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4 May 2023
Former Naugatuck Resident Charged with Offenses Stemming from Alleged Investment Fraud SchemeRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and Robert Fuller, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that RAFAEL MUZZI, 27, a citizen of Brazil formerly residing in Naugatuck, has been charged in a 14-count indictment with fraud and money laundering offenses stemming from an alleged investment fraud scheme.
As alleged in the indictment, in 2017 and 2018, Muzzi, at times using two entities he formed, Solace Investments LLC and Asseno LLC, induced victim-investors to provide him funds based on the representation he would use the funds for trading currencies in foreign exchange markets using a trading software program that he told his victims he had developed. Muzzi represented to victims that his software program had a feature that would cause trading to cease in the event of a certain loss in value, thus minimizing downside risk. Muzzi failed to invest a substantial portion of invested funds as he represented, and instead diverted those funds for his own personal use, and to pay other individuals who had invested with him.
It is alleged that, through this scheme, Muzzi defrauded at least 12 victim-investors out of a total of more than $550,000.
The indictment further alleges that Muzzi sent victims fabricated monthly account statements that falsely overstated their return on investment and their account balances. These misrepresentations induced some victim-investors to provide him with additional investment funds. Muzzi also provided victims with purported tax documents reflecting fictitious investment profits, causing victims to report and pay taxes on profits that they had not realized.
As alleged in court documents, in response to victim complaints, the State of Connecticut’s Department of Banking investigated Muzzi’s conduct, issued orders finding that Muzzi and Solace Investments had violated state securities laws, ordered them to make restitution to victims, and fined Muzzi $300,000. On September 6, 2020, Muzzi traveled to Brazil and did not return.
On August 23, 2022, a federal grand jury in New Haven returned an indictment charging Muzzi with 12 counts of wire fraud and two counts of money laundering.
Muzzi was arrested on April 1, 2023, in Panama, and subsequently waived his right to contest his extradition to the U.S. He appeared in Hartford federal court on April 28, pleaded not guilty to the charges in the indictment, and was ordered detained. A detention hearing is scheduled for tomorrow.
U.S. Attorney Avery stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the Federal Bureau of Investigation with the assistance of the Connecticut Department of Banking, Securities Division.
U.S. Attorney Avery thanked Interpol and Panamanian authorities for their assistance in apprehending this defendant, and the U.S. Department of Justice’s Office of International Affairs for coordinating the extradition proceedings in this matter.
The case is being prosecuted by Assistant U.S. Attorneys Conor M. Reardon and Michael S. McGarry.
Former Information Technology Manager Agrees to Plead Guilty to Theft of over $1.4 Million from EmployerRead the Press Release
BOSTON – The former information technology manager of a Quebec City, Canada-based telecommunications company has been charged and has agreed to plead guilty in connection with a fraud scheme that involved the theft of over $1.4 million in computer equipment from his employer.
Tod Erickson, 60, of Londonderry, N.H., has been charged, and has agreed to plead guilty, to wire fraud and filing a false tax return. A plea hearing has not yet been scheduled by the Court.
According to the charging documents, Erickson served as the information technology manager at a telecommunications company that, until February 2019, had an office located in Chelmsford, Mass. As information technology manager, Erikson was responsible for submitting requests to purchase equipment – such as computers and hard drives. It is alleged that from at least January 2012 through February 2019, Erickson fraudulently submitted purchase requests for computer equipment that the company did not need. Thereafter, without the knowledge or approval of his employer, Erickson allegedly sold the items to third parties and used the illicit proceeds for his personal benefit. Erickson also filed income tax returns for the tax year 2016 in which he intentionally underreported his income by failing to disclose money he received from the sale of his employer’s property.
The charge of wire fraud provides a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss, whichever is greater, restitution, and forfeiture. The charge of filing false tax returns provides for a sentence of up to three years in prison, one year of supervised release, a fine of $250,000, restitution, and forfeiture. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. Assistant U.S. Attorney Mackenzie A. Queenin of Rollins’ Securities, Financial & Cyber Fraud 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.
Former Founder and CEO of Nanotechnology Company Sentenced to 48 Months in PrisonRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that JAMES JEREMY BARBERA, the founder and former chief executive officer (“CEO”) of a New York-based nanotechnology company, Nanobeak Biotech, Inc. (“Nanobeak”), was sentenced today to 48 months in prison by U.S. District Judge John G. Koeltl. BARBERA was previously convicted following a one-week trial of securities fraud, wire fraud, and conspiracy offenses.
According to the Indictment, evidence presented during trial, court documents, and statements made in open court:
From in or about 2013 and in or about 2019, BARBERA was the founder and CEO of Nanobeak, a privately held nanotechnology company that represented to investors that the company had developed a breathalyzer sensor technology that could detect cancer and narcotics in human breath.
From at least in or about 2013 through in or about 2020, BARBERA and others perpetrated a scheme to defraud dozens of investors out of at least approximately $7 million (i) by soliciting investments through false and misleading statements, (ii) by failing to use investors’ funds as promised, and (iii) by converting investors’ money for his own use. Specifically, BARBERA falsely represented that Nanobeak had developed a breathalyzer sensor that could detect narcotics and cancer in a person’s breath and that the company was expected to earn millions of dollars in sales revenue through distribution contracts. In truth and in fact, Nanobeak never developed the purported technology, and it was impossible for the company to generate revenue because there was no breathalyzer device to sell and, accordingly, no distribution contracts.
BARBERA also falsely represented that he had undergraduate and graduate degrees in physics from New York University, that he had a business degree from the Massachusetts Institute of Technology, and that Nanobeak would soon have an initial public offering (“IPO”), which would result in large profits to investors. In truth and in fact, the company was not close to an IPO, BARBERA was permanently barred from serving as the CEO of a public company as a result of a prior, unrelated proceeding brought by the U.S. Securities and Exchange Commission (“SEC”), and BARBERA never finished college and never attended MIT.
BARBERA converted for his own use approximately half of the investor funds raised in the form of cash withdrawals and to pay personal expenses, including private school and college tuition for his children, mortgage payments on his Central Park West apartment, and for other personal items, such as credit card bills, jewelry, automobiles, and daily living expenses.
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In addition to his prison sentence, BARBERA, 67, of New York, New York, was ordered to pay more than $7 million in forfeiture.
Mr. Williams praised the outstanding work of the Federal Bureau of Investigation and the National Aeronautics and Space Administration’s Office of Inspector General, and he also thanked the SEC for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Kiersten A. Fletcher is in charge of the prosecution.
Former Boy Scout Camp Employee Indicted for Possession and Distribution of Child PornographyRead the Press Release
NEWARK N.J. – A federal grand jury indicted a Morris County, New Jersey, man for possessing and distributing child abuse and exploitation material, U.S. Attorney Philip R. Sellinger announced today.
William Mickel, 69, of Lake Hopatcong, New Jersey, is charged by indictment with one count of distribution of child pornography and one count of possession of child pornography. He had his initial appearance today before U.S. district Judge Cathy L. Waldor in Newark federal court and was detained.
According to documents filed in this case and statements made in court:
Mickel was employed by Boy Scout camps in New Jersey, and from February 2022 through April 2022, he distributed and possessed images and videos of child sexual abuse. Mickel used email accounts to distribute these materials, and stored hundreds of images and videos on electronic devices in his home. Some of the videos in Mickel’s possession depicted children who were surreptitiously recorded using bathrooms in the Boy Scout camps where Mickel worked.
The count of distribution of child pornography carries a mandatory minimum penalty of five years in prison, a maximum penalty of 20 years in prison, and a fine of $250,000. The count of possession of child pornography carries a maximum penalty of 20 years in prison and a fine of $250,000.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy, and substantial assistance from the Morris County Prosecutor’s Office under the direction of Prosecutor Robert J. Carroll; and the Chester Police Department, under the direction of Chief Ryan T. McNamee, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Fatime Meka Cano of the Economic Crimes Unit in Newark.
If you think you or your child may have been a victim, please contact the FBI at www.fbi.gov.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
mickel.indictment.pdfFormer Boston Public Schools Dean Who Recruited Students into Latin Kings Gang Sentenced to over Eighteen Years in PrisonRead the Press Release
BOSTON – A former member of the Massachusetts Almighty Latin King and Queen Nation (Latin Kings) who was, at the time, an academic dean in the Boston Public Schools was sentenced today in federal court in Boston on racketeering charges. The defendant attempted to murder a student that he had recruited into the gang and who was selling marijuana in the high school at the defendant’s direction.
Shaun Harrison, a/k/a “Rev,” 63, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to 218 months in prison, with credit for 98 months’ time served, and three years of supervised release. In August 2022, Harrison pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy.
“The level of betrayal and dishonesty exhibited here is astonishing. Harrison was in a position of trust, but was actually a dangerous predator. As the academic dean at a Boston Public high school he lured and manipulated teenagers into a criminal enterprise that specialized in street terrorism. Harrison was the architect of ruin for an entire generation of promising young lives – exclusively targeting and grooming vulnerable, at-risk youth. The very thing he was hired to work against. When one of his students – the victim in this matter – resisted his recruiting efforts, Harrison attempted to murder him in cold blood. In response to that student bravely doing the right thing and rejecting a life of crime, Harrison shot him point blank in the back of the head. Miraculously, he lived but now has partial face paralysis, neuropathy in his neck and face and permanent hearing loss among other significant injuries. The fact that Harrison continued to associate with Latin Kings members while in state prison for this attempted murder shows a callous disregard for the law and the harm he caused,” said United States Attorney Rachael S. Rollins. “Today’s sentence is a testament to the tireless efforts of our state, local and federal law enforcement partners. The dismantling of the Latin Kings organization is a significant milestone in our collective efforts to combat violent crime. We will continue to work to ensure that our schools and communities are safe.”
“Shaun Harrison led a double life – using his position as a high school dean to engage in violence and recruit at-risk youth into a violent criminal enterprise. Today’s sentence ensures he will stay in prison and off our city streets for a significant period of time,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “The convergence of gangs, guns, and drugs are a serious threat to our communities which the FBI and our law enforcement partners are working hard every day to address.”
In December 2019, a federal grand jury returned an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against dozens of leaders, members and associates of the Latin Kings.
The Latin Kings are a violent criminal enterprise comprised of thousands of members across the United States. The Latin Kings adhere to a national manifesto, employ an internal judiciary and use a sophisticated system of communication to maintain the hierarchy of the organization. As alleged in court documents, the gang uses drug distribution to generate revenue, and engages in violence against witnesses and rival gangs to further its influence and to protect its turf.
In 2015, Harrison was hired by the Boston Public Schools to serve as an academic dean at English High School. In that role, Harrison was to act as a mediator between teachers and students, contact families when students struggled, work with at-risk students and run an anger management program for 10 boys after school. While working at the Boston Public Schools, Harrison was a member of the Latin Kings, known as “Rev” or “King Rev,” and used his position as academic dean to recruit a number of the at-risk students into the gang. Harrison directed the recruited students to distribute marijuana and other drugs, which he provided, in the high school and collected the drug proceeds. A number of the students that Harrison recruited included Wilson Peguero, a/k/a “King Dubb,” who later became the “Inca” or the leader of the D5K Chapter of the Latin Kings; Alexis Peguero, a/k/a “King Lexi,” who became the “Cacique” or the second-in-command of the D5K Chapter of the Latin Kings; Dante Lara, a/k/a “King Nasty;” Oscar Pena, a/k/a “King O-Block;” and others. Wilson Peguero, Alexis Peguero, Lara and Pena were each charged in this case and sentenced to serve 30 months, 21 months, two years and 32 months in prison, respectively.
In March 2015, Harrison came to believe that one of the students distributing drugs for him had stolen money from him, no longer wished to sell drugs and may tell the police about Harrison’s crimes. On March 3, 2015, Harrison met up with this student, pulled out a handgun and shot the student in the back of the head at point blank range. This shooting was captured on video by a surveillance camera in the area. The student survived.
Harrison was arrested soon thereafter and charged in Suffolk Superior Court with crimes related to the attempted murder. In 2018, Harrison was convicted by a jury and sentenced to approximately 25 years in state prison.
While in state prison following his conviction, Harrison continued to associate with Latin Kings members, including through jail calls to other co-defendants. The Latin Kings supported Harrison during his state incarceration, discussed Harrison’s loyalty to the Latin Kings and refusal to implicate others and put money into his jail accounts.
In December 2019, a federal grand jury returned an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against 62 leaders, members and associates of the Latin Kings. In total, 60 defendants in the case have pleaded guilty. Of the 62 charged defendants in the indictment, two remain fugitives. All of the remaining 60 defendants have pleaded guilty and have been sentenced or are awaiting sentencing. Harrison is the 59th defendant to be sentenced.
U.S. Attorney Rollins; FBI SAC Bonavolonta; Commissioner Carol Mici of the Massachusetts Department of Correction; Suffolk County District Attorney Kevin Hayden; Boston Police Commissioner Michael Cox; and New Bedford Police Chief Paul Oliveira made the announcement. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices. Assistant U.S. Attorney Philip A. Mallard of Rollins’ Organized Crime & Gang Unit 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.
The details contained in the charging documents are allegations. The two remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law
Five Charged in an $11 Million Health Care Fraud SchemeRead the Press Release
DETROIT – Five individuals, including a physician and a certified social worker, were charged in a Second Superseding Indictment for their alleged roles in an $11 million health care fraud scheme, which involved submitting false claims to Medicare for purported psychotherapy services that were induced by kickbacks and/or never rendered, announced United States Attorney Dawn N. Ison.
Mohammad Kazkaz is also charged with six counts of money laundering for engaging in monetary transactions exceeding $10,000 including transferring more than $1.4 million dollars in fraudulent health care fraud proceeds to a national restaurant chain.
Joining in the announcement were James A. Tarasca, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation and Mario Pinto, Special Agent in Charge, United States Department of Health and Human Services – Office of Inspector General (HHS-OIG).
Charged as members of the conspiracy in the indictment are:
Mohamed Kazkaz, 54, of Farmington Hills, Michigan;
Ziad Khalel, 52, of Rochester Hills, Michigan;
Dr. Mustafa Hares, 76, of West Bloomfield, Michigan;
Geraldine Letman, MSW, 70, of Phoenix, Arizona; and
Gamela Ali, 33, of Dearborn, Michigan.
The indictment alleges that Kazkaz was the owner and operator of Centre HRW, a psychotherapy agency in Farmington Hills, Michigan. Kazkaz offered and provided kickbacks and bribes to Khalel, who was a patient recruiter, as an inducement to refer Medicare beneficiaries to Centre HRW for psychotherapy services, even though such services were medically unnecessary and were never rendered. Khalel would require the recruited Medicare beneficiaries to sign blank Centre HRW sign-in sheets to allow Kazkaz to submit claims to Medicare, through Centre HRW, for psychotherapy services that were never provided.
Ali, as the office manager of Centre CRW, was responsible for obtaining information regarding the patients’ legitimate medical visits to ensure Kazkaz did not submit claims for a psychotherapy appointment on the same date the patient had a legitimate appointment with another medical provider. Dr. Hares and Letman would complete fraudulent patient charts indicating they had seen the patient, when in fact, such psychotherapy services were never rendered and/or were induced by kickbacks. As a result of the false and fraudulent claims submitted to Medicare, Centre HRW billed Medicare more than $11 million and Medicare made payments to Centre HRW in an amount more than $5.3 million.
Kazkaz and Khalel were originally charged in a January 11, 2023 indictment. Dr. Hares, Letman, and Ali were added as new defendants in today’s Second Superseding Indictment.
“My office is committed to prosecuting any individual, especially medical professionals, who exploits Medicare, a taxpayer-funded program that provides essential services to seniors and disabled individuals,” stated U.S. Attorney Ison.
“The payment of kickbacks to induce referrals for medical services in Federal health care programs, as well as billing for services not rendered, can undermine the trust we place in our nation’s providers and results in costly reductions to our federal health care programs," said Special Agent in Charge Mario M. Pinto of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG will continue to work with our law enforcement partners to ensure that those who commit fraud and pay kickbacks are held accountable.”
“Health care professionals who fraudulently bill Medicare for services never actually provided divert taxpayer money meant to pay for medically necessary services for people enrolled in Medicare,” said James A. Tarasca, Special Agent in Charge of the FBI in Michigan. “The FBI is committed to working with our partners to eradicate schemes that defraud government-sponsored health care programs.”
