Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
2 May 2023
Madison Man Sentenced to 30 Months for Receiving Stolen GunRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Aidan Johnson, 20, Madison, Wisconsin, was sentenced today by Chief U.S. District Judge James D. Peterson to 30 months in federal prison for receiving a stolen firearm. Johnson pleaded guilty to this charge on March 14, 2023. This prison term will be followed by three years of supervised release.
On March 11, 2022, Johnson stole a Glock 19x from another person. Johnson possessed the firearm until June 3, 2022, when he was arrested. Throughout that period, Johnson posted photos and videos on social media of himself with the firearm.
In imposing the 30-month sentence, Judge Peterson balanced Johnson’s youth and potential with the dangers he posed to the community. Judge Peterson described the image that Johnson had been presenting throughout his social media as a “fantasy of this life dealing drugs” and “being a gangster.” In addressing Johnson, Judge Peterson stated that path “is not romantic or a way to have a good life.” Judge Peterson concluded his sentencing with the hope that Johnson finds a “peaceful, kind, and productive way of being in the community.”
The charge against Aidan Johnson was the result of an investigation conducted by the Fitchburg Police Department, the Madison Police Department, the Middleton Police Department, and the Dane County Tactical Response Team. Assistant U.S. Attorneys Kathryn E. Ginsberg and Corey C. Stephan 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.
Lutz Man Pleads Guilty to Illegally Possessing A FirearmRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that Toney Dewayne Salter (31, Lutz) has pleaded guilty to possessing a firearm as a convicted felon. Salter faces a minimum mandatory penalty of 15 years, up to life, in federal prison. A sentencing date has not yet been set. Salter has also agreed to forfeit the firearm traceable to the offense.
According to court documents, on February 21, 2022, officers from the Tampa Police Department encountered Salter when they pulled over a car for a traffic infraction. After detecting an odor of marijuana and observing a firearm in the driver’s possession, the officers searched the vehicle and located a handgun under Salter’s seat. They also located quantities of cocaine and marijuana during the search of the vehicle.
At the time of his arrest, Salter had multiple felony convictions, including convictions for delivery of cocaine and delivery of a controlled substance within 1,000 feet of a church. As such, he is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Tampa Police Department and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney David P. Sullivan. The forfeiture is being handled by Assistant United States Attorney Suzanne C. Nebesky.
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.
Los Angeles Case Part of Largest International Operation Against Darknet Trafficking of Fentanyl and OpioidsRead the Press Release
WASHINGTON – The Department of Justice, and its Joint Criminal Opioid and Darknet Enforcement (JCODE) team and international partners, today announced the results of Operation SpecTor, which included 288 arrests – the most ever for any JCODE operation and nearly double that of the prior operation. Law enforcement also conducted more seizures than any prior operation, including 117 firearms, 850 kilograms of drugs that include 64 kilograms of fentanyl or fentanyl-laced narcotics, and $53.4 million in cash and virtual currencies. Operation SpecTor was a coordinated international effort spanning three continents to disrupt fentanyl and opioid trafficking on the darknet, or dark web. The operation was conducted across the United States, Europe, and South America, and was a result of the continued partnership between JCODE and foreign law enforcement against the illegal sale of drugs and other illicit goods and services on the darknet. Operation SpecTor builds on the successes of prior years’ operations and takedowns of marketplaces, which result in the seizure of darknet infrastructure providing investigators across the world with investigative leads and evidence. JCODE and Europol’s European Cybercrime Centre (EC3) continue to compile intelligence packages to identify entities of interest. These leads allow U.S. and international law enforcement agencies to identify darknet drug vendors and buyers, resulting in a series of coordinated, but separate, law enforcement investigations, resulting in the statistics announced today.
This year’s law enforcement operation was accompanied by a public awareness campaign called Operation ProtecTor aimed to promote public safety and spread awareness of resources for those struggling with substance abuse and who go through extreme lengths to obtain opioids. JCODE has worked with every FBI field office in the country to facilitate outreach to households that have purchased individual amounts of opioids from the darknet. The interagency efforts are aimed to both identify those who use anonymizing technologies to purchase illicit narcotics and direct them to available resources.“Operation SpecTor was a coordinated international law enforcement effort, spanning three continents, to disrupt drug trafficking on the dark web and represents the most funds seized and the highest number of arrests in any coordinated international action led by the Justice Department against drug traffickers on the dark web,” said Attorney General Merrick B. Garland. “Our message to criminals on the dark web is this: You can try to hide in the furthest reaches of the internet, but the Justice Department will find you and hold you accountable for your crimes.”
“The availability of dangerous substances like fentanyl on dark net marketplaces is helping to fuel the crisis that has claimed far too many American lives,” said FBI Director Christopher Wray. “That's why we will continue to join forces with our law enforcement partners around the globe to attack this problem together. The FBI is proud to stand with our domestic and foreign partners as we continue to shine that light into the deepest corners of the dark net and hold those accountable who continue to peddle this poison around the world.”
“The Sinaloa and Jalisco drug cartels, and the global networks they operate are killing Americans by sending fentanyl into the United States. Their associates distribute this fentanyl into communities across America by every means possible, including the dark web,” said DEA Administrator Anne Milgram. “The DEA is committed to shutting down the fentanyl supply chain from beginning to end, and we will relentlessly pursue the associates of these cartels wherever they hide, even in the dark corners of the internet.”
“Our coalition of law enforcement authorities across three continents proves that we all do better when we work together,” said Executive Director Catherine De Bolle of Europol. “This operation sends a strong message to criminals on the dark web: international law enforcement has the means and the ability to identify and hold you accountable for your illegal activities, even on the dark web.”
“Collaboration with our law enforcement partners is key to combatting fentanyl and opioid trafficking,” said Chief Jim Lee of the IRS Criminal Investigation (IRS-CI). “Under the JCODE umbrella, law enforcement agencies across the globe have joined forces to take down criminals who use the darknet to buy and sell narcotics. Our team at IRS-CI plays an integral role in these investigations by following the money trail, whether it’s in fiat currency or digital assets on the blockchain.”
“The illicit movement of opioids poses a significant threat to public health and safety – whether by known transnational criminal gang members across international borders or anonymously through darknet spaces,” said Senior Official Performing the Duties of Deputy Director P.J. Lechleitner of Homeland Security Investigations (HSI). “Our HSI special agents, alongside federal and international partners, continue to aggressively investigate, disrupt, and dismantle networks responsible for trafficking dangerous, deadly narcotics and other contraband across global communities we are charged with protecting. We will continue to pursue bad actors engaged in these crimes to ensure they face justice, while protecting victims from these lethal substances.”
“The U.S. Postal Inspection Service leverages our specialized knowledge of the postal system as part of sophisticated dark web investigations such as Operation SpecTor with great results,” said Chief Postal Inspector Gary R. Barksdale of the U.S. Postal Inspection Service. “We are committed to taking all necessary actions to combat illicit drugs in the mail. And we thank our law enforcement partners for working with us to achieve this; removing dangerous illicit substances from the mail and American communities saves lives.”
“Addressing our nation’s drug overdose crisis and epidemic of substance use disorders is an issue of great concern and remains a top public health priority for the U.S. Food and Drug Administration (FDA),” said Commissioner Robert M. Califf, M.D., of the FDA. “The FDA has undertaken strategic and impactful actions to prevent drug overdoses and reduce deaths and is committed to using all of our cyber-resources to shed light on the darkest corners of illicit medical supply chains for the health and safety of all Americans.”
Operation SpecTor resulted in over 100 federal operations and prosecutions, including:
- On Dec. 1, 2022, Anton Peck, 29, of Boca Raton, Florida, was sentenced to 16 years in prison for conspiring to possess with the intent to distribute controlled substances, including fentanyl, methamphetamine, and heroin. According to court documents, between May 2021 and May 2022, Peck distributed narcotics from various darknet markets using the vendor profile “Syntropy.” After the transactions were carried out using cryptocurrency, Peck and co-conspirators Kevin Fusco and Vincent Banner mailed parcels containing fentanyl, heroin, and methamphetamine to cities around the country using the U.S. Postal Service (USPS). Fusco, 35, of West Palm Beach, Florida, was sentenced to 11 years in prison for conspiring to distribute fentanyl, heroin, and methamphetamine. Banner, 31, of Boynton Beach, Florida, is scheduled to be sentenced on June 8 after pleading guilty to one count of conspiracy to possess with intent to distribute fentanyl, methamphetamine, and heroin. Law enforcement recovered kilogram quantities of fentanyl, cocaine, methamphetamine, and heroin from business and storage locations in West Palm Beach, Boca Raton, and New York City. Peck possessed a list of more than 6,000 customers living across the United States. The DEA, FBI, USPS Office of Inspector General (USPS-OIG), U.S. Postal Inspection Service (USPIS) and the Palm Beach County Sheriff’s Office investigated the case. The U.S. Attorney’s Office for the Southern District of Florida is prosecuting the case.
