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Newest first across public DOJ and U.S. Attorney press releases.
3 May 2023
Tallahassee Couple Sentenced to Federal Prison for Wire Fraud Conspiracy, Money Laundering Conspiracy, and Making False Statements Relating to COVID-19 Relief ProgramsRead the Press Release
TALLAHASSEE, FLORIDA – Wilbert Jean Stanley, III, 43, and Felicia Jackson Stanley, 43, both of Tallahassee, Florida, were sentenced, after previously pleading guilty to one count each of wire fraud conspiracy, money laundering conspiracy, and making false statements in connection to COVID-19 pandemic relief. Wilbert Stanley was sentenced to 40 months in federal prison, and Felicia Stanley was sentenced to 24 months in prison. Jason R. Coody, United States Attorney for the Northern District of Florida announced the sentences.
“The theft of any amount of taxpayer funds is inexcusable but stealing over $4.8 million dollars from honest, hardworking Americans truly in need of pandemic relief is simply abhorrent,” said U.S. Attorney Coody. “Today’s sentences both punish the defendants’ criminal conduct and should serve as a significant deterrent to others who would steal from their fellow citizens to unlawfully enrich themselves. With our law enforcement partners, we remain committed to investigating and vigorously prosecuting those who engage in acts of covid-related fraud.”
Court documents reflect that between March 1, 2020, and September 1, 2021, the Stanleys made false and fraudulent representations in applications to the Small Business Administration (SBA), financial institutions, and other lenders, for three different federal COVID-19 relief programs: Paycheck Protection Program (PPP) loans, Economic Injury Disaster Loans (EIDLs), and Shuttered Venue Operators Grants (SVOGs). The false representations included inflated average monthly payroll expenses and the use of false tax forms as supporting documentation. The Stanleys submitted a total of 166 false and fraudulent EIDL applications, of which 50 were funded, in their names for businesses that they owned and in the names of other individuals (whom they recruited). The Stanleys also submitted 20 false and fraudulent PPP loan applications, and 3 false and fraudulent SVOG applications in their names for businesses that they owned and in the names of other individuals (whom they recruited). For most of the applications that the Stanleys submitted (which were not in their names), the Stanleys had an arrangement with the named applicants to receive a kickback from the named applicants, which was paid from the PPP, EIDL, and SVOG proceeds.
“Diverting federal funds intended to provide critical relief from the effects of a pandemic steals resources from those who need it most,” said Brian Payne IRS-CI Special Agent in Charge. “These sentences reinforce our commitment to stopping criminals so every American taxpayer can maintain confidence in our system of taxation.”
“These sentences bring justice to the defendants who fraudulently obtained millions from Federal programs that were created to provide assistance to businesses struggling during the COVID-19 pandemic,” said Special Agent in Charge Kyle A. Myles of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG). “The FDIC-OIG will continue to work with our law enforcement partners to hold those accountable who steal from such programs and threaten to undermine the integrity of the banking system.”
In total, through their false applications for federal COVID-19 relief funds, the Stanleys attempted to obtain over $7 million for themselves and others, to which they were not entitled. The Stanleys were successful in fraudulently obtaining over $4.8 million in such funds.
Additionally, the Stanleys engaged in multiple monetary transactions that involved at least $10,000 of fraudulently obtained PPP loan, EIDL, or SVOG proceeds that they obtained through their scheme. Many of these transactions included payments for the purchase of real estate and to invest in virtual currency.
“These sentences demonstrate that those that steal taxpayer dollars will face the consequences for their actions,” said SBA OIG’s Eastern Region Special Agent in Charge Amaleka Brathwaite-McCall. “I want to thank the U.S. Department of Justice and our law enforcement partners for their dedication and pursuit of justice.”
The Stanleys’ imprisonment will be followed by 3 years of supervised release. Additionally, the Stanleys were ordered to pay restitution to the SBA in the amount of $2,802,690.76, and the Court entered an order of forfeiture with respect to several parcels of real property and accounts at financial institutions.
This case was investigated by the Internal Revenue Service-Criminal Investigation, Federal Deposit Insurance Corporation-Office of Inspector General (FDIC-OIG), Treasury Inspector General for Tax Administration (TIGTA), and the U.S. Small Business Administration-Office of Inspector General (SBA-OIG. Assistant United States Attorney Justin M. Keen prosecuted the case.
This case was prosecuted as part the Department of Justice’s prosecution of fraud schemes that exploit the CARES Act relief programs. The CARES Act is a federal law enacted in March 2020, designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. One of the two programs that were developed through CARES Act is the PPP. It provides funding to businesses through PPP loans for payroll costs, interest on mortgages, rent and utilities. PPP allows the interest and principal on loans to be forgiven if the business spends proceeds on certain expense items within a designated time and uses a certain percentage of the loan on payroll expenses. The SVOG program was established by the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act, and amended by the American Rescue Plan Act. The program included over $16 billion in grants to shuttered venues, to be administered by SBA. The SVOG program’s mission is to support the ongoing operations of eligible live venues and operators, live venue promoters, theatrical producers, talent representatives, live performing arts organization operators, museums, and motion picture theaters during the uncertain economic conditions caused by the COVID-19 pandemic. The Department of Justice remains vigilant in detecting, investigating, and prosecuting wrongdoing related to the crisis.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Summerset Man Indicted for Illegal Possession of a FirearmRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced that a federal grand jury has indicted a Summerset, South Dakota, man for Possession of a Firearm and Ammunition by a Prohibited Person and Possession of an Unregistered Firearm.
Jason Johnston, age 36, was indicted in April of 2023. He appeared before U.S. Magistrate Judge Daneta L. Wollmann on April 28, 2023, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is 15 years in custody and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Johnston, a previously convicted felon who is prohibited from possessing firearms and ammunition, knowingly being in possession of a Mossberg rifle and ammunition in Summerset in January of 2023. Johnston was also in possession of a privately made silencer.
The charges are merely accusations and Johnston is presumed innocent until and unless proven guilty.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Summerset Police Department, and the Rapid City Police Department. Assistant U.S. Attorney Kelsey Blair is prosecuting the case.
Johnston was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for June 27, 2023.
Statement of U.S. Attorney Damian Williams on the Conviction of Nathaniel ChastainRead the Press Release
“Nathaniel Chastain exploited his advanced knowledge of which NFTs would be featured on OpenSea’s website to make profitable trades for himself. Although this case involved trades in novel crypto assets, there was nothing particularly innovative about his conduct — it was fraud. A jury has found that Chastain is guilty of using inside information for his own personal gain, and he now faces time in federal prison.”
Slync Founder Chris Kirchner IndictedRead the Press Release
The founder of Slync, a supply-chain management software startup, has been indicted for defrauding investors out of at least $25 million, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Christopher Kirchner, 35, was charged via criminal complaint in February. On Tuesday, a federal grand jury indicted him on five counts of wire fraud and eight counts of money laundering.
“Rather than focus on growing his fledgling business, Christopher Kirchner allegedly swindled investors out of millions of dollars he used to fund a splashy lifestyle – then allegedly attempted to cover his tracks by conning even more investors and by firing employees who dared question him,” said U.S. Attorney Leigha Simonton. “Investors deserved honesty; instead they got chicanery. We will not allow businesspeople to treat their stockholders this way. We look forward to proving our case against Mr. Kirchner in court.”
“As the indictment alleges, Mr. Kirchner chose to enrich himself by diverting corporate assets away from Slync in order to fund his lavish lifestyle. Deceptive acts of corporate greed not only erode investor confidence and employee trust, but also financial market integrity,” said FBI Dallas Special Agent in Charge Chad Yarbrough. “If you deceive and defraud your investors and employees, the FBI will persist in our efforts to bring you to justice.”
According to the indictment, Mr. Kirchner – who served as Slync’s CEO from 2017 until 2022, when he was terminated by the Board of Directors due to allegations of misconduct – allegedly converted at least $25 million in investor money to his own personal use.
Records indicate that Slync raised roughly $7 million in its Series A investment round and roughly $50 million in its Series B investment round. All investor funds, which were supposed to be used for “product development and other general corporate purposes,” were wired into the company’s account at Silicon Valley Bank.
Mr. Kirchner allegedly misappropriated the investor funds in various ways: Between April 2020 and March 2022, Mr. Kirchner allegedly initiated nearly 100 wire transfers moving money from Slync’s Silicon Valley Bank account into the company’s account at JPMorgan Chase Bank – an account only he had access to. He then allegedly wired much of the money from the Chase account to his personal bank accounts. In addition, Mr. Kirchner allegedly wired $20 million directly from Slync’s Silicon Valley Bank account into his personal checking account. He used some of those funds to buy a $16 million private jet and to secure a luxury suite at the stadium of a Dallas-area professional sports team.
When Slync, drained of funds, struggled to make payroll in the spring of 2022, Mr. Kirchner allegedly attempted to replace some of the money he had allegedly misappropriated by convincing at least four investors to wire approximately $850,000 to Slync as part of a purported Series C investment round. Slync’s Board of Directors never authorized this Series C investment round.
In the meantime, Mr. Kirchner offered various explanations for Slync’s payroll issues. He first claimed that the company’s cash was invested in illiquid assets that were difficult to divest. Later, he said that the U.S. government had frozen the company’s accounts because he had transacted in his personal capacity with sanctioned entities in Russia. Neither explanation was true.
In June 2022, Mr. Kirchner allegedly fired two Slync employees who expressed concern about his management of the company. One of the employees had reported that Mr. Kirchner may have falsely exaggerated Slync’s financial performance to investors.
Immediately following his suspension by the Board in late July 2022, Mr. Kirchner removed certain IT administrator privileges from key Slync employees, preventing the employees from accessing Slync’s computer systems. He then allegedly attempted to delete approximately 18 gigabytes of Slync data, including emails.
An indictment is merely an allegation of wrongdoing, not evidence. Mr. Kirchner is presumed innocent until proven guilty in a court of law.
If convicted, he faces up to 20 years in federal prison per count of wire fraud and up to 10 years in prison per count of money laundering.
The Federal Bureau of Investigation’s Dallas Field Office conducted the investigation. Assistant U.S. Attorneys Joshua D. Detzky, Blake J. Ellison, and John de la Garza are prosecuting the case.
Sidney meth trafficker sentenced to 15 years in prisonRead the Press Release
BILLINGS — A Sidney man who admitted to trafficking large quantities of methamphetamine in the community after law enforcement seized more than six pounds of the drug from his car was sentenced today to 15 years in prison, to be followed by five years of supervised release, U.S. Attorney Jesse Laslovich said.
Markel Dean Brown, 60, pleaded guilty in January to conspiracy to possess with intent to distribute meth, possession with intent to distribute meth and distribution of meth.
U.S. District Judge Susan P. Watters presided.
The government alleged in court documents that in January 2022, law enforcement learned that Brown was distributing meth in Sidney and coordinated a controlled purchase of a half-pound of meth from Brown for $1,500. Investigators further learned that Brown would be traveling out of state to pick up a supply of meth and that Brown went to Texas. The Montana Highway Patrol conducted a traffic stop of Brown’s vehicle when it returned to Montana and ultimately served a search warrant on the vehicle. Law enforcement seized three packages of 100 percent pure meth totaling 6.6 pounds. Agents also searched Brown’s cell phone and found messages that discussed the coordination of Brown picking up meth in Texas. The total amount of meth seized from Brown was 7.1 pounds, which is the equivalent of 25,730 doses.
Assistant U.S. Attorney Julie R. Patten prosecuted the case, which was investigated by the Drug Enforcement Administration and Montana Division of Criminal Investigation.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Ship’s Operator, Captain, and Chief Engineer Admit to Environmental Crimes Aboard a Rhode Island-Bound Oil TankerRead the Press Release
PROVIDENCE –The Greek company that owned and operated the Galissas: a tanker carrying diesel oil from Rotterdam, the Netherlands, to Providence, RI, in February 2022, pled guilty in U.S. District Court in Rhode Island to federal environmental crimes carried out by its captain and chief engineer. In addition, the vessel’s captain pled guilty to failing to report a hazardous condition in the vessel’s cargo tanks to the United States Coast Guard prior to the tanker entering the port of Newport, Rhode Island. The vessel’s chief engineer pled guilty to knowingly discharging untreated oily bilge water directly from the tanker into the sea during the transatlantic voyage.
During proceedings in U.S. District Court in Providence, Zeus Lines Management S.A., (Zeus) owner/operator of the Gallissas, admitted violating The Ports and Waterways Safety Act and The Act to Prevent Pollution from Ships. The Galissas’ captain Jose Ervin Mahinge Porquez, a resident of the Philippines, admitted to violating The Ports and Waterways Safety Act. The Galissas’ Chief Engineer Roberto Cayabyab Penaflor, also a resident of the Philippines, admitted violating the Act to Prevent Pollution from Ships.
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.