An indictment is only a charge and is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The case is being prosecuted by Assistant United States Attorneys Regina R. McCullough and Philip A. Ross. Assistant United States Attorney K. Craig Welkener, of the Money Laundering & Asset Recovery Unit, is handling related forfeiture matters. The investigation is being conducted jointly by the FBI and HHS-OIG
Federal Jury Convicts Child Psychiatrist of Sexual Exploitation of A MinorRead the Press Release
CHARLOTTE, N.C. – A federal jury in Charlotte has convicted David Tatum, 41, a child psychiatrist in Charlotte, N.C., of sexual exploitation of a minor, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Robert M. DeWitt, Special Agent in Charge of Federal Bureau of Investigation (FBI) in North Carolina join U.S. Attorney King in making today’s announcement.
According to filed court documents, trial evidence and witness testimony, between 2016 and 2021, Tatum possessed images and videos of child pornography. Trial evidence also established that in or about July 2016, Dr. Tatum secretly recorded a minor while the minor was undressing and showering. A forensic analysis of electronic devices revealed that the defendant produced the video of the minor and possessed it, along with other images and videos of child pornography. According to trial evidence, Dr. Tatum made similar surreptitious recordings of others, including of his patient during an outpatient visit who had just turned 18 years old five days before the recording. The jury convicted Dr. Tatum of one count production of child pornography, one count of transportation of child pornography, and one count of possession of child pornography.
Dr. Tatum is currently in federal custody. A sentencing date has not been set. The count of production of child pornography carries a minimum statutory sentence of 15 years and a maximum of 30 years in prison and a $250,000 fine. The charge of transportation of child pornography carries a minimum statutory sentence of 5 years and a maximum of 20 years in prison and a $250,000 fine. The charge of possession of child pornography carries a statutory penalty of no more than 10 years in prison and a $250,000 fine.
In making today’s announcement, U.S. Attorney King commended FBI for their investigation of the case.
Assistant United States Attorneys Daniel Cervantes and Mark Odulio of the U.S. Attorney’s Office in Charlotte, are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Federal Grand Jury Indicts Louisville Man for Carjacking and Firearms OffensesRead the Press Release
Louisville, KY – A federal grand jury in Louisville, Kentucky, returned an indictment on April 19, 2023, charging a local man with carjacking, possession of a firearm in furtherance of a crime of violence, and possession of a firearm by a convicted felon.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Chief Jacquelyn Gwinn-Villaroel of the Louisville Metro Police Department, Special Agent in Charge Rana Saoud of the Homeland Security Investigations (HSI) Nashville, and Special Agent in Charge Jodi Cohen of the FBI Louisville Field Office made the announcement.
According to the indictment, on February 15, 2023, Dekoda Stinson, 29, committed the following offenses: carjacking, possession of a firearm in furtherance of a crime of violence, and possession of a firearm by a convicted felon. Stinson was prohibited from possessing a firearm because he had previously been convicted of the following felony offenses. On August 16, 2022, in Jefferson Circuit Court, Stinson was convicted of receiving stolen property. On June 17, 2020, in Hardin Circuit Court, Stinson was convicted of receiving stolen property. On July 11, 2017, in Hardin Circuit Court, Stinson was convicted of burglary in the third degree and bail jumping in the first degree. On April 7, 2016, in Hardin Circuit Court, Stinson was convicted of assault in the third degree.
On May 4, 2023, Stinson made an initial appearance before a U.S. Magistrate Judge in the United States District Court for the Western District of Kentucky. If convicted, he faces a minimum sentence of 5 years in prison and a maximum sentence of 20 years. 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 LMPD, HSI, and the FBI.
Assistant U.S. Attorney Joshua R. Porter is prosecuting this case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Federal Grand Jury Indicts Bullitt County Man on Elder Fraud ChargesRead the Press Release
Louisville, KY – A federal grand jury in Louisville, Kentucky, returned an indictment on May 2, 2023, charging former Bullitt County Master Commissioner John Anthony Schmidt with engaging in a scheme to commit wire and bank fraud.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky and FBI Special Agent in Charge Jodi Cohen of the Louisville Field Office made the announcement.
According to the indictment, between September 2014 and January 2019, while serving as the trustee for two separate trusts, Schmidt devised a scheme to defraud and to obtain money from the trusts by means of false and fraudulent pretenses and representations to use the trusts’ money for his own personal expenditures. Schmidt is charged with one count of wire fraud and two counts of bank fraud.
The defendant made his initial court appearance yesterday before a U.S. Magistrate Judge of the U.S. District Court for the Western District of Kentucky. If convicted, Schmidt faces a maximum sentence of 80 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. There is no parole in the federal system.
The FBI is investigating the case.
Assistant U.S. Attorney Stephanie M. Zimdahl is prosecuting the case.
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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Former TSA Employee Sentenced on Fraud ConvictionRead the Press Release
St. Thomas, VI – United States Attorney Delia L. Smith announced today that Cleon Otto 35, of St. Thomas, was sentenced by Chief District Court Judge Robert A. Molloy to 12 months of probation on his conviction of creating a false authentication document. Molloy also ordered that Otto pay a $1,000.00 fine, a $25 special assessment and restitution in the amount of $1,162.20.
According to court documents, on July 9, 2021, Otto was an employee of the Transportation Safety Administration and a member of the Virgin Islands National Guard. In his capacity as a TSA officer, Otto produced a false document by placing the electronically generated signature of another employee to authorize his paid military leave request. Otto later submitted the fraudulently approved document and received compensation in the amount of $1,162.20.
This case was investigated by Homeland Security Investigations and prosecuted by Assistant United States Attorney Everard E. Potter.
Deputy Attorney General Recognizes Two Western District of Pennsylvania Assistant U. S. AttorneysRead the Press Release
WASHINGTON – Two employees of the United States Attorney’s Office for the Western District of Pennsylvania were among those recognized by Deputy Attorney General Lisa Monaco and Director Monty Wilkinson of the Executive Office for U.S. Attorneys (EOUSA), at the 38th Director’s Awards Ceremony on May 3, 2023, in Washington, D.C. The ceremony was held in the Great Hall at the Robert F. Kennedy Department of Justice Building.
Assistant United States Attorney (AUSA) Shaun E. Sweeney and AUSA Heidi M. Grogan each received the Superior Performance as an Assistant United States Attorney Award for their successful prosecution of Price Montgomery, who was convicted of murdering a federal witness as she was preparing to leave her residence to travel to the United States Attorney’s Office for an interview. Montgomery was also convicted of firearms offenses and being the leader of a significant heroin trafficking organization. Montgomery received a sentence of life imprisonment.
EOUSA Director Wilkinson said: “The recipients we honor today have shown remarkable resilience and commitment to justice through challenging times, rising to the occasion with unwavering dedication to their mission. They have worked tirelessly to protect the rights of Americans and exemplify the very best in federal service.”
“It is of paramount importance to protect the safety of government witnesses. Through their tireless efforts, AUSAs Sweeney and Grogan brought the perpetrator of this egregious murder to justice. In addition to murdering a federal witness, Montgomery also shot and grievously wounded the witness’s mother during the attack,” said Acting United States Attorney Troy Rivetti. “We also want to recognize the tremendous investigative work of our partner law enforcement agencies—the Western Pennsylvania Office of the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Drug Enforcement Administration, the IRS Criminal Investigation Division, the U.S. Marshals Service, the Pennsylvania Office of the Attorney General and the Pittsburgh Bureau of Police.”
EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.
Departments of Justice and Health and Human Services Announce Interim Resolution Agreement in Environmental Justice Investigation of Alabama Department of Public HealthRead the Press Release
The Departments of Justice and Health and Human Services (HHS) announced today an interim resolution agreement in their environmental justice investigation into the Alabama Department of Public Health and the Lowndes County Health Department (collectively ADPH) in Lowndes County, Alabama. ADPH cooperated throughout the investigation and agreed to the interim resolution agreement that puts ADPH on a path forward towards ensuring the development of equitable and safe wastewater disposal and management systems in Lowndes County.
In November 2021, Justice Department and HHS launched an investigation into whether ADPH’s conduct violates Title VI of the Civil Rights Act of 1964 (Title VI) and Section 1557 of the Affordable Care Act (Section 1557). Title VI prohibits recipients of federal funds from discriminating on the basis of race, color or national origin in their federally funded programs and activities. Section 1557 provides that an individual shall not be excluded from participation in, denied the benefits of or subjected to discrimination under, any health program or activity, any part of which is receiving federal financial assistance, based on the grounds prohibited under Title VI.
The nearly eighteen-month investigation revealed areas of concern in ADPH’s operations and compliance with Title VI and Section 1557. Specifically, the investigation revealed that ADPH’s enforcement of sanitation laws threatened residents of Lowndes County with criminal penalties and even potential property loss for sanitation conditions they did not have the capacity to alleviate. The investigation also revealed that ADPH engaged in a consistent pattern of inaction and/or neglect concerning the health risks associated with raw sewage. The investigation revealed that despite ADPH’s awareness of the issues and the disproportionate burden and impact placed on Black residents in Lowndes County, it failed to take meaningful actions to remedy these conditions.
“Today starts a new chapter for Black residents of Lowndes County, Alabama, who have endured health dangers, indignities and racial injustice for far too long,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Our agreement puts Lowndes County on a path to long overdue reform as the state now takes steps necessary to provide access to basic sanitation services, end exposure to raw sewage and improve health outcomes for marginalized communities. This agreement marks the first environmental justice settlement ever secured by the Justice Department under our civil rights laws. Our work in Lowndes County should send a strong message regarding our firm commitment to advancing environmental justice, promoting accountability and confronting the array of barriers that deny Black communities and communities of color access to clean air, clean water and equitable infrastructure across our nation.”
“Environmental justice is a public health issue, and where you live should not determine whether you get sick from basic environmental hazards not faced in other affluent and white communities,” said Director Melanie Fontes Rainer of the HHS Office for Civil Rights. “We are pleased that Alabama’s Public Health Department has committed to take immediate and long-term steps to protect the health of Lowndes County residents. This community has long been at the heart of the civil rights struggle, and today’s resolution is yet another testament to the ongoing work that is the pursuit of racial justice.”
“This agreement creates a path towards sustainable sanitation solutions,” U.S Attorney Sandra J. Stewart for the Middle District of Alabama. “The measures required in the agreement will improve public health and the environment for the residents of Lowndes County. My office is proud to support the community and the parties in reaching these important goals.”
Under the agreement, ADPH has agreed to take a number of actions to address public health in Lowndes County including:
- Suspending Criminal Penalties and Liens: ADPH will suspend enforcement of sanitation laws that could result in criminal charges, fines, jail time and potential property loss for residents in Lowndes County who lack the means to purchase functioning septic systems. ADPH will ensure that Lowndes County residents are informed about the suspension of the criminal penalties and liens.
- Examining Public Health Risks within Lowndes County: ADPH will coordinate with the Centers for Disease Control and Prevention (CDC) to measure the level of health risks different populations experience from raw sewage exposure. ADPH agrees to work collaboratively with the CDC and adopt any public health recommendations provided by the CDC.
- Launching a Public Health Awareness Campaign: ADPH will develop a public health awareness campaign using radio, print ads, flyers, mailers, door-to-door outreach and other appropriate ways to ensure residents receive critical health and safety information related to raw sewage exposure.
- Providing Public Health Educational Materials for Lowndes County Health Care Providers: ADPH will create or supplement education materials for health care providers for Lowndes County residents, including school-based health centers and community-based organizations, to provide more information on symptoms and illness related to raw sewage exposure.
- Conducting Assessment to Determine Appropriate Septic and Wastewater Management Systems: ADPH will conduct a comprehensive assessment to determine the appropriate septic and wastewater management systems for homes within Lowndes County and use that information to prioritize properties to receive systems based on risk of exposure to raw sewage. ADPH cannot use this information for criminal penalties or liens.
- Creating a Sustainable and Equitable Public Health and Infrastructure Improvement Plan: Within one year, ADPH will create a plan to improve access to adequate sanitation systems and address public health risks associated with raw sewage exposure.
- Consistently Engaging with the Community: In carrying out each aspect of the interim resolution agreement, ADPH will consistently engage with community residents, local government officials, experts in wastewater, infrastructure, soil and engineering and environmental justice advocates. ADPH must also engage with community stakeholders on at least a quarterly basis regarding its progress in creating and implementing the final Public Health and Infrastructure Improvement Plan.
As a result of ADPH’s decision to enter into this interim voluntary resolution agreement, the departments have agreed to suspend their investigation. Under Title VI, the Justice Department is required to informally resolve an investigation that indicates noncompliance. If ADPH does not comply with the agreement, the departments will reopen their investigation.
Addressing discriminatory environmental and health impacts through enforcement of the nation’s civil rights laws is a top priority of both the Justice Department and HHS. Today’s announcement comes one day prior to the one-year anniversary of the Justice Department’s launch of its Office on Environmental Justice and its Comprehensive Environmental Justice Enforcement Strategy.
The Civil Rights Division’s Federal Coordination and Compliance Section and the HHS Office for Civil Rights conducted this investigation jointly with the support of the U.S. Attorney’s office in the Middle District of Alabama.
Individuals who believe their civil rights have been violated can file a complaint with the Civil Rights Division at www.civilrights.justice.gov/report/. Additional information about the Office for Civil Rights is available on its website at www.hhs.gov/ocr. If you believe that you have been discriminated against in programs or activities that HHS directly operates or to which HHS provides federal financial assistance, you may file a complaint for yourself or someone else at: www.hhs.gov/civil-rights/filing-a-complaint/index.html.
Departments of Justice and Health and Human Services Announce Interim Resolution Agreement in Environmental Justice Investigation of Alabama Department of Public HealthRead the Press Release
WASHINGTON – The Departments of Justice and Health and Human Services (HHS) announced today an interim resolution agreement in their environmental justice investigation into the Alabama Department of Public Health and the Lowndes County Health Department (collectively ADPH) in Lowndes County, Alabama. ADPH cooperated throughout the investigation and agreed to the interim resolution agreement that puts ADPH on a path forward towards ensuring the development of equitable and safe wastewater disposal and management systems in Lowndes County.
In November 2021, Justice and HHS launched an investigation into whether ADPH’s conduct violates Title VI of the Civil Rights Act of 1964 (Title VI) and Section 1557 of the Affordable Care Act (Section 1557). Title VI prohibits recipients of federal funds from discriminating on the basis of race, color, or national origin in their federally funded programs and activities. Section 1557 provides that an individual shall not be excluded from participation in, denied the benefits of, or subjected to discrimination under, any health program or activity, any part of which is receiving federal financial assistance, based on the grounds prohibited under Title VI.
The nearly eighteen-month investigation revealed areas of concern in ADPH’s operations and compliance with Title VI and Section 1557. Specifically, the investigation revealed that ADPH’s enforcement of sanitation laws threatened residents of Lowndes County with criminal penalties and even potential property loss for sanitation conditions they did not have the capacity to alleviate. The investigation also revealed that ADPH engaged in a consistent pattern of inaction and/or neglect concerning the health risks associated with raw sewage. The investigation revealed that despite ADPH’s awareness of the issues and the disproportionate burden and impact placed on Black residents in Lowndes County, it failed to take meaningful actions to remedy these conditions.
“Today starts a new chapter for Black residents of Lowndes County, Alabama who have endured health dangers, indignities and racial injustice for far too long,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Our agreement puts Lowndes County on a path to long overdue reform as the state now takes steps necessary to provide access to basic sanitation services, end exposure to raw sewage and improve health outcomes for marginalized communities. This agreement marks the first environmental justice settlement ever secured by the Justice Department under our civil rights laws. Our work in Lowndes County should send a strong message regarding our firm commitment to advancing environmental justice, promoting accountability and confronting the array of barriers that deny Black communities and communities of color access to clean air, clean water and equitable infrastructure across our nation.”
“Environmental justice is a public health issue, and where you live should not determine whether you get sick from basic environmental hazards not faced in other affluent and white communities,” said Department of Health and Human Services Office for Civil Rights Director Melanie Fontes Rainer. “We are pleased that Alabama’s Public Health Department has committed to take immediate and long-term steps to protect the health of Lowndes County residents. This community has long been at the heart of the civil rights struggle, and today’s resolution is yet another testament to the ongoing work that is the pursuit of racial justice.”