- On Nov. 18, 2022, a federal grand jury in Los Angeles returned an indictment charging Christopher Hampton, 36, of Cerritos, California, with heading an organization that obtained bulk fentanyl, operated labs in California that used high-speed pill presses to create fake pills containing fentanyl and methamphetamine, and sold millions of pills to thousands of customers on the darknet. Hampton was named in an 11-count indictment that charges him with various narcotics and weapons offenses that could result in a sentence of life in prison. According to court documents, he was active on at least nine darknet marketplaces where he typically used the moniker “Narco710.” Hampton allegedly sold nearly $2 million worth of narcotics on two of these darknet marketplaces alone. He was arrested on Nov. 2, 2022, at which time federal law enforcement executed search warrants that led to the discovery and seizure of 450 pounds of suspected narcotics; six pill press machines, some of which were capable of producing thousands of pills per hour; and illegal firearms that included assault rifles and a machine gun. Agents later located a storage unit linked to the drug conspiracy and seized over 80 pounds of pressed fentanyl pills, eight guns, and precursor materials to press additional pills. Hampton is scheduled to go on trial on July 25. The FBI JCODE and DEA HIDTA Tactical Diversion Squad investigated the case. Los Angeles-based Assistant United States Attorneys Ian Yanniello and James A. Santiago are prosecuting this case.
- On May 12, 2022, a federal grand jury in Sacramento returned a two-count indictment charging Holly Adams, 31, and Devlin Hosner, 33, of Indio, California, with conspiracy to distribute and possess with intent to distribute fentanyl and methamphetamine, and with conspiracy to launder money. According to court documents, Adams and Hosner operated the vendor accounts “igogrrawwr” and “its4real” on the darknet marketplaces ToRReZ and Darkode, respectively, through which they sold tens of thousands of counterfeit oxycodone pills containing fentanyl in exchange for cryptocurrency. Adams and Hosner shipped these fentanyl pills to buyers throughout the United States, using the USPS, UPS, and other means of delivery. In the course of their conspiracy, Adams and Hosner finalized over 1,100 transactions of narcotics and other contraband and received more than $800,000 in cryptocurrency. Federal law enforcement officers executed a search warrant at a hotel in Riverside county where Adams and Hosner were residing and recovered more than 10,000 counterfeit oxycodone pills as well as approximately 60 grams of methamphetamine. The IRS-CI, HSI, FBI, USPIS, and USPS-OIG investigated the case. The U.S. Attorney’s Office for the Eastern District of California is prosecuting the case.
Operation SpecTor was a collaborative initiative across JCODE members, including the Department of Justice, FBI, DEA, USPIS, HSI, IRS-CI, ATF, Naval Criminal Investigative Service (NCIS), and the FDA’s Office of Criminal Investigations. This operation was aided by non-operational supporting participation from the Financial Crimes Enforcement Network (FinCEN) and U.S. Customs and Border Protection (CBP). Local, state, and other federal agencies also contributed to Operation SpecTor investigations through task force participation and regional partnerships. The investigations leading to Operation SpecTor were significantly aided by support and coordination by the Justice Department’s Organized Crime Drug Enforcement Task Forces (OCDETF); multi-agency Special Operations Division; the Criminal Division’s Computer Crime and Intellectual Property Section, Money Laundering and Asset Recovery Section’s Digital Currency Initiative, Narcotic and Dangerous Drug Section, and Fraud Section; the Justice Department’s Office of International Affairs; Europol and its Dark Web team; and international partners. The international partners include Eurojust; Austria’s Federal Criminal Police Office (Bundeskriminalamt); France’s Directorate-General of Customs and Indirect Taxes (Douane); Germany’s Federal Criminal Police Office (Bundeskriminalamt), Central Criminal Investigation Department of Oldenburg (Zentrale KriminaIinspektion Oldenburg), General Prosecutor’s Office in Frankfurt/Main - Cybercrime Center (Generalstaatsanwaltschaft Frankfurt/Main, Zentralstelle zur Bekämpfung der Internetkriminalität), Berlin Police (Polizei Berlin), various police departments (Dienststellen der Länderpolizeien), German Customs Investigation (Zollfahndungsämter); the Netherland’s National Police (Politie); Poland’s Central Cybercrime Bureau (Centralne Biuro Zwalczania Cyberprzestępczości); Brazil’s Civil Police of the State of Piauí (Polícia Civil do Estado do Piauí), Civil Police of the Federal District (Polícia Civil do Distrito Federal), National Secretariat of Public Security - Directorate of Integrated Operations and Intelligence - Cyber Operations Laboratory (Laboratório de Operações Cibernéticas da Diretoria de Operações Integradas e de Inteligência - Secretaria Nacional de Segurança Pública); Switzerland’s Zurich Cantonal Police (Kantonspolizei Zürich) and Public Prosecutor’s Office II of the Canton of Zurich (Staatsanwaltschaft II); and the United Kingdom’s National Crime Agency (NCA) and National Police Chief’s Council (NPCC).
Federal investigations and prosecutions are being conducted in more than 30 federal districts, including the District of Arizona, the Central District of California, the Eastern District of California, the Northern District of California, the Southern District of California, the District of Colorado, the District of Connecticut, the District of Columbia, the District of Delaware, the Southern District of Florida, the Northern District of Georgia, the Southern District of Indiana, the Eastern District of Kentucky, the District of Maryland, the District of Massachusetts, the Eastern District of Michigan, the Western District of Michigan, the Eastern District of Missouri, the Western District of Missouri, the District of Nebraska, the District of Nevada, the District of New Jersey, the Eastern District of New York, the Southern District of New York, the Western District of North Carolina, the Northern District of Ohio, the Southern District of Ohio, the Eastern District of Pennsylvania, the Middle District of Pennsylvania, the District of South Dakota, the Eastern District of Tennessee, the Eastern District of Texas, the Northern District of Texas, the Southern District of Texas, the District of Vermont, the Eastern District of Virginia, and the Western District of Washington.
The Justice Department established the FBI-led JCODE team to lead and coordinate government efforts to detect, disrupt, and dismantle major criminal enterprises reliant on the darknet for trafficking opioids and other illicit narcotics, along with identifying and dismantling their supply chains.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Leader and others sent to federal prison for operating Houston stash houseRead the Press Release
HOUSTON – A total of five people, all illegally residing in Houston, have been sentenced in connection with the April 2021 discovery of nearly 100 undocumented aliens in a suburban Houston residence, announced U.S. Attorney Alamdar S. Hamdani.
The leader in the conspiracy - Henry Licona-Larios, 34, Copan, Honduras - pleaded guilty May 24, 2022.
Today, U.S. District Judge Keith Ellison ordered him to serve 41 months in federal prison. Not a U.S. citizen, he is expected to face removal proceedings following his imprisonment.
At the hearing, the court heard additional evidence that detailed the inhumane conditions to which these undocumented aliens were subjected and that Licona-Larios was connected to an additional stash house discovered in December 2020. In handing down the sentence, the court noted the seriousness of the offense and Licona-Larios’s verbal and physical mistreatment of the undocumented aliens.
Four others had also pleaded guilty for their respective roles and were previously sentenced. Those included Marina Garcia-Diaz, 24, San Miguel, El Salvador, who received 27 months as well as Marcelo Garcia-Palacios, 23, Oaxaca, Mexico; Kevin Licona-Lopez, 27, Santa Barbara, Honduras; and Marco Baca-Perez, 22, Michoacan, Mexico, all of whom were ordered to serve 30 months. All are also expected to face removal proceedings.
“You cannot trust a human smuggler. Giving them money will put your life in danger,” said Hamdani. “These five people preyed on the desperation of foreign nationals hoping to get into the country. This sentence makes it clear - we will not allow the victimization of people for profit.”
The investigation began April 30, 2021, when authorities learned of a kidnapping. A woman reported that she had paid several thousand dollars for her brother to be smuggled into the country.
However, the smugglers demanded more money before they would release him. They also threatened to harm him if the money was not paid.
The investigation led to a residence on Chessington Drive in Southwest Houston. There, authorities ultimately found 97 illegal aliens held in two rooms of the residence. The rooms had deadbolts on the doors facing the outside which prevented escape. All of the male individuals were in their undergarments. One was told if the money was not paid, he would be put in “4 pieces of wood.”
All five have been and will remain in custody.
Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Karen M. Lansden prosecuted the case.
Largest International Operation Against Darknet Trafficking of Fentanyl and Opioids Results in Record Arrests and SeizuresRead the Press Release
Today, the Department of Justice, and its Joint Criminal Opioid and Darknet Enforcement (JCODE) team and international partners, announced the results of Operation SpecTor, which included 288 arrests – the most ever for any JCODE operation and nearly double that of the prior operation. Law enforcement also conducted more seizures than any prior operation, including 117 firearms, 850 kilograms of drugs that include 64 kilograms of fentanyl or fentanyl-laced narcotics, and $53.4 million in cash and virtual currencies.
Operation SpecTor was a coordinated international effort spanning three continents to disrupt fentanyl and opioid trafficking on the darknet, or dark web. The operation was conducted across the United States, Europe, and South America, and was a result of the continued partnership between JCODE and foreign law enforcement against the illegal sale of drugs and other illicit goods and services on the darknet. Operation SpecTor builds on the successes of prior years’ operations and takedowns of marketplaces, which result in the seizure of darknet infrastructure providing investigators across the world with investigative leads and evidence. JCODE and Europol’s European Cybercrime Centre (EC3) continue to compile intelligence packages to identify entities of interest. These leads allow U.S. and international law enforcement agencies to identify darknet drug vendors and buyers, resulting in a series of coordinated, but separate, law enforcement investigations, resulting in the statistics announced today.
This year’s law enforcement operation was accompanied by a public awareness campaign called Operation ProtecTor aimed to promote public safety and spread awareness of resources for those struggling with substance abuse and who go through extreme lengths to obtain opioids. JCODE has worked with every FBI field office in the country to facilitate outreach to households that have purchased individual amounts of opioids from the darknet. The interagency efforts are aimed to both identify those who use anonymizing technologies to purchase illicit narcotics and direct them to available resources.