“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 United States Attorney for the District of Rhode Island Zachary A. Cunha. “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 prosecution demonstrates our commitment to ensuring the health and safety of the marine environment,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “The reckless actions of these defendants not only threatened the marine environment, but also the safety of this coastal community. 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.”
“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 Adm. John Mauger, Commander of the First Coast Guard District. “Everyday thousands of ships safely call on U.S. ports and handle nearly 95% of US 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 nations ports by deterring and detecting unsafe and illegal activity. We appreciate the strong resolve from DOJ in holding these rogue actors accountable.”
According to information presented in court, while the Galissas was conducting cargo operations in Rotterdam, the Netherlands in February 2022, crew members became aware that the vessel’s inert gas system became inoperable. The inert gas system is necessary to ensure that oxygen levels within the vessel’s cargo tanks remain at safe levels and do not pose a hazardous condition. Rather than remaining in Rotterdam until the inert gas system could be repaired, Zeus and the ship’s captain, Porquez, decided to instead sail to the United States, where a spare part would be delivered upon the vessel’s arrival. On February 11, 2022, while crossing the Atlantic, Porquez submitted a “Notice of Arrival” to the U.S. Coast Guard which failed to report the hazardous condition. On February 15, 2022, the Coast Guard sent an email in preparation for inspection which inquired about the vessel’s inert gas system. Porquez responded to the email but did not disclose the inoperable inert gas system. Upon arrival off the coast of Rhode Island February 19, 2022, the vessel embarked a local ship’s pilot to sail the vessel closer to shore and take delivery of the spare part. Although the crew installed the spare part, the inert gas system remained inoperable. Porquez failed to report to the Coast Guard the hazardous condition that the vessel’s inert gas system was inoperable while the tanks were not gas free.
The following day, February 20, the U.S. Coast Guard boarded the Galissas to conduct an inspection. Only then did Porquez inform the Coast Guard that the inert gas system was inoperable. The Coast Guard immediately took measurements of the oxygen levels within the vessel’s cargo tanks, which were registered more than double the maximum allowable levels. The Coast Guard then ordered that the vessel be moved further offshore so as to not endanger the port of Newport, Rhode Island. Zeus’ Operations Manager directed Porquez to create a logbook showing oxygen levels during the transatlantic voyage. Porquez had a logbook created that falsely 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.
Additionally, Zeus and chief engineer Penaflor admitted that throughout the transatlantic voyage, 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.
A sentencing hearing in this matter is scheduled to be held on August 8, 2023. The defendants’ sentences will be determined by a federal judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.
Senior Trial Attorney Stephen Da Ponte of the Department of Justice’s 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 from the U.S. Coast Guard District One Legal Office. The U.S. Coast Guard Sector Southeastern New England and the U.S. Coast Guard Investigative Service investigated the case.
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Seattle man sentenced to four years in prison for dealing fentanyl in downtown Seattle while armed with a handgunRead the Press Release
Seattle – A 37-year-old Seattle man was sentenced this week to four years in federal prison and three years of supervised release for Possession of Controlled Substances with Intent to Distribute, announced U.S. Attorney Nick Brown. Joseph Johnson was prosecuted federally as part of Seattle’s Operation New Day – a concerted effort by Seattle Police and federal partners to remove open air drug markets in key hotspots in the city of Seattle.
“We are committed to prosecuting appropriate federal cases from the efforts to stop drug trafficking on Third Avenue and in the International District,” said U.S. Attorney Nick Brown. “In this case, Mr. Johnson did not learn from his first arrest in the International District and was arrested a second time, less than a month later, selling fentanyl at 3rd and Pike. In both instances he was armed with semi-automatic pistols. Such a case is appropriate for federal sanctions.”
Johnson was arrested on February 4, 2022, near 12th and Jackson in the International District, when an undercover law enforcement officer approached him and purchased fentanyl pills. At the time of the arrest Johnson had additional pills, $165 cash, and a semi-automatic 9 mm pistol. Johnson was released from custody. Before charges were filed on that arrest, Johnson was contacted again by law enforcement – this time at 3rd and Pike. On March 2, 2022, law enforcement officers saw Johnson engage in hand-to-hand sales of fentanyl pills. Johnson had 184 fentanyl pills in his pocket as well as nearly $1,100 in cash drug proceeds. He also had a loaded Polymer80 semi-automatic pistol.
In imposing the four-year prison sentence and the three years of supervised release to follow, Judge John C. Coughenour said “the involvement of the firearms and the significant amount of fentanyl is very troubling for the court.”
Assistant United States Attorney Cecelia Gregson noted the case was slated for federal prosecution, because of Johnson’s quick return to dealing after the first arrest. “The rapid rate of recidivism the defendant demonstrated by engaging in the very same conduct weeks later leaves little question about the threat he poses to community safety. Fentanyl is highly addictive and incredibly lethal. Packing firearms while dealing fentanyl adds another layer of dangerousness and increases the risk of violence occurring when addicted consumers and unruly rivals are factored into the mix,” AUSA Gregson wrote in her sentencing memo.
The case was investigated by the Seattle Police Department with assistance from the Drug Enforcement Administration.
The case was prosecuted by Assistant United States Attorney Cecelia Gregson.
Rochester Man Who Failed to Appear for Sentencing on Riot Charge Pleads GuiltyRead the Press Release
ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Christopher Tindal, 29, of Rochester, NY, pleaded guilty before U.S. District Judge Charles J. Siragusa to failure to appear, which carries a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorney Cassie Kocher, who is handling the case, stated that while Tindal was awaiting sentencing on a riot charge, he was released with a Global Positioning Satellite (GPS) ankle bracelet and required to comply with other conditions of release, including appearing at all court proceedings as required. On March 28, 2022, without the permission of the Court, Tindal removed his GPS ankle bracelet and failed to appear for sentencing before Judge Siragusa on April 19, 2022.
The plea 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, the Rochester Police Department, under the direction of Chief David Smith, and the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter.
Sentencing is scheduled for August 24, 2023, at 11:00 a.m. before Judge Siragusa.
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Repeat Armed Robber Found Guilty of Illegally Possessing Stolen HandgunRead the Press Release
INDIANAPOLIS- A federal jury has found Kyree Bryce Harris, 25, of Indianapolis, Indiana, guilty of illegally possessing a firearm.
According to court documents and evidence introduced at trial, on the morning of June 17, 2022, IMPD officers were called to Ethel Avenue in Indianapolis, Indiana on a report of a suspicious vehicle parked in front of the Twenty Fifth Street Baptist church all night. When officers arrived, they encountered Harris asleep in the vehicle with a handgun tucked next to his leg, between the driver’s seat and center console. The gun had previously been reported stolen. On scene and at trial, Harris admitted he carried the gun for protection.
Because Harris was a convicted felon, federal law prohibited him from possessing firearms. His felony convictions stemmed from a string of six armed robberies of Indianapolis-area convenience stores and Family Dollar stores that he committed in January 2017, for which he was also convicted federally.
U.S. Attorney Zachary A. Myers, Daryl S. McCormick, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Columbus Field Division, and Randal Taylor, Chief of the Indianapolis Metropolitan Police Department made the announcement.
“It is evident by this defendant’s criminal history that he has a willful disregard for the law,” said U.S. Attorney for the Southern District of Indiana, Zachary A. Myers. “We are very thankful that officers intervened when they did, potentially preventing future robberies, violence, or even death. Any time a firearm can be taken out of the hands of a reckless individual, it is a win for our community.”
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Indianapolis Metropolitan Police Department.
U.S. Attorney Myers thanked Assistant U.S. Attorneys Jeremy C. Fugate and Michelle P. Brady, who prosecuted this case.
U.S. District Court Judge Sarah Evans Barker presided over the trial and will sentence Harris at a later date. Harris faces a minimum of 15 years, up to life, in prison followed by up to five years of supervised release. Actual sentences are determined by a federal district court judge and are typically less than the maximum penalties.
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Registered Sex Offender Arrested for Possessing Child PornographyRead the Press Release
BOSTON – A Beverly man was arrested today on child pornography offenses.
Robert Miller, 59, was charged with one count of possession of child pornography. Following an initial appearance in federal court in Boston this afternoon before U.S. District Court Magistrate Judge Paul G. Levenson, Miller was detained pending a hearing set for May 10, 2023.
This case arose from an investigation of a secure online chat platform often used for, among other things, accessing and exchanging child pornography. According to the charging documents, Miller was identified as a member of a large-scale group chat trading child pornography on the platform. During a search of Miller’s residence today, approximately 15 electronic devices were seized and allegedly found to contain multiple videos depicting child pornography.
In September 2018, Miller was convicted of possession of child pornography in Essex County Superior Court, for which he received a three-year probationary sentence and was required to register as a sex offender in Massachusetts.
The charge of possession of child pornography provides for a mandatory minimum sentence of five years and up to 20 years in prison, at least five years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins and Michael J. Krol, Acting Special Agent in Charge of Homeland Security Investigations in New England made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Rollins’ Major Crimes Unit is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
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.
Rapid City Man Sentenced to 14 Years in Prison for Possession with Intent to Distribute a Controlled SubstanceRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced that U.S. District Judge Jeffrey L. Viken has sentenced a Rapid City, South Dakota, man convicted of Possession with Intent to Distribute a Controlled Substance. The sentencing took place on April 17, 2023.
Michael Wilson, 46, was sentenced to 14 years in federal prison, followed by five years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Wilson was indicted for Possession with Intent to Distribute a Controlled Substance by a federal grand jury in June of 2022. He pleaded guilty on January 20, 2023.
On January 30, 2022, a South Dakota Highway Patrol Trooper observed Wilson traveling eastbound on Interstate 90, close to Spearfish, South Dakota. Wilson’s vehicle then slowed down, entered a median crossing and started traveling westbound toward Spearfish. When the trooper attempted to initiate a traffic stop, the vehicle fled and a pursuit ensued. The pursuit ended when Wilson crashed his car in a housing development and fled on foot. A search of the vehicle revealed over 1300 grams of methamphetamine, other illegal substances, and $11,400 in cash. The investigation showed that Wilson was the driver of the vehicle and he was later arrested.
This case was investigated by the South Dakota Division of Criminal Investigation, South Dakota Highway Patrol, Spearfish Police Department, Lawrence County Sheriff’s Office, Deadwood Police Department, and the Pennington County Sheriff’s Office. Assistant U.S. Attorney Gina S. Nelson prosecuted the case.
Wilson was immediately remanded to the custody of the U.S. Marshals Service.
Queens Woman Charged with Fraudulently Obtaining Government FundsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, John Gay, the Inspector General of the Port Authority of New York and New Jersey, Office of Inspector General (“PA-OIG”), Jonathan Mellone, the Special Agent in Charge of the Northeast Region of the U.S. Department of Labor, Office of Inspector General (“DOL-OIG”), and Ivan J. Arvelo, the Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), announced today the unsealing of a Complaint charging JASMIN GADSON, an employee of the Port Authority of New York and New Jersey, with wire fraud and theft of government funds for submitting fraudulent applications to obtain unemployment insurance benefits from the New York State Department of Labor at the height of the COVID-19 pandemic in 2020 and 2021. During that period, GADSON also allegedly submitted fraudulent applications for loans under the United States Small Business Administration’s (“SBA”) Paycheck Protection Program (“PPP”). GADSON was arrested this morning and will be presented this afternoon before U.S. Magistrate Judge Stewart D. Aaron in Manhattan federal court.
U.S. Attorney Damian Williams said: “Jasmin Gadson, an employee of the Port Authority of New York and New Jersey, allegedly stole government funds intended to help those who were struggling as a result of a national emergency. This Office will continue to prosecute those who used the COVID-19 pandemic as an opportunity to line their pockets with fraudulently obtained taxpayer money.”
PA-OIG Inspector General John Gay said: “We are appalled that a toll collector, on her own time, allegedly filed for fraudulent government benefits.”
DOL-OIG Special Agent in Charge Jonathan Mellone said: “An important part of the mission of the U.S. Department of Labor, Office of Inspector General is to investigate allegations of fraud related to Pandemic unemployment insurance programs. We will continue to work with our law enforcement partners to investigate these types of allegations.”
HSI Special Agent in Charge Ivan J. Arvelo said: “As alleged, Jasmin Gadson not only fraudulently claimed unemployment benefits while actively employed by the Port Authority of New York and New Jersey, but this defendant also defrauded a program intended to assist hardworking Americans who were financially impacted due to the unprecedented COVID-19 health crisis. HSI will not abide those who engage in theft of federal funds destined to help the financially vulnerable. I am extremely grateful to our partners at the Port Authority of NY/NJ, Office of the Inspector General and the U.S. Department of Labor, Office of the Inspector General, as well as HSI New York’s Document & Benefit Fraud Task Force for uncovering and investigating Gadson’s criminal scheme that allegedly defrauded U.S. taxpayers out of $78,000.”
