small Business Administration as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act is a federal law enacted in March 2020 to provide billions of dollars in emergency financial assistance to millions of Americans suffering from the economic effects of the COVID-19 pandemic. The PPP provided forgivable loans to small businesses for job retention and limited other business expenses. According to the informations, the defendants, including Mosely, received approximately $3 million as a result of submitting fraudulent loan applications under the PPP program.
The two informations provide numerous details of the alleged conspiracy. According to the first information, between July of 2020 and September of 2021, Frank Mosely, along with four other defendants—his brother Reginald Mosley (60, of Sacramento), Marcus Wilborn (50, of Elk Grove), Aaron Boren (56, of Roseville), and Scott Conway (52, of Rocklin)—submitted fraudulent documents on behalf of four entities. Although each of the companies’ PPP loan applications certified that each company had between 19 and 49 employees and approximately $150,000 to $430,000 in monthly payroll, in reality, all four companies were little more than shell companies, with no payroll expenses. In addition, upon receipt of the PPP loan proceeds, the defendants allegedly did not use the funds for any legitimate business expenses, such as to pay employees. Rather, they used the funds for significant personal expenses, personal credit cards, personal investments, and distributions to their family members.
The first information further alleges that in August of 2020, Frank Mosley and Reginald Mosley submitted the first successful loan application on behalf of an entity they controlled called Forward Thinking Investors, Inc. After receiving over $1 million in fraudulently obtained funds in the first transaction, Reginald Mosley allegedly recruited acquaintances— including Wilborn, Boren, and Conway— who owned companies that existed prior to February 2020 to submit additional fraudulent loan applications. As part of the scheme, Frank and Reginald Mosley helped prepare the fraudulent loan applications for Wilborn, Boren, and Conway, who then funneled portions of the fraudulently-obtained funds back to Frank and Reginald Mosley. In fact, Frank and Reginald Mosley reduced their illegal agreement to writing, circulating via email a written contract laying out the amount they would receive for helping prepare and submit the fraudulent loan applications. Specifically, Frank and Reginald Mosley demanded a kickback of at least 15% of the fraudulently obtained proceeds for loans submitted by each of the other three co-conspirators. After obtaining the fraudulent loan proceeds, Frank and Reginald Mosley filed fraudulent payroll tax returns with the IRS in an attempt to cover up their scheme.
The second information describes how the sixth defendant, Kenya Ellis, 55, of Los Angeles, allegedly aided and advised Frank Mosley, Reginald Mosley, and others, in submitting fraudulent PPP loans on behalf of their own companies. In addition, the second information describes how in 2020 and 2021, Ellis allegedly obtained more than $296,000 in PPP and other COVID-related loans on behalf of an entity called Global Processor, Inc. (GPI). Specifically, the information alleges Ellis falsely represented in her loan applications that she was the owner of GPI. In fact, however, Ellis had no legitimate relationship with GPI and the true owner of GPI had no awareness of, nor involvement in, the preparation and submission of the loan applications. The applications Ellis submitted also made false statements about GPI’s monthly payroll and number of employees.
The charges presented in the informations are merely allegations and the defendants are presumed innocent unless proven guilty in a court of law.
Frank Mosley, Reginald Mosley, Wilborn, Boren, and Conway are charged with conspiracy to commit bank fraud, in violation of 18 U.S.C. § 1349, which carries a maximum sentence of 30 years in prison. Frank and Reginald Mosley are also charged with aiding and advising in the filing of false tax returns in violation of 26 U.S.C. § 7201(2), which carries a maximum sentence of three years in prison. Ellis is charged in a separate case with bank fraud in violation of 18 U.S.C. § 1344, which carries a maximum sentence of 30 years in prison. In addition to a prison sentence, the court can order the defendants to pay restitution, to serve an additional period of supervised release and to pay additional assessments. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The defendants are scheduled to make their initial federal court appearances before Magistrate Judge Westmore on the following dates:
Defendant Date of Initial Appearance May 15 Conway May 16 Ellis May 18 Frank Mosley, Reggie Mosley, and Boren May 23 WilbornAssistant U.S. Attorney Abraham Fine is prosecuting the case with the assistance of Kay Konopaske. The prosecution is the result of an investigation by the Internal Revenue Service Criminal Investigations, the Office of Inspector General for the Small Business Administration, and the Office of Inspector General for the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection.
Former Employee of Technology Company Sentenced to Six Years in Prison for Stealing Confidential Data and Extorting Company for RansomRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that NICKOLAS SHARP, a former employee of a public New York-based technology company (“Company‑1”) was sentenced today to six years in prison. In December 2020, SHARP secretly stole gigabytes of Company-1’s data. While purportedly working to remediate the security breach he created, SHARP extorted the company, as an anonymous hacker, for nearly $2 million for the return of the files and the identification of a remaining purported vulnerability. SHARP subsequently re-victimized his employer by causing the publication of misleading news articles as a purported anonymous whistleblower about the company’s handling of the breach that he perpetrated, which were followed by the loss of over $4 billion in Company-1’s market capitalization. SHARP previously pled guilty to intentionally damaging a protected computer, wire fraud, and making false statements to the Federal Bureau of Investigation (“FBI”) before U.S. District Judge Katherine Polk Failla, who imposed today’s sentence.
U.S. Attorney Damian Williams said: “Nickolas Sharp was paid close to a quarter million dollars a year to help keep his employer safe. He abused that trust by stealing a massive amount of sensitive data, attempting to implicate innocent employees in his attack, extorting his employer for ransom, obstructing law enforcement, and spreading false news stories that harmed the company and anyone who invested into the company. Sharp now faces serious penalties for his callous crimes.”
According to the Indictment, court filings, and statements made in court:
At all times relevant to the Indictment, Company-1 was a technology company headquartered in New York that manufactured and sold wireless communications products and whose shares were traded on the New York Stock Exchange. SHARP was employed by Company-1 from in or about August 2018 through on or about April 1, 2021. SHARP was a senior developer who had access to credentials for Company-1’s Amazon Web Services (“AWS”) and GitHub Inc. (“GitHub”) servers.
In about December 2020, while interviewing for a position at another company, SHARP repeatedly misused his administrative access to download gigabytes of confidential data from his employer. During the course of this cybersecurity incident (the “Incident”), SHARP caused damage to Company-1’s computer systems by altering log retention policies and other files in order to conceal his unauthorized activity on the network. SHARP modified session file names to attempt to make it appear as if other coworkers were responsible for his malicious sessions.
In or about January 2021, while working on a team remediating the effects of the Incident, SHARP sent a ransom note to Company-1, posing as an anonymous attacker who claimed to have obtained unauthorized access to Company-1’s computer networks. The ransom note sought 50 Bitcoin — which was the equivalent of approximately $1.9 million, based on the prevailing exchange rate at the time — in exchange for the return of the stolen data and the identification of a purported “backdoor,” or vulnerability, to Company-1’s computer systems. After Company-1 refused the demand, SHARP published a portion of the stolen files on a publicly accessible online platform.
On or about March 24, 2021, FBI agents executed a search warrant at SHARP’s residence in Portland, Oregon, and seized certain electronic devices belonging to SHARP, including a laptop SHARP had used to steal Company-1’s data. During the execution of that search, SHARP made numerous false statements to FBI agents.
Several days after the FBI executed the search warrant at SHARP’s residence, SHARP caused false news stories to be published about the Incident and Company-1’s response to the Incident. In those stories, SHARP identified himself as an anonymous whistleblower within Company-1 who had worked on remediating the Incident and falsely claimed that Company-1 had been hacked by an unidentified perpetrator who maliciously acquired root administrator access to Company-1’s AWS accounts. In fact, as SHARP well knew, SHARP himself had taken Company-1’s data using credentials to which he had access, and SHARP had used that data in a failed attempt to extort Company-1 for millions of dollars.
Following the publication of these articles, between approximately March 30, 2021, and March 31, 2021, Company-1’s stock price fell approximately 20%, losing over $4 billion in market capitalization. SHARP also attempted to cause domestic and foreign regulators to investigate Company-1 based on his false allegations about the security breach he secretly caused.
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SHARP, 37, of Portland, Oregon, pled guilty on February 2, 2023, to one count of transmitting a program to a protected computer that intentionally caused damage, one count of wire fraud, and one count of making false statements to the FBI. In addition to the prison sentence, SHARP was sentenced to three years of supervised release and ordered to pay restitution of $1,590,487 and to forfeit personal property used or intended to be used in connection with these offenses.
Mr. Williams praised the outstanding investigative work of the FBI.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Vladislav Vainberg and Andrew K. Chan are in charge of the prosecution.
Former Buffalo County Post Office Employee Sentenced to Probation for Misappropriation of Postal FundsRead the Press Release
MADISON, WIS. –Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Megan Torrez, 45, Alma, Wisconsin, was sentenced today by Chief U.S. District Judge James D. Peterson to 3-years of federal probation for misappropriation of postal funds. Torrez was also ordered to pay $26,930.70 in restitution to the United States Postal Service.
Torrez was employed by the U. S. Postal Service in June 2021, as a Postal Support Employee in Nelson, Wisconsin. Her assigned duties included conducting postal business with the public and performing financial accounting functions to report the sales of postage, money orders and other items. When postage and money order stock were sold, she was responsible for collecting money from those sales and remitting that money to the bank. Between August 2021 and February 2022, Torrez manipulated postal funds accessible to her in her position at the Nelson Post Office by issuing postal money orders to herself and family members and paying with personal checks that she admitted had insufficient funds to clear her bank. Postal money orders may only be purchased with cash, debit card, or traveler’s check, and no personal checks are accepted by the Postal Service.
In January 2022, the Office of Inspector General received information about the checks written by Torrez to the Postal Service that were returned as “non-sufficient funds.” At the time of their investigation, thirty-two checks were outstanding for over $26,000 in postal money orders. The money orders that Torrez issued to herself and her family were used to pay for her family’s personal expenses. Torrez claimed that her decision to use postal funds to pay for her family’s bills was out of desperation when her husband lost his job during the pandemic.
The charge against Torrez was the result of an investigation conducted by the U.S. Postal Service, Office of Inspector General. Assistant U.S. Attorney Robert A. Anderson prosecuted this case.
Federal Jury Convicts Adair County Resident of Two Counts of Aggravated Sexual AbuseRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma announced today that Jerry Wayne Asbill, Jr., age 42, of Adair County, Oklahoma was found guilty by a federal jury of two counts of Aggravated Sexual Abuse in Indian Country.
The jury trial began with testimony on Monday, May 8, 2023, and concluded on Wednesday, May 10, 2023, with the guilty verdicts.
During the trial, the United States presented evidence that the defendant took a child to a hotel and molested the child there in November of 2018. The government was able to corroborate the hotel stay through various records.
The guilty verdicts were the result of investigations by the Adair County Sheriff’s Office and the Federal Bureau of Investigation.
The United States Attorney’s Office for the Eastern District of Oklahoma prosecuted the case because the defendant is a member of a federally recognized Indian tribe and the crimes occurred in Adair County, within the boundaries of the Cherokee Nation Reservation of Oklahoma and the Eastern District of Oklahoma.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
The Honorable Kea W. Riggs, U.S. District Judge in the United States District Court for the District of New Mexico, sitting by assignment in the Eastern District of Oklahoma, presided over the trial in Muskogee and ordered the completion of a presentence report. The sentencing will be scheduled following completion of the report. The defendant was remanded to the custody of the United States Marshal and will remain in custody until the sentencing hearing.
Assistant United States Attorneys Morgan Muzljakovich and Nicole Paladino represented the United States.
Essex County Man Convicted of Being Member of Newark Drug Trafficking Organization Responsible for the Distribution of over One Kilogram of HeroinRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey man was convicted today for his role in a conspiracy to distribute and possess with intent to distribute over one kilogram of heroin, U.S. Attorney Philip R. Selling announced.
Furad Loyal, 41, of Newark, was convicted at trial before U.S. District Judge Susan D. Wigenton in Newark federal court on three counts of the indictment against him: conspiracy to distribute and possess with intent to distribute more than one kilogram of heroin, possession with intent to distribute heroin, and being a felon in possession of a firearm. He was acquitted on one count of possession of a firearm in furtherance of a drug trafficking crime.
According to documents filed in this case and the evidence at trial:
Loyal was a heroin supplier and a member of a drug trafficking organization (DTO) that operated in and around Hayes Street and 14th Avenue in the area of the New Community Corporation community development (NCC) in Newark. In addition to selling narcotics in and around NCC, the members shared narcotics supply, narcotics proceeds, and customers. On Nov. 21, 2017, Loyal was found inside the apartment of an NCC resident where he was stashing his heroin, his firearm, and over $11,000 in cash.
From March to August 2018, Loyal and 27 other members of the DTO were charged by criminal complaint with conspiracy to distribute heroin and cocaine base; Loyal also was charged with firearms offenses. The other 27 defendants have all since pleaded guilty to crimes in connection with their roles in the DTO.
The heroin trafficking conspiracy count on which Loyal was convicted carries a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life in prison, and a $10 million fine. The drug distribution and possession with intent to distribute count carries a maximum potential penalty of 20 years in prison, and a $1 million fine. The firearm count carries a maximum penalty of 10 years in prison, and a $250,000 fine. Loyal’s sentencing is scheduled for Sept. 26, 2023.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, and members of the Newark Department of Public Safety, under the direction of Director Fritz Fragé, with the investigation leading to today’s guilty verdict. He also thanked the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, the New Jersey Department of Corrections, New Jersey State Parole, and the U.S. Marshals for their assistance.
Loyal and the NCC drug trafficking organization were part of the original Violent Crime Initiative (VCI). The VCI was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety for the sole purpose of combatting violent crime in and around the Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is comprised of the U.S. Attorney’s Office, the FBI, the ATF, the DEA’s New Jersey Division, the U.S. Marshals, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, New Jersey State Parole, Union County Jail, New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center, New Jersey Department of Corrections, the East Orange Police Department, and the Irvington Police Department.
The government is represented by Assistant U.S. Attorneys Elaine K. Lou and Christopher D. Amore of the U.S. Attorney’s Office’s Criminal Division in Newark.
East Glacier man sentenced to more than 11 years in prison for murder of man shot after birthday party on Blackfeet Indian ReservationRead the Press Release
GREAT FALLS — An East Glacier man was sentenced today to 11 years and eight months in prison, to be followed by five years of supervised release, after he admitted to murdering a man by shooting him after a birthday party on the Blackfeet Indian Reservation, U.S. Attorney Jesse Laslovich said.
Dillon James Wippert, 27, pleaded guilty in December 2022 to second degree murder.
Chief U.S. District Judge Brian M. Morris presided.