“This agreement creates a path towards sustainable sanitation solutions,” U.S Attorney Sandra J. Stewart for the Middle District of Alabama. “The measures required in the agreement will improve public health and the environment for the residents of Lowndes County. My office is proud to support the community and the parties in reaching these important goals.”
Under the agreement, ADPH has agreed to take a number of actions to address public health in Lowndes County including:
- Suspending Criminal Penalties and Liens: ADPH will suspend enforcement of sanitation laws that could result in criminal charges, fines, jail time, and potential property loss for residents in Lowndes County who lack the means to purchase functioning septic systems. ADPH will ensure that Lowndes County residents are informed about the suspension of the criminal penalties and liens.
- Examining Public Health Risks within Lowndes County: ADPH will coordinate with the Centers for Disease Control and Prevention (CDC) to measure the level of health risks different populations experience from raw sewage exposure. ADPH agrees to work collaboratively with the CDC and adopt any public health recommendations provided by the CDC.
- Launching a Public Health Awareness Campaign: ADPH will develop a public health awareness campaign using radio, print ads, flyers, mailers, door-to-door outreach, and other appropriate ways to ensure residents receive critical health and safety information related to raw sewage exposure.
- Providing Public Health Educational Materials for Lowndes County Health Care Providers: ADPH will create or supplement education materials for health care providers for Lowndes County residents, including school-based health centers and community-based organizations, to provide more information on symptoms and illness related to raw sewage exposure.
- Conducting Assessment to Determine Appropriate Septic and Wastewater Management Systems: ADPH will conduct a comprehensive assessment to determine the appropriate septic and wastewater management systems for homes within Lowndes County and use that information to prioritize properties to receive systems based on risk of exposure to raw sewage. ADPH cannot use this information for criminal penalties or liens.
- Creating a Sustainable and Equitable Public Health and Infrastructure Improvement Plan: Within one year, ADPH will create a plan to improve access to adequate sanitation systems and address public health risks associated with raw sewage exposure.
- Consistently Engaging with the Community: In carrying out each aspect of the interim resolution agreement, ADPH will consistently engage with community residents, local government officials, experts in wastewater, infrastructure, soil and engineering, and environmental justice advocates. ADPH must also engage with community stakeholders on at least a quarterly basis regarding its progress in creating and implementing the final Public Health and Infrastructure Improvement Plan.
As a result of ADPH’s decision to enter into this interim voluntary resolution agreement, the departments have agreed to suspend their investigation. Under Title VI, the Justice Department is required to informally resolve an investigation that indicates noncompliance. If ADPH does not comply with the agreement, the departments will reopen their investigation.
Addressing discriminatory environmental and health impacts through enforcement of the nation’s civil rights laws is a top priority of both the Justice Department and the Department of Health and Human Services. Today’s announcement comes one day prior to the one-year anniversary of the Justice Department’s launch of its Office on Environmental Justice and its Comprehensive Environmental Justice Enforcement Strategy.
The Civil Rights Division’s Federal Coordination and Compliance Section and the HHS Office for Civil Rights conducted this investigation jointly with the support of the U.S. Attorney’s office in the Middle District of Alabama.
Individuals who believe their civil rights have been violated can file a complaint with the Civil Rights Division at www.civilrights.justice.gov/report/. Additional information about the Office for Civil Rights is available on its website at www.hhs.gov/ocr. If you believe that you have been discriminated against in programs or activities that HHS directly operates or to which HHS provides federal financial assistance, you may file a complaint for yourself or someone else at: www.hhs.gov/civil-rights/filing-a-complaint/index.html.
Department of Justice Recognizes Two U.S. Attorney's Office EmployeesRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Dena J. King announced that two U.S. Attorney’s Office employees were among the 159 members of the Justice Department recognized by Attorney General Merrick B. Garland, Deputy Attorney General Lisa Monaco, and Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson at the 38th Director’s Awards Ceremony yesterday in Washington, D.C.
The Western District of North Carolina was one of 31 districts represented at the ceremony which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building.
Fred Hudson was recognized for his exemplary work as the Western District’s Law Enforcement Coordinator (LEC). As an LEC, Mr. Hudson has spent years cultivating relationships with federal, state, and local law enforcement, coordinating law enforcement officer training, and assisting partner agencies with federal grant opportunities. For over 18 years, Mr. Hudson has also spearheaded the Office’s community outreach efforts by fostering relationships with community organizations, schools, service providers, and other important stakeholders, and organizing events and engagement opportunities that advance Department of Justice priorities.
Lia Bantavani was recognized for her work as the Office’s Public Information Officer. In that capacity, Ms. Bantavani handles the Office’s communications with the media and the public, drafts and disseminates press releases, responds to media inquiries and coordinates media interviews. In addition, Ms. Bantavani maintains the Offices’ website and social media accounts, and assists with amplifying the Office’s outreach efforts and Department of Justice initiatives through targeted campaigns that promote public safety.
“I am honored and delighted that Fred and Lia were recognized for their achievements and contributions to furthering the mission of the Justice Department. This well-deserved award speaks to their dedication, hard work and professionalism. Fred and Lia are dedicated public servants who embody our ongoing commitment to serve our communities and further the cause of justice,” said U.S. Attorney King.
EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.
Defense Contractor and Chief Executive Officer Resolve False Claims Act and FIRREA Allegations for Misusing Pandemic-Relief FundsRead the Press Release
ALEXANDRIA, Va. – CybeCys, Inc., a defense contractor located in Texas, and its Chief Executive Officer, Harish Vajja of Fairfax, agreed to pay more than $283,000 in civil penalties, damages, and restitution and have repaid the full amount of two pandemic-relief loans to resolve allegations that Vajja transferred funds from the Small Business Administration’s Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program to his individual investment account, where he used the funds to purchase cryptocurrency and other investments.
The PPP and the EIDL program offered loans to eligible small businesses for economic relief during the COVID-19 pandemic. PPP borrowers were required to certify that they would use the funds to retain workers and maintain payroll or for other permissible purposes. EIDL borrowers were required to certify that they would use the funds solely as working capital to alleviate the economic injury caused by the COVID-19 pandemic.
According to the allegations, Vajja, on behalf of CybeCys, applied for a $954,446 PPP loan and an $80,700 EIDL loan. After CybeCys received the $954,446 PPP loan, Vajja transferred PPP funds to his individual investment account, where he allegedly purchased securities, exchange-traded funds, and cryptocurrency, while CybeCys used other corporate funds to maintain payroll. Vajja also allegedly directed EIDL funds issued to CybeCys to be deposited into his personal bank account, after which he allegedly transferred portions of the funds to his individual investment account and used the funds to purchase securities, exchange-traded funds, and cryptocurrency.
As part of the resolution, CybeCys and Vajja agreed to pay $178,493 in restitution, civil penalties, and damage multipliers under the False Claims Act, and $104,515 in civil penalties under the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA). CybeCys also repaid the full amounts of the PPP and EIDL loans and agreed not to seek forgiveness of the PPP loan.
The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Virginia, the Internal Revenue Service’s Criminal Investigation, and the Small Business Administration’s Office of Inspector General.
The matter was prosecuted by Assistant U.S. Attorney William Hochul III.
The civil claims are allegations only; there has been no admission of liability.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Defendants Sentenced in Air Force Contract Fraud CaseRead the Press Release
SAN ANTONIO – The four remaining defendants in the fraud case involving former Air Force civilian employee Keith Seguin were sentenced this week in a federal court in San Antonio.
According to court documents, David Joseph Bolduc Jr., 62, of Herndon, Virginia, was the owner and director of operations at QuantaDyn, a software engineering company that worked on Randolph Trainer Development (RTD) simulators at Randolph Air Force Base. From 2007 through 2018, he and others paid $2,375,725.26 in bribes to Seguin in return for Seguin’s influence in obtaining government contracts and subcontracts for QuantaDyn. Bolduc was sentenced to 120 months in prison for one count of conspiracy to commit wire fraud and ordered to pay $37,757,713.93 in restitution to the government in addition to a forfeiture of property and $8,750,775.77.
John G. Hancock, 61, of Fairborn, Ohio, was sentenced to 40 months in prison for one count of conspiracy to commit wire fraud and ordered to pay $23,769,884.41 in restitution to the government. Hancock and co-conspirator Karen K. Paulsen aided Seguin in unlawfully manipulating the award amounts and winners of federal contracts, to corrupt contracting processes, and to defraud the Air Force, General Services Administration (GSA), and companies competing for government contracts.
Paulsen, 59, of Beaver Creek, Ohio, was sentenced for one count of conspiracy, to five years of probation with six months home confinement and 100 hours of community service during each year of probation. She was also ordered to pay $8,015,860.00 in restitution to the government.
Rubens Wilson Fiuza Lima, 73, of Marietta, Georgia, was sentenced to 27 months in prison and ordered to pay $653,984.20 in restitution to the government for one count of conspiracy. As a friend of Seguin, Lima took a job as a subcontractor on an RTD contract in Texas, used his business Impex Import Export Inc. to assist Seguin by disguising the bribe money paid to Seguin as legitimate purchases of supplies and equipment related to flight simulators.
“The sentences handed down in this case send a clear message that corrupt behavior will not be tolerated, especially when it involves the safety and security of our nation’s military,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “We are grateful for the hard work of our law enforcement partners in uncovering this corruption and holding these co-conspirators accountable. My office will continue to work tirelessly to protect the integrity of our government contracts, ensuring taxpayer dollars are spent wisely.”
“The successful prosecution and sentencing of additional defendants demonstrate our unrelenting pursuit of justice in the face of complex criminal networks. Each co-conspirator played an active role in facilitating this fraudulent scheme and inflicted significant harm on the integrity of our institutions,” said Special Agent in Charge Ramsey E. Covington of IRS Criminal Investigation’s Houston Field Office. “Our team remains committed to working together to dismantle such schemes and safeguard the interests of our nation.”
“The results of this investigation exemplify the skill, persistence, and professionalism of the special agents, auditors, analysts, and attorneys who worked together to achieve justice and maintain taxpayer confidence in the integrity of the federal procurement system," said Special Agent in Charge Jamie M. Willemin for GSA OIG Southwest and Rocky Mountain Investigations Division. "Their efforts and dedication should be applauded.”
"The Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS) is committed to combating corruption that pollutes the DoD contracting process," said Acting Special Agent in Charge Gregory Shilling for DCIS Southwest Field Office. "These results are a reflection of the steadfast vigilance of DCIS and our investigative partners to protect against those who seek to fraudulently enrich themselves at the expense of the American taxpayer."
"The sentences reflect the results of the skilled and hard work put forth by all agencies involved," said Special Agent in Charge Blair Holmstrand, Air Force Office of Special Investigations, Procurement Fraud Detachment 3.
"This week’s sentencing should serve as a stark reminder that our agents, and those of our partner law enforcement agencies, are relentless in their pursuit of those who choose to defraud the government," said Special Agent in Charge Larry S. Moreland, of the Department of the Army Criminal Investigation Division’s, Major Procurement Fraud Field Office.
The GSA OIG; DCIS; AFOSI; Army CID; and IRS-CI investigated the case.
Assistant U.S. Attorneys William Lewis, Kelly Stephenson and Special Assistant U.S. Attorney Jay Porier prosecuted the case.
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Defendants Convicted on Child Pornography Charges Receive Lengthy Prison SentencesRead the Press Release
LAKE CHARLES, La. – Two men convicted of receipt of child pornography appeared in federal court today for sentencing, announced United States Attorney Brandon B. Brown. United States District Judge James D. Cain, Jr. sentenced Terrence Landry and Steven M. Stinnett as follows:
Terrence Landry, 34, of Lake Charles, Louisiana, was sentenced to 210 months (17 years, 6 months) in prison, followed by 10 years of supervised release. In May 2020, agents with the Louisiana Bureau of Investigation received a complaint from the National Center for Missing and Exploited Children (NCMEC) regarding the possible distribution of child pornography originating in Lake Charles, Louisiana. Further investigation by agents revealed that the subscriber of the IP address associated with the images of child pornography was Landry. Agents obtained a search warrant and subsequently searched the residence of Landry. Numerous computers and electronic equipment belonging to Landry were seized and analyzed by law enforcement. Agents determined that those electronic devices contained over 5,000 still images and more than 400 videos containing child pornography, some of which depicted prepubescent children engaged in sexual activity with adults. Landry admitted to receiving specific images via the internet in May 2016, knowing that they contained child pornography. Landry pleaded guilty to the charge of receipt of child pornography on April 13, 2022.
The case was investigated by the Department of Homeland Security Investigations and Louisiana Bureau of Investigation and prosecuted by Assistant U.S. Attorney Craig R. Bordelon.
Steven M. Stinnett, 51, of Lake Charles, Louisiana, a former associate professor at McNeese State University, was sentenced to 151 months (12 years, 7 months) in prison, followed by a lifetime of supervised release. On November 17, 2022, law enforcement officers in Calcasieu Parish executed a search warrant at the residence of Stinnett. Officers seized computers and electronic equipment during the search. Agents with the Department of Homeland Security Investigations conducted a forensic review of Stinnett’s computer and found numerous images and videos containing child sexual abuse material. Stinnett admitted that one of the child pornography images was received via the internet in April 2017 and depicted a prepubescent female in a sexually explicit manner. Stinnett admitted to having 228 still images and 57 videos containing child sexual abuse material in his possession. Stinnett pleaded guilty to a charge of receipt of child pornography on February 3, 2023.
The case was investigated by the Department of Homeland Security Investigations and McNeese State University Police and prosecuted by Assistant U.S. Attorney Craig R. Bordelon.
These cases are part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood combines federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Colorado Man Pleads Guilty to Federal Hate Crime for Church ArsonRead the Press Release
A Colorado man pleaded guilty today to a hate crime charge in connection with a fire he set to a church in Loveland, Colorado.
According to court documents and admissions during the plea hearing, Darion Ray Sexton, 22, intentionally set fire to the church in the evening hours of Jan. 19. Sexton admitted that he set this fire by throwing two Molotov cocktails at the church – one at the front door and the other at the basement. Sexton further admitted that he was motivated to set this fire due to the religious character of the church and that he intended to destroy the church.
“Protecting religious freedom and observance is a top priority for the Department of Justice,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “We will continue to vigorously prosecute those who attack houses of worship and target religious communities.”
“We all have a right to feel safe and secure in our houses of worship – no matter our religion or belief,” said U.S. Attorney Cole Finegan for the District of Colorado. “An act of violence in one of our sacred places is especially serious, and we will work with our law enforcement partners to vigorously prosecute all such offenses.”
“The FBI treats hate crimes as the highest priority of our civil rights program because everyone deserves to feel safe to exercise their religion without fear of violence from others,” said Special Agent in Charge Mark Michalek of the FBI Denver Field Office. “FBI Denver is committed to protecting those rights, and we will continue to aggressively work with our law enforcement partners to bring justice to all communities that have been targeted.”
The sentencing hearing is scheduled for July 21. Sexton faces a maximum sentence of 20 years in prison and a $250,000 fine.
The FBI, ATF and the Loveland Police and Fire Departments investigated the case.
Assistant U.S. Attorney Bryan D. Fields for the District of Colorado and Trial Attorney Maura White of the Civil Rights Division’s Criminal Section are prosecuting the case.
Colorado Man Pleads Guilty to Federal Hate Crime for Church ArsonRead the Press Release
A Colorado man pleaded guilty today to a hate crime charge in connection with a fire he set to a church in Loveland, Colorado.
According to court documents and admissions during the plea hearing, Darion Ray Sexton, 22, intentionally set fire to the church in the evening hours of Jan. 19. Sexton admitted that he set this fire by throwing two Molotov cocktails at the church – one at the front door and the other at the basement. Sexton further admitted that he was motivated to set this fire due to the religious character of the church and that he intended to destroy the church.
“Protecting religious freedom and observance is a top priority for the Department of Justice,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “We will continue to vigorously prosecute those who attack houses of worship and target religious communities.”
“We all have a right to feel safe and secure in our houses of worship – no matter our religion or belief,” said U.S. Attorney Cole Finegan for the District of Colorado. “An act of violence in one of our sacred places is especially serious, and we will work with our law enforcement partners to vigorously prosecute all such offenses.”
“The FBI treats hate crimes as the highest priority of our civil rights program because everyone deserves to feel safe to exercise their religion without fear of violence from others,” said Special Agent in Charge Mark Michalek of the FBI Denver Field Office. “FBI Denver is committed to protecting those rights, and we will continue to aggressively work with our law enforcement partners to bring justice to all communities that have been targeted.”