According to the Complaint unsealed today in Manhattan federal court and publicly available information:[1]
JASMIN GADSON is currently employed by the Port Authority of New York and New Jersey, where she has worked since 2015. Beginning in the summer of 2020 through the fall of 2021, she submitted fraudulent applications for unemployment insurance benefits to the New York State Department of Labor and fraudulent applications for PPP loans to the SBA. In support of her fraudulent unemployment insurance applications, GADSON falsely claimed, in an initial application and weekly verifications, that the last date that she worked was during the onset of the COVID-19 pandemic in March 2020. At all times from March 2020 through the present, GADSON was employed by the Port Authority of New York and New Jersey and received salary or paid sick leave or was on unpaid protected parental leave. During that period, she received full health benefits and was not eligible for unemployment insurance benefits. In addition, GADSON falsely claimed five-figure net revenues for a business that did not exist in support of her fraudulent PPP loan applications.
Between both of these schemes, GADSON stole more than $78,000 from the New York State Department of Labor, the SBA, and financial institutions that issued SBA-guaranteed loans.
* * *
JASMIN GADSON, 29, of Queens, New York, is charged with wire fraud, which carries a maximum penalty of 20 years in prison, and theft of government funds, which carries a maximum penalty of 10 years in prison.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the PA-OIG, the DOL-OIG, and HSI. The investigation was conducted by HSI’s Document and Benefit Fraud Task Force (“DBFTF”), a specialized investigative group comprising personnel from various state, local, and federal agencies with expertise in detecting, deterring, and disrupting organizations and individuals involved in various types of document, identity, and benefit fraud schemes.
The case is being prosecuted by the Office’s General Crimes Unit. Assistant U.S. Attorney Amanda C. Weingarten is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the Complaint and the descriptions of the Complaint set forth herein constitutes only allegations, and every fact described should be treated as an allegation.
Puerto Rican Man Pleads Guilty to Cocaine ChargeRead the Press Release
ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Michael Almonte Diaz, 30, of Puerto Rico, pleaded guilty to conspiracy to distribute cocaine, before U.S. District Judge Charles J. Siragusa. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Cassie Kocher, who is handling the case, stated that on August 2, 2022, Diaz and another individual were transporting approximately 504 grams of cocaine from Rochester, eastbound on Interstate 90. The New York State Police conducted a traffic stop of the vehicle in the area of Exit 41 in Seneca County. The cocaine was concealed in a birthday gift-wrapped package. Officers also recovered $18,511 in United States currency.
The plea is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Matthew Scarpino and the New York State Police, under the direction of Major Brian Ratajczak.
Sentencing is scheduled for August 8, 2023, at 9:15 a.m. before Judge Siragusa.
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Prior Felon Pleads Guilty to Gun ChargeRead the Press Release
ROCHESTER, N.Y. - U.S. Attorney Trini E. Ross announced today that Tyree D. Washington, 40, of Rochester, NY, pleaded guilty to being a felon in possession of firearms before U.S. Magistrate Judge Mark W. Pedersen. The charge carries a maximum penalty of 15 years in prison and a $250,000 fine.
Assistant U.S. Attorney Cassie Kocher, who is handling the case, stated that on November 26, 2022, New York State Police Troopers on patrol in Rochester attempted to stop Washington, who was operating a black BMW, for traffic violations, but Washington refused to stop. A vehicle pursuit ensued over several city streets and ended when Washington failed to stop at a stop sign and crashed into the front porch of a residence on South Plymouth Avenue in Rochester. After Washington was taken into custody, officers located two loaded pistols in the vehicle. In October 2009, Washington was convicted of a felony in Monroe County Court and is legally prohibited from possessing a firearm.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The plea is the result of an investigation by New York State Police, under the direction of Major Brian Ratajczak and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge John B. DeVito, New York Field Division.
Sentencing is scheduled for July 28, 2023, at 2:00 p.m. before Judge David G. Larimer.
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Previously convicted felon sentenced to more than 5 years in prison for possessing firearmRead the Press Release
CINCINNATI – Markeith Ford, 32, of Cincinnati, was sentenced in U.S. District Court to 66 months in prison for illegally possessing a firearm.
As a previously convicted felon, Ford is prohibited from possessing firearms or ammunition.
According to court documents, on March 4, 2022, plain clothes officers from the Crime Gun Information Center (CGIC) identified Ford at the rear of a property on Race Street. Ford was wearing a black outfit, camouflage mask and latex gloves.
When a patrol vehicle arrived, Ford immediately fled on foot, carrying a firearm in his left hand. He threw the gun toward a fire escape on a building. Ford was eventually caught and placed into custody, and the firearm – which was loaded with 15 rounds of ammunition – was recovered. Ford also had a black magazine with 10 rounds of ammunition in a front pants pocket.
Ford pleaded guilty in June 2022 to illegally possessing a firearm after being convicted of a felony crime.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Daryl S. McCormick, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF); and Cincinnati Police Chief Teresa A. Theetge announced the sentence imposed by Senior U.S. District Court Judge Susan J. Dlott. Assistant United States Attorney Anthony Springer is representing the United States in this case.
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Portland Area Drug Trafficker Sentenced to 26 Years in Federal Prison for Role in Deadly Kidnapping of Washington State ManRead the Press Release
PORTLAND, Ore.—A Mexican National residing in Marion County, Oregon was sentenced to federal prison today for his role in the 2019 kidnapping and murder of a Washington State man and other drug trafficking crimes.
Marcos Alonso Castillo-Bernal, 48, was sentenced to 312 months in federal prison and 10 years’ supervised release.
According to court documents, in 2018, the Portland Police Bureau (PPB) began investigating a Mexican drug trafficking organization (DTO) responsible for distributing large quantities of methamphetamine, heroin, cocaine, and counterfeit OxyContin in the Portland area. The DTO was an intermediate source of supply to other organizations in Portland, on the Oregon coast, and in the Olympia, Washington area. In January 2019, Castillo-Bernal assumed control of the DTO and, along with various co-conspirators, was directly responsible for distributing large quantities of the illegal drugs in and around Portland.
From on or about April 9, 2019, until on or about April 13, 2019, Castillo-Bernal and others kidnapped, held hostage, and murdered Ricardo Corral-Moreno, of Olympia, Washington, and disposed of his body in a rural area near Molalla, Oregon. Castillo-Bernal and his co-conspirators targeted Corral-Moreno because of money he owed to Castillo-Bernal and others. Investigators identified ligature marks on Corral-Moreno’s wrists consistent with his having been tied up and determined he died of blunt force injuries to the back of his head. Castillo-Bernal’s DNA was also found on Corral-Moreno’s left cheek and ankle.
On January 6, 2022, a superseding indictment was unsealed charging Castillo-Bernal with various drug trafficking crimes and for his role in Corral-Moreno’s kidnapping and murder. He made his initial appearance in federal court the same day.
On January 18, 2023, Castillo-Bernal pleaded guilty to conspiring to possess with intent to distribute and distribute controlled substances, conspiring to commit kidnapping resulting in death, and illegally reentering the U.S.
This case was investigated by the U.S. Drug Enforcement Administration, FBI, Portland Police Bureau, Clackamas County Sheriff’s Office, and Clackamas County Interagency Task Force (CCITF). It was prosecuted by the U.S. Attorney’s Office for the District of Oregon.
This prosecution is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the U.S. 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.
Port Sulphur Man Pleads Guilty to Interstate Domestic ViolenceRead the Press Release
NEW ORLEANS, LOUISIANA – VINCENT TURNER, age 39, a resident of Port Sulphur, Louisiana plead guilty on May 2, 2023 to Interstate Domestic Violence, in violation of Title 18, United States Code, Sections 2261(a)(1), 2261(b)(5) and 7(8), announced U.S. Attorney Duane A. Evans.
On August 2, 2022, while within the special maritime and territorial jurisdiction of the United States, aboard the Carnival cruise ship, Valor, TURNER physically assaulted and battered his intimate dating partner. The Valor, a foreign vessel, departed and returned to New Orleans, after traveling to Costa Maya, Mexico. While aboard the ship, TURNER and the victim engaged in a verbal altercation that escalated into a physical altercation, resulting in TURNER striking the victim in her head with his hand.
TURNER faces a maximum sentence of 5 years imprisonment, a fine of up to $250,000.00, a period of supervised release of up to 3 years, and a mandatory special assessment fee of $100.00.
United States District Court Judge Susie Morgan will sentence TURNER on August 17, 2023.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Brittany Reed of the Public Integrity Unit.
Pittsburgh Man Sentenced to 30 Months in Prison for Violating Federal Firearms and Narcotic LawsRead the Press Release
PITTSBURGH, PA - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to a total of 30 months in prison followed by three years of supervised release on his conviction of violating federal firearms and narcotics laws, Acting United States Attorney Troy Rivetti announced today.
United States District Judge William S. Stickman IV imposed the sentence on Dajunatae Alston, 25, formerly of the East Liberty section of Pittsburgh.
According to information presented to the court, on April 22, 2020, Alston possessed with intent to distribute approximately 50 grams of marijuana while also possessing a firearm in a school zone.
Assistant United States Attorney Carl J. Spindler prosecuted this case on behalf of the government.
Acting United States Attorney Rivetti commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Alston.
Parmelee Man Sentenced for Prohibited Person in Possession of a FirearmRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange, U.S. District Court, has sentenced a Parmelee, South Dakota, man convicted of being a Prohibited Person in Possession of a Firearm. The sentencing took place on May 2, 2023.
Alun James Guerue, age 27, was sentenced to time served from May 2, 2023, through August 14, 2023, equaling approximately three and half months of custody, followed by three years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100. He was also ordered to forfeit the Glock 19 pistol and ammunition involved in the matter.
Guerue was indicted by a federal grand jury in November of 2021. He pleaded guilty on January 19, 2023.
The conviction stemmed from an incident near Soldier Creek, South Dakota, on February 26, 2021, when a law enforcement officer conducted a traffic stop on a vehicle traveling 83-mph in a 65-mph zone. The driver was identified as Guerue. A search of the vehicle uncovered a Glock 19 pistol, marijuana, and cocaine. The pistol belonged to Guerue, who was an unlawful user of a controlled substance, thus prohibited from possessing any firearms. The pistol had been shipped and transported in interstate commerce and foreign commerce
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Guerue was immediately remanded to the custody of the U.S. Marshals Service.
Ohio man sentenced for Wheeling traffic stop that yielded counterfeit fentanyl pills, methamphetamineRead the Press Release
WHEELING, WEST VIRGINIA – A Thornville, Ohio, man was sentenced to 9 years in prison today for having a large amount of methamphetamine on Wheeling Island.
Christopher W. Thomas, 33, pled guilty to a possession charge in May 2022. During a traffic stop of Thomas’s vehicle, officers found 79 grams of methamphetamine and more than 240 grams of fentanyl, some of which was in the form of counterfeit Xanax pills. Thomas also had other items to manufacture the pills, including a metal pill press with hydraulic jack, cutting agents and a portable mixer. Officers also recovered a loaded 9mm pistol, a box of ammunition, and nearly $5,000 cash.
The Marshall County Drug Task Force, a HIDTA-funded initiative; West Virginia State Police; and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
Assistant U.S. Attorney Clayton Reid prosecuted the case on behalf of the government.
U.S. District Judge John Preston Bailey presided.
Norfolk Man Charged with Distributing Fentanyl and “Tranq” Mixture, Known as the Zombie DrugRead the Press Release
NORFOLK, Va. – A federal grand jury indicted a Norfolk man today on charges of conspiracy to distribute and possess with intent to distribute Fentanyl mixed with Xylazine, opening two drug-involved premises, possession with intent to distribute Fentanyl mixed with Xylazine, possession with intent to distribute cocaine, and being a convicted felon in possession of firearms.
According to allegations in the indictment, on or about February 17, 2023, William Griggs, 54, operated two drug-involved houses in the City of Norfolk where he stored and packaged fentanyl mixed with Xylazine for distribution in Norfolk, and stored and packaged cocaine.
Xylazine, also known as “Tranq,” is a powerful sedative that the U.S. Food and Drug Administration (FDA) has approved for veterinary use only. Xylazine and fentanyl drug mixtures place users at a higher risk of suffering a fatal drug poisoning. People who inject drug mixtures containing Xylazine also can develop severe wounds, including necrosis—the rotting of human tissue—that may lead to amputation. The combination is referred to on the street as the “Zombie” drug.
The U.S. Drug Enforcement Administration (DEA) recently issued a public safety alert warning the American public of a sharp increase in the trafficking of Fentanyl mixed with Xylazine and the drug’s deadly effects. The FDA also published an alert to health care providers about the risks to patients exposed to Xylazine in illicit drugs.
If convicted of the allegations, Griggs faces up to life in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Jarod Forget, Special Agent in Charge for the DEA Washington Division; and Mark Talbot, Chief of Norfolk Police, made the announcement after the grand jury returned an Indictment.