In court documents and in court, the government alleged that on May 19, 2020, Blackfeet Law Enforcement Services officers responded to a residence in the Bear Paw community, where family members had found the body of the 19-year-old victim, identified as John Doe, in his bedroom. Investigators determined that Wippert, friends and the victim had gathered at the victim’s residence on May 17, 2020 to celebrate Wippert’s birthday. As the party was ending and the attendees were coming down from the drugs they had consumed, Wippert pointed a firearm at another friend, scaring him. Wippert then argued with the victim over the incident. Eventually, everyone left, while the victim and Wippert remained. Sometime later, Wippert took a firearm and shot the victim in the arm and then in the back of the head.
The government further alleged that after his arrest, Wippert told law enforcement he had a panther in him and described himself as a weapon. When pushed for a motive for the killing, Wippert’s only explanation was that he held ill feelings and that the victim had given him an “evil smile” and given off “death threat energy.”
Assistant U.S. Attorneys Kalah A. Paisley, Lori Harper Suek and Wendy A. Johnson prosecuted the case. The FBI and Blackfeet Law Enforcement Services, with assistance from the Cut Bank Police Department, Glacier County Sheriff's Office, Mineral County Sheriff’s Office and U.S. Marshals Service, conducted the investigation.
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Diggs Sworn in as United States Attorney for the Eastern District of TexasRead the Press Release
SHERMAN, Texas – Damien M. Diggs has taken the oath of office to become the United States Attorney for the Eastern District of Texas. Diggs was nominated by President Joe Biden on Feb. 2, 2023 and confirmed by the U.S. Senate on May 4, 2023. He took the oath of office on May 7, 2023 from Chief U.S. District Judge Rodney Gilstrap.
Diggs, 47, of Frisco, is the chief federal law enforcement official in the Eastern District of Texas, which includes 43 counties stretching from the Oklahoma border to the Gulf of Mexico. The district includes six fully staffed offices in Beaumont, Plano, Tyler, Sherman, Texarkana, and Lufkin with 103 employees, including 53 prosecutors. Diggs is responsible for the prosecution of federal criminal offenses in the district and will represent the United States in all civil litigation in the district.
“I am honored to have been nominated by President Biden and confirmed by the Senate,” said U.S. Attorney Diggs. “I’m excited to continue serving the public in this role and ensuring that justice is served for the citizens in the 43 counties that make up the Eastern District of Texas.
Diggs has served as an Assistant U.S. Attorney in the Northern District of Texas since 2018 where he was assigned to the criminal division’s violent crime section prosecuting firearms violations and fraud matters. Prior to that, he worked as an assistant U.S. attorney in Washington, D.C. from 2012 to 2018. From 2007 to 2012, he was an attorney with the Department of Education. Diggs was also an associate at Hogan & Hartson for two years before beginning his service with the federal government.
Diggs earned his Bachelor of Science in political science and government from Towson University’s College of Liberal Arts in 1998 and his law degree from American University’s Washington College of Law in 2003.
Today, Diggs was honored to have his family and friends by his side as he took his ceremonial oath of office from U.S. District Judge Amos Mazzant.
For more information about the U.S. Attorney’s Office for the Eastern District of Texas, please visit https://www.justice.gov/usao-edtx.
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Dangerous pursuit and crash results in smuggling chargesRead the Press Release
McALLEN, Texas – A 22-year-old man has been arrested for conspiracy to transport illegal aliens, announced U.S. Attorney Alamdar S. Hamdani.
Authorities took Luis Ruiz-Valadez into federal custody today. He is expected to make his initial appearance before U.S. Magistrate Judge Juan F. Alanis at 9 a.m.
The criminal complaint alleges on April 18, authorities observed several subjects breach the border wall near Hidalgo and run to a nearby parking lot. There, Ruiz-Valadez was allegedly waiting in a red Ford F-150 pick-up truck.
According to the charges, Ruiz-Valadez fled the scene at a high rate of speed and failed to yield when law enforcement attempted to conduct a traffic stop for speeding. Throughout the high-speed pursuit, they observed three subjects laying in the bed of the truck, according to the complaint.
Ruiz-Valadez allegedly crashed into a cement barricade on Expressway 83 and was taken into custody.
If convicted, Ruiz-Valadez faces up to 10 years in federal prison and a possible $250,000 maximum fine.
Border Patrol conducted the investigation with the assistance of the Texas Department of Public Safety. Assistant U.S. Attorney Devin V. Walker is prosecuting the case.
A criminal complaint is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
DEA Operation Last Mile Tracks Down Sinaloa and Jalisco Cartel Associates Operating within the United StatesRead the Press Release
DETROIT – More than 3.8 million deadly doses of fentanyl and 201 pounds of methamphetamine were removed from communities in Michigan, Ohio and northern Kentucky during “Operation Last Mile,” a year-long national operation, targeting operatives, associates, and distributors affiliated with the Sinaloa and Jalisco Cartels responsible for the last mile of fentanyl and methamphetamine distribution on our streets and on social media.
DEA’s top operational priority is to defeat the Sinaloa and Jalisco Cartels—the two drug cartels based in Mexico that are responsible for the vast majority of the fentanyl and methamphetamine that is killing Americans. In Operation Last Mile, DEA tracked down distribution networks across the United States that are connected to the Sinaloa and Jalisco Cartels. The Operation shows that the Sinaloa and Jalisco Cartels use violent local street gangs and criminal groups and individuals across the United States to flood American communities with huge amounts of fentanyl and methamphetamine, which drives addiction and violence and kills Americans. It also shows that the Cartels, their members, and their associates use social media applications—like Facebook, Instagram, TikTok, and Snapchat—and encrypted platforms—like WhatsApp, Telegram, Signal, Wire, and Wickr—to coordinate logistics and reach out to victims.
Nationally, Operation Last Mile comprised 1,436 investigations conducted from May 1, 2022 through May 1, 2023, in collaboration with federal, state and local law enforcement partners, and resulted in 3,337 arrests and the seizure of nearly 44 million fentanyl pills, more than 6,500 pounds of fentanyl powder, more than 91,000 pounds of methamphetamine, 8,497 firearms, and more than $100 million.
The fentanyl powder and pill seizures equate to nearly 193 million deadly doses of fentanyl removed from communities across the United States, which have prevented countless potential drug poisoning deaths. Among these investigations, more than 1,100 cases involved social media applications and encrypted communications platforms, including Facebook, Instagram, TikTok, Snapchat, WhatsApp, Telegram, Signal, Wire, and Wickr.
“The Sinaloa and Jalisco Cartels use multi-city distribution networks, violent local street gangs, and individual dealers across the United States to flood American communities with fentanyl and methamphetamine, drive addiction, fuel violence, and kill Americans,” said Administrator Milgram. “What is also alarming—American social media platforms are the means by which they do so. The Cartels use social media and encrypted platforms to run their operations and reach out to victims, and when their product kills Americans, they simply move on to try to victimize the millions of other Americans who are social media users.”
The Detroit Division, responsible for DEA operations in Michigan, Ohio and northern Kentucky, made 16 arrests and seized 20,636 fentanyl pills, 151 pounds of fentanyl powder, $5,809,597 in cash & assets, 201 pounds of methamphetamine and 360 firearms. The fentanyl seizures could provide a deadly dose to more than 3.8 million people.
Operation Last Mile is an example of DEA’s network-based approach to take out Sinaloa and Jalisco Cartel members and associates in the United States and across the globe, stop fentanyl, and save American lives. In April 2023, the DEA and our federal partners announced the indictment of 28 members and associates of the Sinaloa Cartel operating in Mexico, China, and Central America, including the leaders of the Cartel known as the “Chapitos.”
D.C. Executive Pleads Guilty to Embezzling Hundreds of Thousands of Dollars from Former Client, a Nonprofit AssociationRead the Press Release
WASHINGTON – Graham Hauck, 50, of Chevy Chase, Maryland, pleaded guilty today to stealing more than $330,000 from a nonprofit trade organization. The announcement was made by U.S. Attorney Matthew M. Graves and Special Agent in Charge Wayne A. Jacobs, of the FBI Washington Field Office’s Criminal and Cyber Division.
Hauck pleaded guilty to wire fraud, which carries a statutory maximum of 20 years in prison. As part of his plea agreement, Hauck must pay full restitution. He also will be liable for a forfeiture money judgment. U.S. District Court Judge Rudolph Contreras, who accepted Hauck’s guilty plea, scheduled sentencing for September 14, 2023.
According to court documents, Hauck served as president and CEO of Hauck & Associates, Inc. (“H&A”), a trade association management firm based in Washington, D.C. The victim organization, a nonprofit professional trade organization, retained H&A to serve as its management company. For the period covering January 1, 2019, through December 31, 2019, the victim organization agreed to pay H&A an annual management and headquarters fee of $148,475, with one-twelfth of the fee (approximately $12,372) being billed on the first day of each month. From March 2019 through approximately October 2019, Hauck stole roughly $336,222 from the victim organization. Although H&A was authorized to pay itself the monthly management fee from one of the organization’s bank accounts, Hauck wrote checks and initiated ACH payments from that account to H&A in amounts far exceeding what the organization owed. Hauck also stole from one of the organization’s other accounts by writing a $100,000 to H&A and initiating three ACH transfers from the account.
Hauck concealed his scheme both by lying to one of his employees who noticed the victim organization’s unusual activity and by creating inaccurate balance sheets that were presented monthly to the victim organization’s board of directors. The false balance sheets showed more money than the organization actually had in its accounts.
This case was investigated by the FBI’s Washington Field Office.
It is being prosecuted by Assistant U.S. Attorneys Kondi Kleinman and Anne McNamara, and former Assistant U.S. Attorney David B. Kent, with assistance from Paralegal Specialist Michon Tart and former Paralegal Specialists Angeline Thekkumthala and Stephanie Frijas.
Congressman George Santos Charged with Fraud, Money Laundering, Theft of Public Funds, and False StatementsRead the Press Release
CENTRAL ISLIP, NY – A 13-count indictment was unsealed today in the United States District Court for the Eastern District of New York charging George Anthony Devolder Santos, better known as “George Santos,” a United States Congressman representing the Third District of New York, with seven counts of wire fraud, three counts of money laundering, one count of theft of public funds, and two counts of making materially false statements to the House of Representatives.
The indictment was returned yesterday under seal by a federal grand jury sitting in Central Islip, New York. Santos was arrested this morning and will be arraigned this afternoon before U.S. Magistrate Judge Arlene R. Lindsay at the federal courthouse in Central Islip, New York.
Breon Peace, United States Attorney for the Eastern District of New York, Kenneth A. Polite, Jr., Assistant Attorney General of the Justice Department’s Criminal Division, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Anne T. Donnelly, District Attorney, Nassau County, announced the charges.
“This indictment seeks to hold Santos accountable for various alleged fraudulent schemes and brazen misrepresentations,” stated United States Attorney Peace. “Taken together, the allegations in the indictment charge Santos with relying on repeated dishonesty and deception to ascend to the halls of Congress and enrich himself. He used political contributions to line his pockets, unlawfully applied for unemployment benefits that should have gone to New Yorkers who had lost their jobs due to the pandemic, and lied to the House of Representatives. My Office and our law enforcement partners will continue to aggressively root out corruption and self-dealing from our community’s public institutions and hold public officials accountable to the constituents who elected them.”
“The Criminal Division’s Public Integrity Section is committed to rooting out fraud and corruption, especially when committed by our elected officials,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “As alleged, Santos engaged in criminal conduct intended to deceive and defraud the American public. As this indictment reflects, the Department of Justice will hold accountable anyone who engages in such criminality.”
“As today's enforcement action demonstrates, the FBI remains committed to holding all equally accountable under the law. As we allege, Congressman Santos committed federal crimes, and he will now be forced to face the consequences of his actions. I would like to commend the diligent efforts of the investigative and prosecutorial teams in this matter,” stated FBI Assistant Director-in-Charge Driscoll.
“At the height of the pandemic in 2020, George Santos allegedly applied for and received unemployment benefits while he was employed and running for Congress,” stated District Attorney Donnelly. “As charged in the indictment, the defendant’s alleged behavior continued during his second run for Congress when he pocketed campaign contributions and used that money to pay down personal debts and buy designer clothing. This indictment is the result of a lengthy collaboration between law enforcement agencies, and I thank our partners at the U.S. Attorney’s Office, the Department of Justice and the Federal Bureau of Investigation for their dedication to rooting out public corruption.”
Mr. Peace also thanked the U.S. Department of Labor, Office of Inspector General, the New York State Department of Labor (NYS DOL), and the Queens County District Attorney’s Office for their assistance.
As alleged in the indictment, Santos, who was elected to Congress last November and sworn in as the U.S. Representative for New York’s Third Congressional District on January 7, 2023, engaged in multiple fraudulent schemes.
Fraudulent Political Contribution Solicitation Scheme
Beginning in September 2022, during his successful campaign for Congress, Santos operated a limited liability company (Company #1) through which he allegedly defrauded prospective political supporters. Santos enlisted a Queens-based political consultant (Person #1) to communicate with prospective donors on Santos’s behalf. Santos allegedly directed Person #1 to falsely tell donors that, among other things, their money would be used to help elect Santos to the House, including by purchasing television advertisements. In reliance on these false statements, two donors (Contributor #1 and Contributor #2) each transferred $25,000 to Company #1’s bank account, which Santos controlled.
As alleged in the indictment, shortly after the funds were received into Company #1’s bank account, the money was transferred into Santos’s personal bank accounts—in one instance laundered through two of Santos’s personal accounts. Santos allegedly then used much of that money for personal expenses. Among other things, Santos allegedly used the funds to make personal purchases (including of designer clothing), to withdraw cash, to discharge personal debts, and to transfer money to his associates.
Unemployment Insurance Fraud Scheme
Beginning in approximately February 2020, Santos was employed as a Regional Director of a Florida-based investment firm (Investment Firm #1), where he earned an annual salary of approximately $120,000. By late-March 2020, in response to the outbreak of COVID-19 in the United States, new legislation was signed into law that provided additional federal funding to assist out-of-work Americans during the pandemic.
In mid-June 2020, although he was employed and was not eligible for unemployment benefits, Santos applied for government assistance through the New York State Department of Labor, allegedly claiming falsely to have been unemployed since March 2020. From that point until April 2021—when Santos was working and receiving a salary on a near-continuous basis and during his unsuccessful run for Congress—he falsely affirmed each week that he was eligible for unemployment benefits when he was not. As a result, Santos allegedly fraudulently received more than $24,000 in unemployment insurance benefits.
False Statements to the House of Representatives
Finally, the indictment describes Santos’s alleged efforts to mislead the House of Representatives and the public about his financial condition in connection with each of his two Congressional campaigns.
Santos, like all candidates for the House, had a legal duty to file with the Clerk of the House of Representatives a Financial Disclosure Statement (House Disclosures) before each election. In each of his House Disclosures, Santos was personally required to give a full and complete accounting of his assets, income, and liabilities, among other things. He certified that his House Disclosures were true, complete, and correct.