“Operation SpecTor was a coordinated international law enforcement effort, spanning three continents, to disrupt drug trafficking on the dark web and represents the most funds seized and the highest number of arrests in any coordinated international action led by the Justice Department against drug traffickers on the dark web,” said Attorney General Merrick B. Garland. “Our message to criminals on the dark web is this: You can try to hide in the furthest reaches of the internet, but the Justice Department will find you and hold you accountable for your crimes.”
“The availability of dangerous substances like fentanyl on dark net marketplaces is helping to fuel the crisis that has claimed far too many American lives,” said FBI Director Christopher Wray. “That's why we will continue to join forces with our law enforcement partners around the globe to attack this problem together. The FBI is proud to stand with our domestic and foreign partners as we continue to shine that light into the deepest corners of the dark net and hold those accountable who continue to peddle this poison around the world.”
“The Sinaloa and Jalisco drug cartels, and the global networks they operate are killing Americans by sending fentanyl into the United States. Their associates distribute this fentanyl into communities across America by every means possible, including the dark web,” said DEA Administrator Anne Milgram. “The DEA is committed to shutting down the fentanyl supply chain from beginning to end, and we will relentlessly pursue the associates of these cartels wherever they hide, even in the dark corners of the internet.”
“Our coalition of law enforcement authorities across three continents proves that we all do better when we work together,” said Executive Director Catherine De Bolle of Europol. “This operation sends a strong message to criminals on the dark web: international law enforcement has the means and the ability to identify and hold you accountable for your illegal activities, even on the dark web.”
“Collaboration with our law enforcement partners is key to combatting fentanyl and opioid trafficking,” said Chief Jim Lee of the IRS Criminal Investigation (IRS-CI). “Under the JCODE umbrella, law enforcement agencies across the globe have joined forces to take down criminals who use the darknet to buy and sell narcotics. Our team at IRS-CI plays an integral role in these investigations by following the money trail, whether it’s in fiat currency or digital assets on the blockchain.”
“The illicit movement of opioids poses a significant threat to public health and safety – whether by known transnational criminal gang members across international borders or anonymously through darknet spaces,” said Senior Official Performing the Duties of Deputy Director P.J. Lechleitner of Homeland Security Investigations (HSI). “Our HSI special agents, alongside federal and international partners, continue to aggressively investigate, disrupt, and dismantle networks responsible for trafficking dangerous, deadly narcotics and other contraband across global communities we are charged with protecting. We will continue to pursue bad actors engaged in these crimes to ensure they face justice, while protecting victims from these lethal substances.”
“The U.S. Postal Inspection Service leverages our specialized knowledge of the postal system as part of sophisticated dark web investigations such as Operation SpecTor with great results,” said Chief Postal Inspector Gary R. Barksdale of the U.S. Postal Inspection Service. “We are committed to taking all necessary actions to combat illicit drugs in the mail. And we thank our law enforcement partners for working with us to achieve this; removing dangerous illicit substances from the mail and American communities saves lives.”
“Addressing our nation’s drug overdose crisis and epidemic of substance use disorders is an issue of great concern and remains a top public health priority for the U.S. Food and Drug Administration (FDA),” said Commissioner Robert M. Califf, M.D., of the FDA. “The FDA has undertaken strategic and impactful actions to prevent drug overdoses and reduce deaths and is committed to using all of our cyber-resources to shed light on the darkest corners of illicit medical supply chains for the health and safety of all Americans.”
Operation SpecTor resulted in over 100 federal operations and prosecutions, including:
- On Dec. 1, 2022, Anton Peck, 29, of Boca Raton, Florida, was sentenced to 16 years in prison for conspiring to possess with the intent to distribute controlled substances, including fentanyl, methamphetamine, and heroin. According to court documents, between May 2021 and May 2022, Peck distributed narcotics from various darknet markets using the vendor profile “Syntropy.” After the transactions were carried out using cryptocurrency, Peck and co-conspirators Kevin Fusco and Vincent Banner mailed parcels containing fentanyl, heroin, and methamphetamine to cities around the country using the U.S. Postal Service (USPS). Fusco, 35, of West Palm Beach, Florida, was sentenced to 11 years in prison for conspiring to distribute fentanyl, heroin, and methamphetamine. Banner, 31, of Boynton Beach, Florida, is scheduled to be sentenced on June 8 after pleading guilty to one count of conspiracy to possess with intent to distribute fentanyl, methamphetamine, and heroin. Law enforcement recovered kilogram quantities of fentanyl, cocaine, methamphetamine, and heroin from business and storage locations in West Palm Beach, Boca Raton, and New York City. Peck possessed a list of more than 6,000 customers living across the United States. The DEA, FBI, USPS Office of Inspector General (USPS-OIG), U.S. Postal Inspection Service (USPIS) and the Palm Beach County Sheriff’s Office investigated the case. The U.S. Attorney’s Office for the Southern District of Florida is prosecuting the case.
- On Nov. 18, 2022, a federal grand jury returned an indictment charging Christopher Hampton, 36, of Cerritos, California, with heading an organization that obtained bulk fentanyl, operated labs in California that used high-speed pill presses to create fake pills containing fentanyl and methamphetamine, and sold millions of pills to thousands of customers on the darknet. Hampton was named in an 11-count indictment that charges him with various narcotics and weapons offenses that could result in a sentence of life in prison. According to court documents, he was active on at least nine darknet marketplaces where he typically used the moniker “Narco710.” Hampton allegedly sold nearly $2 million worth of narcotics on two of these darknet marketplaces alone. He was arrested on Nov. 2, 2022, at which time federal law enforcement executed search warrants that led to the discovery and seizure of 450 pounds of suspected narcotics; six pill press machines, some of which were capable of producing thousands of pills per hour; and illegal firearms that included assault rifles and a machine gun. Agents later located a storage unit linked to the drug conspiracy and seized over 80 pounds of pressed fentanyl pills, eight guns, and precursor materials to press additional pills. The FBI JCODE and DEA HIDTA Tactical Diversion Squad investigated the case. The U.S. Attorney’s Office for the Central District of California is prosecuting the case.
- On May 12, 2022, a federal grand jury returned a two-count indictment charging Holly Adams, 31, and Devlin Hosner, 33, of Indio, California, with conspiracy to distribute and possess with intent to distribute fentanyl and methamphetamine, and with conspiracy to launder money. According to court documents, Adams and Hosner operated the vendor accounts “igogrrawwr” and “its4real” on the darknet marketplaces ToRReZ and Darkode, respectively, through which they sold tens of thousands of counterfeit oxycodone pills containing fentanyl in exchange for cryptocurrency. Adams and Hosner shipped these fentanyl pills to buyers throughout the United States, using the USPS, UPS, and other means of delivery. In the course of their conspiracy, Adams and Hosner finalized over 1,100 transactions of narcotics and other contraband and received more than $800,000 in cryptocurrency. Federal law enforcement officers executed a search warrant at a hotel in Riverside county where Adams and Hosner were residing and recovered more than 10,000 counterfeit oxycodone pills as well as approximately 60 grams of methamphetamine. The IRS-CI, HSI, FBI, USPIS, and USPS-OIG investigated the case. The U.S. Attorney’s Office for the Eastern District of California is prosecuting the case.
Operation SpecTor was a collaborative initiative across JCODE members, including the Department of Justice, FBI, DEA, USPIS, HSI, IRS-CI, ATF, Naval Criminal Investigative Service (NCIS), and the FDA’s Office of Criminal Investigations. This operation was aided by non-operational supporting participation from the Financial Crimes Enforcement Network (FinCEN) and U.S. Customs and Border Protection (CBP). Local, state, and other federal agencies also contributed to Operation SpecTor investigations through task force participation and regional partnerships. The investigations leading to Operation SpecTor were significantly aided by support and coordination by the Justice Department’s Organized Crime Drug Enforcement Task Forces (OCDETF); multi-agency Special Operations Division; the Criminal Division’s Computer Crime and Intellectual Property Section, Money Laundering and Asset Recovery Section’s Digital Currency Initiative, Narcotic and Dangerous Drug Section, and Fraud Section; the Justice Department’s Office of International Affairs; Europol and its Dark Web team; and international partners. The international partners include Eurojust; Austria’s Federal Criminal Police Office (Bundeskriminalamt); France’s Directorate-General of Customs and Indirect Taxes (Douane); Germany’s Federal Criminal Police Office (Bundeskriminalamt), Central Criminal Investigation Department of Oldenburg (Zentrale KriminaIinspektion Oldenburg), General Prosecutor’s Office in Frankfurt/Main - Cybercrime Center (Generalstaatsanwaltschaft Frankfurt/Main, Zentralstelle zur Bekämpfung der Internetkriminalität), Berlin Police (Polizei Berlin), various police departments (Dienststellen der Länderpolizeien), German Customs Investigation (Zollfahndungsämter); the Netherland’s National Police (Politie); Poland’s Central Cybercrime Bureau (Centralne Biuro Zwalczania Cyberprzestępczości); Brazil’s Civil Police of the State of Piauí (Polícia Civil do Estado do Piauí), Civil Police of the Federal District (Polícia Civil do Distrito Federal), National Secretariat of Public Security - Directorate of Integrated Operations and Intelligence - Cyber Operations Laboratory (Laboratório de Operações Cibernéticas da Diretoria de Operações Integradas e de Inteligência - Secretaria Nacional de Segurança Pública); Switzerland’s Zurich Cantonal Police (Kantonspolizei Zürich) and Public Prosecutor’s Office II of the Canton of Zurich (Staatsanwaltschaft II); and the United Kingdom’s National Crime Agency (NCA) and National Police Chief’s Council (NPCC).