Assistant U.S. Attorney Kevin M. Comstock is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:23-cr-60.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
New Underwood Man Indicted for Child PornographyRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced that a federal grand jury has indicted a New Underwood, South Dakota, man for Receipt of Child Pornography with a Prior Child Pornography Conviction and Possession of Child Pornography with a Prior Child Pornography Conviction.
Kent Joy, age 47, was indicted in March of 2023. He appeared before U.S. Magistrate Judge Daneta L. Wollmann on April 28, 2023, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is a mandatory minimum of 10 years in federal prison, up to 20 years and/or a $250,000 fine, a mandatory minimum of five years of supervised release, and $100 to the Federal Crime Victims Fund for each count. Restitution may also be ordered.
The charges relate to Joy, a person previously convicted for a child pornography offense, knowingly receiving and possessing child pornography between April 18, 2018, and September 19, 2022.
The charges are merely accusations and Joy is presumed innocent until and unless proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
The investigation is being conducted by the South Dakota Division of Criminal Investigation, South Dakota Internet Crimes Against Children Task Force, and Homeland Security Investigations. Assistant U.S. Attorney Kelsey Blair is prosecuting the case.
Joy was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for June 27, 2023.
Network of Transnational Fraudsters Indicted for Racketeering in Scheme to Steal Millions from American Consumers’ Bank AccountsRead the Press Release
A federal grand jury in Los Angeles has returned an indictment charging 14 defendants for their participation in a years-long scheme to steal millions of dollars from American consumers’ bank accounts, the Justice Department announced today.
According to court documents, Edward Courdy, 73, of Hawaiian Gardens, California; Linden Fellerman, 67, of Las Vegas; Guy Benoit, 68, of Cyprus; Steven Kennedy, 54, of Canada; Sayyid Quadri, of Canada; Ahmad Shoaib, 63, of Canada; John Beebe, 52, of Honolulu; Michael Young, 41, of Hollywood, Florida; Lance Johnson, 52, of Laveen, Arizona; Jenny Sullivan, 46, of Denver; Veronica Crosswell, 35, of Long Beach, California; Eric Bauer, 65, of Huntington Beach, California; Randy Grabeel, 71, of Pittsburg, California; and Debra Vogel, 68, of Las Vegas, were members and associates of a racketeering enterprise that unlawfully debited money from the bank accounts of unknowing U.S. consumer-victims.
Through various members and associates, the enterprise obtained identifying and banking information for victims, and created shell entities that claimed to offer products or services, such as cloud storage. The enterprise then executed unauthorized debits against victims’ bank accounts, which it falsely represented to banks were authorized by the victims. Some of the unauthorized debits resulted in returned transactions, which generated high return rates. To both conceal and continue conducting unauthorized debits, the enterprise’s shell entities also generated “micro debits” against other bank accounts controlled and funded by or for the enterprise. The micro debits artificially lowered shell entities’ return rates to levels that conspirators believed would reduce bank scrutiny and lessen potential negative impact on the enterprise’s banking relations.
Co-conspirator Harold Sobel was previously convicted for his role in the scheme in Las Vegas federal court and sentenced to 42 months in prison. In a related civil case also filed in Los Angeles federal court, injunctive relief and settlements totaling nearly $5 million were obtained against various persons, including several who are charged in this criminal indictment.
“The scheme alleged in the indictment involved an elaborate plot to reach into consumers’ bank accounts and steal their hard-earned savings,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Department of Justice will use all of the tools at its disposal to prosecute such schemes.”
“This sophisticated scheme allegedly generated millions of dollars in revenue by stealing consumers’ personal information and then using that information to fraudulently reach straight into the bank accounts of thousands of Americans,” said U.S. Attorney Martin Estrada for the Central District of California. “The indictment alleges that an international network of fraudsters engaged in a wide-ranging ring which sought to victimize consumers while concealing their activities from banks and law enforcement authorities. Thanks to law enforcement, the defendants’ alleged efforts to continue this scheme have failed.”
“The U.S. Postal Inspection Service (USPIS) is committed to protecting the U.S. Postal Service and its customers, the American people,” said Inspector in Charge Eric Shen of the USPIS Criminal Investigations Group. “This case is illustrative of our efforts to protect American consumers from a sophisticated fraud scheme that cost American consumers millions of dollars. Postal Inspectors are proud to partner with the Department of Justice to put a stop to these types of schemes.”
Courdy, Fellerman, Benoit, Kennedy, Quadri, Shoaib, Beebe, Young, Johnson, Sullivan, Crosswell, and Bauer are charged with racketeering conspiracy and wire fraud; Grabeel and Vogel are charged with racketeering conspiracy. Some defendants made their initial court appearances yesterday. If convicted, each defendant faces a maximum penalty of 20 years in prison for racketeering conspiracy and, if applicable, 30 years in prison for each count of wire fraud. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The department urges individuals to be on the lookout for unauthorized debits to their accounts. Regularly check your bank, credit card, and other financial statements and contact your financial institution if you see a charge you do not recognize. Report any fraudulent debit you identify to law enforcement. Reports may be filed with the FTC at https://reportfraud.ftc.gov or at 877-FTC-HELP.
The USPIS is investigating the case.
Trial Attorneys Wei Xiang, Meredith Healy, and Amy Kaplan of the Justice Department’s Consumer Protection Branch and Assistant U.S. Attorney Monica Tait for the Central District of California are prosecuting the case. The U.S. Attorney’s Office for the Southern District of Texas provided substantial assistance.
The Consumer Protection Branch, in conjunction with the USPIS, is pursing wrongdoers who disguise the unlawful nature of business activities by, among other methods, artificially lowering financial account return rates. These tactics are designed to deceive banks, resulting in bank accounts remaining open and facilitating fraud schemes and other illegal activities, including schemes that debit consumers’ bank accounts without authorization, tech support scams, and subscription traps.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Network of Transnational Fraudsters Charged in Racketeering Scheme to Steal Millions from American Consumers’ Bank AccountsRead the Press Release
LOS ANGELES – Authorities have arrested five defendants – including several Southern California residents – for their alleged participation in a years-long scheme to steal millions of dollars from American consumers’ bank accounts, the Justice Department announced today.
The arrests follow a federal grand jury last week returning a seven-count indictment that charges a total of 14 defendants with conspiracy to violate the Racketeer Influenced and Corrupt Organizations (RICO) Act.
According to the indictment, various members and associates of the alleged criminal enterprise created shell entities that claimed to offer products or services, such as cloud storage. Then, after obtaining identifying and banking information for victims, the enterprise allegedly executed unauthorized debits against victims’ bank accounts, which it falsely represented to banks were authorized by the victims.
Because some of the unauthorized debits resulted in returned transactions – which generated high return rates and could raise red flags at financial institutions – the indictment alleges the enterprise’s shell entities also generated “micro debits” against other bank accounts controlled by the enterprise. The micro debits allegedly artificially lowered shell entities’ return rates to levels that conspirators believed would reduce bank scrutiny and lessen potential negative impact on the enterprise’s banking relations.
The five defendants arrested Tuesday are:
- Edward Courdy, 73, of Hawaiian Gardens;
- Eric Bauer, 65, of Huntington Beach;
- Veronica Crosswell, 35, of Long Beach;
- Jenny Sullivan, 46, of Denver; and
- John Beebe, 52, of Honolulu;
Defendant Linden Fellerman, 67, of Las Vegas, has agreed to surrender himself on Friday, May 5, 2023 to authorities in Los Angeles.
Three other defendants have been summoned to appear in United States District Court in Los Angeles on May 24. Those defendants are:
- Michael Young, 41, of Hollywood, Florida;
- Randy Grabeel, 71, of Pittsburg, California; and
- Debra Vogel, 68, of Las Vegas.
Seven other defendants are currently fugitives being sought by federal authorities. They are:
- Guy Benoit, 68, a resident of Canada and Cyprus;
- Steven Kennedy, 54, of Canada;
- Sayyid Quadri of Canada;
- Ahmad Shoaib, 63, of Canada; and
- Lance Johnson, 52, of Laveen, Arizona;
In addition to the RICO offense alleged in the indictment, all of the defendants – except Grabeel and Vogel – are charged with at least one count of wire fraud.
Harold Sobel previously was convicted for his role in the scheme in Las Vegas federal court and sentenced to 3½ years in prison. In a related civil case also filed in Los Angeles federal court, injunctive relief and settlements totaling nearly $5 million were obtained against various persons, including several who are charged in this criminal indictment.
“This sophisticated scheme allegedly generated millions of dollars in revenue by using consumers’ personal information to fraudulently reach straight into the bank accounts of thousands of Americans,” said United States Attorney Martin Estrada. “The indictment alleges that an international network of fraudsters engaged in a wide-ranging scheme which sought to victimize consumers while concealing their activities from banks and law enforcement authorities. Thanks to law enforcement, the defendants’ alleged efforts to continue this scheme have failed.”
“The scheme alleged in the indictment involved an elaborate plot to reach into consumers’ bank accounts and steal their hard-earned savings,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Department of Justice will use all of the tools at its disposal to prosecute such schemes.”
An indictment contains allegations that a defendant committed a crime. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Some defendants made their initial court appearances yesterday. If convicted, each defendant faces a maximum penalty of 20 years in prison for racketeering conspiracy and, if applicable, 30 years in prison for each count of wire fraud.
The U.S. Postal Inspection Service is investigating the case.
Assistant United States Attorney Monica Tait of the Major Frauds Section, and Trial Attorneys Wei Xiang, Meredith Healy and Amy Kaplan of the Justice Department’s Consumer Protection Branch are prosecuting the case. The United States Attorney’s Office for the Southern District of Texas provided substantial assistance.
The Department of Justice urges individuals to be on the lookout for unauthorized debits to their accounts. Regularly check your bank, credit card, and other financial statements and contact your financial institution if you see a charge you do not recognize. Report any fraudulent debit you identify to law enforcement. Reports may be filed with the FTC at https://reportfraud.ftc.gov -- or at 877-FTC-HELP.
The Consumer Protection Branch, in conjunction with the U.S. Postal Inspection Service, is pursing wrongdoers who disguise the unlawful nature of business activities by, among other methods, artificially lowering financial account return rates. These tactics are designed to deceive banks, resulting in bank accounts remaining open and facilitating fraud schemes and other illegal activities, including schemes that debit consumers’ bank accounts without authorization, tech support scams, and subscription traps.
NYPD Officer Convicted of Possession and Attempted Receipt of Child Pornography and Sexual Exploitation of MinorsRead the Press Release
Timothy Martinez was convicted today by a federal jury in Brooklyn of all four counts of a superseding indictment charging him with attempted receipt of child pornography, possession of child pornography, and two counts of sexual exploitation and attempted sexual exploitation of a minor. The verdict followed a one-week trial before United States District Judge Frederic Block. Martinez is employed as a police officer by the New York City Police Department, and immediately prior to his arrest, was on active duty in the U.S. Army Reserve. When sentenced, Martinez faces a mandatory minimum of 15 years in prison.
Breon Peace, United States Attorney for the Eastern District of New York, Ivan J. Arvelo, Special Agent-in-Charge, Homeland Security Investigations, New York, and Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), announced the verdict.
“The jury found that the defendant not only violated the trust of the public that he was sworn to serve but specifically victimized vulnerable children for years. Instead of using his position as a member of the NYPD to protect children, he shamefully gained the trust of minors in order to sexually exploit them,” stated United States Attorney Peace. “Protecting children from sexual exploitation will always be a priority of this Office. I commend the prosecutors and investigators for their outstanding work removing this predator from patrolling the streets and from our district.”
“When he swore his oath as a police officer, Timothy Martinez was entrusted to enforce the law and protect the innocent. Instead of upholding his oath, Martinez preyed on the young, turning innocent children into victims,” said HSI New York Special Agent-in-Charge Ivan J. Arvelo. “Our elation at this verdict is tempered by the pain and suffering these young victims endured as a result of this predator’s criminal actions. Those in positions of public trust are held to a higher standard as guardians of the innocent and HSI New York will continue to utilize every resource at our disposal to protect children from those who seek to do them harm.”
“Our police officers have a sworn duty to protect, but this defendant betrayed that oath and preyed upon some of the most at-risk members of our community,” stated NYPD Commissioner Sewell. “Such reprehensible behavior is wholly unacceptable of anyone, especially a member of law enforcement. I commend and thank Homeland Security Investigations and the U.S. Attorney for the Eastern District of New York for their important work on this case.”
As proven at trial, between October 2016 and March 2017, Martinez engaged in live video sex chats with Jane Doe #1, who had been treated for a brain tumor, and he convinced her to perform sexual acts. Additionally, between September 3, 2012 and November 2016, the defendant engaged in live video sex chats with Jane Doe #2 and he similarly convinced her to show him her nude body and engage in sex acts even after she disclosed that she had been sexually abused by family members. Martinez also possessed hundreds of images of child pornography. In June 2018, the defendant attempted to receive numerous videos of child pornography from an individual he believed to be a minor.