"Arson, especially when motivated by hatred, should never be tolerated, and often leads to deadly consequences," said ATF Special Agent in Charge Brent Beavers. "Denver Fire Department Accelerant Detection Canine Peaches responded with our Certified Fire Investigators, who provided expertise and guidance while working in tandem with law enforcement partners to investigate and determine the origin and cause of the arson, making a substantial contribution to this investigation."
The sentencing hearing is scheduled for July 21. Sexton faces a maximum sentence of 20 years in prison and a $250,000 fine.
The FBI, ATF, and the Loveland Police and Fire Departments investigated the case.
Assistant U.S. Attorney Bryan D. Fields for the District of Colorado and Trial Attorney Maura White of the Civil Rights Division’s Criminal Section are prosecuting the case.
Clarksville Man Convicted of Drug Trafficking & Firearms CrimesRead the Press Release
NASHVILLE – A federal jury in Nashville has convicted a Clarksville, Tennessee, man of drug trafficking and firearms offenses, announced United States Attorney Henry C. Leventis.
Mark Ellis, 29, was convicted after a two-day trial of conspiracy to distribute, and possession with intent to distribute, more than 400 grams of fentanyl; being a convicted felon in possession of a firearm; and possession of a firearm in furtherance of a drug trafficking crime.
Ellis and his wife, Yennifer Angeles, 23, were indicted by a federal grand jury in February 2022 after their arrests by Clarksville Police Department (CPD) officers in January 2022.
"We will relentlessly pursue violent drug dealers like this one to hold them accountable for their crimes," said U.S. Attorney Leventis. "I commend the trial team, the Clarksville Police Department and ATF for their work investigating and prosecuting this important case. The citizens of Clarksville are safer because of their efforts."
According to evidence and testimony introduced at trial, CPD officers, using a confidential informant, made a controlled purchase of fentanyl from Ellis while seated in his car at a residence on Mark Spitz Drive in Clarksville. During the transaction, Ellis’ wife exited the car, went into the house, and returned with a baggie of fentanyl which was sold to the informant. A 9mm handgun was visible in the car during the transaction. The resulting investigation and subsequent search of Ellis’ vehicle led to the recovery of a Ruger 9mm pistol and the seizure of almost a pound of fentanyl from the residence, where Ellis lived.
During this investigation, and at the time of his arrest, Ellis was under electronic monitoring and out on bond from an unrelated murder charge in Montgomery County.
While in the Montgomery County Jail, Ellis called his wife and directed her to continue selling fentanyl. That same day, Angeles was stopped by CPD officers in the same vehicle used to make the drug deal the previous day. Further investigation led to the execution of a search warrant on South Lancaster Road in Clarksville, where more than 40 grams of fentanyl was recovered.
“ATF and our law enforcement partners work tirelessly to disrupt the illegal possession of firearms, distribution of narcotics and other acts of violence within our community,” said Marcus Watson, Special Agent in Charge of the ATF Nashville Field Division. “The outcome of this case is the result of extremely great work done by the individuals that took part in this investigation.”
"I would like to commend the detectives and agents with the Clarksville Police Department’s Special Operations Unit, agents with the ATF, and the federal prosecutors who spent countless hours on this investigation,” said Chief David Crockarell. “Their relentless pursuit of justice culminated with the guilty verdict ensures the citizens of Clarksville are much safer today.”
Ellis faces a minimum of 15 years, and up to life in prison when he is sentenced on December 8, 2023. Yennifer Angeles pleaded guilty in March 2023 to conspiracy to distribute fentanyl and faces up to 20 years in prison. She will be sentenced on August 9, 2023.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives, and the Clarksville Police Department. Assistant U.S. Attorney Robert E. McGuire is prosecuting the case.
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Citizen of Dominican Republic Sentenced to 78 Months in Prison for Role as Leader of International Money Laundering OrganizationRead the Press Release
NEWARK, N.J. – The leader of an international money laundering organization in the Dominican Republic was sentenced today to 78 months in prison and ordered to pay $80 million in forfeiture for his role in a conspiracy to commit money laundering. Luis Velazquez-Cordero, aka El Pequeño, 38, a citizen of the Dominican Republic, pleaded guilty before U.S. District Judge Brian R. Martinotti on May 4, 2022, to Count One of an indictment charging him with conspiring to commit money laundering. Velazquez-Cordero was extradited to the United States after his arrest the Dominican Republic on July 28, 2020.
Charleston Woman Sentenced for COVID-19 Relief Fraud SchemeRead the Press Release
CHARLESTON, W.Va. – Tiffany Bowlin, 33, of Charleston, was sentenced today to five years of federal probation, including four months on home detention, and ordered to pay $20,833 in restitution for wire fraud. Bowlin admitted a scheme to defraud the Paycheck Protection Program (PPP) of $20,833 in COVID-19 relief loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).
According to court documents and statements made in court, on April 27, 2021, Bowlin applied for a PPP loan for her purported sole proprietorship, a hair salon operating under the business name “Tiffany Bowlin.” Bowlin admitted that she falsely stated that “Tiffany Bowlin” was established in 2019, when it in fact was not a legitimate business and had not engaged in substantial business activities on or before February 15, 2020. Bowlin further admitted that she submitted a false IRS Form 1040 stating that “Tiffany Bowlin” received $106,600 in gross income in 2020.
The CARES Act, enacted in March 2020, offered emergency financial assistance to Americans suffering from the economic effects caused by the COVID-19 pandemic. This assistance included forgivable loans to small businesses for job retention and certain other expenses through the Paycheck Protection Program. Businesses applying for PPP loans had to certify that the business was in operation on February 15, 2020, and were required to provide documentation showing their prior gross income from either 2019 or 2020.
Bowlin submitted the loan application electronically from West Virginia and it was uploaded to servers in Kansas for processing. Bowlin’s loan application was approved and she received $20,833 via an electronic transfer to her personal bank account on May 13, 2021. Bowlin admitted that she spent the fraudulently obtained money to benefit herself personally and not for authorized business expenses.
On March 2, 2022, Bowlin applied to have the PPP loan forgiven even though she had not spent the loan proceeds on permissible business expenses. The SBA forgave Bowlin’s PPP loan on or about March 9, 2022.
United States Attorney Will Thompson made the announcement and commended the investigative work of the West Virginia State Police-Bureau of Criminal Investigations (BCI), and the Litigation Financial Analyst with the U.S. Attorney’s Office.
Senior United States District Judge John T. Copenhaver, Jr. imposed the sentence. Assistant United States Attorney Ryan Blackwell prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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-205.
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Centreville Man Pleads Guilty to Conspiracy to Possess with Intent to Distribute FentanylRead the Press Release
Gulfport, Miss. – A Centreville man pled guilty to conspiracy to possess with intent to distribute fentanyl, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Brad L. Byerley of the Drug Enforcement Administration.
Phillip Montgomery, 41, pled guilty in U.S. District in Gulfport on May 3, 2023.
According to court records, in late 2021, the DEA conducted an investigation involving a large drug trafficking organization trafficking large quantities of fentanyl in Moss Point, Mississippi. The investigation revealed that individuals were selling fentanyl that was brought to them by Phillip Montgomery. Montgomery admitted in court to bringing 3 kilograms of fentanyl into Jackson County and furnishing it to the individuals involved in the drug trafficking organization in Moss Point so that it could be sold.
Montgomery will be sentenced on August 3, 2023 and faces a minimum of 10 years to life in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case was investigated by the Drug Enforcement Administration.
The case was prosecuted by Assistant U.S. Attorney Erica Rose.
Cartel member imprisoned for drug trafficking in local neighborhoodRead the Press Release
HOUSTON – A 32-year-old Mexican citizen who illegally resided in Houston has been ordered to federal prison following his conviction for conspiracy to distribute meth during a transaction that occurred in a Houston residential neighborhood, announced US Attorney Alamdar S. Hamdani.
Ismael Salas Navarro pleaded guilty Nov. 17, 2022.
Today, U.S. District Judge David Hittner sentenced Navarro to a total of 135 months in federal prison. Not a U.S. citizen, he is expected to face removal proceedings following his imprisonment.
“Mexican cartels and their drugs are not welcome in our cities,” said Hamdani. “Cartels, like the Gulf Cartel, endanger the lives of our citizens and loved ones. Today’s sentence sends a strong message to criminals like Navarro that our communities will not tolerate the scourge of drug traffickers.”
Navarro’s arrest and ultimate conviction stems from an investigation into individuals affiliated with the Gulf Cartel operating in Houston. On Jan. 25, 2021, law enforcement recorded Navarro ordering two kilograms of crystal meth from a co-conspirator. Authorities then watched as the narcotics were delivered to Navarro in a quiet Houston neighborhood.
They took him into custody before he could drive off with the narcotics.
Navarro has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration, FBI, Houston Police Department, Harris County Precinct 5 Constable’s Office and the Harris County Sheriff’s Office conducted this investigation. Assistant U.S. Attorney Shelley J. Sullivan prosecuted the case.
Camden Registered Sex Offender Admits Sex Trafficking MinorsRead the Press Release
CAMDEN, N.J. – A Camden man admitted trafficking three minors to engage in commercial sex acts, U.S. Attorney Philip R. Sellinger announced today.
Semaj A. Gilmore, 33, pleaded guilty before U.S. Chief District Judge Renée Marie Bumb on May 3, 2023, to three counts of a superseding indictment charging him with sex trafficking minors.
According to documents filed in this case and statements made in court:
From September 2020 to April 2021 Gilmore transported, at various times, three minor victims from Philadelphia to New Jersey knowing they would engage in a commercial sex act at Gilmore’s direction. Each of the victims was under age 18 at the time.
Each count of sex trafficking of a minor is punishable by a mandatory minimum penalty of 10 years in prison, a maximum of life in prison and a fine of up to $250,000. Sentencing is scheduled for Sept. 5, 2023.
U.S. Attorney Sellinger credited special agents of FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Jacqueline Maguire in Philadelphia, with the investigation leading to the guilty plea. He also thanked members of the Mount Laurel Police Department and the Burlington County Prosecutor’s Office for their assistance.
The government is represented by Assistant U.S. Attorney Jeffrey Bender and Special Assistant U.S. Attorney Katelyn Waegener of the U.S. Attorney’s Office in Camden.
gilmore.sindictment.pdfCalifornia pair indicted for retail theft scheme; more than $800,000 in equipment stolen from home improvement chainRead the Press Release
Seattle – A man and woman from Southern California were arrested this week on an indictment charging them with conspiracy and ten counts of wire fraud related to an organized retail theft scheme, announced U.S. Attorney Nick Brown. Jalen Amir Thomas, 27, of Santa Monica, California, and Armia Ta’Jae Timmons, 25, of Los Angeles, were arrested on the eleven-count indictment. They appeared in U.S. District Court in the Central District of California yesterday. Prosecutors will ask that they be detained and transported to the Western District of Washington for arraignment.
“Organized retail theft has exploded across the country, due in large part to the growth of an online resale marketplace,” said U.S. Attorney Nick Brown. “In this case, we allege the coconspirators hatched a scheme to rent high-value construction equipment and then fail to return it. They allegedly sold the stolen goods on websites such as OfferUp and Facebook Marketplace. They traveled through 23 different states and hit nearly 200 stores causing more than $800,000 in losses. We are putting a stop to it here in Western Washington.”
“As the US retail sector faces increasing challenges such as layoffs and store closings, it becomes more difficult for stores to absorb the impact of retail fraud, which amounts to billions of dollars in losses,” said SAC Robert Hammer, who oversees HSI operations in the Pacific Northwest. “HSI is proud to have started a strategic initiative with the Seattle Police Department and various corporate partners in 2023 to hold those involved in organized retail theft accountable for their actions.”
According to the indictment, as early as March 2022, Thomas led a group including Timmons, that traveled the U.S., stopping at home improvement stores and renting two types of expensive construction equipment: jumping jack tampers and vibratory plate compactors valued between $1,500 and $2,000 each. The group used debit cards to make a small rental deposit for each machine and signed an agreement that if the equipment was not returned on time, they would pay mounting fees. They used false identities and ruse telephone numbers to rent the equipment. They transported stolen goods in vans and rental trucks.
In all, some 480 pieces of equipment were stolen from the home improvement stores. When a store tried to charge the debit account for the value of the equipment or the penalties incurred, it learned there was insufficient funds to cover the debt. Thomas and Timmons then attempted to sell the stolen equipment at a steep discount on various online marketplaces.
The group stole multiple items of equipment from stores in Federal Way, Tacoma, Vancouver, Covington, Longview, Bothell, Everett, Redmond, and Seattle.
Because the deposits traveled by wire outside the state of Washington, the pair is charged with conspiracy to commit wire fraud and ten counts of wire fraud and/or aiding and abetting wire fraud.
The conspiracy count and the wire fraud counts are each punishable by up to 20 years in prison and a $250,000 fine.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The investigation is being led by Homeland Security Investigations (HSI).
The case is being prosecuted by Assistant United States Attorney Lauren Watts Staniar.
California man sentenced to five years in prison for assisting in the transportation a person to Billings for prostitutionRead the Press Release
BILLINGS — A California man who was convicted in a commercial sex investigation in which a woman brought a minor girl to Billings to engage in prostitution was sentenced today to five years in prison, to be followed by three years of supervised release, U.S. Attorney Jesse Laslovich said.
Cecil Jerome Hatchett, 32, of Carmichael, California, pleaded guilty in January to transportation of a person with intent to engage in prostitution.
Co-defendant, Ashley Stella, of Reno, Nevada, was sentenced previously to eight years in prison for transportation of a minor to engage in prostitution.
U.S. District Judge Susan P. Watters presided.
In court documents, the government alleged that Hatchett arranged and aided the transportation of Stella and a minor girl, identified as Jane Doe, to travel to Montana and elsewhere to engage in commercial sex. In April 2021, law enforcement responded to a call by Quality Inn staff in Billings about possible commercial sex activity. Upon arrival, officers found an individual emerging from the motel room while buttoning up his shirt and Stella and Jane Doe in the room. Law enforcement interviewed all three individuals and determined that the individual had responded to an ad in setting up the meeting and that Stella and the individual had corresponded about the potential sex encounter before he arrived in the room. Stella later admitted that when law enforcement arrived, she was in the midst of a commercial sex encounter.
The government further alleged that these events triggered a federal investigation into allegations of sex trafficking. Investigators found electronic messages between Hatchett and Stella discussing commercial sex appointments, including those that involved Jane Doe. Hatchett also had rented the car that Stella and Jane Doe used to travel to Montana.
Assistant U.S. Attorneys Zeno B. Baucus and Bryan T. Dake prosecuted the case. The FBI, Montana Division of Criminal Investigation, Billings Police Department, Reno, Nevada., Police Department and IRS conducted the investigation.
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Buffalo Woman Sentenced for Setting Fire That Injured A Buffalo FirefighterRead the Press Release
BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced that Jade Smart, 34, of Buffalo, NY, who was convicted of unlawfully damaging or destroying property by means of fire or explosive causing personal injury to a public safety officer, was sentenced to serve 51 months in prison by U.S. District Judge John L. Sinatra, Jr.
Assistant U.S. Attorney P. Richard Antoine, who handled the case, stated that in the early evening hours of January 28, 2020, the Buffalo Fire Department responded to the scene of a fire at 79 Kilhoffer Street in Buffalo, and found the building engulfed in flames. Ultimately, the building burned completely to the ground. A firefighter injured his back fighting the fire and subsequently went on medical leave to address the injuries. Investigators recovered a firebomb, and a red gas can nearby and ruled the fire an arson. Video footage recovered from a nearby gas station shows Smart filling up a red plastic gas can. Smart then went to 79 Kilhoffer Street, where she poured gasoline from the plastic gas can into a used iced tea bottle and used it to set the residence on fire. 79 Kilhoffer Street was a building owned by the Buffalo Peacemakers and under renovation and possessed by Habitat for Humanity.
The sentencing is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. DeVito, New York Field Division, and the Buffalo Fire Department, under the direction of Commissioner William Renaldo.
Buffalo Man Pleads Guilty to Drug and Gun ChargesRead the Press Release
BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Rayshawn Miller, 40, of Buffalo, NY, pleaded guilty before U.S. District Judge John L. Sinatra, Jr. to possession with intent to distribute fentanyl and acetyl-fentanyl, and possession of firearms in furtherance of drug trafficking crimes. The charges carry a mandatory minimum penalty of 10 years in prison, a maximum of life, and a $10,000,000 fine.