In May 2020, in connection with his first campaign for election to the House, Santos filed two House Disclosures in which he allegedly falsely certified that, during the reporting period, his only earned income consisted of salary, commission, and bonuses totaling $55,000 from another company (Company #2), and that the only compensation exceeding $5,000 he received from a single source was an unspecified commission bonus from Company #2. In actuality, Santos allegedly overstated the income he received from Company #2 and altogether failed to disclose the salary he received from Investment Firm #1.
In September 2022, in connection with his second campaign for election to the House, Santos filed another House Disclosure, in which he allegedly overstated his income and assets. In this House Disclosure, he falsely certified that during the reporting period:
- He had earned $750,000 in salary from the Devolder Organization LLC, a Florida‑based entity of which Santos was the sole beneficial owner;
- He had received between $1,000,001 and $5,000,000 in dividends from the Devolder Organization LLC;
- He had a checking account with deposits of between $100,001 and $250,000; and
- He had a savings account with deposits of between $1,000,001 and $5,000,000.
As alleged in the indictment, these assertions were false: Santos had not received from the Devolder Organization LLC the reported amounts of salary or dividends and did not maintain checking or savings accounts with deposits in the reported amounts. Further, Santos allegedly failed to disclose that, in 2021, he received approximately $28,000 in income from Investment Firm #1 and more than $20,000 in unemployment insurance benefits from the NYS DOL.
The charges in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted of the charges, Santos faces a maximum penalty of 20 years in prison for the top counts. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI is investigating the case with assistance from the Nassau County District Attorney’s Office, the IRS-Criminal Investigation, and the U.S. Department of Labor, Office of Inspector General.
The government’s case is being prosecuted by the Office’s Public Integrity Section, the Long Island Criminal Division, and the Criminal Division’s Public Integrity Section. Assistant United States Attorneys Ryan Harris, Anthony Bagnuola, and Laura Zuckerwise, along with Trial Attorneys Jolee Porter and Jacob Steiner, are in charge of the prosecution with assistance from Paralegal Specialist Rachel Friedman. Senior Litigation Counsel Victor R. Salgado of the Criminal Division’s Public Integrity Section provided substantial contributions to the prosecution.
The Defendant:
GEORGE ANTHONY DEVOLDER SANTOS
Age: 34
Washington, District of ColumbiaE.D.N.Y. Docket No. 23-CR-197
Cincinnati man sentenced to one year & one day in prison for pandemic relief fraudRead the Press Release
CINCINNATI – Marcus Hawkins, 35, of Cincinnati, was sentenced in U.S. District Court today to 12 months and one day in prison for COVID-19 relief fraud.
As part of his conviction, Hawkins will pay $60,000 in restitution to the Small Business Administration.
According to court documents, Hawkins applied for several loans in July 2020 under the Economic Injury Disaster Loan program, which was expanded under the Coronavirus Aid, Relief and Economic Security (CARES) Act to provide payments for businesses temporarily experiencing a loss due to the pandemic.
At the time, Hawkins was self-employed, occasionally doing business as DSR Studio or DSR Studios.
In one application, Hawkins claimed his business – DSR Studio – was in the agriculture industry and employed 10 workers.
Less than three weeks later, Hawkins submitted another false application, claiming his business – DSR Studios – was in the entertainment services industry and employed five workers. In reality, Hawkins did not have any employees. In both applications, Hawkins fraudulently inflated the gross revenues of the business.
The Small Business Administration initially funded an advance in the amount of $10,000 for the business, but later determined the applications were duplicative and likely fraudulent and declined to fund the requested loan amounts. Hawkins also fraudulently applied for a loan under the entity name Road Runner Development LLC and received $50,000.
Hawkins pleaded guilty in July 2022 to making false statements to the federal government.
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 Financial Crimes Working Group Pandemic Fraud Committee announced the sentence imposed by Senior U.S. District Court Judge Susan J. Dlott. Assistant United States Attorney Ebunoluwa A. Taiwo is representing the United States in this case.
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Chelsea Man Indicted for Fentanyl Trafficking and Unlawful Reentry into the United StatesRead the Press Release
BOSTON – A Chelsea man has been indicted by a federal grand jury in Boston in connection with selling five kilograms of fentanyl to an undercover agent after unlawfully reentering the United States after deportation.
Luis Alberto German-Peguero, a/k/a “Alberto Chirry,” 32, was indicted on one count of conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl, one count of distribution of and possession with intent to distribute 400 grams or more of fentanyl, and one count of illegal reentry of a deported alien. Peguero was previously charged by complaint and arrested by federal authorities on April 14, 2023. He has been in federal custody since his arrest and will appear in federal court in Boston at a later date.
According to the charging documents, German-Peguero is a citizen of the Dominican Republic and, in November 2020, was removed from the United States following a state drug trafficking conviction out of Plymouth Superior Court, for which he served more than one year in prison.It is alleged that, sometime after his removal, German-Peguero unlawfully reentered the United States. On March 22, 2023, German-Peguero allegedly sold five kilograms of fentanyl to an undercover agent in Peabody. German-Peguero was subsequently arrested in Newton on April 14, 2023 and determined to be unlawfully present in the United States.
The charges of conspiracy and distribution of and possession with intent to distribute 400 grams or more of fentanyl after committing a prior serious drug felony provide for a mandatory minimum sentence of 15 years and up to life in prison, at least five years of supervised release and a fine of up to $10 million. The charge of illegal reentry provides for a sentence of up to 20 years in prison and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.United States Attorney Rachael S. Rollins and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorney Stephen W. Hassink of Rollins’s Narcotics & Money Laundering Unit is prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Charleston Man Pleads Guilty to Federal Gun CrimeRead the Press Release
CHARLESTON, W.Va. – Travis Devon Woods, 34, of Charleston, pleaded guilty today to being a felon in possession of a firearm.
According to court documents and statements made in court, on June 6, 2022, law enforcement officers visited Woods’ Livingston Avenue residence in Charleston to speak with him. Before opening his door for the officers, Woods tossed a Sig Sauer, model P250, .45-caliber semiautomatic pistol out a back window of his residence. Officers recovered the firearm. Woods admitted that he possessed the firearm and tossed it out the window because he knew he was prohibited from possessing a firearm.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Woods knew he was prohibited from possessing a firearm because of his prior felony convictions for being a felon in possession of a firearm in U.S. District Court for the Southern District of West Virginia on July 1, 2015, and first-degree robbery in Kanawha County Circuit Court on March 19, 2009.
Woods is scheduled to be sentenced on August 29, 2023, and faces a maximum penalty of 10 years in prison, three years of supervised release, and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Charleston Police Department.
Senior United States District Judge David A. Faber presided over the hearing. Assistant United States Attorney Troy D. Adams 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. 2:22-cr-229.
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Browning woman admits sexual abuse of minor boyRead the Press Release
GREAT FALLS — A Browning woman today admitted to sexually abusing a boy on the Blackfeet Indian Reservation, U.S. Attorney Jesse Laslovich said.
Brittany Lynn Gervais, 26, pleaded guilty to sexual abuse of a minor. Gervais faces a maximum of 15 years in prison, a $250,000 fine and not less than five 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. 4. Gervais was detained pending further proceedings.
In court documents, the government alleged that in the early morning hours of Aug. 4, 2021, a relative of the victim, identified as John Doe, was outside her residence visiting with a neighbor when she saw John Doe approach, with Gervais trailing. John Doe was 13 years old and has developmental delays. The relative saw blood on John Doe’s clothing and called an ambulance. The investigation determined that Gervais offered John Doe money to walk with her. At some point, Gervais sexually assaulted him.
Assistant U.S. Attorneys Kalah A. Paisley and Wendy A. Johnson are prosecuting the case. The FBI and Blackfeet Law Enforcement Service conducted the investigation.
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Brockton Man Arrested for Passport FraudRead the Press Release
BOSTON – A Brockton man has been arrested in connection for allegedly lying that his United States passport had been lost in order to secure a replacement to enter the country, when actually it had been confiscated by prosecuting courts in Cabo Verde following his arrest for murder.
Johnny Barros Brandao, 40, was charged with one count of passport fraud. Following an initial appearance yesterday before U.S. District Court Magistrate Judge Paul G. Levenson, Brandao was detained pending a hearing set for May 12, 2023.
According to the charging documents, on March 27, 2014, in Cabo Verde, Brandao shot an individual in the head using a .45 caliber revolver, took one million and five hundred thousand Cape Verdean Escudo and then dumped the victim’s body on the side of a road. It is further alleged that on July 26, 2021, Brandao shot and killed another individual using a 9mm caliber firearm and threw the victim’s body over a cliff.
Brandao was arrested in Cabo Verde on these charges. On Dec. 12, 2022, after a period of pretrial detention, Brandao was released subject to supervision. The Cabo Verde court also ordered that Brandao not depart Cabo Verde – confiscating his Cabo Verdean national ID card as well as his United States and Cabo Verde passports.
According to the charging documents, on Dec. 28, 2022, Brandao applied for a replacement United States passport at the U.S. Embassy in Dakar, Senegal. In the section of the form that directs the applicant to explain how his prior passport was lost or stolen, it is alleged that Brandao reported he had lost his passport while out to dinner on Dec. 25, 2022.
The charge of passport fraud provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins and Jonathan Davidson, Special Agent in Charge of U.S. Department of State’s Diplomatic Security Service, Boston Field Office made the announcement today. Valuable assistance was provided by U.S. Customs and Border Protection and the U.S. Department of Homeland Security Federal Protective Services. Assistant U.S. Attorney Meghan C. Cleary of Rollins’s Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Bowling Green Felon Indicted for Illegally Possessing a FirearmRead the Press Release
Bowling Green, KY – A federal grand jury in Bowling Green, Kentucky, returned an indictment on March 15, 2023, charging a Bowling Green felon with illegally possessing a firearm.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge R. Shawn Morrow of the ATF Louisville Field Division, and Chief Michael Delaney of the Bowling Green Police Department made the announcement.
According to the indictment, on February 5, 2023, Kaylin Maxie, 28, possessed a Sig Sauer P365 Nitron, nine-millimeter semiautomatic pistol, after having been convicted of the following offenses. On April 12, 2021, in Warren Circuit Court, Maxie was convicted of first-degree possession of a controlled substance and possession of a firearm by a convicted felon. On August 27, 2019, in Warren Circuit Court, Maxie was convicted of trafficking in a controlled substance in the first degree.
Maxie had a detention hearing before a U.S. Magistrate Judge in the Western District of Kentucky this week and he was ordered detained pending trial. If convicted, Maxie faces a maximum sentence of 15 years in prison. A federal district court judge will determine any sentence after considering the sentencing guidelines and other statutory factors. There is no parole in the federal system.
This case is being investigated by the ATF Bowling Green Field Office and the Bowling Green Police Department.
Assistant U.S. Attorney Mark J. Yurchisin II, of the U.S. Attorney’s Bowling Green Branch Office, is prosecuting this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Boston Man Pleads Guilty to Distributing 7,000 Pills Containing Fentanyl and Fentanyl AnalogueRead the Press Release
BOSTON – A Boston man pleaded guilty today to drug distribution offense involving fentanyl and a fentanyl analogue known as para-fluorofentanyl.
Melvin Cordero, 41, pleaded guilty to one count of distribution of and possession with intent to distribute fentanyl and p-fluorofentanyl. U.S. District Court Judge Richard G. Stearns scheduled sentencing for Aug. 30, 2023.
On March 15, 2022, Cordero delivered 7,000 pills containing fentanyl and para-fluorofentanyl to an individual who was cooperating with federal law enforcement. The buy was part of a broader federal investigation into a drug-trafficking organization based in the Dominican Republic. Cordero delivered the pills to the cooperator in Boston’s South End. Cordero was arrested and charged in November 2022. Following Cordero’s arrest, law enforcement seized from him a machine used for manufacturing counterfeit pills that he had attempted to sell to an undercover officer.
The charge of distribution of and possession with intent to distribute fentanyl and p-fluorofentanyl provides for a sentence of up to 20 years in prison, at least three years and up to a lifetime of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.United States Attorney Rachael S. Rollins and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement today. Valuable assistance was provided by the DEA New York Field Office, the Boston Police Department and the Massachusetts State Police. Assistant U.S. Attorney Samuel R. Feldman of Rollins’ Narcotics & Money Laundering Unit is prosecuting the case.
Bloomington Man Found Guilty After Federal Trial for Downloading and Possessing Videos and Images Depicting Child Sexual AbuseRead the Press Release
INDIANAPOLIS- A federal jury has found James Lee Willis, 40, of Bloomington, Indiana, guilty of receiving and possessing child sexual abuse material.
According to court documents and evidence introduced at trial, in January 2018, law enforcement officers first became aware of Willis’s online activity when an IP address that later traced to his house showed downloads of videos and images that depicted minors engaging in sexually explicit conduct. Some files depicted very graphic material of minors under 10 years old being sexually abused and raped by adult men.
In February 2018, law enforcement officers searched Willis’s Bloomington residence and found electronic devices containing evidence that Willis had searched for and downloaded child sexual abuse material over the internet. The digital forensic evidence from the devices again demonstrated Willis’s interest in videos and images of minors as young as 10 years old being sexually abused, including evidence of when Willis downloaded the material and evidence of when he watched it on the devices.
In all, the evidence showed that on dates in January and February 2018, Willis downloaded and watched dozens of files from the internet that contained videos and images of child sexual exploitation.
U.S. Attorney Zachary A. Myers and Herbert J. Stapleton, Special Agent in Charge of the FBI’s Indianapolis Field Office made the announcement.
This case was investigated by the Federal Bureau of Investigation and the Indiana Internet Crimes Against Children (ICAC) Task Force, a partnership of federal, state, and local law enforcement agencies led by the Indiana State Police. The Task Force is dedicated to investigating and prosecuting crimes involving the technology-facilitated sexual exploitation of children and the trafficking of child sexual abuse material. Each year, Indiana ICAC investigators evaluate thousands of tips, investigate hundreds of cases, and rescue dozens of children from ongoing sexual abuse.
U.S. Attorney Myers thanked Assistant U.S. Attorneys Kristina M. Korobov and Adam Eakman, who prosecuted this case.
U.S. District Court Judge Jane E. Magnus-Stinson presided over the trial and will sentence Willis at a later date. Willis faces a prison sentence of a minimum of 5 years, up to 20 years, for each of the 5 charges related to his downloading activity, and from 0 to 20 years for the charge relating to his possession of the material. Willis also faces a period of supervision of 5 years, up to life, following his release from prison, and he must register as a sex offender wherever he lives, works, or goes to school. Actual sentences are determined by a federal district court judge and are typically less than the maximum penalties.