Federal investigations and prosecutions are being conducted in more than 30 federal districts, including the District of Arizona, the Central District of California, the Eastern District of California, the Northern District of California, the Southern District of California, the District of Colorado, the District of Connecticut, the District of Columbia, the District of Delaware, the Southern District of Florida, the Northern District of Georgia, the Southern District of Indiana, the Eastern District of Kentucky, the District of Maryland, the District of Massachusetts, the Eastern District of Michigan, the Western District of Michigan, the Eastern District of Missouri, the Western District of Missouri, the District of Nebraska, the District of Nevada, the District of New Jersey, the Eastern District of New York, the Southern District of New York, the Western District of North Carolina, the Northern District of Ohio, the Southern District of Ohio, the Eastern District of Pennsylvania, the Middle District of Pennsylvania, the District of South Dakota, the Eastern District of Tennessee, the Eastern District of Texas, the Northern District of Texas, the Southern District of Texas, the District of Vermont, the Eastern District of Virginia, and the Western District of Washington.
The Justice Department established the FBI-led JCODE team to lead and coordinate government efforts to detect, disrupt, and dismantle major criminal enterprises reliant on the darknet for trafficking opioids and other illicit narcotics, along with identifying and dismantling their supply chains.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Largest International Operation Against Darknet Trafficking of Fentanyl and Opioids Results in Record Arrests and SeizuresRead the Press Release
WASHINGTON – Today, the Department of Justice, and its Joint Criminal Opioid and Darknet Enforcement (JCODE) team and international partners, announced the results of Operation SpecTor, which included 288 arrests – the most ever for any JCODE operation and nearly double that of the prior operation. Law enforcement also conducted more seizures than any prior operation, including 117 firearms, 850 kilograms of drugs that include 64 kilograms of fentanyl or fentanyl-laced narcotics, and $53.4 million in cash and virtual currencies.
Operation SpecTor was a coordinated international effort spanning three continents to disrupt fentanyl and opioid trafficking on the darknet, or dark web. The operation was conducted across the United States, Europe, and South America, and was a result of the continued partnership between JCODE and foreign law enforcement against the illegal sale of drugs and other illicit goods and services on the darknet. Operation SpecTor builds on the successes of prior years’ operations and takedowns of marketplaces, which result in the seizure of darknet infrastructure providing investigators across the world with investigative leads and evidence. JCODE and Europol’s European Cybercrime Centre (EC3) continue to compile intelligence packages to identify entities of interest. These leads allow U.S. and international law enforcement agencies to identify darknet drug vendors and buyers, resulting in a series of coordinated, but separate, law enforcement investigations, resulting in the statistics announced today.
This year’s law enforcement operation was accompanied by a public awareness campaign called Operation ProtecTor aimed to promote public safety and spread awareness of resources for those struggling with substance abuse and who go through extreme lengths to obtain opioids. JCODE has worked with every FBI field office in the country to facilitate outreach to households that have purchased individual amounts of opioids from the darknet. The interagency efforts are aimed to both identify those who use anonymizing technologies to purchase illicit narcotics and direct them to available resources.
“Operation SpecTor was a coordinated international law enforcement effort, spanning three continents, to disrupt drug trafficking on the dark web and represents the most funds seized and the highest number of arrests in any coordinated international action led by the Justice Department against drug traffickers on the dark web,” said Attorney General Merrick B. Garland. “Our message to criminals on the dark web is this: You can try to hide in the furthest reaches of the internet, but the Justice Department will find you and hold you accountable for your crimes.”
“The availability of dangerous substances like fentanyl on dark net marketplaces is helping to fuel the crisis that has claimed far too many American lives,” said FBI Director Christopher Wray. “That's why we will continue to join forces with our law enforcement partners around the globe to attack this problem together. The FBI is proud to stand with our domestic and foreign partners as we continue to shine that light into the deepest corners of the dark net and hold those accountable who continue to peddle this poison around the world.”
“The Sinaloa and Jalisco drug cartels, and the global networks they operate are killing Americans by sending fentanyl into the United States. Their associates distribute this fentanyl into communities across America by every means possible, including the dark web,” said DEA Administrator Anne Milgram. “The DEA is committed to shutting down the fentanyl supply chain from beginning to end, and we will relentlessly pursue the associates of these cartels wherever they hide, even in the dark corners of the internet.”
“Our coalition of law enforcement authorities across three continents proves that we all do better when we work together,” said Executive Director Catherine De Bolle of Europol. “This operation sends a strong message to criminals on the dark web: international law enforcement has the means and the ability to identify and hold you accountable for your illegal activities, even on the dark web.”
“Collaboration with our law enforcement partners is key to combatting fentanyl and opioid trafficking,” said Chief Jim Lee of the IRS Criminal Investigation (IRS-CI). “Under the JCODE umbrella, law enforcement agencies across the globe have joined forces to take down criminals who use the darknet to buy and sell narcotics. Our team at IRS-CI plays an integral role in these investigations by following the money trail, whether it’s in fiat currency or digital assets on the blockchain.”
“The illicit movement of opioids poses a significant threat to public health and safety – whether by known transnational criminal gang members across international borders or anonymously through darknet spaces,” said Senior Official Performing the Duties of Deputy Director P.J. Lechleitner of Homeland Security Investigations (HSI). “Our HSI special agents, alongside federal and international partners, continue to aggressively investigate, disrupt, and dismantle networks responsible for trafficking dangerous, deadly narcotics and other contraband across global communities we are charged with protecting. We will continue to pursue bad actors engaged in these crimes to ensure they face justice, while protecting victims from these lethal substances.”
“The U.S. Postal Inspection Service leverages our specialized knowledge of the postal system as part of sophisticated dark web investigations such as Operation SpecTor with great results,” said Chief Postal Inspector Gary R. Barksdale of the U.S. Postal Inspection Service. “We are committed to taking all necessary actions to combat illicit drugs in the mail. And we thank our law enforcement partners for working with us to achieve this; removing dangerous illicit substances from the mail and American communities saves lives.”
“Addressing our nation’s drug overdose crisis and epidemic of substance use disorders is an issue of great concern and remains a top public health priority for the U.S. Food and Drug Administration (FDA),” said Commissioner Robert M. Califf, M.D., of the FDA. “The FDA has undertaken strategic and impactful actions to prevent drug overdoses and reduce deaths and is committed to using all of our cyber-resources to shed light on the darkest corners of illicit medical supply chains for the health and safety of all Americans.”
Operation SpecTor resulted in over 100 federal operations and prosecutions, including:
- On Dec. 1, 2022, Anton Peck, 29, of Boca Raton, Florida, was sentenced to 16 years in prison for conspiring to possess with the intent to distribute controlled substances, including fentanyl, methamphetamine, and heroin. According to court documents, between May 2021 and May 2022, Peck distributed narcotics from various darknet markets using the vendor profile “Syntropy.” After the transactions were carried out using cryptocurrency, Peck and co-conspirators Kevin Fusco and Vincent Banner mailed parcels containing fentanyl, heroin, and methamphetamine to cities around the country using the U.S. Postal Service (USPS). Fusco, 35, of West Palm Beach, Florida, was sentenced to 11 years in prison for conspiring to distribute fentanyl, heroin, and methamphetamine. Banner, 31, of Boynton Beach, Florida, is scheduled to be sentenced on June 8 after pleading guilty to one count of conspiracy to possess with intent to distribute fentanyl, methamphetamine, and heroin. Law enforcement recovered kilogram quantities of fentanyl, cocaine, methamphetamine, and heroin from business and storage locations in West Palm Beach, Boca Raton, and New York City. Peck possessed a list of more than 6,000 customers living across the United States. The DEA, FBI, USPS Office of Inspector General (USPS-OIG), U.S. Postal Inspection Service (USPIS) and the Palm Beach County Sheriff’s Office investigated the case. The U.S. Attorney’s Office for the Southern District of Florida is prosecuting the case.
- On Nov. 18, 2022, a federal grand jury returned an indictment charging Christopher Hampton, 36, of Cerritos, California, with heading an organization that obtained bulk fentanyl, operated labs in California that used high-speed pill presses to create fake pills containing fentanyl and methamphetamine, and sold millions of pills to thousands of customers on the darknet. Hampton was named in an 11-count indictment that charges him with various narcotics and weapons offenses that could result in a sentence of life in prison. According to court documents, he was active on at least nine darknet marketplaces where he typically used the moniker “Narco710.” Hampton allegedly sold nearly $2 million worth of narcotics on two of these darknet marketplaces alone. He was arrested on Nov. 2, 2022, at which time federal law enforcement executed search warrants that led to the discovery and seizure of 450 pounds of suspected narcotics; six pill press machines, some of which were capable of producing thousands of pills per hour; and illegal firearms that included assault rifles and a machine gun. Agents later located a storage unit linked to the drug conspiracy and seized over 80 pounds of pressed fentanyl pills, eight guns, and precursor materials to press additional pills. The FBI JCODE and DEA HIDTA Tactical Diversion Squad investigated the case. The U.S. Attorney’s Office for the Central District of California is prosecuting the case.