Assistant U.S. Attorney Evan K. Glaberson, who is handling the case, stated that on July 20, 2021, the DEA executed a search warrant at Miller’s Broadway Street residence and seized 167 grams of a mixture containing fentanyl and acetyl fentanyl, 21 grams of crack cocaine, 124 grams of cocaine, two pistols, ammunition, $15,380 in cash, and drug packaging materials.
The plea is the result of an investigation by Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank A. Tarentino III, New York Field Division, and the Buffalo Police Department, under the direction of Commissioner Joseph Gramaglia.
Sentencing is scheduled for July 11, 2023, at 9:00 a.m. before Judge Sinatra.
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Buffalo Man Going to Prison for COVID Relief FraudRead the Press Release
BUFFALO, N.Y. – U.S. Attorney Trini E. Ross announced today that Christian Johnson, 25, of Buffalo, NY, who was convicted of wire fraud, was sentenced to serve 30 months in prison by U.S. District Judge John L. Sinatra, Jr.
Assistant U.S. Attorney David J. Rudroff, who handled the case, stated that Johnson submitted multiple fraudulent Paycheck Protection Program loan applications on behalf of a company called Million Man LLC (Million Man) to at least three financial institutions. The applications contained numerous false and misleading statements about Million Man’s business and operations, including the number of employees and average monthly payroll. Johnson submitted falsified federal tax documents and payroll records in support of the applications.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans, guaranteed by the Small Business Administration (SBA), to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding, and in December 2020, Congress authorized another $284 billion in additional funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1%. PPP loan proceeds must be used by businesses for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
This case was investigated by the FDIC-OIG, TIGTA-OIG, FBI, and SBA-OIG. Trial Attorneys Matthew Reilly and Jennifer Bilinkas of the Criminal Division’s Fraud Section and Assistant U.S. Attorney David J. Rudroff of the U.S. Attorney’s Office of the Western District of New York are prosecuting the case.
The Fraud Section leads the Department’s prosecution of fraud schemes that exploit the PPP. In the nine months since the PPP began, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $60 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at: https://www.justice.gov/criminal-fraud/ppp-fraud.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Billings man admits sexual abuse crimeRead the Press Release
BILLINGS — A Billings man today admitted to sexually abusing a girl in Busby, on the Northern Cheyenne Indian Reservation, between 2009 and 2010, U.S. Attorney Jesse Laslovich said.
Travis Ridenour, aka Travis Lamere, 34, pleaded guilty to abusive sexual contact. Ridenour faces a maximum of 10 years in prison, a $250,000 fine and not less than five years of supervised release.
U.S. District Judge Susan P. Watters presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for Aug. 31. Ridenour was detained pending further proceedings.
The government alleged in court documents that Jane Doe 1 disclosed that when she approximately 13 years old, in 2009, she was sleeping in the same bed as another female. Ridenour also was in the bed. At some point, Jane Doe 1 woke up, and Ridenour’s hand was underneath her underwear on her vaginal area.
The U.S. Attorney’s Office is prosecuting the case. The FBI conducted the investigation.
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Attorney General Merrick Garland Honors Three Spokane Federal Prosecutors for their Outstanding Government ServiceRead the Press Release
Spokane, Washington – U.S. Attorney Vanessa R. Waldref announced today that three members of her team – Special Assistant United States Attorney (SAUSA) Frieda Zimmerman as well as Assistant United States Attorneys (AUSAs) Tyler Tornabene and Dan Fruchter – were honored for their service to the United States and the citizens of Eastern Washington. SAUSA Zimmerman received the Director’s Award for Superior Performance as a Special Assistant United States Attorney. AUSAs Tornabene and Fruchter were awarded with the Director’s Award for Superior Performance by Civil AUSAs. Each was honored by Attorney General Merrick Garland at the Annual Director’s Awards Ceremony in Washington D.C. earlier today. Attorney General Garland himself is a past recipient of a Director’s Award.
SAUSA Zimmerman, who serves as a SAUSA for the Department of Energy Office of Inspector General, was honored for her incredible contributions to the Department of Justice, including in the areas of white-collar crime, False Claims Act cases, health care fraud, civil rights, and COVID-19 fraud. She is universally respected throughout the Department for her unique expertise in procurement fraud, and she is beloved by agents for her skill, dedication, breadth of expertise, and poise. SAUSA Zimmerman embodies not only the best qualities in a federal prosecutor and SAUSA, but the critically important relationships between the U.S. Attorney’s Office and its law enforcement partners.
AUSAs Tornabene and Fruchter were honored for their work to protect innocent patients, who were being defrauded by their medical providers. AUSAs Tornabene and Fruchter resolved allegations against two neurosurgeons, who performed medically unnecessary spinal surgeries and falsely billed federal and state health programs in Eastern Washington. Not only did AUSAs Tornabene and Fruchter – along with their state and federal partners – stop the appalling conduct, but their team secured the Eastern District of Washington’s largest-ever health care fraud settlement of $22,690,458. As part of the settlement, Providence Health and Services not only admitted that their doctors endangered patient safety for profit, Providence also entered into a five-year Corporate Integrity Agreement requiring Providence to implement and maintain quality-of-care and patient safety obligations. Beyond this trailblazing case, AUSAs Tornabene and Fruchter have prosecuted numerous nation-wide fraud cases, built a successful COVID-19 Relief Fraud Strike Force, and significantly contributed to the District’s expanded civil rights efforts.
In announcing today’s awards, U.S. Attorney Waldref thanked SAUSA Zimmerman and AUSAs Tornabene and Fruchter for their incredible service. “Today’s awards are a reflection of the amazing work being done in the Eastern District of Washington by our entire team. The AUSAs in our District often face daunting and sometimes dangerous challenges. Yet, Frieda, Tyler, and Dan have dedicated their leadership, time, expertise, and energy to the service of their nation. And they, like each of the members of my office, are devoted to the high ideals and deeply-held values that define our great nation and our mission to ensure justice is meted out fairly and swiftly. Each member of our office routinely sacrifices their time and energy to keep Eastern Washington safe and strong. I am honored to serve alongside such talented government servants, whose commitment to justice is beyond reproach. I am also so grateful for the support and administrative staff, without whom our mission could not be possible.”
SAUSA Zimmerman works at the Department of Energy Office of Inspector General, and serves as a SAUSA at the U.S. Attorney’s Office in Spokane, Washington. Through her work at the Department of Energy, SAUSA Zimmerman is able to take on additional cases combating fraud and supporting environmental remediation at the Hanford Cleanup Site.
AUSA Tornabene leads the Civil Rights Unit for the Eastern District of Washington and serves as an AUSA in the Civil Division. AUSA Fruchter leads the office’s Fraud and White Collar Unit and serves as a Deputy Chief in the Criminal Division. He handles both criminal and civil fraud matters.
Armed Meth Dealer Sentenced to over 11 Years in Federal Prison After Fleeing Officers with Children Inside His VehicleRead the Press Release
INDIANAPOLIS- Nathaniel Bradley, 41, was sentenced to 135 months in federal prison after pleading guilty to possession 50 grams or more of methamphetamine, with intent to distribute.
According to court documents, on March 16, 2021, agents with the Drug Enforcement Administration and officers with the Indianapolis Metropolitan Police Department initiated a traffic stop on Nathaniel Bradley near his home on Rural Street in Indianapolis. Bradley refused to stop and fled from officers with two children inside his car. Officers stopped their pursuit because of the children in Bradley’s vehicle. They later saw him park in a driveway on Nicholas Avenue on the East side of Indianapolis. Bradley ran into the backyard of the residence, leaving the two children in the car alone.
Bradley was apprehended and taken into custody. He admitted that he had approximately one pound of methamphetamine, pills, seven grams of crack, and an AR-style firearm at his home. Investigators executed a search warrant at Bradley’s residence that evening, and located 406 grams of methamphetamine, 7.03 grams of cocaine base, 3 grams of heroin, a loaded AR .223 rifle, two AR magazines, and a loaded Smith and Wesson pistol. Bradly was prohibited from possessing firearms under federal law, due to a prior felony conviction in West Virginia for possession with intent to deliver cocaine.
U.S. Attorney for the Southern District of Indiana, Zachary A. Myers, Michael Gannon, Assistant Special Agent in Charge of the DEA’s Indianapolis Field Office, and Randall Taylor, Chief of the Indianapolis Metropolitan Police Department made the announcement.
“This defendant chose to traffic in deadly drugs, illegally arm himself with a weapon of war, and flee from police with children in his car,” said U.S. Attorney Zachary A. Myers. “Criminals who demonstrate an utter disregard for the safety of our neighborhoods and the sanctity of our laws must face consequences. I am grateful to the DEA and IMPD for their ongoing efforts to help hold dangerous criminals accountable in federal court. The federal prison sentence imposed here should serve as a warning to any who choose to menace our streets—serious crimes warrant serious consequences.”
The DEA and IMPD investigated this case. The sentence was imposed by U.S. District Court Judge Jane Magnus-Stinson. Judge Stinson also ordered that Bradley be supervised by the U.S Probation Office for 5 years following his release from federal prison.
U.S. Attorney Myers thanked Assistant United States Attorney Michelle P. Brady, who prosecuted this case.
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Administrative Team at R.I. U.S. Attorney’s Office Receives National Award from Department of Justice LeadershipRead the Press Release
PROVIDENCE – On Wednesday of this week, at a Washington, D.C. ceremony attended by Attorney General Merrick Garland, Deputy Attorney General Lisa O. Monaco, U.S. Attorney Zachary A. Cunha, and other senior Department of Justice leadership, seven members of the Rhode Island U.S. Attorney’s Office Administrative Division were honored with a Director’s Award for their exceptional service to this Office and the United States.
“I am intensely proud of the quality and impact of the work that this Office does on behalf of the people of Rhode Island, and the nation, every day,” said U.S. Attorney Cunha. “But while much of our legal work receives public attention, many of the dedicated public servants in this Office, without whom our mission would be impossible, often do not. I am delighted to see our exceptional administrative team receive this well-deserved honor from the Department, and honored to serve alongside these dedicated professionals.”
Presented annually, the Director’s Awards recognize excellence throughout the U.S. Attorney community, honoring exceptional contributions to the Department’s mission by Assistant United States Attorneys in criminal and civil cases, appellate work, litigation in Indian Country, and other programmatic areas, across the 94 federal Districts that comprise the United States. Two Administrative teams were also recognized, one of them from the District of Rhode Island, where Administrative Officer Lynn Danchuk, Executive Assistant Sheila Grant, Contracting Officer Ryan Crotty, Budget Officer Vincent Onorato, Paralegal Supervisor (Ret.) Sandra Mascola, and Litigation Technology Support Specialists Nicole Williams and Michael Ward were each honored with a Director’s Award.
The awards were presented by Monty Wilkinson, Director of the Executive Office for United States Attorneys, in the two-story Great Hall of the Department of Justice, located in the Robert F. Kennedy Building that serves as the Department’s headquarters in Washington, D.C.
Administrative Division Director's Award recipients with United States Attorney Zachary A. Cunha (center) at the Department of Justice (left to right) Contracting Officer Ryan Crotty, Administrative Officer Lynn Danchuk, Litigation Technology Support Specialist Nicole Williams, Litigation Technology Support Specialist Michael Ward, Paralegal Supervisor (Ret.) Sandra Mascola, Executive Assistant Sheila Grant, not shown Budget Officer Vincent Onorato20 now serving sentences in combined massive drug operationsRead the Press Release
HOUSTON – A 34-year-old Houston resident has been handed a significant sentence for his role in a meth distribution conspiracy, announced U.S. Attorney Alamdar S. Hamdani.
Abril Pineda-Ortiz aka Carlos Raudel Pineda-Ortiz pleaded guilty May 13, 2021.
Today, U.S. District Judge Lee H. Rosenthal ordered Pineda-Ortiz to serve a 130-month-term of imprisonment to be immediately followed by five years of supervised release. In imposing the sentence, the court found that Pineda-Ortiz was the source of supply in transactions involving significant amounts of meth. In handing down the sentence, the court noted the devastating effects that meth has had on people and communities.
To date, more than 30 people have been convicted in the related drug conspiracies involving meth, cocaine and heroin. With the sentence today, 20 have now been sent to prison.
“These traffickers will pay with their freedom,” said Hamdani, “to the tune of a combined sentence of more than 2000 months in federal prison for infecting our communities with hundreds of kilograms of meth, fentanyl, cocaine and heroin.”
“The success of these investigations and the corresponding sentences serve as an example of the impact multiple agencies can have when they join forces,” said Special Agent in Charge Daniel C. Comeaux of the Drug Enforcement Administration (DEA). “This operation dismantled the activities of a dangerous criminal organization that was responsible for smuggling and distributing hundreds of pounds of illicit narcotics throughout the State of Texas. The DEA will continue to focus our resources on drug trafficking organizations that oversee, coordinate and facilitate the distribution of illegal drugs in our communities.”
At the time of the plea, Pineda-Ortiz admitted she supplied meth in multiple drug transactions involving co-conspirators Juan Carlos Salinas, 41, and Crystal Lynn Harrold, 42, both of Houston.
Authorities also executed a search warrant at the residence of Pineda-Ortiz where they found and seized a firearm, an additional 1,857 grams of meth and drug sale paraphernalia.
The investigation into these three individuals began in 2015. Over the next two years, law enforcement was able to execute operations aimed at curtailing the organization’s sale of meth, cocaine, heroin, and fentanyl.
As a result of the investigations, law enforcement seized 82.3 kilograms of meth, 16.4 kilograms of fentanyl, 176.7 kilograms of marijuana, 83.9 kilograms of cocaine, 31 kilograms of heroin and one kilogram of GHB as well as $586,706.61 in assets.
The combined sentences in the related cases thus far have exceeded 2000 months in federal prison with several receiving sentences well in excess of 10 years. One was ordered to serve 222 months.
The DEA conducted the initial investigations along with the Bureau of Alcohol, Tobacco, Firearms and Explosives; FBI; police departments in Houston and Huntsville; sheriff’s offices in Fort Bend and Harris counties; and Texas Department of Public Safety.
The subsequent DEA-led Organized Crime Drug Enforcement Task Forces (OCDETF) investigations were dubbed Operation Goody Two Shoes and Beverly Hills 90210.
Assistant U.S. Attorneys Sharad Khandelwal, Carolyn Ferko and Michael Day are prosecuting the cases.
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 on the Department of Justice’s OCDETF webpage.
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Webster Man Appears in Federal Court in Connection with Two Pipe Bomb ExplosionsRead the Press Release
CONCORD – Dale Stewart, 54, appeared before Magistrate Judge Andrea K. Johnstone for an initial appearance in federal court in connection with two pipe bomb explosions in Weare, New Hampshire, U.S. Attorney Jane E. Young announces.
Stewart, 54, was charged with possessing an unregistered firearm, a destructive device, and possessing a destructive device unidentified by a serial number on April 28, 2023. Stewart remains in custody on state charges.
According to the charging documents, Stewart allegedly constructed and detonated two destructive devices in Weare, New Hampshire on April 26, 2023 and April 27, 2023. In response to the explosions, law enforcement obtained a search warrant for Stewart’s vehicle and retrieved an additional destructive device, constructed of white PVC pipe, with glued end caps, wrapped in black electrical tape, with a green hobby fuse protruding from one of the end caps. The destructive device found in the vehicle contained more than 4 ounces of an explosive material, consistent with the manufacturing of the two recovered suspected pipe bombs from the two separate detonation scenes in Weare, New Hampshire.
The charges of possessing an unregistered destructive device and possessing a destructive device unidentified by serial number provide for a sentence of up to 10 years in prison, and a fine of up to $ 10,000.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Weare Police Department; and the Federal Protective Service led the investigation. Valuable assistance was provided by Federal Bureau of Investigation, and the New Hampshire State Police. Assistant U.S. Attorney Cesar Vega 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.
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Vessel Operator, Captain and Chief Engineer Convicted of Environmental CrimesRead the Press Release
Zeus Lines Management S.A. (Zeus), a vessel operating company, pleaded guilty on Monday in Providence, Rhode Island, to maintaining false and incomplete records relating to the discharge of oily bilge and for failing to report a hazardous condition on board the oil tanker Galissas. The company’s chief engineer, Roberto Cayabyab Penaflor, and Captain Jose Ervin Mahigne Porquez also pleaded guilty today for their roles in those crimes. The defendants are scheduled to be sentenced on Aug. 8.