This prosecution is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Department of Justice Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorneys William P. Campos, Marietou Diouf, and Chand W. Edwards-Balfour are in charge of the prosecution with the assistance of Paralegal Specialist Allison Henry.
The Defendant:
TIMOTHY MARTINEZ
Age: 43
Staten Island, New YorkE.D.N.Y. Docket No. 20-CR-98 (S-2) (FB)
Muncie Pedophile Sentenced to 14 Years in Federal Prison for Distribution of Child Sexual Abuse Material via KikRead the Press Release
INDIANAPOLIS- Benjamin Covey, 43, of Eaton, Indiana was sentenced to 14 years in federal prison for distribution of child sexual abuse material.
According to court documents, on January 28, 2022, the Muncie Police Department (MPD) received an FBI tip stating that images depicting child sexual abuse had been uploaded to the instant messaging application, Kik, by username “BosJangles.” The username belonged to Benjamin Covey. That same day, it was also discovered that Covey had been accused of allowing juveniles to drink and showing them sexually explicit materials.
Investigators with the MPD contacted Covey, who agreed to an interview. Covey confirmed he used the Kik account “BosJangles” to join a group chat called “pedo for kids.” Investigators searched Covey’s cellphone and uncovered 600 images depicting child sexual abuse material. Many of the images depicted prepubescent boys being made to engage in sex acts. At least one of the images depicted an adult engaged in a sex act with a toddler.
“This dangerous criminal used Kik to find other pedophiles and share the horrific abuse of the most vulnerable victims,” said Zachary A. Myers, United States Attorney for the Southern District of Indiana. “Those who gather online to revel in the exploitation of children will be identified and prosecuted. I am grateful to the FBI and the Muncie Police Department for work to ensure that this defendant will serve a significant prison sentence, where out children will be out of his reach.”
“The distribution of child sexual abuse material over any platform is not a harmless, victimless crime, but one that continues to traumatize these children every time it is viewed,” said FBI Indianapolis Special Agent in Charge Herbert J. Stapleton. “The most vulnerable in our society deserve all the protection we can provide, and the FBI and our partners are committed to unmasking these predators and holding them accountable.”
The FBI investigated this case with valuable assistance provided by the Muncie Police Department. The sentence was imposed by Chief U.S. District Court Judge, Tanya Walton Pratt. Judge Pratt also ordered that Covey be supervised by the U.S. Probation Office for 10 years following his release from federal prison. Covey must also register as a sex offender wherever he lives, works, or goes to school, as required by law.
U.S. Attorney Myers thanked Assistant United States Attorney Lawrence D. Hilton, who prosecuted this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc
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Middlesex County Man Sentenced to 97 Months in Prison for Perpetrating Murder-for-Hire PlotRead the Press Release
NEWARK, N.J. – A Middlesex County man was sentenced to 97 months in prison for plotting to pay a purported hitman to kill his ex-wife and her daughter, U.S. Attorney Philip R. Sellinger announced today.
Michael Stewart, 69, of Monroe Township, New Jersey, previously pleaded guilty before U.S. District Judge Julien Xavier Neals to an information charging him with one count of the use of interstate commerce facilities in the commission of a murder for hire. Judge Neals imposed the sentence on May 2, 2023, in Newark federal court.
According to documents filed in this case and statements made in court:
In the summer of 2021, Stewart and a confidential source discussed the murder of Stewart’s ex-wife and her daughter. Stewart indicated he would pay for the murders and asked the confidential source to find a hitman. In October 2021, Stewart met with an undercover agent – whom he believed to be a hitman – and told him he wanted the ex-wife’s daughter killed first, followed by the ex-wife. He told the undercover agent he would pay for the killings and provided him with names, addresses, layout of the victims’ property and types of cars used by the victims. Stewart also showed the undercover agent a photo of his ex-wife. He provided the undercover agent $500 as a partial payment.
In addition to the prison term, Judge Neals sentenced Stewart to three years of supervised release.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the sentencing.
The government is represented by Assistant U.S. Attorney Olta Bejleri of the Organized Crime/Gangs Unit in Newark.
Mexican Citizen Sentenced to 158 Months in Federal Prison for Illegal Reentry into the United StatesRead the Press Release
LITTLE ROCK— A Mexican citizen who returned to the United States after being previously deported was sentenced to serve 13 years and 2 months in federal prison for illegal reentry. Wednesday afternoon, United States District Judge Brian S. Miller sentenced Cristobal Palomerez-Heredia, 45, of Mexico, to 158 months’ imprisonment.
On March 18, 2020, officers with the Star City Police Department responded to a shots-fired call. When officers arrived, they found Palomerez-Heredia pacing back and forth, appearing aggressive and agitated. While trying to detain Palomerez-Heredia, he charged the officer, punching, scratching, and headbutting the officer multiple times causing injuries to the officer’s mouth, jaw, forearm, and hand. Palomerez-Heredia was eventually subdued and taken into custody.
On September 2, 2021, Palomerez-Heredia was indicted by a federal grand jury and charged with illegal reentry. Palomerez-Heredia had been previously deported to Mexico in September 2012.
On September 22, 2021, officers with the Star City Police Department again responded to a shooting call. When officers arrived at the residence, Palomerez-Heredia began shooting at them from his front door. Officers took protective positions as Palomerez-Heredia continued to fire rounds at them. After backup arrived, officers were able to take Palomerez-Heredia into custody. During the execution of a search warrant at the residence, officers located a loaded .22 caliber rifle with a scope, 24 spent .22 shell casings, and an additional loaded magazine. On that same day, agents with the Department of Homeland Security-Immigration and Customs Enforcement (DHS-ICE) positively identified Palomerez-Heredia and arrested him on a federal warrant.
Palomerez-Heredia has prior federal criminal convictions for illegal alien in possession of a firearm (2006) and deported alien found in the United States (2011). Palomerez-Heredia received a 12-year sentence for attempted murder in the Circuit Court of Lincoln County, Arkansas, stemming from the shootout on September 22, 2021.
In addition to the 158-month prison sentence, which Judge Miller ordered to run consecutive to Palomerez-Heredia’s 12-year sentence for attempted murder, Judge Miller sentenced Palomerez-Heredia to serve three years of supervised release following imprisonment. The only condition of Palomerez-Heredia’s supervised release is that he not return to the United States after deportation. The case was investigated by the Star City Police Department and Officer Charles Davis with DHS-ICE; the case was prosecuted by Assistant United States Attorney Jordan Crews.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Member of U.S. Attorney’s Office Receives Director’s AwardRead the Press Release
NEWARK, N.J. – Caroline Sadlowski, Counsel to the U.S. Attorney for the District of New Jersey, was recognized by Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson at the 38th annual Director’s Awards Ceremony today in Washington, D.C.
At the ceremony, which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building, Ms. Sadlowski was honored with the Executive Achievement Award, which recognizes someone who has made significant contributions toward improving the efficiency, effectiveness, and productivity of the office through personal initiative, innovation, leadership, and creativity.
“Caroline Sadlowski is a remarkable leader, advisor, and advocate, who works tirelessly to support the office’s mission and employees,” U.S. Attorney Philip R. Sellinger said. “I am proud to congratulate Caroline on receiving a Director’s Award that recognizes her significant contributions to the office and the people of New Jersey. Every organization has a few cornerstone people who are depended upon by everyone. For the U.S. Attorney’s Office for the District of New Jersey, Caroline Sadlowski is one of those people.”
Ms. Sadlowski has been with the U.S. Attorney’s Office for the District of New Jersey for 19 years, has served in leadership positions in both the Appeals and Civil Divisions, and served in the front office as Counsel since 2018. Ms. Sadlowski advises the U.S. Attorney and other office supervisors on case-related decisions, bringing her tremendous insight and sound judgment to the office’s criminal, civil, and appellate matters based on her near two-decades of experience. She serves as one of the office’s ethics officers, providing ethics training to all supervisors and ethics advice to the U.S. Attorney on a wide array of issues. Ms. Sadlowski also oversees the office’s administrative division, particularly focusing on human resource and budget issues, and leads the office’s participation in the District’s Reentry Court and Pretrial Opportunity Program, two nationally recognized programs that focus on helping those enmeshed in the criminal justice system.
Member of Conspiracy to Illegally Export Firearms, Ammunition and Military-Type Items to Assist Separatists Fighting Against the Government of Cameroon Sentenced to 46 Months in Federal PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Godlove Nche Manchoe, age 44, of Bowie, Maryland, yesterday to 46 months in federal prison, followed by two years of supervised release, for conspiracy, and for illegally exporting firearms and ammunition from the United States to Nigeria without obtaining the required licenses from the U.S. State Department. According to trial testimony and court documents, the purpose of the conspiracy was to assist separatists fighting against the government of Cameroon.
The sentence was announced by Erek L. Barron, United States Attorney for the District of Maryland; Special Agent in Charge James C. Harris of Homeland Security Investigations (“HSI”) Baltimore; Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”) Baltimore Field Division; and Special Agent in Charge Christopher Dillard of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (“DCIS”) - Mid-Atlantic Field Office.
According to his plea agreement, from at least November 2017 until July 19, 2019, Manchoe and his co-conspirators agreed to export firearms, ammunition and other military-type items in violation of the federal smuggling statute, the Arms Export Control Act and other export laws. Manchoe participated in meetings of the conspirators, both online and in person, including in the basement of co-conspirator Tamufor St. Michael’s residence, where the conspirators, including Manchoe, also reloaded ammunition, assembled firearms, and wrapped various items for overseas shipment. Manchoe also donated and forwarded funds received from other co-conspirators to St. Michael, to be used towards the purchase of ammunition and/or weapons in furtherance of the conspiracy.
As detailed in his plea agreement, in December 2018, a shipping container, with a 1989 Toyota truck inside, was delivered to the street outside St. Michael’s residence for the conspirators to use to export the firearms, ammunition and other items. St. Michael and other co-conspirators then loaded the container, secreting weapons, ammunition and other military-type items inside the truck and multiple compressors. The container was sent to the Port of Baltimore for export, departing on January 17, 2019, with a destination of Onne, Nigeria. The conspirators caused the electronic export information (“EEI”) to be filed with the Department of Commerce listing the contents of the container as one Toyota Tundra truck, one 1989 Toyota truck, and “doors and frames.” The EEI also listed the U.S. Principal Party in Interest as an individual with the initials M.A.O. and a non-existent address. The telephone number listed for M.A.O. corresponded with a pre-paid cellular telephone.
Approximately one month later, the shipping container was ordered returned to the Port of Baltimore and on May 20, 2019, law enforcement personnel in Baltimore unsealed the container and examined its contents. In addition to the trucks and what appeared to be the contents of an old schoolhouse, the conspirators had concealed firearms, ammunition, rifle scopes, and other items in duffle bags placed in the trucks and in heavily wrapped packages inside sealed compressor units, in the shipping container. In all, law enforcement recovered from the shipping container 38 firearms, 28 of which had obliterated serial numbers. The guns included sniper rifles, SKS assault rifles (some with bayonets), other rifles and several handguns. There were 44 high-capacity magazines, two rifle scopes and over 35,000 rounds of ammunition, as well as military-type items, including boots, pepper spray, zip-tie style handcuffs, hydration packs, and other items.
Six other members of the conspiracy pleaded guilty to their involvement in the conspiracy. In April, Judge Bennett sentenced Tse Ernst Bangarie and Edith Ngang each to 46 months of incarceration and an additional three are awaiting are awaiting sentencing. A jury convicted three other members for the conspiracy, transportation of firearms with obliterated serial numbers, and smuggling following a jury trial in May 2022. Judge Bennett has sentenced two of those individuals, Eric Fru Nji and Wilson Nuyila Tita, to 63 months of incarceration and the third, Wilson Che Fonguh, is awaiting sentencing.
United States Attorney Erek L. Barron commended HSI, the ATF and DCIS for their work in the investigation. Mr. Barron recognized the U.S. Department of Commerce, Office of Export Enforcement; the U.S. Department of State, Diplomatic Security Service; the Naval Criminal Investigative Service; and the U.S. Postal Inspection Service for their contributions to the investigation. U.S. Attorney Barron thanked Assistant U.S. Attorney Kathleen O. Gavin, who is prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/community-outreach.
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Marrero Man Federally Indicted for Illegal Weapon PossessionRead the Press Release
NEW ORLEANS, LOUISIANA – RASHEED SMITH, age 32, a resident of Marrero, Louisiana, was indicted on April 28, 2023 for illegal possession of a firearm, announced U.S. Attorney Duane A. Evans.
If convicted, SMITH faces a maximum term of imprisonment of 15 years, up to a $250,000 fine, up to 3 years of supervised release, and a mandatory special assessment fee of $100.