- On May 12, 2022, a federal grand jury returned a two-count indictment charging Holly Adams, 31, and Devlin Hosner, 33, of Indio, California, with conspiracy to distribute and possess with intent to distribute fentanyl and methamphetamine, and with conspiracy to launder money. According to court documents, Adams and Hosner operated the vendor accounts “igogrrawwr” and “its4real” on the darknet marketplaces ToRReZ and Darkode, respectively, through which they sold tens of thousands of counterfeit oxycodone pills containing fentanyl in exchange for cryptocurrency. Adams and Hosner shipped these fentanyl pills to buyers throughout the United States, using the USPS, UPS, and other means of delivery. In the course of their conspiracy, Adams and Hosner finalized over 1,100 transactions of narcotics and other contraband and received more than $800,000 in cryptocurrency. Federal law enforcement officers executed a search warrant at a hotel in Riverside county where Adams and Hosner were residing and recovered more than 10,000 counterfeit oxycodone pills as well as approximately 60 grams of methamphetamine. The IRS-CI, HSI, FBI, USPIS, and USPS-OIG investigated the case. The U.S. Attorney’s Office for the Eastern District of California is prosecuting the case.
Operation SpecTor was a collaborative initiative across JCODE members, including the Department of Justice, FBI, DEA, USPIS, HSI, IRS-CI, ATF, Naval Criminal Investigative Service (NCIS), and the FDA’s Office of Criminal Investigations. This operation was aided by non-operational supporting participation from the Financial Crimes Enforcement Network (FinCEN) and U.S. Customs and Border Protection (CBP). Local, state, and other federal agencies also contributed to Operation SpecTor investigations through task force participation and regional partnerships. The investigations leading to Operation SpecTor were significantly aided by support and coordination by the Justice Department’s Organized Crime Drug Enforcement Task Forces (OCDETF); multi-agency Special Operations Division; the Criminal Division’s Computer Crime and Intellectual Property Section, Money Laundering and Asset Recovery Section’s Digital Currency Initiative, Narcotic and Dangerous Drug Section, and Fraud Section; the Justice Department’s Office of International Affairs; Europol and its Dark Web team; and international partners. The international partners include Eurojust; Austria’s Federal Criminal Police Office (Bundeskriminalamt); France’s Directorate-General of Customs and Indirect Taxes (Douane); Germany’s Federal Criminal Police Office (Bundeskriminalamt), Central Criminal Investigation Department of Oldenburg (Zentrale KriminaIinspektion Oldenburg), General Prosecutor’s Office in Frankfurt/Main - Cybercrime Center (Generalstaatsanwaltschaft Frankfurt/Main, Zentralstelle zur Bekämpfung der Internetkriminalität), Berlin Police (Polizei Berlin), various police departments (Dienststellen der Länderpolizeien), German Customs Investigation (Zollfahndungsämter); the Netherland’s National Police (Politie); Poland’s Central Cybercrime Bureau (Centralne Biuro Zwalczania Cyberprzestępczości); Brazil’s Civil Police of the State of Piauí (Polícia Civil do Estado do Piauí), Civil Police of the Federal District (Polícia Civil do Distrito Federal), National Secretariat of Public Security - Directorate of Integrated Operations and Intelligence - Cyber Operations Laboratory (Laboratório de Operações Cibernéticas da Diretoria de Operações Integradas e de Inteligência - Secretaria Nacional de Segurança Pública); Switzerland’s Zurich Cantonal Police (Kantonspolizei Zürich) and Public Prosecutor’s Office II of the Canton of Zurich (Staatsanwaltschaft II); and the United Kingdom’s National Crime Agency (NCA) and National Police Chief’s Council (NPCC).
Federal investigations and prosecutions are being conducted in more than 30 federal districts, including the District of Arizona, the Central District of California, the Eastern District of California, the Northern District of California, the Southern District of California, the District of Colorado, the District of Connecticut, the District of Columbia, the District of Delaware, the Southern District of Florida, the Northern District of Georgia, the Southern District of Indiana, the Eastern District of Kentucky, the District of Maryland, the District of Massachusetts, the Eastern District of Michigan, the Western District of Michigan, the Eastern District of Missouri, the Western District of Missouri, the District of Nebraska, the District of Nevada, the District of New Jersey, the Eastern District of New York, the Southern District of New York, the Western District of North Carolina, the Northern District of Ohio, the Southern District of Ohio, the Eastern District of Pennsylvania, the Middle District of Pennsylvania, the District of South Dakota, the Eastern District of Tennessee, the Eastern District of Texas, the Northern District of Texas, the Southern District of Texas, the District of Vermont, the Eastern District of Virginia, and the Western District of Washington.
The Justice Department established the FBI-led JCODE team to lead and coordinate government efforts to detect, disrupt, and dismantle major criminal enterprises reliant on the darknet for trafficking opioids and other illicit narcotics, along with identifying and dismantling their supply chains.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Jury Finds District Man Guilty of Two Counts of Armed RobberyRead the Press Release
Defendant and Associates Committed Two Gunpoint Robberies of Strangers Affiliated with Howard University on the Same Day
WASHINGTON – Marquis Funderburk, 20, of Washington, D.C., has been found guilty by a jury of two counts of robbery while armed for two separate gunpoint robberies that took place within 30 minutes of each other, in January of 2022, in the neighborhood surrounding Howard University, announced U.S. Attorney Matthew Graves and Chief Robert Contee, III, of the Metropolitan Police Department (MPD).
The verdict was returned on May 1, 2023, following a trial in the Superior Court of the District of Columbia. The Honorable Sean Staples scheduled sentencing for August 25, 2023.
According to the government’s evidence, on January 18, 2022, at approximately 11:35 a.m., the defendant and two associates grabbed victim 1, a stranger, as they walked past him on the sidewalk. A gun was brandished and pointed at victim 1’s stomach by one of the men while the other two associates went through victim 1’s pockets, taking his airpods, iPhone, wallet, and keys.
At approximately noon on the same day, approximately two blocks from the first robbery, the defendant and three associates grabbed Victim 2, a stranger, as they walked past him on the sidewalk. The defendant’s associate pressed a gun, concealed inside a fanny pack, into victim 2’s chin while demanding Victim 2 give them his property. The defendant punched victim 2 in the face, after which the defendant and his associates proceeded to punch and kick victim 2 repeatedly until he fell to the ground bleeding, ultimately resulting in a concussion. As they demanded victim 2’s account passwords, the defendant commanded his associate with the gun to shoot victim 2.
Immediately after the second robbery, an MPD police cruiser, canvassing for the suspects of the first robbery, inadvertently approached the scene of the second robbery. The defendant and his associates fled from the cruiser, taking with them victim 2’s laptop, charger, iPhone, and wallet. The defendant was defendant stopped by police two blocks from the second robbery at approximately 12:30pm. He was positively identified by each of the victims independently.
In announcing the verdict, U.S. Attorney Graves and Chief Contee commended the work of those who investigated the case from the Metropolitan Police Department. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Richard Carlton, Luca Winer, and Dan Lenerz, Paralegal Specialist Richard Cheatham, Victim/Witness Advocate Christie Bloodworth, and IT Specialist William Henderson.
Finally, they commended the work of Assistant U.S. Attorneys Shauna Payyappilly and Katie Sessa, who investigated and prosecuted the case.
Hudson Man Indicted for Defrauding U.S. TaxpayersRead the Press Release
CONCORD – A Hudson man was indicted in connection with his attempt to fraudulently obtain over $1 million in CARES Act funds from the United States government, U.S. Attorney Jane E. Young announces.
Matthew Dispensa, 57, was indicted on four counts of bank fraud, two counts of attempted wire fraud, and two counts of money laundering. Dispensa was arrested this morning and released on conditions.
According to the charging documents, Dispensa owns and operates the Gateway Hills Heath Club in Nashua. Although he only had one gym, he filed CARES Act loan applications for two different entities, Gateway Hills Health Club, Inc. (“Gateway Hills Inc.”) and Gateway Hills Health & Wellness, LLC (“Gateway Hills LLC”). Between 2020 and 2022, Dispensa applied for four Paycheck Protection Program (PPP) loans and two Economic Injury Disaster Loans (EIDL) for Gateway Hills Inc. and Gateway Hills LLC. He submitted the Gateway Hills Inc. PPP applications to Millyard Bank and the Gateway Hills LLC PPP applications to a separate bank, Primary Bank. He provided the banks and the Small Business Administration (SBA) false documents, including fabricated tax documents, which inflated his purported companies’ size and payroll. Because PPP and EIDL loan size was tied to payroll and the number of employees a company had, he was able to apply for and obtain larger loans than he was entitled to. In total, he applied for $413,850 in PPP loans and $650,000 in EIDL funds.
Dispensa also misused at least some of the loan proceeds. For example, he obtained a $146,650 PPP loan for Gateway Hills Inc. He wired $100,000 of the proceeds to a personal brokerage account to purchase stock, including Tesla stock. Similarly, Dispensa obtained a $105,600 PPP loan for Gateway Hills LLC. He transferred the proceeds to his own bank account first before moving $25,000 to a personal brokerage account to purchase 10,000 shares of Ashford Hospitality Trust, a real estate investment trust.
The charge of bank fraud provides for a sentence of up to 30 years in prison and a fine of up to $1 million. The charge of attempted wire fraud provides for a sentence of up to 20 years in prison and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of money laundering provides for a sentence of up to 10 years in prison and a fine of twice the amount of the criminally derived property involved in the transaction. 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.