According to court documents, Zeus and Penaflor admitted that oily bilge water was illegally dumped from the Galissas directly into the ocean without being properly processed through required pollution prevention equipment. Oily bilge water typically contains oil contamination from the operation and cleaning of machinery on the vessel. They also admitted that these illegal discharges were not recorded in the vessel’s oil record book as required by law.
Specifically, on three separate occasions between November 2021 and February 2022, Penaflor ordered crew members working for him in the engine room to discharge a total of approximately 9,544 gallons of oily bilge water from the vessel’s bilge holding tank directly into the ocean using the vessel’s emergency fire pump, bypassing the vessel’s required pollution prevention equipment. In addition, in preparation for the U.S. Coast Guard’s inspection of the Galissas, Penaflor instructed crew members on several occasions to not tell the Coast Guard about bypassing the pollution prevention equipment resulting in illegal discharges.
“This prosecution demonstrates our commitment to ensuring the health and safety of the marine environment, and to safeguarding coastal communities against hazardous conditions,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “The Department of Justice will continue to work with our partner agencies to ensure those who pollute and endanger our coastal communities are held fully accountable.”
“A critical mission of this office is protecting our environment from pollution and polluters, whether they impact our neighborhoods or precious natural resources like the Narragansett Bay, one of the crown jewels of Rhode Island,” said U.S. Attorney Zachary A. Cunha for the District of Rhode Island. “In this case, a foreign company decided it could ignore its obligation under American law, putting our waters and coastal communities at risk. Today’s guilty pleas are a reminder that this office will enforce our environmental laws to hold violators – individuals and corporate – accountable and protect our vital natural resources and our citizenry.”
“This case demonstrates the U.S. government’s resolve to ensure the safety of life at sea and protect our ports from rogue and negligent actors,” said Rear Admiral John Mauger, Commander of the First Coast Guard District. “Every day, thousands of ships safely call on U.S. ports and handle nearly 95% of U.S. trade that drives our economy and provides for our national security. By sailing into a major U.S. port with a known faulty inert gas generator, the operator, and senior officers of the Galissas endangered not only their shipmates but also the people of Rhode Island. The Coast Guard will continue to train and deploy our vessel examiners to protect mariners and our nation's ports by deterring and detecting unsafe and illegal activity. We appreciate the strong resolve from the Justice Department in holding these rogue actors accountable.
In addition to the illegal discharges of oily bilge water, on Feb. 2, 2022, while the Galissas was conducting cargo operations in Rotterdam, the Netherlands, crew members became aware that the vessel’s inert gas system was inoperable. This system is necessary to ensure that oxygen levels within the vessel’s cargo tanks remain at safe levels – at or below 8% – and do not pose a hazardous condition that could lead to an explosion or fire. Rather than remaining in Rotterdam until the inert gas system could be repaired, shore side management of Zeus and Captain Porquez determined that the vessel should instead sail to the United States, where a spare part would be delivered upon the vessel’s arrival for the crew to repair the system.
On Feb. 11, 2022, while the Galissas was transiting the Atlantic Ocean from the Netherlands to the United States, Porquez submitted a required notice of arrival to the U.S. Coast Guard informing the Coast Guard of, among other things, the vessel’s last port of call, planned arrival in the United States and the type of cargo onboard the vessel. In this notice of arrival, Porquez did not report that a hazardous condition existed onboard the vessel (the inoperable inert gas system).
On Feb. 19, 2022, the Galissas arrived off the coast of Rhode Island and although the vessel’s crew received and installed the spare part, the inert gas system remained inoperable. The following day, the U.S. Coast Guard measured the oxygen levels within the vessel’s cargo tanks and found levels ranged between 15 and 17%, well beyond the maximum allowable 8%. The Coast Guard then ordered that the vessel be moved further offshore so as to not endanger the port of Newport, Rhode Island.
Porquez had a logbook created that indicated the cargo tanks were at safe oxygen levels when the vessel left the Netherlands and remained at safe levels during the majority of the vessel’s transit of the Atlantic Ocean. In reality, the crew had not taken any readings of the oxygen levels in the cargo tanks during the vessel’s voyage. Porquez had tasked the vessel’s chief officer with creating this fraudulent logbook that was then presented to the U.S. Coast Guard during its inspection.
Zeus and Penaflor each pleaded guilty to a felony violation of the Act to Prevent Pollution from Ships for failing to accurately maintain the oil record book for the Galissas. Zeus and Porquez also pleaded guilty to a felony violation of the Ports and Waterways Safety Act for failing to report the vessel’s hazardous condition to the U.S. Coast Guard. Under the terms of the plea agreement Zeus will pay a total monetary penalty of $2.25 million, consisting of a fine of $1,687,500 and a community service payment of $562,500. The community service payment will go to the National Fish and Wildlife Foundation to fund projects to benefit marine and coastal natural resources located in the State of Rhode Island. Additionally, Zeus will serve a four-year term of probation, during which any vessels operated by the company and calling on U.S. ports will be required to implement a robust environmental compliance plan.
The U.S. Coast Guard Southeastern New England Sector and the U.S. Coast Guard Investigative Service are investigating the case.
Senior Trial Attorney Stephen Da Ponte of the Environment and Natural Resources Division’s Environmental Crimes Section and Assistant U.S. Attorney John P. McAdams for the District of Rhode Island are prosecuting the case with assistance from Lieutenant Commander Paul J. Milliken of the U.S. Coast Guard District One Legal Office.
Vancouver Man Sentenced to Federal Prison for Armed Robbery of Drug Dealer in PortlandRead the Press Release
PORTLAND, Ore.—A Vancouver, Washington man was sentenced to federal prison today for his role in an armed robbery of a drug dealer that ended in an exchange of gunfire outside an apartment complex on Hayden Island in Portland.
Anthony James Pastorino, 43, was sentenced to 77 months in federal prison and five years’ supervised release.
According to court documents, in the early morning hours of September 30, 2021, Pastorino, acting on the instructions of an accomplice, Seth Kamaile Teig, 38, also of Vancouver, traveled from Vancouver to an apartment complex on Hayden Island in Portland. At Teig’s direction, Pastorino waited outside the apartment complex in anticipation of robbing a known drug dealer. When the drug dealer arrived, Pastorino discharged his firearm and stole the drug dealer’s backpack. Pastorino and the drug dealer exchanged gunfire and both sustained serious injuries. Soon after, Pastorino and Teig fled the scene and traveled back to Washington.
Officers from the Portland Police Bureau responded to the scene and found 18 shell casings, a trail of blood, and Pastorino’s wallet. Later that day, a resident of the apartment complex found a handgun in some nearby bushes. Further investigation revealed that it was the gun used by Pastorino during the robbery. A later search of Pastorino’s phone revealed text messages wherein Teig directed Pastorino during the robbery and provided information about their target.
On October 27, 2021, special agents from Homeland Security Investigations arrested Pastorino for his role in the robbery. Pursuant to a court-authorized search warrant, the agents observed gunshot wounds on Pastorino’s arm and thighs.
On November 22, 2021, Pastorino was charged by criminal information with interfering with commerce by robbery and using, carrying, brandishing, and discharging a firearm during and in relation to a crime of violence. On February 2, 2023, he pleaded guilty to the latter charge.
On March 14, 2023, Teig was sentenced to 92 months in federal prison and five years’ supervised release for orchestrating the robbery.
This case was investigated by HSI and the Portland Police Bureau with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). It was prosecuted by Cassady A. Adams, Assistant U.S. Attorney for the District of Oregon.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney’s Office Paralegal Receives Department of Justice Award for Exceptional ServiceRead the Press Release
Montgomery, Alabama – This morning, during a ceremony in the Great Hall at the Robert F. Kennedy Main Justice Building in Washington, D.C., Debbie Shaw, a supervisory paralegal specialist at the United States Attorney’s Office, received the Executive Office for United States Attorneys Director’s Lifetime Exceptional Service Award, announced United States Attorney Sandra J. Stewart. Attorney General Merrick B. Garland, Deputy Attorney General Lisa O. Monaco, and other senior Department of Justice leaders participated in the awards ceremony.
Ms. Shaw has worked for the United States Attorney’s Office since 1982, serving at various times as a receptionist, criminal division legal assistant, and assistant to the United States Attorney. During that time, she has supported the work of the office and the Department of Justice in virtually every way imaginable. She has assisted in preparing and presenting nearly every significant case brought by the office over the past four decades. She has, on a near daily basis, coordinated with court personnel, law enforcement agents, and other officials, resolving every logistical issue that might arise in the office’s work. She has trained incoming legal support employees (and helped to train younger attorneys), always passing along the lessons she has learned and knowledge she has gained over the years. She has carefully read and edited attorney work product, ensuring that the work of the office is concise, professional, and persuasive. Although Ms. Shaw would likely describe her service as simply “doing her job,” the award issued today reflects the fact that Ms. Shaw is a cornerstone of the United States Attorney’s Office, the Montgomery legal community, and the Department of Justice at large.
“No award or honor could ever capture all that Ms. Shaw has meant to the United States Attorney’s Office over the years,” stated United States Attorney Stewart. “Everyone who has worked at the office has benefitted from her work, her guidance, and her wisdom. I am delighted that the Department chose to recognize her and that I was able to be present as she received this award.”
For almost 30 years, Ms. Shaw worked closely with Louis V. Franklin, Sr., Deputy Director of Enforcement for the Alabama Securities Commission and a former United States Attorney and Chief of the office’s Criminal Division. Mr. Franklin said, “Debbie is the office’s central nervous system, integrating information received from the public, client agencies, and the courts, then coordinating the response of the various office working components. To every employee, she offers institutional knowledge, warnings of danger, and a welcoming presence. She is the personification of support and cannot be replicated. She is so deserving of this award!”
The United States Attorney’s Office congratulates Ms. Shaw on this high honor and expresses its deepest gratitude for her years of service.
U.S. Attorney's Office Resolves Sexual Harassment Lawsuit Against Massachusetts LandlordRead the Press Release
BOSTON – The U.S. Attorney’s Office for the District of Massachusetts announced today that it has secured a settlement resolving allegations that Salazar Dos Santos, a Chicopee, Massachusetts landlord, violated the Fair Housing Act by sexually harassing female tenants for at least 11 years. The settlement also resolves claims against the Trusts of Salazar Dos Santos and America Dos Santos, which held the properties where the harassment occurred.
The United States’ lawsuit alleged that, from 2008 through 2019, Dos Santos subjected multiple female tenants to unwelcome sexual contact, which included coercing them to engage in sex acts, physically sexually assaulting them, exposing himself and locking them in his office to sexually assault them. The lawsuit asserted that Dos Santos implicitly offered to provide relief from rental payment obligations in exchange for engaging in sexual acts with him, and threatened tenants who resisted or objected to his unwelcome sexual harassment. It is further alleged that some victims were sexually harassed dozens of times for months (one tenant on more than 40 occasions), and that Dos Santos evicted some tenants after they refused his advances.
Under the proposed consent decree agreed upon by all parties, subject to approval by the U.S. District Court for the District of Massachusetts, the defendants are required to pay a total of $425,000 to compensate individuals harmed by the harassment and a $25,000 civil penalty. The consent decree also bars future discrimination and retaliation, requires that property management responsibilities be turned over to an independent manager, mandates the implementation of a sexual harassment policy, complaint procedure, and Fair Housing Act training and requires detailed reporting regarding property management activities and compliance with the terms of the consent decree. The consent decree permanently bars Dos Santos from participating in any property management responsibilities at any residential rental property.
“Sexual harassment and the conduct alleged here is repugnant and completely unacceptable. Stable and safe housing is fundamental for positive outcomes in life. Insidiously, sexual harassment and violations in the context of housing often target vulnerable tenants who fear eviction and homelessness. Although not present in this case, there are also times that immigration status is the manipulation utilized to target and victimize vulnerable tenants,” said United States Attorney Rachael S. Rollins. “Under the Fair Housing Act, the federal government has the authority to investigate and hold to account predatory landlords and property managers who engage in this despicable conduct. The District of Massachusetts is committed to actively and aggressively investigating these types of cases. Last, but certainly not least, I want to commend the brave women who came forward in this matter.”
“Coercing tenants to engage in sex acts and retaliating against those who resist are among the most egregious forms of sexual harassment that we see today,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department remains committed to combating sexual harassment in housing, and securing relief for those whose lives have been upended by such dehumanizing and unlawful conduct.”
U.S. Attorney Rollins and AAG Clarke made the announcement today. Assistant U.S. Attorneys Torey B. Cummings, Christopher Morgan and Hillary Harnett handled the matter.
The Civil Rights Unit of the U.S. Attorney’s Office was established in 2015 with the mission of enhancing federal civil rights enforcement. For more information on the Office’s civil rights efforts, please visit www.justice.gov/usao-ma/civil-rights. For information specific to the Fair Housing Act and the Department of Justice’s Sexual Harassment in Housing Initiative, please visit this website, which also includes information on how to report a violation.
U.S. Attorney Kavanaugh Urges Residents to Stay Vigilant Against Cyber FraudRead the Press Release
CHARLOTTESVILLE, Va. – United States Attorney Christopher R. Kavanaugh released a video public service announcement today to news media throughout the Western District of Virginia that urges residents to stay vigilant against cyber fraud, investment schemes, and other forms of online deception.
“Fraudsters are using high-pressure tactics and promises of low or no risk investments in an attempt to steal the hard-earned money of our citizens, especially our seniors,” U.S. Attorney Kavanaugh said today. “The United States Attorney’s Office, along with our law enforcement partners at the federal, state and local levels, are committed to protecting you.”
These scammers often reach out by phone, text message or email, claiming high returns on investments, often in the form of crypto-currency. They are becoming more creative, sophisticated, and aggressive.
“To protect yourself, never send money to anyone you do not know and research who you are investing your hard-earned money with,” U.S. Attorney Kavanaugh added. “If you feel rushed, or if you are told not to discuss the investment opportunity with others, you are being scammed.”
For more information about these scams, or what to do if you feel you have been a victim of a scam, please visit FBI.gov.
In addition to being sent to local media stations, the PSA has also been posted to the Western District of Virginia’s newly-launched YouTube page: https://www.youtube.com/@usao_wdva.
Two Shreveport Men Guilty of Illegal Possession of Drugs and Firearms Sentenced to PrisonRead the Press Release
SHREVEPORT, La. - United States Attorney Brandon B. Brown announced that two men from Shreveport were sentenced today by United States District Judge Elizabeth E. Foote for illegally possessing drugs and firearms.
Eric Lamar Wimbley, 51, was sentenced to 168 months (14 years) in prison, followed by 3 years of supervised release. On April 13, 2022, officers with the Louisiana Division of Probation and Parole and the Caddo Parish Sheriff’s Office conducted a parole search of a vehicle being used by Wimbley. While searching the vehicle, officers found approximately 1.320 grams of cocaine, 107.7 grams of cocaine base, and 125.67 grams of methamphetamine-based tablets, all packaged for distribution. Also inside the vehicle was a bag containing digital scales, razor blades with cocaine residue, packaging material, and a loaded 9mm handgun. Officers also found Wimbley to be in possession of the key fob to the vehicle. He was arrested and charged with possession with intent to distribute cocaine and possession of a firearm. Wimbley pleaded guilty in December 2022 to possession with intent to distribute cocaine.
The case was investigated by the U.S. Drug Enforcement Administration, Caddo Parish Sheriff’s Office and prosecuted by Assistant U.S. Attorney Mike Shannon.
In a separate case, Demetrius Johnson, Jr., 23, was sentenced to 66 months in prison, followed by 3 years of supervised release for illegal possession of marijuana and a firearm. On March 14, 2022, officers with the Shreveport Police Department conducted a traffic stop of a vehicle being driven by Johnson. When approaching the vehicle, the officer detected the smell of marijuana coming from inside the vehicle and detained Johnson. A K-9 unit was called and alerted to the front driver’s seat and a search of the vehicle was conducted. During the search, officers located a Century Arms Draco pistol under the passenger seat of his vehicle, as well as a backpack containing approximately 200 grams of marijuana in separate bags, packaging material, and a digital scale. A 9mm Glock magazine was also found in the vehicle. The narcotics were sent to the crime laboratory for testing and was confirmed to be marijuana. Agents with the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) tested the firearm and it was determined to be a functional firearm which had traveled in interstate commerce.