If you are a victim of child sexual exploitation, please contact your local police department. Resources for victims of child exploitation can be found on our website at https://www.justice.gov/usao-sdin/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 U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc
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Attempted "Straw" Firearm Purchaser Sentenced to One Year in PrisonRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Taylor A. Kratochwill-Loomis, 22, DeForest, Wisconsin, was sentenced today by U.S. District Judge William M. Conley to one year and one day in prison for making false statements while attempting to purchase a firearm for a prohibited person. This is commonly known as a “straw purchase.” Kratochwill-Loomis pled guilty to this offense on January 18, 2023.
On November 30, 2021, Kratochwill-Loomis entered Top Pack Defense, Sun Prairie, Wisconsin and attempted to purchase a Glock handgun for Deontrae McIntosh, who was prohibited from purchasing a handgun because of his age and the fact that he was facing felony charges in Wisconsin State court. Her attempted transaction was video recorded through the store’s surveillance system. On the required purchase forms, Kratochwill-Loomis falsely stated that she was purchasing the firearm for herself and not for another person. McIntosh also pled guilty to attempting to obtain a firearm using false statements—through Kratochwill-Loomis—and was sentenced to five years of probation on March 22, 2023.
Top Pack Defense Staff refused to sell the firearm, correctly suspecting that Kratochwill-Loomis was attempting to purchase the handgun for another person. Immediately following that failed attempt, Kratochwill-Loomis and McIntosh, who was waiting in a car outside, went to the Cabela’s store in Sun Prairie, where Kratochwill-Loomis again tried to purchase a Glock handgun for McIntosh. Sun Prairie police investigators interrupted the second purchase attempt at Cabela’s, interviewing and ultimately arresting Kratochwill-Loomis and McIntosh.
In sentencing Kratochwill-Loomis, Judge Conley stated, “Gun violence is out of control. Straw purchasers fuel the problem by placing firearms in the hands of prohibited persons.”
U.S. Attorney O’Shea said, “Each week we learn anew—over and over and over—about the danger guns pose when they fall into the wrong hands. Straw purchasers, those who lie to obtain firearms for others, are part of the problem. The U.S. Attorney’s Office, together with our law enforcement partners and in cooperation with licensed firearm dealers, has zero tolerance for straw purchasers who buy or attempt to buy firearms for people who cannot legally purchase them.”
The charges against Kratochwill-Loomis and McIntosh were the result of an investigation conducted by Sun Prairie Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. U.S. Attorney O’Shea prosecuted this case.
Atlanta drug trafficking organization has been successfully dismantledRead the Press Release
ATLANTA - Esteban Niere has been sentenced for conspiring to distribute cocaine and methamphetamine. Niere was a member of a drug trafficking organization operating in southwest Atlanta that was successfully disrupted following a federal, state, and local law enforcement investigation.
“This group of drug traffickers targeted vulnerable communities in our district for distributing illegal narcotics,” said U.S. Attorney Ryan K. Buchanan. “Through the diligent efforts of our federal, state, and local law enforcement partners, we dismantled the organization’s distribution chain and prosecuted the suppliers. This case demonstrates our commitment to removing dangerous drugs from our streets as well as the dealers who peddle them.”
“The DEA is committed to deploying resources to combat and interrupt the dangerous drug trafficking organizations that have set up business in the Atlanta area,” said Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Division. “We will continue to work aggressively to hold accountable those who are trafficking dangerous drugs.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: In 2019, DEA special agents identified a prolific drug trafficker, Kevin Clark, who coordinated multiple narcotics transactions in and around his residence in southwest Atlanta. Through an investigation that followed, law enforcement was able to disrupt and eventually dismantle a drug trafficking organization comprising Clark’s sources-of-supply, including Esteban Niere, Alejandro Elias-Miranda, and Eduardo Gutierrez, and mid-level traffickers, including Christopher Jones, Christopher Allen, and Tierre Freeman. Law enforcement also seized multiple vehicles, firearms, cash, and jewelry, which were used in the commission, or purchased with the proceeds, of the offenses.
Each of the following defendants in the case pleaded guilty to the charge of drug trafficking conspiracy and received the following sentences imposed by U.S. District Judge Michael L. Brown:
- Kevin Clark, 46, of Atlanta, Georgia, entered a guilty plea to the drug trafficking conspiracy and received a sentence of seven years, three months in prison, to be followed by five years of supervised release.
- Esteban Niere, a/k/a “Perfecto Neri-Diaz,” 50, of San Luis Potosi, Mexico, entered a guilty plea to the drug trafficking conspiracy and received a sentence of ten years in prison, to be followed by five years of supervised release.
- Eduardo Gutierrez, a/k/a “Santos Campos-Rios,” 43, of Morelia, Mexico, entered a guilty plea to the drug trafficking conspiracy and received a sentence of sentence of six years, eight months in prison, to be followed by five years of supervised release.
- Christopher Jones, 42, of Norcross, Georgia, entered a guilty plea to the drug trafficking conspiracy and received a sentence of 15 years in prison, to be followed by 10 years of supervised release.
- Tierre Freeman, a/k/a “Tierre Ford,” 46, of Stockbridge, Georgia, entered a guilty plea to the drug trafficking conspiracy and received a sentence of 10 years in prison, to be followed by four years of supervised release.
- Christopher Allen, 48, of Austell, Georgia, entered a guilty plea to the drug trafficking conspiracy and received a sentence of two years in prison, to be followed by four years of supervised release.
- Lamon Brown, 50, of Jonesboro, Georgia, entered a guilty plea to the drug trafficking conspiracy and received a sentence of two years, seven months in prison, to be followed by three years of supervised release.
- Alejandro Elias-Miranda, 37, of Toluca, Mexico, entered a guilty plea to the drug trafficking conspiracy and received a sentence of six years, eight months in prison, to be followed by eight years of supervised release.
This case was investigated by the Drug Enforcement Administration, the U.S. Marshals Service, and the Georgia Bureau of Investigation, with valuable assistance provided by the Georgia State Patrol, Atlanta Police Department, Gwinnett County Police Department, Henry County Police Department, Douglasville Police Department, Rockdale County Sheriff’s Office, Cartersville Police Department, Forsyth County Sheriff’s Office, Covington Police Department, Troup County Sheriff’s Office, and the Lee County Sheriff’s Office.
Assistant U.S. Attorney C. Brock Brockington prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Atlanta Man Sentenced to 97 Months in PrisonRead the Press Release
SOUTH BEND – Mylin Murel, 20 years old, of Atlanta, GA, was sentenced by United States District Court Judge Robert L. Miller, Jr. after pleading guilty to stealing firearms from a federally licensed firearms dealer, announced United States Attorney Clifford D. Johnson.
Murel was sentenced to 97 months in prison followed by 3 years of supervised release.
According to documents in the case, in June 2021, Murel broke into a federal firearms licensed dealer’s store and stole 15 handguns, a shotgun, 2 sound suppressors, and ammunition. In the days following the burglary, Murel spoke with other individuals about buying/selling firearms. As part of these conversations, Murel exchanged a photo of numerous guns he had stolen. Murel sold one of the stolen firearms to an individual for $650.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the South Bend Police Department. This case was prosecuted by Assistant United States Attorneys Joel Gabrielse and Jerome W. McKeever.
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.
Alexandria Man Sentenced for Fatal Fentanyl Trafficking ConspiracyRead the Press Release
ALEXANDRIA, Va. – An Alexandria man was sentenced today to 15 years in prison for conspiring to distribute 400 grams or more of fentanyl that resulted in the death of a young woman.
According to court documents, from around July 2020 through June 2021, Reza Hashemi, 34, distributed over 400 grams of fentanyl in Northern Virginia. Hashemi was identified following the October 24, 2020, overdose death of a 22-year-old male, J.V., in Vienna. Hashemi admitted to distributing pressed counterfeit pills containing fentanyl to J.V. During the course of the investigation into J.V.’s death, law enforcement approached Hashemi and informed him of the death, but he continued to distribute fentanyl.
On May 28, 2021, in Alexandria, Hashemi distributed an approximate 1-gram quantity of powder fentanyl to J.F., which caused J.F.’s death by accidental fentanyl poisoning. J.F. was 26 years old at the time.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Kevin Davis, Fairfax County Chief of Police, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema.
Assistant U.S. Attorneys Heather Call and Bibeane Metsch prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:23-cr-1.
Ada Resident Sentenced for Bank RobberyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Matthew Thomas Pettigrew, age 42, of Ada, Oklahoma, was sentenced to 46 months for Bank Robbery on April 6, 2023.
The charge arose from an investigation by the Ada Police Department and the Federal Bureau of Investigation.
On November 15, 2021, Pettigrew entered the Citizens Bank of Ada, a federally insured financial institution, and demanded money. The following day law enforcement officers tracked Pettigrew to a casino, where he was arrested.
On March 9, 2022, Pettigrew pleaded guilty to one count of Bank Robbery.
The Honorable Charles B. Goodwin, United States District Judge for the Eastern District of Oklahoma, presided over the case and sentenced Pettigrew in Oklahoma City, Oklahoma. Pettigrew was remanded to the custody of the U.S. Marshal at the conclusion of his sentencing. He will remain in custody pending transportation to a designated United States Bureau of Prisons facility to serve his sentence of incarceration.
Assistant United States Attorney Cameron McEwen represented the United States.
A Mexican Citizen Previously Convicted of Criminal Sexual Conduct Arrested for Being in the United States UnlawfullyRead the Press Release
DETROIT – A citizen of Mexico, who had been convicted of Criminal Sexual Conduct and was previously removed from the United States, was recently arrested on a criminal complaint by U.S. Border Patrol Agents for unlawfully being in the United States, announced United State Attorney Dawn N. Ison. This case is the latest example of 26 individuals prosecuted by the U.S. Attorney’s Office this year who were illegally in the United States, most of whom had previously been convicted of serious criminal offenses.
Ison was joined in the announcement by Chief Patrol Agent Robert Danley, United States Border Patrol, Detroit Sector.
Arrested was Pedro Zarate-Banos, age 49. Zarate appeared in federal court in Detroit yesterday and has a detention hearing scheduled for May 10.
According to court records, Border Patrol agents from the Detroit station received information that Zarate-Banos was illegally present in the United States. After further investigation, they discovered that Zarate-Banos was previously removed from the United States as an aggravated felon. Agents located Banos and conducted a vehicle stop in Macomb, Michigan. After a brief interview, Zarate-Banos admitted to being illegally present in the United States. Zarate-Banos was convicted on December 2, 2002, in 22nd Circuit Court in Ann Arbor, of 3rd Degree Criminal Sexual Conduct, and was formally removed from the United States on September 20, 2005.
“Our office is dedicated to enforcing our immigration laws prohibiting deported non-citizens, particularly those who commit serious felony offenses, from re-entering the United States without first seeking prior authority and approval,” said U.S. Attorney Ison.
““I’m proud of our agents’ hard work and investigative skills that led to this arrest. Their actions have made our community safer,” said Chief Patrol Agent Robert Danley, U.S. Border Patrol Detroit Sector.
Since January 2023, the U.S. Attorney’s Office for the Eastern District of Michigan has prosecuted 26 individuals unlawfully in the United States, most of whom have prior criminal convictions for violent crimes, drug trafficking, weapons offenses, drunk driving, or theft/larceny offenses. Most of these defendants have previously been removed from the United States by immigration authorities multiple times. Some of these cases include:
United States v. Bullard
Alfred Bullard, age 40, a citizen of the Bahamas, was convicted in February 2023 of being an unlawful alien in possession of a firearm. Bullard had been arrested by Detroit police officers after federal agents conducting surveillance observed him firing a gun into the air. Bullard admitted to firing the gun in order to frighten away unknown cars traveling in his neighborhood. Bullard has pleaded guilty in federal court and is awaiting sentencing.
United States v. Pena-Moreno
Nolbed Y. Pena-Moreno, age 25, a citizen of Honduras, was arrested by Detroit police officers in March 2023 after he fired a .40 caliber pistol in a Detroit neighborhood. Pena-Moreno was indicted by a federal grand jury in April 2023 for being an unlawful alien in possession of a firearm. This case is set for trial on May 23, 2023.
United States v. Al-Hakiem
Vires Al-Hakiem, age 43, is a native of Iraq and citizen the Netherlands, who was unlawfully in the United States. In June 2021, he sent a text message containing a video to his then spouse threatening her with a gun. A subsequent search of Al-Hakiem’s bedroom found six firearms and over 2,600 rounds of ammunition. Al-Hakiem has prior criminal arrests for Assault and Battery, Domestic Violence, Drug Possession, Malicious Destruction of Property, and Larceny. In January 2023, Al-Hakiem pleaded guilty in federal court to being an unlawful alien in possession of a firearm and ammunition, and he is scheduled to be sentenced on May 31, 2023.
United States v. Chilel-Lopez
Bairon Chilel-Lopez, age 24, is citizen of Guatemala, who was arrested in 2021 by the Detroit police after he shot a female victim in an alley in southwest Detroit, and he pushed her from the vehicle. Chilel-Lopez was charged in state court with Assault with Intent to Do Great Bodily Harm and firearms offenses. Those charges remain pending. Chilel-Lopez was unlawfully in the United States and had been removed on multiple occasions. He also has prior convictions for immigration offenses and driving while intoxicated. Chilel-Lopez was sentenced in federal court on January 5, 2023, to 57 months in prison for illegal re-entry into the United States and for being an unlawful alien in possession of a firearm.
United States v. Garcia-Zecena
Cesar Augusto Garcia-Zecena, age 32, is a citizen of Guatemala who had illegally entered the United States multiple times and had been removed from the country on three prior occasions. In 2022, Garcia-Zecena was convicted in state court of assault with a dangerous weapon after he attempted to rape an Ann Arbor woman. On May 9, 2023, Garcia-Zecena pleaded guilty in federal court to unlawful re-entry after removal, and he is scheduled to be sentenced on June 29, 2023.
United States v. Solis-Pena
Emilio Solis-Pena, age 47, is a citizen of Mexico, who had six prior removals from the United States and a lengthy criminal record. His prior convictions included a 2007 conviction in Texas for conspiracy to possess with intent to distribute cocaine and for conspiracy to launder money, for which he received a sentence of 87 months. In 2019, Solis-Pena was convicted in Michigan of delivery/manufacture of 1000 grams or more of controlled substances, and he was sentenced to 7 to 40 years. On May 4, 2023, Solis-Pena was indicted in federal court for the crime of unlawful re-entry into the United States.
A complaint is only a charge and is not evidence of guilt. Trial cannot be held on felony charges in a complaint. When the investigation is completed, a determination will be made whether to seek a felony indictment.