The Treasury Inspector General for Tax Administration and U.S. Postal Inspection Service led the investigation. Valuable assistance was provided by the Hudson Police Department. Assistant U.S. Attorney Alexander S. Chen is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
During the early part of the coronavirus pandemic, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act included multiple relief provisions to help the millions of Americans and many small businesses adversely affected by the pandemic, including the Paycheck Protection Program (PPP). Private lenders could participate in the PPP. The loans, which were supposed to be used for payroll, were fully guaranteed by the government. If borrowers used the PPP loans for payroll and other approved expenses as intended, they could apply for loan forgiveness. The CARES Act also opened up the Small Business Administration’s (SBA) Economic Injury Disaster Loan (EIDL) program. As with PPP loans, EIDL loans were supposed to be used for payroll and other business expenses such as rent and mortgage.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
###
Hospers, Iowa Man Sentenced to 25 Years in Federal Prison for Meth and Gun ConvictionsRead the Press Release
A man who conspired to distribute methamphetamine and illegally possessed firearms was sentenced on May 1, 2023, to 25 years’ imprisonment.
Robert Nicholas Hansen, 43, from Hospers, Iowa, was convicted by a jury of one count of conspiracy to distribute methamphetamine; two counts of distribution of methamphetamine; and one count of being a prohibited person in possession of a firearm (1 gun) on November 3, 2022. On May 18, 2022, Hansen was convicted by a jury of two counts of being a prohibited person in possession of a firearm (17 guns).
The jury found that, from January 2017 through January 2021, Hansen was involved in a conspiracy to distribute more than 50 grams of pure methamphetamine. Evidence at trial showed that Hansen was involved with several other co-conspirators in the acquisition and distribution of more than 100 pounds of methamphetamine. Evidence further showed that on two separate occasions, Hansen distributed one-half pound of methamphetamine to individuals cooperating with law enforcement and during one of the transactions was found to possess three separate bundles of cash, totaling $14,000. The jury verdict included findings that Hansen’s methamphetamine distributions occurred within 1000 feet of Hospers Elementary School and South Side Park in Hospers, Iowa. The jury also found that Hansen illegally possessed a .223 caliber AR-15 style rifle. At trial, evidence was presented that Hansen had others store methamphetamine and guns for him when the “heat was on” him from law enforcement. At sentencing, Hansen’s illegal involvement with three other guns was also presented.
During Hansen’s other trial, the jury found that, from 2017 through November 2017, Hansen illegally possessed seventeen firearms. At sentencing, Hansen’s illegal involvement with four other guns was also presented. Hansen was previously convicted of possession of methamphetamine with intent to deliver in 2003 in the Iowa District Court for Sioux County.
Sentencing was held before United States District Court Chief Judge Leonard T. Strand. Hansen was sentenced to 25 years’ imprisonment and must serve a 10-year term of supervised release following the imprisonment. There is no parole in the federal system. Hansen remains in custody of the United States Marshal until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorneys Shawn Wehde and Patrick Greenwood and was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Sioux County Sheriff’s Office, the Orange City Police Department, the Plymouth County Sheriff’s Office, the Iowa Division of Narcotics Enforcement and the Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file numbers are 21-4014 and 21-4054. Follow us on Twitter @USAO_NDIA.
Head of Telemarketing Operation Sentenced to 78 Months in Prison for $19 Million Credit Card Laundering SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that STEVEN SHORT, the former head of Florida-based E.M. Systems & Services LLC and affiliated companies (collectively, “E.M. Systems”), was sentenced today to 78 months in prison for conspiracy to commit wire fraud and bank fraud in connection with his participation in a fraudulent scheme to obtain credit card processing services for his deceptive Florida-based telemarketing operation through a California-based company called CardReady LLC (“CardReady”). SHORT previously pled guilty to the conspiracy charge and was sentenced today before United States District Judge Loretta A. Preska.
U.S. Attorney Damian Williams said: “Over a two-year period, Steven Short and his co-conspirators used shell companies to deceive credit card payment processors into processing more than $19 million obtained from more than 19,000 victims nationwide. Short preyed on vulnerable people in credit card debt, charging fees up to $1,495 in exchange for guaranteeing to reduce their debt and lower their interest rates, but instead generally sent them cookie-cutter booklets with ordinary budgeting advice.”
According to the Superseding Indictment, court filings, and statements made in Court:
SHORT controlled E.M. Systems. From approximately 2012 through 2015, SHORT and E.M. Systems carried out a telemarketing fraud scheme in which they used telemarketers to cold-call consumers, targeting consumers with outstanding credit card debt. In exchange for fees up to $1,495, the cold-callers offered the customers services, including debt consolidation and interest-rate reduction on their debts, which were prohibited by the applicable guidelines from a bank used by SHORT (“Bank-1”) and associated processing entities (the “Guidelines”), and which — as SHORT knew — would produce chargebacks from dissatisfied customers far in excess of the number and rate of chargebacks permitted under the Guidelines. SHORT and E.M. Systems generated over $19 million in fraud proceeds from more than 19,000 customers through this scheme, resulting in thousands of complaints by customers of fraud and deceptive tactics and requests for millions of dollars in refunds and chargebacks.
In order to charge for E.M. Systems’ purported services via credit cards, SHORT sought access to the credit card processing market through CardReady, a Los Angeles-based company acting as a sales agent in the credit card processing industry. As part of its business as a sales agent, CardReady found merchants who wanted credit card processing services, such as SHORT, and submitted merchant applications on behalf of those merchants to a Manhattan-based Independent Sales Organization (the “New York ISO”). The New York ISO then evaluated the merchant applications and referred acceptable merchant accounts up the chain to a payment processor (“Payment Processor-1”) and Bank-1. Bank-1 and Payment Processor-1, in turn, processed payments to merchants for purchases by customers who had used credit cards. Under E.M. Systems’ deal with CardReady, CardReady kept approximately one-third of the credit card sale transactions of SHORT and E.M. Systems in exchange for providing them access to the credit card processing network.
In securing credit card processing for E.M. Systems to process the fees paid by its customers, SHORT and CardReady concealed that E.M. Systems was the true underlying merchant. Instead, SHORT and his co-conspirators, over a period of more than 20 months, created approximately 26 sham merchant companies, each headed by a “signer” (the “Sham Merchants” and the “Sham Merchant Accounts”). The 26 signers for the 26 Sham Merchants typically had no business of their own and knew little or nothing about E.M. Systems’ business. In return for signing paperwork, the signers were paid a nominal fee by CardReady. These false merchant applications also concealed the Sham Merchant’s true association with E.M. Systems.
By steering E.M. System’s payment processing through these Sham Merchant Accounts, SHORT and CardReady accomplished a number of fraudulent purposes. First, the use of these Sham Merchant Accounts made it possible for E.M. Systems to conceal its identity from Payment Processor-1 and Bank-1 and to maintain payment card processing. This was particularly relevant as Payment Processor-1 repeatedly required CardReady to close individual Sham Merchant Accounts because of excessive chargebacks and reports of sales of prohibited services. SHORT and CardReady then quickly replaced the closed Sham Merchant Accounts with new Sham Merchant Accounts, precluding Payment Processor-1 from shutting down its processing of high-risk merchants. Second, the fraudulent processing scheme enabled E.M. Systems to spread out its charges, refunds, and chargebacks across multiple Sham Merchant Accounts. SHORT and CardReady thus enabled E.M. Systems to evade chargeback monitoring programs operated by Bank-1, Payment Processor-1, and the New York ISO.
* * *
SHORT, 46, of Tampa, Florida, pled guilty on August 16, 2022, to one count of conspiracy to commit wire fraud and bank fraud. In addition to the prison sentence, SHORT was sentenced to three years of supervised release and ordered to pay restitution of $1,912,090.05 and forfeiture of $8,833,889.69.
Also charged in this case is Brandon Becker, 51, of Los Angeles, California, whose trial is scheduled to begin on December 4, 2023, before Judge Preska. Becker is presumed innocent unless and until proven guilty.
Mr. Williams praised the work of the Federal Bureau of Investigation and thanked the Federal Trade Commission for its assistance.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys David Raymond Lewis, Vladislav Vainberg, and Sarah Y. Lai are in charge of the prosecution.
Goldsboro Drug Dealer Sentenced to 21 Years in PrisonRead the Press Release
WILMINGTON, N.C. – Johnathan Aquavious Heath, a/k/a “Booty,” age 43, of Goldsboro was sentenced to 252 months in prison for his leadership role in a drug trafficking organization bringing significant quantities of methamphetamine, cocaine, crack, heroin, and fentanyl in the Goldsboro area.
“There are serious consequences for those that are trafficking dangerous and deadly narcotics in our communities,” said U.S. Attorney Michael Easley. “This defendant will be spending the next twenty-plus years behind bars for his crimes.”
According to court documents and information presented in court, in 2019, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in Wilmington, North Carolina received information that Heath was a leader of a large-scale drug trafficking organization operating in Goldsboro and distributing significant quantities of crystal methamphetamine, fentanyl, heroin, powder cocaine, and cocaine base (crack). Based on the investigation, law enforcement learned that Heath maintained several “trap houses” or “stash houses” in Goldsboro and employed people to run the stash houses and he also employed runners, often times drug users, to hand deliver drugs.