The case was investigated by the ATF and Shreveport Police Department and prosecuted by Assistant U.S. Attorney J. Aaron Crawford.
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Two Lawyers and Two Others Charged in Conspiracy that Defrauded Distressed Homeowners Looking for HelpRead the Press Release
Fraud Scheme Involved Multiple Law Firms
WASHINGTON – An indictment was unsealed today charging four people, including two lawyers, with conspiring to defraud thousands of distressed homeowners who thought they were hiring a legal firm to help them avoid foreclosure. The defendants, some of whom were licensed to practice law in Washington, D.C., New Jersey, and Florida, allegedly reaped millions of dollars in ill-gotten gains.
The indictment charges: David Maresca, 48, of Manassas, Virginia, Scott Marinelli, 51, of Mountainside, New Jersey, Sam Babbs, III, 41, of Orlando, Florida, and Terrylle Blackstone, 35, of Woodbridge, Virginia, with conspiracy to commit wire fraud and mail fraud for charging clients on the false and fraudulent promise to help them avoid foreclosure but never providing any of those legal services. The indictment further charges Maresca, Marinelli, and Blackstone with five counts of mail fraud; Maresca, Babbs, and Blackstone with three counts of wire fraud and two counts of mail fraud; and Maresca with five counts of monetary transactions in criminally-derived property, and two counts of falsification of bankruptcy records. Maresca was arrested today and made an initial appearance in Washington, D.C.; Marinelli was arrested today and made an initial appearance in New Jersey.
The charges were announced by U.S. Attorney Matthew M. Graves, Special Agent in Charge Wayne A. Jacobs, of the FBI Washington Field Office Criminal and Cyber Division, and Acting Special Agent in Charge Kareem A. Carter of the Internal Revenue Service – Criminal Investigation (“IRS-CI”) Washington, D.C. Field Office.
Maresca formed Synergy Law LLC (“Synergy”), in Washington DC, in 2016, and Themis Law PLLC (“Themis”) in 2019. Marinelli, who was licensed in New Jersey, owned 10 percent of Synergy; Babbs, who was licensed in Florida and D.C., owned his own firm – Babbs Law Firm P.L. (“Babbs”) - and 10 percent of Themis. Blackstone worked for all three firms.
According to the indictment, the scheme involved marketing Synergy Law and Themis Law through telephone, television, and Internet advertising which told homeowners that attorneys could help them avoid foreclosure. The defendants, through the law firms, operated call centers, where workers used scripts during calls with homeowners falsely promising that an attorney would review the homeowner's case file; that this attorney knew their lender's “internal guidelines,” for a “mortgage resolution”; and that an assigned “legal team” would contact the homeowner’s lender to negotiate a resolution.
The conspirators knew these representations were false and fraudulent. Synergy Law and Themis Law never operated a “national law firm,” and never provided legal services to homeowners. Neither Synergy Law nor Themis Law had attorneys review homeowner files, and neither Synergy Law nor Themis Law had attorneys contact a client’s lender to discuss a mortgage resolution. The homeowners signed agreements in which the law firms promised to provide “legal representation,” “attorney services” and “legal services” to the homeowner-client. Synergy Law required homeowner-clients to pay an initial retainer amount (often between $995 and $1,750), followed by a monthly recurring amount (often between $595 and $1,200), for as long as Synergy Law represented the homeowner. Once victim funds were in that account, Maresca, Marinelli, and Blackstone used the funds for their personal benefit, and continued to collect monthly payments from the clients. When the clients faced imminent foreclosure, Synergy Law provided non-legal bankruptcy petition preparation services and directed clients to file pro se bankruptcy petitions to stop foreclosure. Synergy Law directed clients not to disclose that the clients had worked with Synergy Law to prepare their bankruptcy petition. Themis Law clients, who were considering filing for bankruptcy to save their homes, were referred to Babbs Law where they signed a new retainer agreement and paid additional fees.
When bankruptcy judges, Synergy Law clients, and the U.S. Trustee's Program raised concerns about Synergy Law's practices in bankruptcy matters, Blackstone attended court hearings on behalf of Synergy Law and made false statements to the court about Synergy Law's operations. When Marinelli's law license was suspended in New Jersey in 2017, and the District of Columbia in 2018, Maresca, Marinelli, and Blackstone continued to operate Synergy Law and collect monthly payments purportedly for legal services.
Maresca is also charged with falsely filing for bankruptcy on behalf of Synergy Law. According to the indictment, in answering a question on the bankruptcy forms about financial affairs, which required Synergy Law LLC to list transfers of money or other property that was not in the ordinary course of business, Maresca falsely stated “None,” when he knew he had withdrawn S315,083.42 from Synergy Law accounts to purchase his personal residence.
The indictment includes a notice of forfeiture for all illegally derived proceeds from the fraud scheme.
The U.S. Attorney’s Office and the FBI urge anyone who did business with these law firms, and who think they were defrauded, to visit https://www.justice.gov/usao-dc/mortgage-fraud and/or contact the Mega Victim Case Assistance Program (MCAP) at 1-844-527-5299. You can also send an email to [email protected].
This case was investigated by the FBI Washington Field Office and the Washington, D.C. Field Office of the Internal Revenue Service – Criminal Investigations.
It is being prosecuted by Assistant United States Attorney John Borchert.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Trafficker Arrested with $1 - $2 Million in Meth Inside Duffel Bag Sentenced to 30 Years in PrisonRead the Press Release
A drug trafficker who retrieved methamphetamine from a stash house in Dallas was sentenced today to 30 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Omar Jorge Valle Estrada, a 37-year old citizen of Mexico, was convicted at trial of conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute methamphetamine in December 2022. He was sentenced Tuesday by U.S. District Judge Brantley Starr, who presided over the trial.
According to evidence presented at trial, law enforcement conducting surveillance at a stash house on Holcomb Road in Dallas observed Mr. Estrada drive up to the residence in a white Chevy Malibu. He used a code word to gain access to the property, which was being used by a transnational criminal organization as storage for nearly $10 million worth of Mexican methamphetamine.
Two men emerged from inside the home carrying duffel bags, which they placed in Mr. Estrada’s passenger seat.
After he departed the home, law enforcement pulled him over for operating with an expired registration and discovered 120 pounds of crystal methamphetamine inside the duffel bags. Experts put the street value of the methamphetamine, which was 99% pure, between $1.1 and $2.2 million.
Codefendants Angel Cabrera and Joaquin Salinas – who admitted they were concealing millions of dollars of methamphetamine inside boxes of cauliflower – pleaded guilty prior to trial. Mr. Salinas received a life sentence; Mr. Cabrera received a sentence of more than 21 years.
At Mr. Salinas’ sentencing hearing, testimony showed that the Salinas had ties to Sureños XIII criminal street gang and the Puro Tango Blast street and prison gang.
The Drug Enforcement Administration’s Dallas Field Division conducted the investigation with the assistance of the Dallas Police Department, the Hickory Creek Police Department, the Fort Worth Police Department, and the Dallas County District Attorney’s Office. Assistant U.S. Attorneys George Leal and John Kull prosecuted the case.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Tobacco Wholesaler Sentenced in Tax Fraud SchemeRead the Press Release
BOSTON – The owner of tobacco wholesale businesses in Massachusetts was sentenced today in federal court in Springfield for defrauding the Commonwealth of Massachusetts of substantial tobacco tax revenue.
Khalid Siddique, 67, of Attleboro, was sentenced by U.S. District Court Judge Mark G. Mastroianni to one year probation. Siddique was also ordered to pay forfeiture of $120,536 as well as restitution to the Commonwealth of Massachusetts in an amount that will be determined as a later date. Earlier in the hearing, Siddique pleaded guilty to one count of conspiracy to commit wire fraud.
Between 2006 and 2012, Siddique defrauded Massachusetts by failing to pay excise taxes on smokeless tobacco and cigars he purchased from co-conspirator Syed Bokhari, as well as other tobacco wholesalers, which he received at his Attleboro warehouse. In connection with the fraud scheme, Siddique filed false tobacco tax returns with the Commonwealth of Massachusetts which vastly under-stated the amount of tax he owed.On Aug. 11, 2022, Bokhari was sentenced to one year of probation. The government recommended a sentence of 18 months in prison. In a related civil forfeiture action, Bokhari agreed to forfeit seized tobacco, currency, and other assets, which resulted in the recovery of $2,197,985 by the government.
In addition, seven other co-conspirators of Bokhari were previously sentenced by the Court to one year probation. To date, Judge Mastroianni has ordered three of those co-conspirators to pay restitution. On April 11, 2023, the Court ordered Harbhajan Singh to pay $19,507 in restitution to the Commonwealth of Massachusetts. On April 26, 2023, the Court ordered Sukhdev Singh to pay $1,378,876 in restitution to the State of Connecticut. On April 27, 2023, Judge Mastroianni ordered Satish Kumar to pay $1,736,623.92 to the State of Connecticut. The issue of restitution remains pending before the Court as to the remaining four co-conspirators of Bokhari’s fraud who have been sentenced.
United States Attorney Rachael S. Rollins; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Michael J. Krol, Acting Special Agent in Charge of Homeland Security Investigations in New England; Commissioner Geoffrey E. Snyder of the Massachusetts Department of Revenue; and Commissioner Mark D. Boughton of the Connecticut Department of Revenue Services made the announcement today. Assistant U.S. Attorneys Christopher L. Morgan and Michael J. Mazur of Rollins’ Springfield Branch Office prosecuted the case.
Three Nigerian Men Awaiting Extradition for Committing Sexual ExtortionRead the Press Release
Charge for causing the death of a 17-year-old Marquette boy
MARQUETTE, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced the unsealing of a federal indictment charging three Nigerian men with sexually extorting numerous young men and teenage boys in the Western District of Michigan and across the United States and charging one of them with causing the death of Jordan DeMay, of Marquette, Michigan. On March 25, 2022, 17-year-old DeMay was found dead from a self-inflicted gunshot wound. His death prompted an investigation by the Marquette County Sheriff’s Department and the Federal Bureau of Investigation, which culminated in the indictment unsealed today.
“Sextortion is a horrible crime that can leave especially younger victims feeling ashamed with nowhere to turn,” said U.S. Attorney Mark Totten. “My heart goes out to the family of Jordan DeMay. Nothing can bring Jordan back, but my office is committed to securing justice and, alongside Jordan’s family, sending an urgent warning so others can protect themselves and their families. We will travel the world to hold the perpetrators of these crimes accountable.”
“Financial sextortion is a global crisis that impacts teens in our country and around the globe,” said James A. Tarasca, Special Agent in Charge of the FBI in Michigan. “That’s why the FBI is working hand in hand with our domestic and international law enforcement partners to prevent youth from becoming victims of this tragic crime and to hold those who target our teens in this manner accountable – no matter where in the world they may be.”
“Our focus going forward is to bring more awareness to children, young adults, and parents. Our family has forever been changed by this heinous crime and our objective is to prevent another individual from being victimized,” said the DeMay family. “Kids, teenagers, and even adults can be a target of sextortion. We urge you to have discussions about this and have a plan for your children to reach out if it does happen to them.” The family added, “Jordan will never be forgotten. He will forever be in our hearts and will drive us forward to share his story and help others.
Click here for a copy of the full statement by the DeMay family.Overview of Federal Charges
Click here for a copy of the indictmentThe defendants, Samuel Ogoshi, 22, Samson Ogoshi, 20, and Ezekiel Ejehem Robert, 19, all of Lagos, Nigeria, are charged in a four-count indictment:
- Count 1 charges Samuel Ogoshi with Sexual Exploitation and Attempted Sexual Exploitation of a Minor Resulting in Death in association with the death of Jordan DeMay. The charge carries a maximum penalty of life in prison and a statutory mandatory minimum of 30 years in prison.
- Count 2 charges all three men with Conspiracy to Sexually Exploit Minors by causing the minors to produce child pornographic images that the defendants then used to blackmail the minors. The charge carries a maximum penalty of 30 years in prison and a mandatory minimum of 15 years in prison.
- Count 3 charges all three men with Conspiracy to Distribute Child Pornography for sending the child pornography images to the minors, as well as their families and friends. The charge carries a maximum penalty of 20 years in prison and a mandatory minimum penalty of 5 years in prison.
- Count 4 charges Conspiracy to Commit Stalking Through the Internet for engaging in this sextortion scheme as it relates to both minors and young adults. The charge has a maximum penalty of 5 years in prison.
All charges have provisions for fines, restitution, and supervised release after their release from prison.
Additional Allegations in the Federal Indictment
The grand jury alleges that the defendants bought hacked social media accounts and used the accounts to pose as young women to lure teenage and young adult males into sexual chats. One of the accounts used was an Instagram account bearing the user name “dani.robertts”, which communicated with Jordan DeMay shortly before his death. After initiating chat conversations with the victims, the defendants simultaneously used Google and other online applications to research information about the victims, including where the victims lived, where they went to school or worked, and who their family and friends were.
The grand jury alleges that the defendants then solicited their victims to produce and send sexually explicit images of themselves. Once the defendants received sexually explicit images, they created collages that included the sexually explicit image alongside other images of the victims from social media, including images of the victims’ school, family, and friends. The defendants then threatened to disclose the collages to others, including the family, friends, and classmates, of their victims via social media unless the victims paid money. The grand jury alleges the defendants engaged in this extortion and attempted extortion of more than 100 people.
The grand jury alleges that on March 25, 2022, after DeMay was induced to send a naked picture of himself, Samuel Ogoshi used the dani.robertts account to extort him:
dani.robertts: I have screenshot all ur followers and tags can send this nudes to everyone and also send your nudes to your Family and friends Until it goes viral… All you’ve to do is to cooperate with me and I won’t expose you
dani.robertts: Are you gonna cooperate with me
dani.robertts: Just pay me rn [Just pay me right now]
dani.robertts: And I won’t expose you
Victim 1: How much
dani.robertts: $1000
After DeMay paid $300, Samuel Ogoshi made more threats.
dani.robertts: Goodbye
dani.robertts: Enjoy your miserable life
Victim 1: I’m kms rn [I’m kill myself right now]
Victim 1: Bc of you [Because of you]
dani.robertts: Good
dani.robertts: Do that fast
dani.robertts: Or I’ll make you do it
dani.robertts: I swear to God
The grand jury alleges that also on March 25, 2022, after Victim 2 was induced to send naked picture of himself, the following messages were exchanged with Victim 2:
dani.robertts: Pay me rn [Pay me right now]
dani.robertts: $800
dani.robertts: And I’ll end this
dani.robertts: Deal or no deal
Victim 2: I don’t have that kind of money
dani.robertts: Haha
dani.robertts: I love this
. . .
Victim 2: I have $50 in venmo and a $100 cash
dani.robertts: Dude
dani.robertts: Now goodbye
dani.robertts: Enjoy your miserable life
Victim 2: Why
dani.robertts: I’ll make this go viral
On March 26, 2022, the following messages were exchanged with Victim 2:
dani.robertts: I will make you regret you life
dani.robertts: I will make u commit suicide
dani.robertts: I promise you I swear
Coordination with Nigerian Law Enforcement
Earlier this year, agents from FBI Michigan travelled to Nigeria to conduct a cooperative investigation with Nigerian law enforcement officials. The Economic and Financial Crimes Commission (EFCC), a Nigerian law enforcement agency, arrested Samuel Ogoshi, Samson Ogoshi and Ezekiel Robert. The three men are facing extradition to the United States to face prosecution. The timeline for their extradition and a date for their appearance in the United States is unknown. The FBI referred information to the EFCC regarding three additional Nigerian males involved in this same sextortion ring. These individuals were arrested by the EFCC. The EFCC is one of Nigeria’s national investigative agencies and is responsible for the investigation of all financial crimes, including extortion, fraud, money laundering, and corruption. The cooperation and assistance of the EFCC was essential in apprehending the defendants. U.S. Attorney Totten extends his appreciation and thanks to the EFCC and the Nigerian authorities for their important partnership in this case.
“International cooperation is critical. In the last two years, this coordination has strengthened efforts connected with the extradition, deportation, and mutual legal or other assistance between Nigeria and the United States involving Economic and Financial Crimes,” said EFCC Chairman Abdulrasheed Bawa. “We wish to express our sincere and immense appreciation to the EFCC and the Cyber Crime Team for the cooperation and significant contribution towards the prevention and detection of trans-national crimes.”