9 May 2023
Министерство Юстиции Сша Объявляет О Санкционированном Судом Пресечении Деятельности Вредоносной Сети «snake», Контролируемой Федеральной Службой Безопасности РоссииRead the Press Release
БРУКЛИН, НЬЮ-ЙОРК – Сегодня, Министерство юстиции США объявило о завершении санкционированной судом операции под кодовым названием «МЕДУЗА» по пресечению деятельности глобальной одноранговой сети компьютеров, зараженных высокотехнологичным вредоносным ПО под названием «Snake», которое правительство Соединенных Штатов связывает с подразделением в Центре 16 Федеральной службы безопасности Российской Федерации (ФСБ). На протяжении почти 20 лет данное подразделение, упоминаемое в судебных документах как «Турла», использовало версии вредоносного ПО «Snake» для хищения конфиденциальных документов в, по крайней мере 50 странах, из сотен компьютерных систем, принадлежащих правительствам стран-членов Организации Североатлантического договора (НАТО), журналистам и другим объектам внимания представляющих интерес для Российской Федерации. После хищения данных документов, «Турла» извлекала их через негласную сеть компьютеров в Соединенных Штатах и по всему миру, заражённых ПО «Snake» без ведома их владельцев.
В результате операции «MEDUSA» вредоносное ПО «Turla Snake» на заражённых компьютерах было отключено с помощью созданного ФБР инструмента под названием «PERSEUS», который давал команды, заставившие вредоносное ПО «Snake» перезаписать собственные ключевые компоненты. На территории США операция была проведена ФБР в соответствии с ордером на обыск, выданным федеральным судьей-магистратом Восточного округа Нью-Йорка Шерил Л. Поллак, санкционировавшим удаленный доступ к заражённым компьютерам. Сегодня утром, суд разгласил отредактированные версии письменного показания под присягой, представленного в обоснование ходатайства о выдаче ордера на обыск, и самого ордера на обыск, выданного судом. В целях содействия потерпевшим за пределами Соединенных Штатов, ФБР взаимодействует с местными властями, как предоставляя уведомления о заражениях ПО «Snake» так и рекомендации по принятию корректировочных мер, в странах под юрисдикцией местных властей.
Меррик Б. Гарланд, Генеральный прокурор США; Брион Пис, федеральный прокурор США по Восточному округу Нью-Йорка; Лиза О. Монако, заместитель Генерального прокурора США, Министерство юстиции США и Майкл Д. Дрисколл, заместитель директора-начальник Нью-Йоркского регионального отделения ФБР, объявили о данной операции.
«Министерство юстиции вместе с нашими международными партнерами ликвидировало глобальную сеть зараженных вредоносным ПО компьютеров, которую российское правительство использовало в течение почти двух десятилетий для ведения кибершпионажа, в том числе против наших союзников по НАТО», — заявил Генеральный прокурор Гарланд. «Мы будем продолжать укреплять нашу коллективную оборону против дестабилизирующей деятельности российского режима по подрыву безопасности Соединенных Штатов и наших союзников».
«Россия использовала высокотехнологичное вредоносное ПО для хищения конфиденциальной информации у наших союзников, маскируя её пропуском через сеть зараженных компьютеров в Соединенных Штатах, цинично пытаясь скрыть свои преступления. Ответ на угрозу кибершпионажа требует творческого подхода и готовности использовать все законные средства для защиты нашей страны и наших союзников», — заявил федеральный прокурор США Пис. «Санкционированные судом обыск и работы по устранению последствий заражения, проведенные в удаленном режиме и объявленные сегодня, демонстрируют приверженность моего Управления и наших партнеров к использованию всех инструментов, имеющихся в нашем распоряжении, для защиты американского народа».
«Благодаря высокотехнологичной операции, которая обратила российское вредоносное ПО против себя, правоохранительные органы США нейтрализовали один из российских инструментов кибершпионажа высочайшего уровня, применяемого в течение двух десятилетий для продвижения авторитарных целей России», — заявила заместитель Генерального прокурора Лиза Монако. «Сочетая эту операцию с обнародованием информации, необходимой потерпевшим для самозащиты, Министерство юстиции продолжает ставить потерпевших в центр внимания в нашей работе по борьбе с киберпреступностью и активно сражаться со злоумышленниками в киберпространстве».
«Операция, о которой мы сегодня объявили, успешно пресекла деятельность ведущего инструмента кибершпионажа российского правительства. В течение двух десятилетий вредоносное ПО позволяло российской разведке заражать компьютерные системы и похищать конфиденциальную информацию, нанося ущерб не только правительству США и нашим союзникам, но и частному сектору. Это должно послужить напоминанием России и любой другой враждебной стране, готовой похищать информацию, что ФБР и наши партнеры сполчены в наших усилиях по защите наших стран», – заявил заместитель директора-начальник Нью-Йоркского регионального отделения ФБР Дрисколл.
Как подробно описано в судебных документах, правительство США уже почти 20 лет расследует вредоносное ПО «Snake» и связанные со «Snake» инструменты. Государственные органы США следят за сотрудниками ФСБ, прикомандированными к «Турла» и проводящими ежедневные операции с применением «Snake» с установленного объекта ФСБ в городе Рязань, РФ.
Хотя ПО «Snake» было предметом нескольких отчетов в области кибербезопасности на протяжении всего своего существования, «Turla» осуществляла многочисленные обновления и редакции, и выборочно применяла его с тем чтобы ПО «Snake» оставалось самым высокотехнологичным долгосрочным внедрением вредоносного ПО, применяемым ФСБ в кибершпионаже. В случае непресечения его деятельности, внедрение ПО «Snake» на зараженных компьютерах, сохраняется в системе на неопределенное время, как правило, оставаясь незамеченным владельцем компьютера или его авторизованными пользователями. По наблюдениям ФБР, ПО «Snake» остается на некоторых компьютерах, несмотря на усилия потерпевшего по устранению заражения.
ПО «Snake» даёт операторам «Турла» возможность удаленного применения отдельных вредоносных программ для расширения функциональности «Snake» в целях выявления и хищения конфиденциальной информации и документов, хранящихся на определенных компьютерах. Прежде всего, набор зараженных «Snake» компьютеров по всему миру, действует как негласная одноранговая сеть, применяющая оптимизированные протоколы передачи данных, предназначенные для препятствования мониторингу и сбору данных, службами радиотехнической разведки Западных и иных стран.
Для маршрутизации данных, извлеченных из целевых систем для передачи операторам «Turla» в России, через многочисленные ретрансляционные узлы, разбросанные по всему миру, «Турла» использует сеть «Snake». Например, ФБР и партнеры ФБР из разведывательного сообщества США, совместно с государственными органами стран-союзников, следили за использованием ФСБ сети «Snake» для извлечения данных из конфиденциальных компьютерных систем, в том числе, систем применяемых правительствами стран-членов НАТО, путем маршрутизации этих данных через компьютеры, зараженные «Snake» в США, без ведома их владельцев.
Как описано в судебных документах, с помощью анализа вредоносной программы «Snake» и сети «Snake», ФБР разработало метод расшифровывания и декодирования обмена информацией в сети «Snake». Используя информацию, собранную посредством наблюдения за сетью «Snake» и анализа вредоносного ПО «Snake», ФБР разработало инструмент под названием «PERSEUS», который устанавливает сеансы связи с внедрением вредоносного ПО «Snake» на определенном компьютере. Впоследствии, «PERSEUS» выдает команды, вызывающие самостоятельное отключение внедрения «Snake» без причинения ущерба самому компьютеру или легитимным программам, установленным на компьютере.
Сегодня, для поддержки сетевых защитников по всему миру, ФБР, Агентство национальной безопасности, Агентство по кибербезопасности и защите инфраструктуры, Национальная миссия по кибербезопасности при Киберкомандовании США, и шесть других спецслужб и агенств по кибербезопасности каждой из стран-участников альянса «Пять глаз», опубликовали совместную рекомендацию по кибербезопасности («Совместная рекомендация»), содержащую подробную техническую информацию о вредоносном ПО «Snake», которую специалисты по кибербезопасности смогут применять для идентификации и защиты от новых заражений вредоносным ПО «Snake» в их сетях. С Совместной рекомендацией можно ознакомиться здесь. ФБР и Государственный департамент США также предоставляют дополнительную информацию местным властям в странах, где были обнаружены компьютеры, подвергшиеся заражению вредоносным ПО «Snake».
Несмотря на то, что операция «MEDUSA» отключила вредоносное ПО «Snake» на заражённых компьютерах, пострадавшим следует принять дополнительные меры для предотвращения дальнейшего ущерба. Операция по отключению «Snake» не устранила уязвимости, не искала и не удаляла какие-либо другие вредоносные программы или средства взлома, которые группы хакеров могли разместить в сетях пострадавших. Министерство юстиции настоятельно призывает сетевых защитников ознакомиться с Совместной рекомендацией для получения дальнейших указаний по обнаружению уязвимостей и установлению корректировочных патч-файлов. Более того, как отмечалось в судебных документах, «Турла» часто использует «кейлоггер» вместе со «Snake», который «Турла» может использовать для хищения учетных данных, например, имен пользователей и паролей легитимных пользователей. Потерпевшим следует знать, что «Турла» может использовать эти похищенные учетные данные для восстановления доступа к зараженным компьютерам и другим учетным записям мошенническим путем.
ФБР уведомляет всех владельцев или операторов компьютеров, доступ к которым был произведен в удаленном режиме в соответствии с ордером на обыск, о проведении санкционированной судом операции.
Уголовное расследование использования вредоносного ПО «Snake» ФСБ проводит Управление прокуратуры по национальной безопасности и Управление прокуратуры по борьбе с киберпреступностью. Заместитель федерального прокурора Иэн Ричардсон отвечает за расследование, при содействии Отдела контрразведки и экспортного контроля Управления по национальной безопасности.
Меры по пресечению работы сети вредоносного ПО «Snake» были осуществлены под руководством Нью-Йоркского регионального управления ФБР, Управлением ФБР по борьбе с киберпреступностью, Федеральной прокуратурой США по Восточному округу Нью-Йорка и Отделом контрразведки и экспортного контроля Управления по национальной безопасности. Содействие было также оказано Отделом по компьютерным преступлениям и интеллектуальной собственности Управления по борьбе с уголовной преступностью.
Эти усилия не увенчались бы успехом без сотрудничества многочисленных структур частного сектора, включая тех потерпевших, которые позволили ФБР наблюдать за потоком информации «Snake» в своих системах.
Ордер на обыск:
Относительно поиска информации, связанной с компьютерами, составляющими сеть вредоносного программного обеспечения «Snake».
Реестр Восточного округа Нью-Йорка № 23-MJ-0428 (CLP)
Whatcom County contractor sentenced to two years in prison for failing to pay more than $1 million in employment taxes on employeesRead the Press Release
Seattle – A 64-year-old Everson, Washington, man was sentenced today in U.S. District Court in Seattle to two years in prison for failing to pay over taxes, announced U.S. Attorney Nick Brown. Between 2013 and 2019, Jay Howard Prather owned and operated Heritage General Building Contractors. He had as many as 48 employees over that period and withheld $1,095,388 in Social Security, Medicare, federal income taxes, and unemployment taxes from his employees’ paychecks. Then, instead of paying the money to federal programs as required, he used the money to buy expensive horses, exotic sportscars, and to remodel his multi-million-dollar lavish estate. At the sentencing hearing, U.S. District Judge John C. Coughenour said Prather “was warned several times that his conduct was illegal.”
“Mr. Prather stole from his employees and continued to do so even after he was confronted by those employees and by his accountant. He simply had no respect for the law or any concern about how his actions would impact his employees in the future,” said U.S. Attorney Nick Brown. “Instead, he spent money that should have gone to their Social Security and Medicare accounts on his personal luxuries: $200,000 for thoroughbred horses and more than $360,000 on three Porsche automobiles.”
According to records filed in the case, several employees confronted Prather about his failure to pay over the money he had withheld from their paychecks. In 2017, he met with an accountant who told him his tax obligation was significant. Prather sought to limit his payment to the two former employees who were threatening to sue him if he did not pay. The accountant told him that was not possible. Prather stopped communicating with the accountant and never paid the taxes owed.
Even as Prather refused to pay the taxes he owed for his employees, he used their labor, and the money he withheld, to build and remodel his luxurious estate in rural Whatcom County.
In 2020 he formed a new custom cabinet company, Artisan Builders Inc. According to an affidavit from investigators, to date Prather has not paid the taxes he withheld from the two employees of that company.
“Mr. Prather made the wrong decision when he chose to buy horses and Porsches for his own fun over doing the lawful, right, and mandatory thing,” said Special Agent in Charge Bret Kressin, IRS Criminal Investigation (IRS:CI), Seattle Field Office. “Mr. Prather abused his employees’ trust when he spent their withholdings for his own unjust enrichment.”
Judge Coughenour imposed a restitution obligation of $1,095,388.
The case was investigated by the Internal Revenue Service: Criminal Investigation.
The case was prosecuted by Assistant United States Attorney Erika Evans.
West Virginia man gets 15 years for role in drug conspiracyRead the Press Release
WHEELING, WEST VIRGINIA – A Wheeling, West Virginia, man was sentenced today to more than 15 years in prison for his role in distributing controlled substances on behalf of the region’s most prominent drug trafficker.
Ronald Shaw, also known as “Fuzz,” 51, was ordered to serve 188 months in prison after having previously pled guilty to possession with intent to deliver methamphetamine. Shaw admitted to having nearly half of a kilogram of methamphetamine near Overbrook Playground in Wheeling. Shaw also possessed almost half of a kilogram of cocaine.
U.S. District Judge John Preston Bailey considered evidence regarding Shaw’s involvement with the trafficking network led by Personne “Rico” McGhee. McGhee, who is presently under federal indictment, is alleged to have led an organization connected to the Sinaloa drug cartel in Mexico, as well as to drug dealers in Ohio and California.
“Ronald Shaw played a key role in distributing drugs on behalf of Rico McGhee,” said United States Attorney William Ihlenfeld. “The reason the McGhee organization was successful was due to individuals like Mr. Shaw, who helped to redistribute narcotics shipped here from Mexico.”
The case was investigated by the Ohio Valley Drug Task Force, which includes officers from the Wheeling Police Department, the West Virginia State Police, the Ohio County Sheriff’s Department, and the Drug Enforcement Administration.
The Belmont County (OH) Sheriff’s Office and the Belmont County Prosecutor’s Office provided important assistance. The investigation was supported by the ATF, the Marshall County Drug Task Force, and the Hancock-Brooke-Weirton Drug Task Force, the Allegheny County (PA) Police, and the U.S. Marshals Service.
Assistant U.S. Attorney Shawn Adkins prosecuted the case on behalf of the government.
Read more about related cases here: https://www.justice.gov/usao-ndwv/pr/federal-indictment-cuts-major-source-west-virginia-drug-supply
This press release corrected the original version, updating the drug weight amount.
Wasilla Man Indicted for Operating Aircraft without an Airman’s Certificate Following 2022 CrashRead the Press Release
ANCHORAGE – A federal grand jury in Alaska returned an indictment on April 21, 2023, charging a Wasilla man with serving as an airman without an airman’s certificate and displaying false or misleading marks about the registration of an aircraft.