During the course of the investigation, law enforcement gathered information regarding this organization from multiple confidential sources and cooperating defendants, conducted surveillance, and also conducted controlled purchases of narcotics from Heath, as well as those working for him. Over the course of the conspiracy, Heath was responsible for assisting in the distribution of at least 119.54 grams of cocaine, 401.62 grams cocaine base, 373.608 grams of actual methamphetamine, 1,500 grams of heroin, and 1,474.18 grams of fentanyl. On June 7, 2022, Heath pled guilty to Conspiracy to Distribute and Possess With Intent to Distribute Fifty (50) grams or more of methamphetamine, 5 kilograms or More of Cocaine, and 280 grams or More of Cocaine Base and Distribution of Fifty (50) grams or more of methamphetamine.
Four additional defendants have previously been charged and convicted in this investigation:
- Aratika Omhaya Anderson, a/k/a “Tika” (5:21-CR-314-M-2): pled guilty on October 19, 2021, to Conspiracy to Distribute and Possess With Intent to Distribute Fifty (50) Grams or More of Methamphetamine and Distribution of 5 grams or More of Methamphetamine, aiding and abetting and was sentenced to 88 months in prison.
- Victoria Christine Taylor (5:21-CR-314-M-3): pled guilty on March 8, 2022, to Conspiracy to Distribute and Possess With Intent to Distribute a quantity of crack cocaine and was sentenced to 80 months in prison.
- Richard Ronald Harris, III (5:21-CR-314-M-5): pled guilty on October 6, 2021, to Conspiracy to Distribute and Possess With Intent to Distribute Fifty (50) Grams or More of Methamphetamine and Distribution of Five Grams or more of Methamphetamine, Aiding and Abetting. Harris was sentenced to 70 months in prison.
- Lelia Inez Harris (5:21-CR-314-M-5): pled guilty on November 16, 2021, to Conspiracy to Distribute and Possess With Intent to Distribute Five (5) Grams or More of Methamphetamine, Distribution of Five Grams or more of Methamphetamine, Aiding and Abetting. Harris was sentenced to 55 months in prison.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launders, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina, made the announcement after sentencing by Chief Judge Richard E. Myers II. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in Wilmington, North Carolina and the Goldsboro Police Department investigated the case and Assistant U.S. Attorney Jennifer C. Nucci prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for case number 5:21-CR-00314-M.
Gloucester County Man Sentenced to 10 Years in Prison for Possessing Child PornographyRead the Press Release
CAMDEN, N.J. – A Gloucester County, New Jersey, man was sentenced today to 120 months in prison, 10 years of supervised release and ordered to pay $73,000 in restitution for possessing images and videos of child sexual abuse. Joseph Cooper, 76, of Williamstown, New Jersey, pleaded guilty before U.S. District Judge Renée Marie Bumb on Sept. 13, 2022, to an information charging him with one count of possession of child pornography.
Georgia woman sentenced to prison, ordered to pay more than $1 million in restitution for COVID fraudRead the Press Release
SAVANNAH, GA: A Georgia woman has been sentenced to prison and ordered to repay more than $1 million in fraudulently obtained funds from a COVID-19 small business relief program.
Salmat Deyji, 26, of Stockbridge, Ga., was sentenced to 26 months in prison after pleading guilty to Conspiracy to Commit Wire Fraud and Money Laundering, said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. U.S. District Court Judge Lisa Godbey Wood also ordered Deyji to pay $1,073,307 in restitution to the government, and to serve three years of supervised release upon completion of her prison term.
There is no parole in the federal system.
“Congress provided substantial funding to assist struggling small businesses during the COVID-19 pandemic, and unfortunately scam artists found myriad ways to enrich themselves through those funds,” said U.S. Attorney Steinberg. “Salmat Deyji not only helped herself to undeserved assistance, but also profited by conducting fraudulent activity on behalf of others. She’s now being held accountable for this substantial theft.”
The 2020 Coronavirus Aid, Relief and Economic Security (CARES) Act provided more than $650 billion in funding for qualifying small businesses facing financial challenges during the COVID-19 pandemic, including grants available through the Paycheck Protection Program (PPP).
In her plea agreement, Deyji admitted to filling out and submitting fraudulent PPP loan applications for herself and other individuals, in the Southern District of Georgia and elsewhere, who otherwise did not meet the qualifications for the program. She assisted in filing these applications using fabricated IRS forms and tax records which she created. Her scheme included soliciting information from U.S. Army service members as well as friends and family who she recruited to receive PPP funding in exchange for kickbacks.
In total, the scheme caused the disbursement of more than $1 million in fraudulent CARES Act grants to more than three dozen applicants. At least six others who participated in the scheme pled guilty to related charges, with sentences ranging from probation to 22 months in prison along with substantial orders of restitution.
“Today’s sentencing should serve as a stark reminder that our agents, and those of our partner law enforcement agencies, are relentless in their pursuit of those who choose to defraud the government,” said Special Agent in Charge Scott Moreland of the Department of the Army Criminal Investigation Division, Major Procurement Fraud Field Office.
“Those who illegally utilize government assistance for their own advantage undermine the efficacy and integrity of programs designed to support those who are in need of government aid,” stated Special Agent in Charge Darrin K. Jones, Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Southeast Field Office. “DCIS and our investigative partners are committed to bringing those who exploit these programs for selfish gain to justice.”
“During the COVID-19 pandemic, the Paycheck Protection Program was enacted by Congress in response to helping businesses who were experiencing economic uncertainty,” said James E. Dorsey, Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “Unfortunately, people like Deyji and her co-conspirators fraudulently applied for and obtained those funds for their personal benefit. IRS-Criminal Investigation and our law enforcement partners will continue pursuing those who defrauded the government and stole from others in need of economic relief.”
“The U.S. Secret Service’s investigative collaboration with our law enforcement and prosecutorial partners again demonstrates our commitment to bringing to justice those who choose to exploit the systems created to help those affected by COVID-19 pandemic,” said Craig Reno, Resident Agent in Charge of the Savannah Resident Office of the U.S. Secret Service. “The results of these cases should serve as a deterrent to fraudsters that you will be held accountable to fullest extent of the law.”
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.
The case was investigated by the Department of the Army Criminal Investigation Division, the Defense Criminal Investigative Service, Internal Revenue Service Criminal Investigations, and the U.S. Secret Service, and prosecuted for the United States of America by Assistant U.S. Attorney Matthew A. Josephson.
Four People Sentenced in Federal Court for Schemes to Smuggle Drugs into the Polk County JailRead the Press Release
DES MOINES, IA – Four individuals have been sentenced in federal court for schemes to smuggle drugs into the Polk County Jail.
On December 19, 2022, Michael Joseph Wilson, 35 of Des Moines, was sentenced to 12 months in prison for attempt to possess contraband in a federal facility. On April 11, 2023, Fawn Ann Colyn, 57 of Des Moines, was sentenced to 30 months in prison after pleading guilty to providing contraband in a federal facility. On April 28, 2023, Randall Joseph Verbeski, 61 of Sioux City, was sentenced to thirty months in prison for possessing contraband in a federal facility. On April 28, 2023, Ashley Michelle Evans, 35 of Ottumwa, was sentenced to a term of five years’ probation for attempt to provide contraband in a federal facility.
According to court documents, as well as evidence presented at the sentencing hearings, Colyn and Verbeski engaged in a scheme to mail Suboxone and other opioids into the Polk County Jail, which houses federal prisoners. The scheme involved Colyn, who was not incarcerated, hiding drugs in envelopes and documents disguised as legal mail, and then sending those envelopes to Verbeski. Verbeski was in the Polk County Jail serving a federal sentence related to a prior gun and drug trafficking offense.
According to court documents, Wilson and Evans engaged in a similar scheme to mail MDMB-4en-PINACA, commonly known as K2, into the Polk County Jail. Evans, who was not incarcerated, hid the K2 in an envelope and document disguised as legal mail which she sent to Wilson. At the time, Wilson was in the Polk County Jail after officers found methamphetamine, heroin, MDMA, and a loaded revolver at his residence in Des Moines. At the time of his arrest, Wilson was on federal supervised release out of Indiana for a firearm conviction. Wilson was ultimately sentenced to a total term of 240 months, for the Iowa and Indiana federal charges.
Following their prison sentences, Colyn, Verbeski, and Wilson will serve terms of supervised release. There is no parole in the federal system.
Polk County Sheriff Kevin J. Schneider said “Maintaining the highest level of security at the Polk County Jail is one of my top priorities, and a mission for our staff. Our strong working relationships with partner agencies allow us to remain successful. I am proud of the Polk County Sheriff’s Office staff, and appreciate the great work done by the United States Marshals Service and the United States Attorney’s Office in concluding these cases.”
“Once again, these positive outcomes show the importance of maintaining a solid working relationship with our local partners. The communication and close bonds we’ve formed, serves as a force multiplier, to assure we can deliver the best service possible,” said
United States Marshal Ted G. Kamatchus of the Southern District of Iowa.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement.
The investigated was conducted by the United States Marshals Service and the Polk County Sheriff’s Office—Jail Division.
Four Charged with Failure to Register as Sex OffendersRead the Press Release
Memphis, TN – In April 2023, federal grand juries in Jackson and Memphis returned indictments against four convicted sex offenders for failure to register or maintain their registration when they moved to Tennessee, in violation of the Sex Offender Registration and Notification Act
(SORNA). United States Attorney Kevin Ritz announced the indictments today.According to United States Attorney Ritz and information presented in court, the following sex offenders failed to update their registration to reflect travel to the Western District of
Tennessee (WDTN).• Terrell Chase Powell, 40, present in the WDTN from September 27 to December 15, 2022.
• Edward Elbert Thompson, 75, present in the WDTN from January 2022 to March 2, 2023.