U. S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the federal Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Jefferson Parish Sheriff’s Office. Assistant United States Attorney Greg Kennedy of the Violent Crimes Unit is in charge of the prosecution.
Man Sentenced to Three Years in Federal Prison for Stealing over $197,000 in Coronavirus Aid and Relief Funds from Four StatesRead the Press Release
INDIANAPOLIS- Daniel Jibunor, 31, of Nigeria, has been sentenced to 3 years in federal prison after pleading guilty to aggravated identity theft and wire fraud for his role in stealing over $197,000 in unemployment insurance funds the provided by the 2020 Federal Coronavirus Aid, Relief and Economic Security (CARES) Act.
According to court documents, on September 11, 2020, Jibunor used a fake debit card under a fake name to try to purchase $1,850 in Western Union money orders at a Kroger in Bloomington, Indiana. When a Kroger employee asked to see the bank card, Jibunor attempted to give her a different bank card in his own name. Bloomington Police Department officers were called to the scene. During their investigation, officers searched Jibunor’s person and vehicle and located two fraudulently obtained unemployment insurance debit cards, two fake debit cards, a GoBank Green Dot card, approximately $12,980 in cash, and 21 money orders totaling $19,540.
The unemployment insurance debit cards Jibunor in the names of real people, including at least ten victims whose stolen identities were used to file fraudulent unemployment claims. Jibunor used the cards to purchase money orders from various businesses, including Kroger, Walmart, and the U.S. Post Office, and to make ATM withdrawals.
During an interview with investigators, Jibunor admitted to using unemployment debit cards to obtain money orders for another individual he would not identify. Jibunor possessed payment cards loaded with approximately $161,511 in unemployment insurance funds stolen from California and Nevada. In addition, the GoBank Green Dot card was loaded with unemployment insurance funds stolen from the programs in Arizona and Illinois, as well as $36,102 in fraud proceeds associated with an Economic Injury Disaster Loan.
In sum, Jibunor’ s criminal conduct resulted in at least $197,613 in actual losses to unemployment offices in California, Arizona, Nevada, and Illinois as well as the federal government.
“At the height of the global pandemic, this defendant decided to steal emergency funds intended to be a vital lifeline for families in need,” said Zachary A. Myers, U.S. Attorney for the Southern District of Indiana. “Stealing identities and relief money during a disaster is a despicable crime that merits serious punishment. The federal prison sentence imposed today demonstrates that the U.S. Attorney’s Office and our law enforcement partners are committed to finding the criminals who have defrauded COVID-19 emergency response programs and holding them accountable.”
“Daniel Jibunor defrauded the state workforce agencies of Arizona, California, Illinois, and Nevada by participating in a conspiracy to file fraudulent unemployment insurance (UI) claims in the names of identity theft victims. Jibunor stole benefits intended to assist those who became unemployed due to the COVID-19 pandemic. We will continue working with our law enforcement partners to protect the integrity of the UI system from those who exploit these benefit programs,” said Irene Lindow, Special Agent in Charge, Great Lakes Region, U.S. Department of Labor, Office of Inspector General.
“Those who profit off programs meant to help others in need is unacceptable. This sentence illustrates the FBI’s commitment to combating unemployment fraud,” said FBI Indianapolis Acting Special Agent in Charge Robert “Alex” Middleton. “Along with our law enforcement partners, we will continue to aggressively identify and pursue fraudsters who steal money and hold them accountable.”
This case was investigated by the Federal Bureau of Investigation, the United States Department of Labor Office of Inspector General, and the Bloomington Police Department. The sentence was imposed by U.S. District Court Judge Jane Magnus-Stinson. Judge Stinson also ordered that Jibunor pay $197,613 in restitution and be supervised by the U.S. Probation Office for 1 year following his release from federal prison.
U.S. Attorney Myers thanked Assistant United States Attorney Kyle M. Sawa, who prosecuted this case.
On May 17, 2021, the Attorney General established the COVID‑19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
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
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Long Island Man Pleads Guilty to Bribing Federal Official to Obtain Nearly $1 Million in Federal ContractsRead the Press Release
Earlier today, in federal court in Central Islip, Michael Montenes, the owner of M.S. Hi-Tech, Incorporated (MSHT), a Hauppauge-based distributor of electronic components, pleaded guilty to a criminal information charging him with bribery of a federal official in connection with a scheme to pay more than $18,000 to a Department of Energy (DOE) Procurement Officer in exchange for approximately $969,000 in DOE contracts. The proceeding was held before United States Magistrate Judge Steven L. Tiscione. When sentenced, Montenes faces up to 15 years in prison. As part of his guilty plea, Montenes agreed to forfeit approximately $969,000 and to pay DOE more than $1.8 million in restitution.
Breon Peace, United States Attorney for the Eastern District of New York, and Teri L. Donaldson, Department of Energy Inspector General, announced the guilty plea.
“Like the faulty components that he bribed a government official to purchase and caused damage to a Department of Energy laboratory, Montenes’s scheme has gone down in flames and he must now face the consequences for his crime,” stated United States Attorney Peace. “This Office will continue to root out corruption that undermines the integrity of competitive bidding in the procurement process.”
Mr. Peace thanked the U.S. Department of Defense, Defense Criminal Investigative Service, for its work on the case.
“The Department of Energy, Office of Inspector General will continue to ensure that there is no place in our supply chain for bribery and corrupt schemes,” said Department of Energy Inspector General Teri L. Donaldson. “Anyone who suspects such conduct is encouraged to report it immediately. We appreciate the fine work of the U.S. Attorney’s Office and our federal law enforcement partners on this joint investigation.”
Between approximately December 2017 and December 2020, Montenes paid a Procurement Officer (Co-conspirator 1), who was employed at a DOE laboratory in Virginia approximately $18,800 in bribes to induce Co-conspirator 1 to enter into contracts for electronic components that MSHT, supplied to the DOE’s Virginia laboratory. Montenes mailed these payments, which ranged from $500 to $7,200, from Long Island to Co-conspirator 1 in Virginia. During the bribery scheme, Co-conspirator 1 awarded contracts worth more than $969,000 to MSHT, which represented 95% of all of MSHT’s sales to the DOE’s Virginia laboratory. In July 2021, some of the electronic components that MSHT sold to DOE based upon Montenes’s bribes failed and caused a fire, resulting in approximately $1.8 million in repairs and other costs to DOE.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Bradley T. King is in charge of the prosecution.
The Defendants:
Michael Montenes
Age: 61
St. James, New YorkE.D.N.Y. Docket No. 23-CR-124 (JS)
Kanawha County Woman Sentenced to Prison for Federal Fraud CrimesRead the Press Release
CHARLESTON, W.Va. – Karen L. Hodges, also known as “Karen Igo,” “Karen Clay,” “Karen Richmond,” and “Karen Gessel,” 49, of St. Albans, was sentenced today to one year and four months in prison, to be followed by three years of supervised release, for three counts of securities fraud. Hodges must also pay $38,570.78 in restitution.
According to court documents and statements made in court, Hodges admitted to having counterfeit checks created so they appeared to be payroll checks issued by Kroger. Between October 20, 2018, and December 19, 2018, Hodges presented and cashed three counterfeit payroll checks totaling $2,461.96 at Kroger locations within the Southern District of West Virginia. Hodges admitted that she has never worked for Kroger, and knew that she was deceiving Kroger into giving her cash based on these counterfeit payroll checks.
Hodges further admitted to presenting and uttering numerous other counterfeit checks totaling $37,587.66 during the same time period at Kroger locations within the Southern District of West Virginia, as well as the Northern District of West Virginia, Indiana, Kentucky, Ohio and Virginia. Hodges also admitted to cashing two legitimate checks in her father’s name totaling $983.12 without his authorization at Kroger locations within the Southern District of West Virginia.
United States Attorney Will Thompson made the announcement and commended the investigative work of the United States Secret Service.
Senior United States District Judge John T. Copenhaver, Jr. imposed the sentence. Assistant United States Attorneys Kristin F. Scott and Ryan A. Keefe prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-223.
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Kanawha County Man Sentenced to Prison for Federal Gun CrimeRead the Press Release
CHARLESTON, W.Va. – Charles Ryan Tucker, 45, of Mammoth, was sentenced today to two years and six months in prison, to be followed by two years of supervised release, for being a felon in possession of a firearm.
According to court documents and statements made in court, on January 13, 2022, law enforcement officers attempted to arrest Tucker on a state warrant in Cedar Grove and he fled on foot. Tucker was caught and while resisting arrest told the officers he possessed a firearm. Officers found a loaded Smith & Wesson M&P Shield 9mm pistol holstered on Tucker’s belt and concealed beneath his clothing.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Tucker was prohibited from possessing a firearm because of his prior felony convictions for breaking and entering on May 3, 2021, and grand larceny on January 26, 2015, both in Kanawha County Circuit Court.
United States Attorney Will Thompson made the announcement and commended the investigative work of the United States Marshals Service and the Cops United Felony Fugitive Enforcement Division (CUFFED) Task Force.
United States District Judge Joseph R. Goodwin imposed the sentence. Assistant United States Attorneys Timothy D. Boggess and Negar M. Kordestani prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-17.
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Justice Department’s Office on Violence Against Women Publishes Regulation Governing Special Tribal Criminal Jurisdiction Reimbursement ProgramRead the Press Release
The Justice Department’s Office on Violence Against Women (OVW) published a regulation governing the Special Tribal Criminal Jurisdiction (STCJ) Reimbursement Program, a new program authorized under the Violence Against Women Act Reauthorization Act of 2022 (VAWA 2022) to reimburse Tribal governments for expenses incurred in exercising STCJ over non-Native individuals who commit certain covered crimes on Tribal lands. VAWA 2013 included a historic provision recognizing Tribes’ authority to exercise STCJ over non-Indian offenders who committed domestic violence or dating violence or violated certain protection orders in Indian country. Last year’s VAWA reauthorization built on the success of VAWA 2013 by expanding the covered crimes under STCJ, enabling Tribes to hold accountable non-Native perpetrators of sexual violence, sex trafficking, stalking, child violence, assault of Tribal justice personnel and obstruction of justice.
“Tribes know best what their communities need, so I encourage tribal leaders, community members, and survivors to review this regulation for the Tribal Jurisdiction Reimbursement Program – it is critical that programs serving Tribal communities are informed by tribal voices,” said OVW Acting Director Allison Randall. “We are dedicated to removing barriers to access, and it is a victory that VAWA 2022 allows us to continue the Tribal Jurisdiction Program as well as reimburse expenses incurred as a result of implementation.”
OVW published the regulation on April 11. The regulation is available at Regulations.gov and the public is able to review the rule and submit comments no later than June 12. This regulation is an interim final rule, which means that it takes effect on the day of publication. OVW will take into consideration the comments received during the 60-day comment period as well as Tribes’ reaction to the implementation of the first year of the program before issuing a final rule.
Federally recognized Tribes that exercise STCJ are eligible for reimbursement funding under the STCJ Reimbursement Program. For Fiscal Year 2023, the combined appropriation for this program and the STCJ Grant Program is $11 million. Of that amount, OVW may allocate up to $4.4 million for the STCJ Reimbursement Program. Through this program, and as outlined in the interim final rule, Tribes may receive reimbursement for costs that are associated with exercising STCJ, such as law enforcement expenses, incarceration expenses, offender medical and dental expenses not otherwise covered by insurance, prosecution expenses, and defense counsel expenses. During the first quarter of Fiscal Year 2024, OVW plans to post a Notice of Reimbursement Opportunity on justice.gov/ovw with instructions on how to apply for the maximum allowable reimbursement. Later in calendar year 2024, OVW plans to provide instructions on how to apply for waivers of the annual maximum.
OVW administers grant programs designed to develop the nation’s capacity to reduce sexual assault, domestic and dating violence, and stalking, and tribal entities are generally eligible to apply for any OVW grant program where a comparable non-Tribal entity is eligible. OVW’s Tribal Affairs Division manages grant programs that are specifically targeted to Native American populations and tribes including the aforementioned STCJ Grant Program, Tribal Governments Program, Tribal Coalitions Program and Tribal Sexual Assault Services Program.
Recently, OVW announced that the 18th Annual Government-to-Government Violence Against Women Tribal Consultation will be held Aug. 8-10, 2023, in Tulsa, Oklahoma, to solicit recommendations from Tribal leaders on: administering Tribal funds and programs; enhancing the safety of Indian women from domestic violence, dating violence, sexual assault, homicide, stalking, and sex trafficking; strengthening the federal response to such crimes; and improving access to local, regional, state, and federal crime information databases and criminal justice information systems. Additional information is available at www.ovwconsultation.org. A report of proceedings from last year’s consultation is available on OVW’s website.