According to court documents, Michael Anthony Roberts, 61, served as an airman without an airman’s certificate when he piloted Piper PA-18 registered as N99640, at Wolf Lake Airport, Wasilla, Alaska on February 27, 2022. The aircraft crashed on takeoff. The indictment also charges that Roberts displayed a false or misleading mark on the Piper PA-18 about the registration of the aircraft.
Roberts is charged with one count of serving as an airman without a pilot certificate, in violation of 49 U.S.C. § 46306(b)(7) and one count of displaying false or misleading marks about the registration of an aircraft, in violation of 49 U.S.C. § 46306(b)(3). If convicted, he faces a maximum penalty of three years in prison and a $250,000 fine on each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The defendant had his initial court appearance on May 9, 2023, before U.S. Magistrate Judge Matthew M. Scoble of the U.S. District Court for the District of Alaska, where he was ordered to be detained pending trial.
U.S. Attorney S. Lane Tucker of the District of Alaska made the announcement.
The Office of the Inspector General for the Department of Transportation, the Federal Aviation Administration, and the Alaska State Troopers are investigating the case.
Assistant U.S. Attorney Seth Brickey is prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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usao/ak/23-037
U.K. Citizen Extradited and Pleads Guilty to Cyber Crime OffensesRead the Press Release
A U.K. citizen pleaded guilty today in New York to his role in cyberstalking and multiple schemes that involve computer hacking, including the July 2020 hack of Twitter.
Joseph James O’Connor, aka PlugwalkJoe, 23, was extradited from Spain on April 26.
“O’Connor’s criminal activities were flagrant and malicious, and his conduct impacted multiple people’s lives. He harassed, threatened, and extorted his victims, causing substantial emotional harm,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “Like many criminal actors, O’Connor tried to stay anonymous by using a computer to hide behind stealth accounts and aliases from outside the United States. But this plea shows that our investigators and prosecutors will identify, locate, and bring to justice such criminals to ensure they face the consequences for their crimes.”
“O’Connor has left an impressive trail of destruction in the wake of his wave of criminality,” said U.S. Attorney Ismail J. Ramsey for the Northern District of California. “This case serves as a warning that the reach of the law is long, and criminals anywhere who use computers to commit crimes may end up facing the consequences of their actions in places they did not anticipate.”
“O’Connor used his sophisticated technological abilities for malicious purposes – conducting a complex SIM swap attack to steal large amounts of cryptocurrency, hacking Twitter, conducting computer intrusions to take over social media accounts, and even cyberstalking two victims, including a minor victim,” said U.S. Attorney Damian Williams for the Southern District of New York. “O’Connor’s guilty plea today is a testament to the importance of law enforcement cooperation, and I thank our law enforcement partners for helping to bring to justice those who victimize others through cyber-attacks.”
“Today’s guilty plea is confirmation that the FBI’s strategy to counter cyber crime is working. It’s also indicative of what can be accomplished when we work closely with our partners to bring these perpetrators to justice and make the cyber ecosystem more secure,” said Assistant Director Bryan Vorndran of the FBI’s Cyber Division. “O'Connor's extradition is as a warning to all dangerous cyber criminals that the FBI will work tirelessly to find them and hold them accountable wherever in the world they may try to hide.”
NDCA Case
According to court documents, between 2019 and 2020, O’Connor participated in a variety of crimes associated with exploitation of social media accounts, online extortion, and cyberstalking.
In July 2020, O’Connor participated in a conspiracy to gain unauthorized access to social media accounts maintained by Twitter Inc. (Twitter). In early July 2020, O’Connor’s co-conspirators used social engineering techniques to obtain unauthorized access to administrative tools used by Twitter to maintain its operations. The co-conspirators were able to use the tools to transfer control of certain Twitter accounts from their rightful owners to various unauthorized users. In some instances, the co-conspirators took control themselves and used that control to launch a scheme to defraud other Twitter users. In other instances, the co-conspirators sold access to Twitter accounts to others. O’Connor communicated with others regarding purchasing unauthorized access to a variety of Twitter accounts, including accounts associated with public figures around the world. A number of Twitter accounts targeted by O’Connor were subsequently transferred away from their rightful owners. O’Connor agreed to purchase unauthorized access to one Twitter account for $10,000.
O’Connor also accessed without authorization one of the most highly visible TikTok accounts in August 2020, which was associated with a public figure with millions of followers (Victim-1). O’Connor and his co-conspirators obtained unauthorized access to Victim-1’s account via a SIM swap after discussing a variety of celebrities to target, and O’Connor used his unauthorized access to Victim-1’s platform to post self-promotional messages, including a video in which O’Connor’s voice is recognizable. O’Connor also stated publicly, via a post to Victim-1’s TikTok account, that he would release sensitive, personal material related to Victim-1 to individuals who joined a specified Discord server.
O’Connor also targeted another public figure (Victim-2) in June 2019. O’Connor and his co-conspirators obtained unauthorized access to Victim-2’s account on Snapchat via a SIM swap. They used that access to obtain sensitive materials, to include private images, that Victim-2 had not made publicly available. O’Connor sent copies of these sensitive materials to his co-conspirators. O’Connor and his co-conspirators also reached out to Victim-2 and threatened to publicly release the stolen sensitive materials unless Victim-2 agreed to publicly post messages related to O’Connor’s online persona, among other things.
Lastly, O’Connor stalked and threatened a minor victim (Victim-3) in June and July 2020. In June 2020, O’Connor orchestrated a series of swatting attacks on Victim-3. A “swatting” attack occurs when an individual makes a false emergency call to a public authority in order to cause a law enforcement response that may put the victim or others in danger. On June 25, 2020, O’Connor called a local police department and falsely claimed that Victim-3 was making threats to shoot people. O’Connor provided an address that he believed was Victim-3’s address, which would have the result of causing a law enforcement response. That same day, O’Connor placed another call to the same police department and stated that he was planning to kill multiple people at the same address. In response to that call, the department dispatched every on-duty officer to that address in reference to an armed and dangerous individual. O’Connor sent other swatting messages that same day to a high school, a restaurant, and a sheriff’s department in the same area. In those messages, O’Connor represented himself as either Victim-3 or as a resident at the address he believed was Victim-3’s. The following month, O’Connor called multiple family members of Victim-3 and threatened to kill them.
The NDCA Case was transferred to SDNY pursuant to Federal Rule of Criminal Procedure 20 and consolidated with the SDNY Case.
SDNY Case
According to court documents, between approximately March 2019 and May 2019, O’Connor and his co-conspirators perpetrated a scheme to use subscriber identity module (SIM) swaps, a cyber intrusion technique, to conduct cyber intrusions to steal approximately $794,000 worth of cryptocurrency from a Manhattan-based cryptocurrency company (Company-1), which provided wallet infrastructure and related software to cryptocurrency exchanges around the world.
During a SIM swap attack, cyber threat actors gain control of a victim’s mobile phone number by linking that number to a SIM card controlled by the threat actors, resulting in the victim’s calls and messages being routed to a malicious unauthorized device controlled by the threat actors. The threat actors then typically use control of the victim’s mobile phone number to obtain unauthorized access to accounts held by the victim that are registered to the mobile phone number.
As part of the scheme, O’Connor and his co-conspirators successfully perpetrated SIM swap attacks targeting at least three Company-1 executives. Following a successful SIM swap attack targeting one of the executives on or about April 30, 2019, O’Connor and his co-conspirators successfully gained unauthorized access to multiple Company-1 accounts and computer systems. On or about May 1, 2019, through their unauthorized access, O’Connor and his co-conspirators stole and fraudulently diverted cryptocurrency of various types from cryptocurrency wallets maintained by Company-1 on behalf of two of its clients. The stolen cryptocurrency was worth at least approximately $794,000 at the time of the theft.
After stealing and fraudulently diverting the stolen cryptocurrency, O’Connor and his co-conspirators laundered it through dozens of transfers and transactions and exchanged some of it for Bitcoin using cryptocurrency exchange services. Ultimately, a portion of the stolen cryptocurrency was deposited into a cryptocurrency exchange account controlled by O’Connor.
As part of the NDCA Case, O’Connor pleaded guilty to conspiracy to commit computer intrusion and two counts of committing computer intrusions, each of which carries a maximum penalty of five years in prison; making extortive communications, which carries a maximum penalty of two years in prison; two counts of stalking, each of which carries a maximum penalty of five years in prison; and making threatening communications, which carries a maximum penalty of five years in prison. As part of the SDNY case, O’Connor pleaded guilty to conspiracy to commit computer intrusions, which carries a maximum penalty of five years in prison; conspiracy to commit wire fraud, which carries a maximum penalty of 20 years in prison; and conspiracy to commit money laundering, which carries a maximum penalty of 20 years in prison. O’Connor also agreed to forfeit $794,012.64 and to make restitution to victims of his crimes. He is scheduled to be sentenced on June 23. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI is investigating the case.
The U.S. Attorney’s Office for the Northern District of California and the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) are handling the NDCA case. Assistant U.S. Attorney Andrew F. Dawson for the Northern District of California and CCIPS Assistant Deputy Chief Adrienne L. Rose are prosecuting the case.
The U.S. Attorney’s Office for the Southern District of New York’s Complex Frauds and Cybercrime Unit is handling the SDNY case. Assistant U.S. Attorney Olga I. Zverovich for the Southern District of New York is prosecuting the case.
The Justice Department’s Office of International Affairs provided valuable assistance in securing the extradition of O’Connor.
U.K. Citizen Extradited and Pleads Guilty to Cybercrime OffensesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Kenneth A. Polite, Jr., the Assistant Attorney General for the Department of Justice’s Criminal Division, and Ismail J. Ramsey, the United States Attorney for the Northern District of California, announced today the extradition and guilty plea of JOSEPH JAMES O’CONNOR, a/k/a “PlugwalkJoe,” a U.K. citizen. O’CONNOR was extradited from Spain on April 26, 2023, and pled guilty earlier today before U.S. District Judge Jed S. Rakoff to two sets of charges: (i) conspiracy to commit computer hacking and other charges pending in the Southern District of New York relating to a fraudulent scheme perpetrated by O’CONNOR and his co-conspirators to use a cyber intrusion technique known as a SIM swap attack to steal approximately $794,000 worth of cryptocurrency from a Manhattan-based cryptocurrency company and then to launder the proceeds of the scheme (the “SDNY Case”) and (ii) a set of charges filed in the Northern District of California, and transferred to the SDNY under Federal Rule of Criminal Procedure 20, relating to O’Connor’s role in the July 2020 hack of Twitter, computer intrusions related to takeovers of TikTok and Snapchat user accounts, and cyberstalking two separate victims (the “NDCA Case”).
U.S. Attorney Damian Williams said: “Joseph O’Connor, a/k/a “PlugwalkJoe,” used his sophisticated technological abilities for malicious purposes – conducting a complex SIM swap attack to steal large amounts of cryptocurrency, hacking Twitter, conducting computer intrusions to take over social media accounts, and even cyberstalking two victims, including a minor victim. O’Connor’s guilty plea today is a testament to the importance of law enforcement cooperation, and I thank our law enforcement partners for helping to bring to justice those who victimize others through cyber-attacks.”
Assistant Attorney General Kenneth A. Polite, Jr. said: “O’Connor’s criminal activities were flagrant and malicious, and his conduct impacted multiple people’s lives. He harassed, threatened, and extorted his victims, causing substantial emotional harm. Like many criminal actors, O’Connor tried to stay anonymous by using a computer to hide behind stealth accounts and aliases from outside the United States. But this plea shows that our investigators and prosecutors will identify, locate, and bring to justice such criminals to ensure they face the consequences for their crimes.”
NDCA U.S. Attorney Ismail J. Ramsey said: “O’Connor has left an impressive trail of destruction in the wake of his wave of criminality. This case serves as a warning that the reach of the law is long, and criminals anywhere who use computers to commit crimes may end up facing the consequences of their actions in places they did not anticipate.”
According to the allegations in the publicly filed charging documents against O’CONNOR, court filings, and statements made in court:
The SDNY Case
During a cyber intrusion known as a SIM swap attack, cyber threat actors gain control of a victim’s mobile phone number by linking that number to a subscriber identity module (“SIM”) card controlled by the threat actors, resulting in the victim’s calls and messages being routed to a malicious unauthorized device controlled by the threat actors. The threat actors then typically use control of the victim’s mobile phone number to obtain unauthorized access to accounts held by the victim that are registered to the mobile phone number.
Between approximately March 2019 and May 2019, JOSEPH JAMES O’CONNOR and his co-conspirators perpetrated a scheme to use SIM swaps to conduct cyber intrusions in order to steal approximately $794,000 worth of cryptocurrency from a Manhattan-based cryptocurrency company (“Company-1”), which, at all relevant times, provided wallet infrastructure and related software to cryptocurrency exchanges around the world.
As part of the scheme, O’CONNOR and his co-conspirators successfully perpetrated SIM swap attacks targeting at least three Company-1 executives. Following a successful SIM swap attack targeting one of the executives on or about April 30, 2019, O’CONNOR and his co-conspirators successfully gained unauthorized access to multiple Company-1 accounts and computer systems. On or about May 1, 2019, through their unauthorized access, O’CONNOR and his co-conspirators stole and fraudulently diverted cryptocurrency of various types (the “Stolen Cryptocurrency”) from cryptocurrency wallets maintained by Company-1 on behalf of two of its clients. The Stolen Cryptocurrency was worth at least approximately $794,000 at the time of the theft.
After stealing and fraudulently diverting the Stolen Cryptocurrency, O’CONNOR and his co-conspirators laundered it through dozens of transfers and transactions and exchanged some of it for Bitcoin using cryptocurrency exchange services. Ultimately, a portion of the Stolen Cryptocurrency was deposited into a cryptocurrency exchange account controlled by O’CONNOR.
The NDCA Case
Between 2019 and 2020, O’CONNOR participated in a variety of crimes associated with exploitation of social media accounts, online extortion, and cyberstalking.
In July 2020, O’CONNOR participated in a conspiracy to gain unauthorized access to social media accounts maintained by Twitter, Inc. (“Twitter”). In early July 2020, O’CONNOR’s co-conspirators used social engineering techniques to obtain unauthorized access to administrative tools used by Twitter to maintain its operations. Those co-conspirators were able to use the tools to transfer control of certain Twitter accounts from their rightful owners to various unauthorized users. In some instances, the co-conspirators took control themselves and used that control to launch a scheme to defraud other Twitter users. In other instances, the co-conspirators sold access to Twitter accounts to others. O’CONNOR communicated with others regarding purchasing unauthorized access to a variety of Twitter accounts, including accounts associated with public figures around the world. A number of Twitter accounts targeted by O’CONNOR were subsequently transferred away from their rightful owners. O’CONNOR agreed to purchase unauthorized access to one Twitter account for $10,000.