U.S. Attorney Totten and SAC Tarasca thanked the following Nigerian partners and institutions for their assistance with this case: Honorable Chairman Chief Executive Abdulrasheed Bawa, Economic and Financial Crimes Commission; Assistant Director and Head of the International Cooperation Department Antoinette Oche-Obe, Central Authority Unit, Office of the Attorney General - Ministry of Justice; Director of Operations Abdulkarim Chukkol, Economic and Financial Crimes Commission; and Principle Prosecutor Pius Akutah, Central Authority Unit, Office of the Attorney General - Ministry of Justice; Nigeria’s Federal Ministry of Justice, Nigeria’s Economic and Financial Crimes Commission (EFCC); the Central Authority Unit of Nigeria’s Ministry of Justice; and the Attorney General of the Federal Republic of Nigeria.
What is Sexual Extortion?
Sexual extortion or “sextortion” can take many forms. Through various ruses and exploits, victims are lured to share compromising images or engage in compromising conversations. Girls and women are often extorted to produce more sexually explicit pictures, while boys and men are commonly extorted for money. In all cases, the perpetrators use embarrassment and shame with the threat of disclosure to leverage what they want. The sextortion can cause enormous stress and crisis for victims.
Meta Platforms, Inc., the parent company of Facebook and Instagram, has been a good partner in this investigation, providing important information in a timely manner.
“We want teens to have safe, positive experiences online, and we work to help prevent and stop criminals from targeting them with sextortion schemes. This includes cooperating with law enforcement to help protect vulnerable teens from these horrific crimes and bring their perpetrators to justice. In addition to the work we do to protect teens from sextortion, we also helped found NCMEC’s TakeItDown, which allows teens to stop the spread of their intimate images online,” said Antigone Davis, Global Head of Safety at Meta.
Meta offers the following safety tips if you are a teen or the parent of a teen who finds themself in this situation, you can take quick steps to protect yourself:
- Stop engaging with the person harassing you
- Block their account to limit further interactions
- Report them within the app immediately
- Tell a trusted friend or parent what’s happening
- Go to TakeItDown.NCMEC.org to prevent your intimate images from being spread online
- Talk to law enforcement if you feel you’ve been taken advantage of.
Safety Tips and Resources for Victims, Teens, and Parents
To kids and teens experiencing sexual extortion or something like it: this is not your fault. You can get through this, even if it seems scary and overwhelming. The FBI provides the following tips on how people can protect themselves from sextortion schemes:
- Be selective about what you share online. If your social media accounts are open to everyone, a predator may be able to figure out a lot of information about you.
- Be wary of anyone you encounter for the first time online. Block or ignore messages from strangers.
- Be aware that people can pretend to be anything or anyone online. Videos and photos are not proof that people are who they claim to be. Images can be altered or stolen. In some cases, predators have even taken over the social media accounts of their victims.
- Be suspicious if you meet someone on one game or app and that person asks you to start talking on a different platform.
- Be in the know. Any content you create online—whether it is a text message, photo, or video—can be made public. And nothing actually “disappears” online. Once you send something, you don’t have any control over where it goes next.
- Be willing to ask for help. If you are getting messages or requests online that don’t seem right, block the sender, report the behavior to the site administrator, or go to an adult. If you have been victimized online, tell someone. Being a victim of sextortion is not your fault. You can get through this challenge, even if it seems scary and overwhelming. There are people who want to help.
If you have information about or believe you are a victim of sextortion, contact your local FBI field office, call 1-800-CALL-FBI, or report it online at http://tips.fbi.gov. This FBI PSA and National Center for Missing and Exploited Children PSA share survivor stories and resources for individuals to get help. More FBI sexual extortion resources are available here.
Law Enforcement Coordination
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. The U.S. Attorney’s Office, county prosecutor's offices, the Internet Crimes Against Children task force (ICAC), federal, state, tribal, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. The partners in Project Safe Childhood work to educate local communities about the dangers of online child exploitation, and to teach children how to protect themselves. For more information about Project Safe Childhood, please visit the following web site: www.projectsafechildhood.gov. Individuals with information or concerns about possible child exploitation should contact local law enforcement officials.
This case is being prosecuted by Assistant U.S. Attorneys Daniel Mekaru and Davin Reust, and investigated by the FBI, the Marquette Sheriff’s Department, and the Michigan State Police Cybercrimes Unit in Marquette with the cooperation and assistance of the Economic and Financial Crimes Commission of Nigeria. The U.S. Department of Justice, Office of International Affairs, and the U.S. Department of State assisted in seeking the extradition of the defendants.
The charges in an indictment are merely accusations, and the defendants are presumed innocent until and unless proven guilty in a court of law.
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Three MS-13 Gang Members Convicted of Racketeering and Violent Crime ConspiracyRead the Press Release
A federal jury convicted three La Mara Salvatrucha, or MS-13, members yesterday of RICO conspiracy, murder in aid of racketeering, attempted murder in aid of racketeering, drug trafficking, and destruction of evidence.
According to court documents and evidence presented at trial, from 2014 until 2021, Jorge Flores, 30, aka Peluche, Kevin Tidwell, 29, aka Miklo, both of Nashville, Tennessee; and Jose Pineda-Caceres, 24, aka Demente, a Honduran national, were members of MS-13. MS-13 is a national and transnational gang composed largely of individuals of Salvadoran or Central American descent. Branches or “cliques” of MS-13 operate throughout the United States. MS-13 dedicates its members to preserving and protecting the power, territory, reputation, and profits of the gang through the use of intimidation and violence, including murder and promoting the gang through acts of murder, robbery, drug trafficking, and other criminal activities.
MS-13 members are required to follow various rules, chief among them being that cooperation with law enforcement is strictly prohibited, and it is understood within the gang that anyone who assists police will be punished with death. Members are also required to confront, fight, and/or kill rival gang members and to retaliate quickly and viciously against anyone who disrespects or threatens the gang’s authority, power, reputation, or control of a neighborhood. By committing murders, the defendants gained entrance into MS-13 or earned respect among the other members.
On April 6, 2016, Pineda-Caceres, along with several other MS-13 members and associates, murdered a victim because they believed the victim was a rival gang member. Pineda-Caceres lured the victim to a field where he and other members and associates shot the victim to gain entrance into MS-13. On July 31, 2016, Pineda-Caceres also murdered another victim. After leaving a nightclub in Nashville, Pineda-Caceres followed the victim’s car and, while attempting to kill the victim’s brother, shot and killed the victim. In addition, Tidwell and Flores murdered a victim on May 21, 2017, outside of a bar in Nashville because they believed the victim was associated with a rival gang. Tidwell and Flores shot the victim 11 times while the victim was sitting in the victim’s car. Tidwell and Flores also shot and killed a victim on May 27, 2017, because the victim insulted MS-13. They chased down the victim’s car and shot the victim while the victim attempted to flee. On Sept. 24, 2017, Flores murdered a victim and other MS-13 members and associates lured the victim to a secluded location in Nashville, shot the victim, and placed the victim’s body in the trunk of a car. Flores then burned the car with the victim’s body in the trunk in Cheatham County, Tennessee.
The defendants were convicted of RICO conspiracy, five murders, multiple attempted murders in aid of racketeering, conspiracies to commit murder in aid of racketeering, firearms offenses, tampering with evidence, and drug distribution. They will be sentenced at a later date and each face a mandatory minimum sentence of life in prison.
The three trial defendants were among the nine defendants charged in the indictment. The other six defendants previously pleaded guilty to RICO conspiracy and related offenses, as follows:
- Carlos Ochoa, 33, of Nashville, Tennessee
- Jason Sandoval, 37, of Nashville, Tennessee
- Gerson Serrano-Ramirez, 35, of El Salvador
- Franklin Hernandez, 23, of Honduras
- Juan Melendez, 24, of El Salvador
- Luis Colindres, 26, of Honduras
As part of this multi-year investigation, MS-13 members and associates were also convicted of five additional murders that occurred between 2016 and 2017 in the Nashville area.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, Acting U.S. Attorney Thomas J. Jaworski for the Middle District of Tennessee, Special Agent in Charge Marcus Watson of the ATF Nashville Field Division, Special Agent in Charge Rana Saoud of Homeland Security Investigations (HSI) Nashville, Special Agent in Charge J. Todd Scott of the DEA Louisville Field Division, U.S. Marshal for the District of Tennessee Denny King, Metropolitan Nashville Police Chief John Drake, and Director David Rausch of the Tennessee Bureau of Investigation made the announcement.
The ATF, HSI, DEA, U.S. Marshals Service, Metropolitan Nashville Police Department, and Tennessee Bureau of Investigation investigated the case.
Trial Attorney Matthew Hoff of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Ahmed Safeeullah and Brooke Farzad for the Middle District of Tennessee are prosecuting this case.
This prosecution is part of an Organized Crime Drug Enforcement Task Force’s (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 www.justice.gov/OCDETF.
The United States Attorney for Puerto Rico, FBI San Juan, and HHS-OIG Announce Redoubling and Focus of Investigative Efforts to Detect and Deter Fraud, Waste, and Abuse of Medicare FundsRead the Press Release
SAN JUAN, Puerto Rico – The United States Attorney for the District of Puerto Rico, W. Stephen Muldrow, the Special Agent in Charge (SAC) of the San Juan Office of the Federal Bureau of Investigation (FBI), Joseph González, and the Assistant Special Agent in Charge (ASAC) of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), José Luis Soto, are redoubling efforts and focus to investigate, detect, and deter Medicare fraud.
According to estimates from the National Health Care Anti-Fraud Association, Medicare fraud costs taxpayers over $100 billion a year in a wide range of fraud schemes that involve beneficiaries, health care providers, and organizations operating Medicare Advantage (Medicare Part C) plans. All Medicare beneficiaries in Puerto Rico, as well as the doctors and other healthcare providers who serve those beneficiaries, deserve an affordable, effective, efficient, and transparent health care system.
“Typical fraud schemes committed in the health care area include cases where healthcare providers bill for services not actually provided or lie about and inflate the nature of the actual services rendered (known as “upcoding”). However, together with our law enforcement partners, our investigative and prosecutorial focus will continue to look to any fraudulent activities occurring within organizations managing Medicare Advantage programs, including payments of illegal incentives and the submission of false information related to patient risk assessments,” said United States Attorney Muldrow.
“Healthcare is a basic need and improper use of healthcare systems can turn this basic necessity into a luxury,” said Special Agent in Charge of the FBI San Juan Field Office, Joseph González. “The FBI will not stand by while this type of abuse is taking place. We ask that anyone who believes they have been a victim or witness to a healthcare fraud scheme to report it by calling the FBI San Juan number 787-987-6500 or leave a tip online through tips.FBI.gov. The people can rest assured that we will follow each lead and investigate each case to its ultimate consequence.”
ASAC José Luis Soto of the HHS-OIG Puerto Rico Field Office said, “HHS-OIG will continue to investigate any conduct by Medicare Advantage plans that may result in violation of federal law and will work jointly with our law enforcement partners to ensure that entities that execute business with federal health care programs do so in an honest manner.”
What can you do?
Please contact the FBI and HHS-OIG hotlines below to provide information and leads of any fraud scheme concerning Medicare funds. Such fraud schemes include but are not limited to: billing for services that are not provided, billing for more expensive services than were actually provided, also known as “upcoding”, fraudulent attempts to tamper with patient risk factors or providing incentives to undergo medical testing or procedures that are not medically necessary.
Hotline Contacts:
HHS-OIG Email: [email protected]
HHS-OIG Telephone: 787-758-3752
FBI tips online: tips.FBI.gov
FBI Telephone: 787-987-6500
Public media complaints:
https://m.facebook.com/wkaq580/videos/898068291246958/
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Texas Man Sentenced for Extortion and Cyberstalking a Utah Woman for Sexually Explicit Photographs and VideosRead the Press Release
Salt Lake City, Utah – A Texas man was sentenced Tuesday to five years imprisonment for multiple counts of extortion and cyberstalking a Utah victim and her family.
According to court documents, for over a year, Jordy Julian Alvarez, 28, a Texas resident, repeatedly harassed and intimidated the female victim to provide an explicit video or he would release to the public compromising photos and videos of the victim already in his possession. Alvarez further identified, threatened, intimidated, and harassed the victim’s father, brother, and grandmother to extort more explicit videos of the victim and threatened to further ruin her reputation. Additionally, Alvarez admitted to multiple counts of cyberstalking that caused the victim and her family fear of death or serious bodily injury, and emotional distress. Alvarez’s criminal behavior took place via interstate commerce. In addition to his sentence of 60 months’ imprisonment, Alvarez was ordered to serve three years of supervised release after his prison sentence.
“I want to be clear; I would impose the same sentence if the sentencing guidelines were lower,” said U.S. District Court Judge Howard C. Nielson Jr.
“The defendant’s criminal actions in this case were heinous,” said U.S. Attorney Trina A. Higgins of the District of Utah. “I commend the victim in this case for coming forward. Our office will continue to work with law enforcement to prosecute offenders that prey on our vulnerable and young via the internet.”
“Jordy Alvarez is a cyber predator who relentlessly harassed, bullied, and extorted the victim for an extended amount of time, causing substantial emotional harm,” said Acting Special Agent in Charge Cheyvoryea Gibson of the Salt Lake City FBI. “Cyberstalking is a serious federal crime. The FBI’s Cyber Task Force which includes a strong partnership with the Utah Department of Public Safety, has the tools to hold criminals like Alvarez, who hide behind the internet, accountable.”
Assistant U.S. Attorney, Jennifer K Muyskens, of the District of Utah prosecuted the case.
Team from Western Washington honored for investigation and prosecution of major cybercrime group Fin7Read the Press Release
Seattle – The Department of Justice investigative team in a major cybercrime case, pursued in the Western District of Washington, was honored today with an Executive Office of U.S. Attorney’s Director’s award for Outstanding Litigative Team, announced U.S. Attorney Nick Brown. The prosecutors, paralegals, and cyber investigators from the FBI broke up the hacking group Fin7. The award was presented today in Washington DC.
“Investigating and prosecuting cybercrime is uniquely challenging –the offenders hide behind keyboards, often overseas, but can do untold billions of dollars in damage,” said U.S. Attorney Brown. “With Fin7, the tireless work by our team saw three of the defendants arrested and brought to the United States to face charges. All three have been held accountable with significant prison sentences. Fin7 as an entity is no more.”
Those recognized today with the Director’s Award include: Former Assistant United States Attorneys Frances Franze-Nakamura and Steven Masada, and DOJ Trial Attorney Anthony Teelucksingh for their work prosecuting the case; Paralegals Anna Chang and Salee Porter for their critical work organizing records and discovery from companies, foreign governments, and law enforcement so that we could successfully petition for the extradition of the three defendants who were arrested while traveling in Germany, Spain, and Thailand; and FBI special agents who all performed outstanding investigative and analytic work that was critical to the successful prosecution.
According to records filed in U.S. District Court for the Western District of Washington, between 2015 and 2018, FIN7 members engaged in a highly sophisticated malware campaign to attack more than 100 U.S. companies, predominantly in the restaurant, gaming, and hospitality industries. FIN7 hacked into thousands of computer systems and stole millions of customer credit and debit card numbers which were used or sold for profit.
In the United States alone, FIN7 successfully breached the computer networks of businesses in all 50 states and the District of Columbia, stealing more than 15 million customer card records from over 6,500 individual point-of-sale terminals at more than 3,600 separate business locations. Additional intrusions occurred abroad, including in the United Kingdom, Australia, and France. Companies that have publicly disclosed hacks attributable to FIN7 include such familiar chains as Chipotle Mexican Grill, Chili’s, Arby’s, Red Robin and Jason’s Deli.
Fedir Hladyr, 38, a Ukranian national, who played a managerial role in FIN7, was arrested in Dresden, Germany and was sentenced in April 2021 to ten years in prison. Andrii Kolpakov, 35, who served as a high-level hacker, was arrested in Lepe, Spain, and was sentenced to seven years in prison June 2021. Denys Iarmak, 33, who also served as a high-level hacker was arrested in Bangkok, Thailand and was sentenced to five years in prison in April 2022.
The Director’s Awards are awarded annually by the Executive Office of U.S. Attorneys to recognize outstanding work by U.S. Attorney’s Offices across the United States.