Justice Department Resolves Sexual Harassment Lawsuit Against Massachusetts LandlordRead the Press Release
The Justice Department announced today that it has secured a $450,000 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 Justice Department’s lawsuit, filed in 2019, alleged that from at least 2008, 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.
“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.”
“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,” said U.S. Attorney Rachael S. Rollins for the District of Massachusetts. “Although not present in this case, there are also times that immigration status is the manipulation utilized to target and victimize vulnerable tenants. 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.”
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.
The Justice Department’s Sexual Harassment in Housing Initiative is led by the Civil Rights Division, in coordination with U.S. Attorneys’ Offices across the country. The goal of the department’s initiative is to address and raise awareness about sexual harassment by landlords, property managers, maintenance workers, loan officers or other people who have control over housing. Since launching the initiative in October 2017, the department has filed 30 lawsuits alleging sexual harassment in housing and recovered over $10 million for victims of such harassment.
The Justice Department’s Civil Rights Division enforces the Fair Housing Act, which prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. The Civil Rights Division is committed to protecting people from sexual misconduct. More information about the Civil Rights Division and the laws it enforces is available at justice.gov/crt. Individuals may report sexual harassment or other forms of housing discrimination by calling the Justice Department’s Housing Discrimination Tip Line at 1-833-591-0291, or submitting a report online. Individuals may also report such discrimination by contacting HUD at 1-800-669-9777 or by filing a complaint online.
Indianapolis Meth Dealers Sentenced to a Combined 11 Years in Federal PrisonRead the Press Release
INDIANAPOLIS- Sierra Goode, 33, and Cody Stonehouse, 32, both of Indianapolis, Indiana, have been sentenced to 70 and 63 months in federal prison respectively after pleading guilty to distributing methamphetamine. Cody Stonehouse was sentenced in July 2021.
According to court documents, on October 9, 2020, Drug Enforcement Administration agents witnessed Stonehouse sell 40 grams of a substance containing methamphetamine to an individual. On December 9, 2020, agents once again witnessed Stonehouse sell 140 grams of a substance containing methamphetamine to another individual. Agents approached the vehicle where the transaction took place and arrested Stonehouse. Agents located 140 grams of methamphetamine on the console and front passenger seat where Stonehouse was sitting.
Sierra Goode was identified as the source of supply for Stonehouse, distributing three ounces of methamphetamine to him for $1,950. Shortly after, IMPD officers conducted a traffic stop on Goode. Goode admitted to selling the methamphetamine to Stonehouse. During a search of Goode’s vehicle, officers located a digital scale and $1,950. Lab tests determined that the actual amount of methamphetamine distributed was 50.8 grams.
United States 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 Randal Taylor, Chief of the Indianapolis Metropolitan Police Department made the announcement.
“Methamphetamine traffickers continue to inflict serious harm on our families and neighbors,” said U.S. Attorney for the Southern District of Indiana, Zachary A. Myers. “The U.S. Attorney’s Office remains committed to working with our federal, state, and local partners to do our part in getting these dangerous drugs off the street and holding traffickers accountable.”
DEA and IMPD investigated this case. The sentences were imposed by U.S. District Court Chief Judge Tanya Walton Pratt and U.S. District Court Judge James R. Sweeney. The District Judges ordered that Goode be supervised by the U.S. Probation Office for 3 years, and Stonehouse be supervised for 2 years following their release from federal prison. Stonehouse was also ordered to pay a $100 fine.
U.S. Attorney Myers thanked Assistant United States Attorney Jayson W. McGrath, who prosecuted this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Haverhill Man Sentenced for Fentanyl ConspiracyRead the Press Release
BOSTON – A Haverhill man was sentenced today in federal court in Boston for fentanyl conspiracy charges.
Sergio Garcia, 37, was sentenced by U.S. District Court Judge Allison D. Burroughs to 46 months in prison and two years of supervised release. In March 2022, Garcia pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl and one count of possession with intent to distribute 400 grams or more of fentanyl.
In April 2020, Garcia received one kilogram of fentanyl through the U.S. Postal Service. Garcia directed his brother-in-law to procure the package and deliver the fentanyl to his home in Haverhill. During a subsequent search of Garcia’s home, the kilogram of fentanyl was found in Garcia’s basement.
United States Attorney Rachael S. Rollins; Ketty Larco-Ward, Inspector in Charge of the United States Postal Inspection Service’s Boston Field Office; and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration’s New England Field Division made the announcement. The Haverhill Police Department provided valuable assistance with the investigation. Assistant U.S. Attorney Philip C. Cheng of Rollins’ Organized Crime and Money Laundering Unit prosecuted the case.
HSI Investigation Leads to Indictment of Chinese National Circumventing Antidumping and Countervailing Duties in Puerto RicoRead the Press Release
SAN JUAN, Puerto Rico – On April 26, 2023 a federal Grand Jury in the District of Puerto Rico returned an indictment charging Shuyi Mo, a citizen and resident of the People’s Republic of China (PRC), with thirty-one counts of wire fraud in violation of 18 U.S.C. § 1343, one count of a wire fraud conspiracy in violation of 18 U.S.C. § 1349, and one count of conspiracy to defraud the United States in violation of 18 U.S.C. § 371.
Mo was arrested on Saturday April 29, 2023, by HSI San Juan in coordination with HSI San Francisco as he awaited to board a flight to the PRC via the San Francisco International Airport.
An investigation by Homeland Security Investigations (HSI) San Juan Global Trade Investigations Group (GTIG), in collaboration with US Customs and Border Protection (CBP), revealed an illegal transshipment scheme of merchandise from the PRC to Puerto Rico via Malaysia.
According to the indictment, Shuyi Mo is the manager of PRC-based supplier Neviews Development Co. LTD (NEVIEWS) who conspired with a US importer based in Puerto Rico to transship porcelain mosaic tiles from PRC through Malaysia to circumvent anti-dumping and countervailing duties of approximately 718%.
“Companies that import products made abroad must comply with the law, including paying the import duties that protect domestic manufacturers and producers from unfair competition,” said W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. “The U. S. Attorney’s Office is committed to enforcing the law against those who fail to pay the government money it is owed, just as it will enforce the law against those who falsely claim government funds.”
“The misclassification of merchandise to pay lower duties to the United States Government is a duty evasion violation that will not go unpunished. One of our main missions in HSI is to protect U.S. businesses from fraudulent trade practices. We will continue our collaboration with customs and trade authorities to expose these illegal practices and bring those who engage in these practices to justice,” said Acting Special Agent in Charge Rebecca González-Ramos.
“CBP remains vigilant on products produced in certain countries and are transshipped through third countries to evade detection and elude duties,” stated Roberto Vaquero, Director of San Juan Field Operations. “CBP has a long history of innovation and technology to support a growing trade enforcement mission and has been successful with origin determinations in the past, whether it be through DNA analysis, pollen analysis, or other means.”
Assistant United States Attorney Alexander Alum of the Financial Fraud & Public Corruption Section of the United States Attorney’s Office for the District of Puerto Rico is prosecuting this case.
If you have information on potential customs fraud violations, please contact Homeland Security Investigations at 787-729-6969.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
About Homeland Security Investigations (HSI)
HSI is the principal investigative arm of the U.S. Department of Homeland Security (DHS), responsible for investigating transnational crime and threats, specifically those criminal organizations that exploit the global infrastructure through which international trade, travel, and finance move. HSI's workforce of more than 8,700 employees is comprised of more than 6,000 special agents stationed in 237 U.S. cities and 93 overseas locations in 56 countries. HSI's international presence represents the largest DHS investigative law enforcement presence overseas and one of the largest in U.S. law enforcement.
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Gresham Man Sentenced to Federal Prison for Stealing Covid Relief FundsRead the Press Release
PORTLAND, Ore.—A Gresham, Oregon man was sentenced to federal prison today for stealing more than $77,000 in funds intended to help small businesses during the COVID-19 pandemic.
Justin Allen Cunningham, 41, was sentenced to 10 months in federal prison and three years’ supervised release. He was also ordered to pay $81,207 in restitution.
According to court documents, in 2021, Cunningham learned about the opportunity to procure Paycheck Protection Program (PPP) loans guaranteed by the U.S. Small Business Administration (SBA) by submitting fraudulent loan applications on behalf of fake business entities. The PPP program, originally authorized by the Coronavirus Aid, Relief, and Economic Security (CARES) Act passed by Congress in March 2020, provided emergency financial assistance to American employers suffering the economic effects of the COVID-19 pandemic and resulting shutdowns.
To facilitate his scheme, Cunningham paid his friends for their help securing him a loan on behalf of a sole proprietorship he ran as a hobby: an online sneaker retailer called “JC shoe juice.” Cunningham obtained an employer identification number from the IRS and opened an online business bank account. He provided this information to a friend who created bogus tax returns for Cunningham’s company and submitted a PPP loan application on his behalf. The loan application falsely claimed that JC shoe juice had operated since 2015, had six employees, and generated more than $460,000 in gross income in 2019. As a result of these false representations, Cunningham was issued a loan worth more than $77,000.
On January 21, 2022, a federal grand jury in Portland returned an indictment charging Cunningham with one count of wire fraud. On October 14, 2022, he pleaded guilty to the single charge.
This case was investigated by the U.S. Treasury Inspector General for Tax Administration (TIGTA), the SBA Office of Inspector General, and the FBI. Assistant U.S. Attorneys Ryan W. Bounds and Meredith D.M. Bateman prosecuted the case.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’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.
Fremont County Man Arraigned on Four Counts of AssaultRead the Press Release
Darrell Lyle Moss Jr., age 40, of Fremont County, Wyoming, appeared for arraignment on May 2, 2023, before Senior United States District Court Judge Nancy Freudenthal. Moss pleaded not guilty to two counts of assault with a dangerous weapon with intent to do bodily harm and two counts of assault resulting in serious bodily injury. A trial has been set for June 26, 2023.
If convicted on all counts, Moss faces up to 40 years’ imprisonment with three years of supervised release, up to a $1,000,000 fine, and a $400 special assessment. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This crime is being investigated by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Kerry J. Jacobson.
An indictment merely contains allegations, and every defendant is presumed innocent unless and until proven guilty.
Case No. 23-CR-00033-NDF
Fredonia Man Arrested, Charged with Selling Drugs That Led to Overdose DeathRead the Press Release
BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that John Wallace Buchanan, 36, of Fredonia, NY, was arrested and charged by criminal complaint with distribution of fentanyl causing death, narcotics conspiracy, and possessing firearms in furtherance of drug trafficking crimes. The charges carry a mandatory minimum penalty of 25 years in prison and a maximum of life.
Assistant U.S. Attorney Joshua A. Violanti, who is handling the case, stated that in the early morning hours of January 10, 2022, the Ellicott Police Department responded to a residence on Boulevard Avenue in Celoron, NY, for a death investigation. At the scene, law enforcement found an individual, identified as B.G., lying face down on the living room floor with signs of drug use nearby. The cause of death was listed as a potential overdose. A review of the contents of B.G.’s cell phone identified a Facebook Messenger conversation between B.G.’s Facebook account and the account of John Buchanan. Investigators subsequently identified multiple Facebook conversations, with B.G. wanting to purchase narcotic drugs from Buchanan, dating back to November of 2021, including a conversation just prior to B.G.’s death. Investigators also noted that following a review of Buchanan’s Facebook account, some messages between B.G. and Buchanan may have been deleted from Buchanan’s account. At the scene of B.G.’s death, officers recovered, among other things, ammunition and three firearms. Investigators learned that Buchanan was attempting to sell firearms to B.G. in December 2021. Investigators believe that B.G. and Buchanan also discussed firearms transactions in the conversation prior to B.G.'s death.
Buchanan was ordered detained following a detention hearing before U.S. Magistrate Judge Michael J. Roemer.
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 complaint is the result of an investigation by the Jamestown Police Department, under the direction of Chief Timothy Jackson, the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank A. Tarentino III, New York Field Division, the Chautauqua County Sheriff’s Office, under the direction of Sheriff James Quattrone, and the Ellicott Police Department, under the direction of Chief William Ohnmeiss Jr.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Fort Thompson Man Sentenced for Abusive Sexual Contact of a ChildRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange, U.S. District Court, has sentenced a Fort Thompson, South Dakota, man convicted of Abusive Sexual Contact of a Child. The sentencing took place on May 1, 2023.
Carl Estes, age 22, was sentenced to 13 years in federal prison, followed by five years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Estes was indicted by a federal grand jury in September of 2021. He pleaded guilty on January 19, 2023.
In the spring/summer of 2021, Estes was living with his girlfriend in Fort Thompson, on the Crow Creek Indian Reservation. Estes was observed touching the genitalia of his girlfriend’s child, who was five years old at the time of the offense. Estes admitted to investigators that he had sexually abused the victim and drew a diagram indicating which part of his hand he used in the sexual assault.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
This case was investigated by the FBI. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Estes was immediately remanded to the custody of the U.S. Marshals Service.