O’CONNOR also accessed without authorization one of the most highly visible TikTok accounts in August 2020, which was associated with a public figure with millions of followers (“Victim-1”). O’CONNOR and his associates obtained unauthorized access to Victim-1’s account via a SIM swap after discussing a variety of celebrities to target, and O’CONNOR used his unauthorized access to Victim-1’s platform to post self-promotional messages, including a video in which O’CONNOR’s voice is recognizable. O’CONNOR also stated publicly, via a post to Victim-1’s TikTok account, that he would release sensitive, personal material related to Victim-1 to individuals who joined a specified Discord server.
O’CONNOR targeted another public figure (“Victim-2”) in June 2019. O’CONNOR and his associates obtained unauthorized access to Victim-2’s account on Snapchat via a SIM swap. They used that access to obtain sensitive materials, to include private images, that Victim-2 had not made publicly available. O’CONNOR sent copies of these sensitive materials to his associates. O’CONNOR and his associates also reached out to Victim-2 and threatened to publicly release the stolen sensitive materials unless Victim-2 agreed to publicly post messages related to O’CONNOR’s online persona, among other things.
Lastly, O’CONNOR stalked and threatened a minor victim (“Victim-3”) in June and July 2020. In June 2020, O’CONNOR orchestrated a series of swatting attacks on Victim-3. A “swatting” attack occurs when an individual makes a false emergency call to a public authority in order to cause a law enforcement response that may put the victim or others in danger. On June 25, 2020, O’CONNOR called a local police department and falsely claimed that Victim-3 was making threats to shoot people. O’CONNOR provided an address that he believed was Victim-3’s address, which would have the result of causing a law enforcement response. That same day, O’CONNOR placed another call to the same police department and stated that he was planning to kill multiple people at the same address. In response to that call, the department dispatched every on-duty officer to that address in reference to an armed and dangerous individual. O’CONNOR sent other swatting messages that same day to a high school, a restaurant, and a sheriff’s department in the same area. In those messages, O’CONNOR represented himself as either Victim-3 or as a resident at the address he believed was Victim-3’s. The following month, O’CONNOR called multiple family members of Victim-3 and threatened to kill them.
The NDCA Case was transferred to the Southern District of New York pursuant to Federal Rule of Criminal Procedure 20 and consolidated with the SDNY Case before Judge Rakoff.
* * *
O’CONNOR, 23, of the United Kingdom, pled guilty before Judge Rakoff to the following charges: (i) as part of the SDNY Case — conspiracy to commit computer intrusions, which carries a maximum sentence of five years in prison; conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison; and conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison, and (ii) as part of the NDCA Case — conspiracy to commit computer intrusion and two counts of committing computer intrusions, each of which carries a maximum sentence of five years in prison; making extortive communications, which carries a maximum sentence of two years in prison; two counts of stalking, each of which carries a maximum sentence of five years in prison; and making threatening communications, which carries a maximum sentence of five years in prison. As part of his guilty plea, O’CONNOR agreed to forfeit a sum of money equal to $794,012.64 and to make restitution to victims of his crimes. O’CONNOR is scheduled to be sentenced by Judge Rakoff on June 23, 2023, at 3:30 p.m.
The maximum potential sentences set forth above are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the Court.
Mr. Williams praised the outstanding work of the Federal Bureau of Investigation. He also thanked the Justice Department’s Office of International Affairs for its assistance in the extradition.
The SDNY Case is being handled by the Complex Frauds and Cybercrime Unit of the United States Attorney’s Office for the Southern District of New York. Assistant U.S. Attorney Olga I. Zverovich is in charge of the prosecution of the SDNY Case. The NDCA Case is being handled by the United States Attorney’s Office for the Northern District of California and the Computer Crime and Intellectual Property Section (“CCIPS”) of the Department of Justice. Assistant United States Attorney Andrew F. Dawson and CCIPS Assistant Deputy Chief Adrienne L. Rose are in charge of the prosecution of the NDCA Case.
U.K. Citizen Extradited and Pleads Guilty to Cyber Crime OffensesRead the Press Release
United States Attorney Ismail J. Ramsey for the Northern District of California, United States Attorney Damian Williams for the Southern District of New York, and Assistant Attorney General Kenneth A. Polite, Jr., for the Department of Justice’s Criminal Division announced today that Joseph James O’Connor, a/k/a “PlugwalkJoe,” a U.K. citizen, was extradited from Spain and entered a plea of guilty to two sets of charges involving crimes perpetrated in New York and California.
O’Connor was extradited from Spain on April 26, 2023, and pleaded guilty earlier today to two sets of charges: (i) a set of charges filed in the Northern District of California, and transferred to the SDNY under Federal Rule of Criminal Procedure 20, relating to O’Connor’s role in the July 2020 hack of Twitter, computer intrusions related to takeovers of TikTok and Snapchat user accounts, and cyberstalking two separate victims (the “NDCA Case”) and (ii) a conspiracy to commit computer hacking and other charges pending in the Southern District of New York relating to a fraudulent scheme perpetrated by O’Connor and his co-conspirators to use a cyber intrusion technique known as a SIM swap attack to steal approximately $794,000 worth of cryptocurrency from a Manhattan-based cryptocurrency company and then to launder the proceeds of the scheme (the “SDNY Case”). Hon. Jed S. Rakoff, U.S. District Judge. accepted the guilty pleas.
“O’Connor has left an impressive trail of destruction in the wake of his wave of criminality,” said U.S. Attorney Ramsey. “This case serves as a warning that the reach of the law is long, and criminals anywhere who use computers to commit crimes may end up facing the consequences of their actions in places they did not anticipate.”
U.S. Attorney Damian Williams said: “Joseph O’Connor, a/k/a “PlugwalkJoe,” used his sophisticated technological abilities for malicious purposes – conducting a complex SIM swap attack to steal large amounts of cryptocurrency, hacking Twitter, conducting computer intrusions to take over social media accounts, and even cyberstalking two victims, including a minor victim. O’Connor’s guilty plea today is a testament to the importance of law enforcement cooperation, and I thank our law enforcement partners for helping to bring to justice those who victimize others through cyber-attacks.”
“O’Connor’s criminal activities were flagrant and malicious, and his conduct impacted multiple people’s lives. He harassed, threatened, and extorted his victims, causing substantial emotional harm,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “Like many criminal actors, O’Connor tried to stay anonymous by using a computer to hide behind stealth accounts and aliases from outside the United States. But this plea shows that our investigators and prosecutors will identify, locate, and bring to justice such criminals to ensure they face the consequences for their crimes.”
"O’Connor tried to use international borders and the anonymity of the internet to keep himself safe while engaging in hacking and cyberstalking,” said FBI Special Agent in Charge of the San Francisco Division Robert K. Tripp. “He learned about the tenacity of the FBI to identify and locate cybercriminals, and the power of law enforcement partnerships here and across the world to hold those people accountable."
According to the allegations in the publicly filed charging documents, court filings, and statements made in court, between 2019 and 2020, O’Connor, 23, of the United Kingdom, participated in a variety of crimes associated with exploitation of social media accounts, online extortion, and cyberstalking:
The NDCA Case
In July 2020, O’Connor participated in a conspiracy to gain unauthorized access to social media accounts maintained by Twitter, Inc. (“Twitter”). In early July 2020, O’Connor’s co-conspirators used social engineering techniques to obtain unauthorized access to administrative tools used by Twitter to maintain its operations. Those co-conspirators were able to use the tools to transfer control of certain Twitter accounts from their rightful owners to various unauthorized users. In some instances, the co-conspirators took control themselves and used that control to launch a scheme to defraud other Twitter users. In other instances, the co-conspirators sold access to Twitter accounts to others. O’Connor communicated with others regarding purchasing unauthorized access to a variety of Twitter accounts, including accounts associated with public figures around the world. A number of Twitter accounts targeted by O’Connor were subsequently transferred away from their rightful owners. O’Connor agreed to purchase unauthorized access to one Twitter account for $10,000.
O’Connor also accessed without authorization one of the most highly visible TikTok accounts in August 2020, which was associated with a public figure with millions of followers (“Victim-1”). O’Connor and his associates obtained unauthorized access to Victim-1’s account via a SIM swap after discussing a variety of celebrities to target, and O’Connor used his unauthorized access to Victim-1’s platform to post self-promotional messages, including a video in which O’Connor’s voice is recognizable. O’Connor also stated publicly, via a post to Victim 1’s TikTok account, that he would release sensitive, personal material related to Victim-1 to individuals who joined a specified Discord server.
O’Connor targeted another public figure (“Victim-2”) in June 2019. O’Connor and his associates obtained unauthorized access to Victim-2’s account on Snapchat via a SIM swap. They used that access to obtain sensitive materials, to include private images, that Victim-2 had not made publicly available. O’Connor sent copies of these sensitive materials to his associates. O’Connor and his associates also reached out to Victim-2 and threatened to publicly release the stolen sensitive materials unless Victim-2 agreed to publicly post messages related to O’Connor’s online persona, among other things.
Additionally, O’Connor stalked and threatened a minor victim (“Victim-3”) in June and July 2020. In June 2020, O’Connor orchestrated a series of swatting attacks on Victim-3. A “swatting” attack occurs when an individual makes a false emergency call to a public authority in order to cause a law enforcement response that may put the victim or others in danger. On June 25, 2020, O’Connor called a local police department and falsely claimed that Victim-3 was making threats to shoot people. O’Connor provided an address that he believed was Victim-3’s address, which would have the result of causing a law enforcement response. That same day, O’Connor placed another call to the same police department and stated that he was planning to kill multiple people at the same address. In response to that call, the department dispatched every on-duty officer to that address in reference to an armed and dangerous individual. O’Connor sent other swatting messages that same day to a high school, a restaurant, and a sheriff’s department in the same area. In those messages, O’Connor represented himself as either Victim-3 or as a resident at the address he believed was Victim-3’s. The following month, O’Connor called multiple family members of Victim-3 and threatened to kill them.
The NDCA Case was transferred to the Southern District of New York pursuant to Federal Rule of Criminal Procedure 20 and consolidated with the SDNY Case before Judge Rakoff.
The SDNY Case
Between approximately March 2019 and May 2019, O’Connor and his co-conspirators perpetrated a scheme to use SIM swaps to conduct cyber intrusions to steal approximately $794,000 worth of cryptocurrency from a Manhattan-based cryptocurrency company (“Company-1”), which, at all relevant times, provided wallet infrastructure and related software to cryptocurrency exchanges around the world.
During a cyber intrusion known as a SIM swap attack, cyber threat actors gain control of a victim’s mobile phone number by linking that number to a subscriber identity module (“SIM”) card controlled by the threat actors, resulting in the victim’s calls and messages being routed to a malicious unauthorized device controlled by the threat actors. The threat actors then typically use control of the victim’s mobile phone number to obtain unauthorized access to accounts held by the victim that are registered to the mobile phone number.
As part of the scheme, O’Connor and his co-conspirators successfully perpetrated SIM swap attacks targeting at least three Company-1 executives. Following a successful SIM swap attack targeting one of the executives on or about April 30, 2019, O’Connor and his co-conspirators successfully gained unauthorized access to multiple Company-1 accounts and computer systems. On or about May 1, 2019, through their unauthorized access, O’Connor and his co-conspirators stole and fraudulently diverted cryptocurrency of various types (the “Stolen Cryptocurrency”) from cryptocurrency wallets maintained by Company-1 on behalf of two of its clients. The Stolen Cryptocurrency was worth at least approximately $794,000 at the time of the theft.
After stealing and fraudulently diverting the Stolen Cryptocurrency, O’Connor and his co-conspirators laundered it through dozens of transfers and transactions and exchanged some of it for Bitcoin using cryptocurrency exchange services. Ultimately, a portion of the Stolen Cryptocurrency was deposited into a cryptocurrency exchange account controlled by O’Connor.
* * *
As part of the NDCA Case, O’Connor pleaded guilty to conspiracy to commit computer intrusion and two counts of committing computer intrusions, each of which carries a maximum penalty of five years in prison; making extortive communications, which carries a maximum penalty of two years in prison; two counts of stalking, each of which carries a maximum penalty of five years in prison; and making threatening communications, which carries a maximum penalty of five years in prison. As part of the SDNY case, O’Connor pleaded guilty to conspiracy to commit computer intrusions, which carries a maximum penalty of five years in prison; conspiracy to commit wire fraud, which carries a maximum penalty of 20 years in prison; and conspiracy to commit money laundering, which carries a maximum penalty of 20 years in prison. O’Connor also agreed to forfeit $794,012.64 and to make restitution to victims of his crimes. He is scheduled to be sentenced on June 23. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI is investigating the case with assistance from the US Secret Service, San Francisco Field Office; US Secret Service, Criminal Investigations Division; IRS Criminal Investigations, Cyber Crimes Unit; Spanish National Police; and United Kingdom National Crime Agency.
The U.S. Attorney’s Office for the Northern District of California and the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) are handling the NDCA case. Assistant U.S. Attorney Andrew F. Dawson for the Northern District of California and CCIPS Assistant Deputy Chief Adrienne L. Rose are prosecuting the case.
The U.S. Attorney’s Office for the Southern District of New York’s Complex Frauds and Cybercrime Unit is handling the SDNY case. Assistant U.S. Attorney Olga I. Zverovich for the Southern District of New York is prosecuting the case.
The Justice Department’s Office of International Affairs provided valuable assistance in securing the extradition of O’Connor.Three Brothers Convicted of Multi-District Scheme to Defraud the United States Postal Service, UPS and Citizens BankRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that brothers Zumar Dubose, age 34, of Atlantic City, NJ; Abdush Dubose, age 36, of Boynton Beach, FL; and Kariem Dubose, age 42, of Philadelphia, PA, were convicted today at trial of mail fraud, wire fraud, bank fraud, and money laundering conspiracy charges arising from their scheme to defraud and obtain money from the United States Postal Service, UPS and Citizens Bank.
Starting as early as October 2018, in less than one year, the defendants submitted over 1,200 fraudulent insured-parcel claims with the United States Postal Service and UPS, and received almost $300,000 in ill-gotten gains. As part of the scheme, the Dubose brothers sent parcels themselves containing items of no value using insured United States Postal Service postage and UPS tracking labels. They then filed fraudulent claims with United States Postal Service and UPS, claiming that these parcels which had contained nothing of value were lost or damaged in transit, and attached sham proofs of value. The defendants used numerous e-mails, addresses and postboxes, bank accounts and bank cards, fake individual names, and fictitious corporations, including “Urmajesty Banktruckfit Solutions,” “Miworld Three Incorporated,” and “4 Entertainment Corporation,” which were incorporated in the State of New Jersey, and “Seeds of Beauty Incorporated,” which was incorporated in the State of Florida. The claim checks that the brothers received as part of this fraud scheme were deposited into Citizens Bank accounts opened in the names of these fake companies through ATMs in Philadelphia, Pennsylvania, and elsewhere.