Fort Thompson Man Indicted for Sexual Abuse of a MinorRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced that a federal grand jury has indicted a Fort Thompson, South Dakota, man for Sexual Abuse of a Minor and Abusive Sexual Contact.
Loren Goodlow, age 33, was indicted in April of 2023. He appeared before U.S. Magistrate Judge Daneta L. Wollmann on April 24, 2023, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is 15 years in custody and/or a $250,000 fine, five years up to lifetime supervised release, and $100 to the Federal Crime Victims Fund for each count. Restitution may also be ordered.
The charges relate to Goodlow engaging in sexual acts with two minors who had attained the age of 12 years old but not attained the age of 16.
The charges are merely accusations and Goodlow is presumed innocent until and unless proven guilty.
The investigation is being conducted by the FBI. Assistant U.S. Attorney Kelsey Blair is prosecuting the case.
Goodlow was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for June 27, 2023.
Fort Campbell Couple Indicted on Aggravated Child Abuse ChargesRead the Press Release
NASHVILLE – A federal indictment unsealed today, charges a Fort Campbell couple with aggravated child neglect, announced U.S. Attorney Henry C. Leventis.
Andrew J. Garasich, 27, and Lyndsey T. Bustamante, 27, were indicted by a federal grand jury on Monday and were arrested by FBI agents earlier today. Both are scheduled to appear before a U.S. Magistrate Judge this afternoon.
Documents filed with the Court allege that on January 4, 2023, Bustamante took her baby to a Houston County Community Hospital and claimed that several days earlier, the baby was burned while being given a bath by Garasich. Shortly after arriving at the hospital, the baby was life flighted to Vanderbilt Children’s Hospital where it was discovered that the baby also had a skull fracture. While in the Pediatric Intensive Care Unit at Vanderbilt, the baby underwent numerous medical procedures and surgeries and was treated for organ failures and other life-threatening conditions. It is anticipated that the baby will require additional medical treatment and services for years to come.
Charges in this case are being brought under the Assimilative Crimes Act. As there is no federal child abuse statute, charges may be brought under applicable Tennessee statutes for crimes occurring on the Fort Campbell military installation because Fort Campbell is within the territorial jurisdiction of the United States.
If convicted of this Class A felony, both defendants face a mandatory minimum of 15 years in prison.
This case was investigated by the U.S. Army - Criminal Investigation Division and the FBI. Assistant U.S. Attorneys Monica Morrison and Robert E. McGuire are prosecuting the case.
An indictment is merely an accusation. The defendants are presumed innocent until proven guilty in a court of law.
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Former State Contractor Pleads Guilty to Fraudulent Unemployment Insurance SchemeRead the Press Release
DETROIT - A Detroit woman pleaded guilty today to stealing over $550,000 as part of an extensive unemployment fraud and identity theft conspiracy while working for the State of Michigan Unemployment Insurance Agency, announced United States Attorney Dawn N. Ison.
Joining in the announcement were Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor-Office of Inspector General; James A. Tarasca, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation; and Julia Dale, Director of the State of Michigan Unemployment Insurance Agency
Autumn Mims, 30, pleaded guilty today before United States District Judge Mark A. Goldsmith.
Mims was a contract employee for the State of Michigan Unemployment Insurance Agency (MUIA), working as an Unemployment Insurance Examiner. Her duties included reviewing, processing, and verifying the legitimacy of unemployment insurance claims.
According to court records, shortly after Mims began working with the MUIA in August 2020, she began using her insider access to fraudulently process claims in the names of third parties without their knowledge or authorization. As part of the scheme, Mims personally (1) altered third-party contact information for unemployment insurance assistance; (2) accessed third-party unemployment insurance assistance claim information without authorization; (3) authenticated unauthorized access attempts for third-party unemployment insurance assistance information; (4) dismissed fraud prevention triggers and information requests relating to third-party unemployment insurance assistance; (5) conducted cash withdrawals of unemployment insurance assistance issued in the names of third parties; and, (6) conducted financial transactions utilizing unemployment insurance assistance funds issued in the names of third parties.
Mims also admitted that while she was working with the MUIA and executing her fraud, she was also fraudulently obtaining unemployment insurance benefits for herself by falsely claiming that she was unemployed.
As a result of the conspiracy, over $550,000 in fraudulent unemployment assistance payments were made by the State of Michigan.
Sentencing is set for September 6, 2023 before Judge Goldsmith. Mims faces a mandatory two-year sentence of imprisonment for having engaged in aggravated identity theft. She also faces up to 20 years in prison for having conspired to engage in wire fraud.
“Far from being unemployed as she claimed, Autumn Mims worked hard to abuse her position with the State of Michigan and steal taxpayer money. My office and our law enforcement partners are committed to working even harder to ensure that Mims and others who choose to engage in similar frauds are held fully accountable,” stated U.S. Attorney Ison.
“Autumn Mims, while working as an Michigan Unemployment Insurance Agency examiner, abused her access to unemployment insurance (UI) data systems to defraud the state of Michigan and the Pandemic Unemployment Assistance program. Mims violated the public’s trust by knowingly approving fraudulent unemployment claims, the proceeds of which were deposited into bank accounts that she controlled. We will continue to work with our law enforcement partners and state workforce agencies to protect the integrity of the UI system,“ stated Special Agent-in-Charge Irene Lindow, Great Lakes Region, U.S. Department of Labor, Office of Inspector General.
“Autumn Mims used her position at the Michigan Unemployment Insurance Agency to steal money from people who were suffering pandemic-related economic challenges,” said James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Division. “The FBI, along with our state and federal partners, will investigate this type of scheme and bring to justice those who defraud the unemployment system."
“It’s especially galling when someone employed by UIA and who was entrusted in a time of statewide crisis with helping the residents of Michigan instead violates that trust to satisfy her own greed,” said UIA Director Julia Dale. “Let this case put bad actors on notice: We will continue to work with law enforcement at the local, state, and federal level and use every tool we have to see that justice is served. That is our pledge as we strive to transform the UIA into a national model for fraud-free, fair and fast service.”
The case is being prosecuted by Assistant United States Attorney Andrew J. Yahkind. The investigation is being conducted jointly by the Department of Labor—Office of Inspector General, the Federal Bureau of Investigation, and the Unemployment Insurance Agency, Michigan Department of Labor and Economic Opportunity
Former San Francisco Garbage Company Executive Pleads Guilty to Honest Services Fraud ConspiracyRead the Press Release
SAN FRANCISCO – John Francis Porter pleaded guilty today in U.S. District Court in San Francisco to conspiring to commit honest services mail and wire fraud, admitting that he participated in a scheme with another Recology executive to bribe the former head of the San Francisco Department of Public Works, Mohammed Nuru, announced the United States Attorney’s Office, FBI Special Agent in Charge Robert K. Tripp, and Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge Darren Lian. The guilty plea was accepted by the Honorable William H. Orrick, United States District Court.
Porter, 39, is the former Vice President and Group Manager of the SF Recology Group. According to his plea agreement, Porter admitted that he conspired with another former Recology executive and others to pay bribes to influence Nuru. The bribes included $55,000 in payments for holiday parties Nuru hosted for friends, political supporters, and select DPW employees, from October 2017 through January 2020.
According to Porter’s admissions in the plea agreement, the payments were concealed as “holiday donations” to a non-profit, the Lefty O’Doul’s Foundation for Kids, a charity established to provide access to baseball and baseball equipment for under-privileged children. Porter admitted in his plea agreement that he knew the funds were not being used for that purpose, but instead were made at the request of Nuru and used for his holiday parties.
Porter admitted that the bribes were made to influence Nuru to take official action and exercise influence in Recology’s favor, including making official decisions in his role at DPW that would benefit Recology’s business.
On November 29, 2022, a federal grand jury returned a superseding indictment, charging Porter with one count of conspiracy to commit honest services mail and wire fraud, in violation of 18 U.S.C. § 1349, two counts of honest services wire fraud in violation of 18 U.S.C. §§ 1346 and 1343, one count of honest services mail fraud, in violation of 18 U.S.C. §§ 1341 and 1346, one count of conspiracy to commit bribery in violation of 18 U.S.C. § 371, and one count of bribery of a local official, in violation of 18 U.S.C. §§ 666(a)(2) and 2. Pursuant to today’s guilty plea, Porter pleaded guilty to the conspiracy to commit honest services wire and mail fraud count. If Porter complies with the plea agreement, the additional counts will be dismissed at sentencing.
Judge Orrick scheduled Porter’s sentencing for September 7, 2023. Porter faces a maximum statutory penalty of 20 years in prison and a fine of $250,000. In addition, as part of any sentence, a court may order up to three years of supervised release, restitution, forfeiture, and additional assessments, if appropriate. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Porter is the second Recology executive to plead guilty. In July 2021, Paul F. Giusti, a former Government & Community Relations Manager with Recology, pleaded guilty to one count of conspiracy to bribe a local official and to commit honest services fraud, admitting to participating in a conspiracy to bribe Nuru. Giusti has not yet been sentenced.
Nuru was charged in January 2020 with a long-running honest services fraud scheme. On January 6, 2022, Nuru pled guilty to honest services wire fraud, and on August 25, 2022 was sentenced to 84 months in federal prison.
In September 2021, three subsidiaries of Recology that serve San Francisco have entered a deferred prosecution agreement related to the charge of conspiracy to commit honest services fraud and have agreed to pay $36 million in criminal penalties.
The case is being prosecuted by the Corporate and Securities Fraud Section of the U.S. Attorney’s Office for the Northern District of California. Assistant U.S. Attorneys David Ward and Ilham Hosseini are prosecuting the case. The prosecution is the result of an investigation by the Federal Bureau of Investigation (FBI) and the Internal Revenue Service-Criminal Investigation (IRS-CI).
Former Pittsburgh Resident Indicted in Project Safe Childhood CaseRead the Press Release
PITTSBURGH, PA- A former resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of transporting, distributing and possessing child pornography, Acting United States Attorney Troy Rivetti announced today.
The four-count Indictment named Justin Hughes, 42, as the sole defendant.
According to the Indictment presented to the court, on or about November 28, 2022, and November 29, 2022, Hughes did knowingly transport and attempt to transport visual depictions of minors engaged in sexually explicit conduct using the internet. On or about December 25, 2022, Hughes also knowingly distributed visual depictions of minors engaged in sexually explicit conduct to another individual outside of this district, using the internet. Further, in February 2023, Hughes knowingly possessed and accessed with intent to view additional visual depictions of minors engaged in sexually explicit conduct.
The law provides for a maximum total sentence of not less than five and not more than 20 years in prison, a fine of $250,000.00, and a term of supervised release of at least five years. However, if the defendant has a prior sex offense conviction under applicable state or federal law, such defendant shall be imprisoned not less than fifteen years nor more than forty years. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Nicole A. Stockey is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the Indictment in this case. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former ILWU Officer Sentenced to 24 Months in Prison for Embezzlement from Union over 4.5-Year PeriodRead the Press Release
HONOLULU – Charles Kimo Brown, 64, of Mililani, was sentenced today in federal court by United States District Judge Leslie E. Kobayashi to 24 months of imprisonment, a fine of $96,000, a forfeiture money judgment of $1,425.01, and three years of supervised release for embezzling $96,000 while he was the Secretary-Treasurer of the Hawaii Longshore Division of the International Longshore and Warehouse Union Local 142.
According to information presented to the court, as the former Secretary-Treasurer of the Hawaii Longshore Division, Brown was paid according to vouchers that he submitted to the accounting department of Local 142. The hours Brown was supposed to list on the vouchers were based upon the “lost time” that he could have worked for his employer, McCabe, Hamilton & Renny Co., Ltd., where he worked as a machine operator. This was an “honor system” which depended upon the honesty of the defendant and other union officers to accurately report the number of hours they could have worked for their employers instead of working for the union.
While Brown was charged with submitting two false wage vouchers that resulted in him embezzling $1,425.01, the prosecution argued during the trial, and in sentencing, that he should be held accountable for all of the false vouchers that he submitted while acting as Secretary-Treasurer of the union, including 384 false entries, with a total embezzlement of $96,000 during a span of 4.5 years. Judge Kobayashi agreed and sentenced him to a term of imprisonment of 24 months and a fine of $96,000.
In sentencing Brown, Judge Kobayashi stated that she was “troubled” by the facts that the defendant had breached the trust his fellow union members had given him by stealing $96,000 from them during a long, 4.5-year period. While she recognized that there were a number of mitigating factors, and she took them into account, she found that a sentence of 24 months was necessary to reflect the seriousness of the defendant’s crimes and to deter others from committing similar ones.
The case resulted from an investigation by the Department of Labor and the Internal Revenue Service – Criminal Investigation. Assistant U.S. Attorney Marshall Silverberg and Special Assistant U.S. Attorney Nicole Hudspeth handled the prosecution.