When USPS and UPS refused to issue or deliver some of the fraudulently-obtained claim checks, and when Citizens Bank placed a hold on a bank account that was used to deposit the fraud proceeds, the Dubose brothers were undeterred. The brothers repeatedly contacted the United States Postal Service and UPS using fake names; defendant Zumar Dubose even filed lawsuits against UPS in various counties in New Jersey, using fake plaintiff names and falsely claiming that UPS did not pay him funds that he was owed. The defendants also filed lawsuits against Citizens Bank, again pretending to be a different individual, in an effort to obtain the funds from their fraud scheme.
"Lying about insured parcels and then turning around and filing lawsuits against the victim companies, when those companies suspected something was awry is brazen, to say the least," said U.S. Attorney Romero. "Today's guilty verdicts against the Dubose brothers show the commitment of our office and law enforcement partners to investigate and prosecute this type of flagrant fraud."
One of the investigative missions of the U.S. Postal Service Office of Inspector General (OIG) is to help safeguard the Postal Service and U.S. Mail from being utilized for illegal activity. OIG Special Agents vigorously investigate these cases in partnership with our law enforcement partners,” said Special Agent-in-Charge Jeffery Krafels. “These guilty verdicts should serve as a reminder and deterrent to anyone thinking this type of behavior is acceptable.”
The case was investigated by the United States Postal Service Office of the Inspector General and the United States Postal Inspection Service, and is being prosecuted by Assistant United States Attorneys Louis D. Lappen and J. Jeanette Kang. UPS and Citizens Bank provided crucial cooperation in this investigation.
Third Defendant Sentenced for Fentanyl-laced Pills Purchased through Social Media PlatformsRead the Press Release
ABINGDON, Va. – A Norton, Virginia woman, who sold pressed pills containing fentanyl purchased via social media platforms, was sentenced yesterday in U.S. District Court in Abingdon to 36 months in federal prison.
Cheyenne Cassie Carico, 20, pleaded guilty in June 2022 to one count of conspiring to distribute and possession with the intent to distribute 40 grams or more of fentanyl.
As part of the same conspiracy, Paul Mason Perkins, 21, of Big Stone Gap, Virginia, was sentenced to 42 months, and Austin Jeremiah Lane, 23, of Norton, Virginia, was sentenced to 36 months earlier this year.
According to court documents, between February 2021 and February 2022, Perkins used the social media platforms Snapchat and Instagram to purchase thousands of pressed pills containing fentanyl every few weeks from a dealer located in California. Perkins had the pills mailed to his residence in Big Stone Gap where he then redistributed the pills to other individuals throughout Wise County, including multiple sales to co-conspirators Lane and Carico.
United States Attorney Christopher R. Kavanaugh, Michael Weddel, Acting Special Agent in Charge of the Washington Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Tommy D. Coke, Inspector in Charge of the U.S. Postal Inspection Service - Atlanta Division made the announcement.
The Wise County Sheriff’s Office, the Norton Police Department, the Southwest Drug Task Force, the Bureau of Alcohol, Tobacco, Firearms & Explosives, and the United States Postal Inspection Service investigated the case.
Assistant U.S. Attorney Lena Busscher prosecuted the case.
Taylor Woman Sentenced to 30 Years in Prison for Sexually Exploiting an InfantRead the Press Release
DETROIT – A Taylor woman was sentenced today to 30 years in prison for sexually exploiting an infant and another child and for distributing child pornography, announced United States Attorney Dawn N. Ison.
Ison was joined in the announcement by James A. Tarasca, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.
Rheanna Rose Salyer, 26, was sentenced by United States District Judge David M. Lawson.
According to court documents, Salyer admitted creating images sexually exploiting an infant, and that she had sent an image of herself performing inappropriate sexual contact with an infant to another individual over the internet in February 2022. Later that month, Salyer met an undercover officer online who pretended to have a sexual interest in children. During a conversation with the undercover officer, Salyer sent the officer sexually explicit images of the infant, bragged about sexually assaulting the infant, and discussed her desire to engage in sex acts with the undercover officer and the infant together.
Once the FBI was able to confirm Salyer’s identity, agents executed a search warrant at her residence. They discovered additional images of horrific child sexual abuse, including one Salyer created only hours before they entered her home. Salyer’s phone contained numerous conversations with other individuals online discussing her sexual interest in children, and her phone had other sexually explicit images of minors. Salyer also possessed other images of child pornography that she downloaded from the internet or received from others during chats.
“I am thankful for the FBI agents who acted so quickly to save this infant from continued abuse,” stated U.S. Attorney Ison. “This defendant not only abused an infant in an unimaginable manner, but she also shared that abuse with others over the internet. This sentence demonstrates that those who harm our most vulnerable will be held responsible.”
“Rheanna Salyer admitted to sexually exploiting an infant. I can think of nothing more appalling, and today’s sentencing sends an unequivocal message that predatory acts by criminals like her will not be tolerated,” said James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Field Office. “I commend the work of the Southeast Michigan Trafficking and Exploitation Crimes Task Force in this investigation. Their quick and decisive action ensured Salyer will be unable to victimize children for years to come.”
The case was investigated by the Southeast Michigan Trafficking and Exploitation Crimes Task Force of the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Christopher Rawsthorne.
Summer camps must modify policies to accommodate children with disabilitiesRead the Press Release
ATLANTA - Parents are making plans to send their children to summer camps as the school year comes to an end. To ensure that children with disabilities can attend summer camps in the same way as children without disabilities, the U.S. Attorney’s Office announced today that it has sent the attached flyer to summer camps located within the Northern District of Georgia to remind these groups of their legal obligations under the Americans with Disabilities Act (ADA).
“Summer camps provide fun and important developmental opportunities for children and offer parents and caregivers a safe place for their children to socialize with one another during the summer,” said U.S. Attorney Ryan K. Buchanan. “Children with disabilities deserve an equal opportunity to safely participate in camp activities and programs. This is not an option; it is the law.”Under the ADA, summer camps, whether private or run by municipalities and counties, must afford reasonable modifications to ensure that children with disabilities can participate fully in camp programs and activities. Camps must evaluate each child on an individual basis and train their staff in the requirements of the ADA. Camps must also pay for the cost of any reasonable modifications necessary for a child with a disability to participate in camp activities.
For more information, please visit www.ada.gov or call our Civil Rights Hotline at (404) 581-4626.
For inquiries, please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
St. Francis Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange, U.S. District Court, has sentenced a St. Francis, South Dakota, man convicted of Failure to Register as a Sex Offender. The sentencing took place on May 8, 2023.
Brady Makes Room For Them, 38, was sentenced to two years and four months in federal prison, followed by five years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Makes Room For Them was indicted for Failure to Register as a Sex Offender by a federal grand jury in June of 2022. He pleaded guilty on February 2, 2023.
Makes Room For Them was convicted of Abusive Sexual Contact on September 20, 2005. As a result of this conviction, he is required to register as a sex offender and update his registration within three business days of relocation or changing employment or student status. Makes Room For Them last registered in November of 2021, providing an address in Rapid City, South Dakota. Investigation revealed that Makes Room For Them never resided at his registered address in Rapid City. His whereabouts were unknown until he was located by the Rosebud Sioux Tribe Law Enforcement Services in Rosebud, South Dakota, on January 27, 2022.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
This case was investigated by the U.S. Marshals Service, the Rapid City Police Department, and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Abby Roesler prosecuted the case.
Makes Room For Them was immediately remanded to the custody of the U.S. Marshals Service.
Springdale Man Sentenced to 14 Years in Federal Prison for Drug TraffickingRead the Press Release
FAYETTEVILLE – A Springdale man was sentenced today to 168 months in prison followed by three years of supervised release on one count of Possession with Intent to Distribute Methamphetamine. The Honorable Judge Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court documents, on October 1, 2021, as part of an ongoing narcotics investigation, detectives with the Fourth Judicial District Drug Task Force executed a search warrant at the residence of Maurice Kentrell Bright, age 45, in Springdale, Arkansas. During the search, detectives located approximately 283 grams of methamphetamine, two firearms, including a loaded handgun under his pillow, and drug paraphernalia.
The suspected methamphetamine was sent to the HSI lab and tested positive for methamphetamine.
U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
The Fourth Judicial District Drug Task Force investigated the case.
Assistant U.S. Attorney Sydney Butler prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. 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.
Sioux City Woman Sentenced to Federal Prison for Meth ConspiracyRead the Press Release
A woman who conspired to distribute methamphetamine was sentenced on May 9, 2023, to 5 years in federal prison.
Linda Fernandez, 69, from Sioux City, Iowa, pled guilty January 26, 2023, to conspiracy to distribute methamphetamine.
At the plea and sentencing hearings, evidence showed that between May and July 2022, Fernandez and others conspired to distribute over 1.3 kilograms of methamphetamine in the Sioux City area. On July 15, 2022, law enforcement executed a search warrant at Fernandez’s apartment, and discovered approximately one pound of methamphetamine, drug distribution materials, and over $3,300.
Sentencing was held before United States District Court Chief Judge Leonard T. Strand. Fernandez was sentenced to 5 years’ imprisonment and must serve a 3-year term of supervised release following the imprisonment. There is no parole in the federal system. Fernandez remains in custody of the United States Marshal until she can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Patrick T. Greenwood and was investigated by Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 22-4055. Follow us on Twitter @USAO_NDIA.
Robber of St. Louis County Store Sentenced to 130 months in PrisonRead the Press Release
ST. LOUIS – U.S. District Judge Ronnie L. White on Tuesday sentenced a robber who stole from a Kohl’s store in Manchester, Missouri to 130 months in prison.
Mercedes W. Gregory, 34, of St. Louis, pleaded guilty in U.S. District Court in St. Louis in February to one count of robbery and one count of being a felon in possession of a firearm.
Gregory admitted placing multiple items of clothing in a cart and walking out of the Kohl’s store just before 1:30 p.m. on July 12, 2021. A loss prevention officer followed until Gregory said, “If you keep following me, I’m going to shoot you.” Gregory left in a white Chevrolet.
Photo submitted in a court filing.That night, officers with the St. Louis Metropolitan Police Department spotted the car at a gas station in St. Louis. Gregory ran but was caught. Officers found a Taurus handgun in Gregory’s satchel. The Kohl’s merchandise was in the trunk.
Gregory has two prior robbery convictions, a 2008 case in St. Louis County and a 2013 case in St. Louis. Gregory’s parole in the 2013 case ended 11 days before the Kohl’s robbery.
The case was investigated by the Manchester Police Department, the FBI and the St. Louis Metropolitan Police Department. Assistant U.S. Attorney Ryan Finlen is prosecuting the case.
Richmond City Department of Public Works Employee Pleads Guilty to Fraud SchemeRead the Press Release
RICHMOND, Va. – A Richmond woman pleaded guilty today to using her position within the City of Richmond Department of Public Works (DPW) to steer governmental contract awards towards herself and her co-conspirators.
According to court documents, Shaun Lindsey, 53, is a Senior Administrative Technician at DPW, a governmental entity responsible for providing engineering, technical, and administrative services to Richmond residents. Before she was placed on administrative leave in February 2022, Lindsey was responsible for managing and obtaining approval for DPW procurements with outside vendors.
From at least 2018 through 2021, Lindsey and her co-conspirators operated a scheme to defraud the DPW. Lindsey and her co-conspirators owned and operated straw companies to bid on DPW work, circumventing Virginia law and City of Richmond rules against self-dealing by public employees. Additionally, Lindsey and her co-conspirators designated and approved DPW work to be performed by these straw companies using their positions at DPW. In some instances, the work to be performed was completely fabricated and no such work was ever needed. In other instances, the work was actually performed by DPW employees, not by contracted vendors. Sometimes, Lindsey and her co-conspirators subcontracted the work out for profit upon winning the DPW work.Where procurement amounts exceeded $5,000, a DPW approval threshold requiring that work be competitively bid, Lindsey manufactured fictitious straw bids on behalf of competitor companies to engineer Lindsey’s preferred company winning the work. In one instance, Lindsey steered a $28,700 contract award to her boyfriend. Finally, within days of Lindsey’s straw company winning work, she sent checks for a portion of the funds to a senior DPW leader, Lindsey’s co-conspirator.
In another example, in early 2019, DPW sought to have overgrown foliage at Parker Field, an area in Richmond, cleared in advance of Fourth of July celebrations that same year. Though Lindsey knew mowing of the field was being performed by DPW employees, she nevertheless created and obtained approval of a requisition request in the DPW purchase order system for a company owned by the wife of a senior DPW leader to mow the entire area 16 times in four days, at a total cost of $4,800. In a different instance, in December 2020, DPW leadership sought to set up holiday decorations of Richmond-area bridges. In response, Lindsey generated a requisition request for her own straw company and thereafter sub-contracted the work out at a profit. The subcontractor believed they had contracted with the City of Richmond, not with Lindsey’s personal company, and when Lindsey failed to pay the sub-contractor the balance for the work, the sub-contractor sought payment directly from the City of Richmond. The City of Richmond then had to pay the subcontractor – effectively paying twice for the same work. In all, Lindsey and her co-conspirators fraudulently caused DPW to disburse at least $603,701 in funds to companies owned by Lindsey and her co-conspirators, causing $226,767 in loss to DPW.Lindsey is scheduled to be sentenced on August 29. She faces a maximum penalty of 20 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office; and James Osuna, Inspector General, City of Richmond Office of the Inspector General, made the announcement after U.S. District Judge M. Hannah Lauck accepted the plea.
Assistant U.S. Attorney Avi Panth is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:22-cr-53.
Retired Special Education Teacher Sentenced for Traveling Overseas to Sexually Abuse ChildrenRead the Press Release
A Pennsylvania man was sentenced today to 35 years in prison for traveling to the Philippines to engage in sex with children as young as 12 years old.
According to court documents, between 2016 and 2019, Craig Alex Levin, 67, of King of Prussia, was a retired special education teacher who traveled to the Philippines nine times, each time for the purpose of engaging in sex with disadvantaged minors who, by Levin’s own words, were hungry or needed money for medicine for family members. In May 2019, the Philippine National Police arrested Levin as he was about to enter the elevator at his hotel with a 15-year-old girl. Upon search of his hotel room, police located several notebooks containing the names and ages of hundreds of girls, whom he rated based on several categories, including age. Only girls under the age of 18 received a top score of 10. There were multiple children as young as 12 listed in the notebooks.
In June 2022, Levin pleaded guilty to six counts charging him with foreign travel to engage in sex with a minor, attempted sex trafficking of a minor, and distribution and transportation of child pornography.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Jacqueline C. Romero for the Eastern District of Pennsylvania, and Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division made the announcement.
The FBI and Philippine National Police investigated the case.
Trial Attorney Austin M. Berry of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Michelle Rotella for the Eastern District of Pennsylvania prosecuted the case. The Justice Department’s Office of International Affairs assisted with securing evidence from the Philippines, including through mutual legal assistance requests.
This case is brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.