• Jose Lozano, 45, present in the WDTN from November 29, 2021, to January 6, 2022; and
• Lorenzo Mitchell, 41, present in the WDTN from October 29 to December 5, 2022SORNA requires sex offenders to register and keep their registration current in each jurisdiction in which they reside, work, or go to school.
“Most convicted sex offenders who live and work in West Tennessee meet their registration requirements and are productive members of our communities. Compliance with SORNA holds convicted sex offenders accountable to law enforcement and helps to keep our communities safe. Failure to register is a serious offense, and my office will aggressively pursue those offenders who attempt to avoid their legal obligations when st Tennessee,” said United States Attorney Kevin Ritz.
United States Marshal for the Western District of Tennessee Tyreece Miller said, “Congress directed the United States Marshals Service to locate absconded sex offenders through the Adam Walsh Child
Protection and Safety Act in July 2006. Our office takes this responsibility seriously and is proactive in locating and arresting non-compliant sex offenders. These indictments are examples of our partnership with the U.S. Attorney’s Office and commitment to protecting the citizens in the
Western District of Tennessee.”If convicted, each defendant faces up to 10 years’ imprisonment, up to a $250,000 fine, and a period of supervised of five years to life. There is no parole in the federal system.
The case was investigated by the United States Marshals Service.
Members of the public are reminded that an indictment only contains charges. Each defendant is presumed innocent of the charges and it will be the government's burden to prove each defendant's guilt beyond a reasonable doubt.
Assistant United States Attorneys Adam Davis and Lauren Delery are prosecuting the case.
###
For more information, please contact Public Information Officer Cherri Green at (901) 544-4231 or [email protected]. Follow @WDTNNews on Twitter for office news and updates.
Four Charged in Multi-Million-Dollar Childcare Benefits Fraud Ring that Bilked California Welfare and Benefits Program for YearsRead the Press Release
NEWS RELEASE SUMMARY – May 2, 2023
SAN DIEGO – Four San Diego residents were charged in federal court today with participating in a childcare-benefits fraud scheme that bilked a California welfare and benefits program of millions of dollars.
Mohamed Muriidi Mohamed, Amina Abdirazak Omar, Osob Abdirazak Omar and Omar Omar were arraigned this afternoon before U.S. Magistrate Judge Barbara L. Major.
According to the indictment, the Department of Health and Human Services (HHS) funds a program known as “Alternative Payment Program/Stage 2 Childcare.” This childcare benefits program allows eligible parents to select a licensed childcare provider to provide childcare services that best fit a family’s needs. In San Diego, this program is administered by two contractors: Child Development Associates (CDA) and the Young Men’s Christian Association (YMCA). CDA and YMCA disburse the funding from HHS and the state of California directly to the designated childcare providers. In administering the program, CDA and YMCA require verification forms to be completed by the parent, and the employer and/or school.
The indictment alleges that the defendants fraudulently caused CDA and YMCA to pay out millions in childcare benefit program funds by falsely verifying that parents were working at or attending school at the UMI Learning Center, a vocational and language school located on University Avenue, although the parents were not actually participating in classes or employment during the days, and for the hours, claimed. In turn, childcare providers submitted false daily childcare attendance forms claiming that childcare was provided for days and hours when the parents were supposedly at UMI Learning Center for work or school, although no childcare was actually provided. In exchange for these false verification forms, parents were expected to pay $200 to UMI Learning Center, and the childcare providers were expected to split the childcare benefit program funds they received, 50/50, with the parents. The indictment alleges that the defendants’ scheme caused CDA and YMCA to pay out over $3.7 million dollars in childcare benefit program funds.
“Childcare benefit programs are designed to help parents who need the assistance of quality childcare service,” said U.S. Attorney Randy Grossman. “Fraud takes money away from the very communities those programs are intended to serve.” Grossman thanked the prosecution team and Homeland Security Investigations for their hard work on this case.
“It is unacceptable for individuals to exploit and defraud programs designed to provide basic childcare benefits for hard working families,” said Chad Plantz, special agent in charge, HSI San Diego. “This investigation serves as an example of how dedicated we are to working in coordination with our law enforcement partners to support and affect a positive impact on the local community.”
DEFENDANTS Case Number 23CR0552-RBM
Mohamed Muriidi Mohamed, Spring Valley Age: 46
Amina Abdirazak Omar, Spring Valley Age: 40
Osob Abdirazak Omar, San Diego Age: 32
Omar Omar, San Diego Age: 22
SUMMARY OF CHARGES
Wire Fraud and Theft Conspiracy - Title 18, U.S.C., Section 371
Maximum penalty: Five years in prison and fine of the greater of $250,000, or twice the pecuniary gain or loss
Wire Fraud– Title 18, U.S.C., Section 1343
Maximum penalty: Twenty years in prison and fine of the greater of $250,000, or twice the pecuniary gain or loss
Theft of Government Funds – Title 18, U.S.C., Section 641
Maximum penalty: Ten years in prison and fine of the greater of $250,000, or twice the pecuniary gain or loss
AGENCIES
U.S. Department of Homeland Security, Homeland Security Investigations
U.S. Department of Health and Human Services, Office of the Inspector General
U.S. Department of Housing and Urban Development, Office of the Inspector General
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Fort Worth Fentanyl Traffickers SentencedRead the Press Release
Two fentanyl traffickers were sentenced to a combined 23 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Steven Keys, 28, and Rico Marion, 26, were indicted in August 2022. The following month, Mr. Keys pleaded guilty to conspiracy to possess with intent to distribute a controlled substance; Mr. Marion pleaded guilty to the same charge shortly thereafter. Mr. Keys was sentenced in February to 151 months in federal prison, and Mr. Marion was sentenced Tuesday to 135 months in federal prison.
“HSI is deeply committed to prosecuting those who bring illicit drugs into our communities,” said Todd Johnson, Assistant Special Agent in Charge HSI Dallas. “We hope these combined sentences send a direct message to the drug traffickers who peddle this poison that HSI will never relent in putting those away who have no regard for our nation’s laws.”
According to court documents, Mr. Keys and Mr. Marion dealt fentanyl-laced counterfeit oxycodone pills out of a motel in Fort Worth.
On July 12, 2022, after a surveillance team posted at the motel observed an apparent drug sale, law enforcement pulled Mr. Keys and Mr. Marion over on traffic violations. Inside the vehicle, investigators discovered a Louis Vuitton bag containing $7,129 cash, likely derived from the sale of illegal drugs.
The following day, law enforcement reviewed surveillance footage from convenience stores where open-air narcotics sales are known to occur and observed Mr. Keys and others dealing drugs from the vehicle.
They tracked the vehicle back to the motel and sent a confidential source into the room to purchase fentanyl pills. The confidential source stated he purchased five small blue pills – which he turned over to agents – from Mr. Keys.
Agents arrested Mr. Keys without incident that evening. They arrested Mr. Marion in the motel room after breaching the door and deploying gas inside the motel.
A search of the room uncovered a black backpack containing approximately 1,000 fentanyl-laced blue pills, a .40 caliber handgun on the bed, and a plastic baggy of marijuana inside the toilet.
Homeland Security Investigations and the Fort Worth Police Department conducted the investigation. Assistant U.S. Attorney Shawn Smith prosecuted the case.
Fort Myers Man Sentenced to Federal Prison for Unlawfully Possessing A Firearm as A Convicted FelonRead the Press Release
Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell has sentenced Jontavious Jarquel Griffin (34, Fort Myers) to 5 years and 10 months in federal prison for possessing a firearm as a previously convicted felon. The court also ordered Griffin to forfeit the firearm and ammunition possessed during the offense. Griffin had pleaded guilty on January 25, 2023.
According to court records, on July 27, 2022, deputies from the Lee County Sheriff’s Office (LCSO) conducted a traffic stop on a vehicle being driven and solely occupied by Griffin. Deputies later searched the vehicle, and inside a backpack on the front-passenger seat, they found a loaded Smith & Wesson handgun and quantities of cocaine and fentanyl. As a convicted felon, who had previously served prison time for a drug-related crime, Griffin is prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Lee County Sheriff’s Office, and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorney Simon R. Eth.
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.
Former elementary school teacher sentenced for sexually abusing childrenRead the Press Release
ATLANTA - Stefan Zappey has been sentenced to federal prison for sexually abusing four of his former elementary school students near Stuttgart, Germany.
“Zappey abused a critical position of trust as an elementary school teacher and sexually abused multiple students,” said U.S. Attorney Ryan K. Buchanan. “His crimes were horrific, and the community is safer now that he no longer has access to children.”
“Zappey presented himself as a dedicated teacher, but in reality, he is the most dangerous type of predator, an educator who uses his position of trust to gain access to children and victimize them for his own sick gratification,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “The FBI remains committed to protecting children and is thankful for the law enforcement partnerships that make it possible to stop people like Zappey from victimizing anyone else.”
“The successful prosecution of Stefan Zappey demonstrates the Justice Department’s commitment to prosecuting U.S. citizens who prey on young and vulnerable children regardless of where and when the crimes occurred,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “Zappey’s offenses are especially egregious because he was entrusted with teaching the children of our brave service members overseas. The courage of the victims and the perseverance of investigators and prosecutors ensured that Zappey’s offenses were exposed and will prevent him from abusing even more children.”
“Victimizing and preying on DoD dependents is unacceptable,” said Ryan Hall, Special Agent-in-Charge of the Department of the Army Criminal Investigation Division’s Europe Field Office. “Army CID will continue to work closely with our law enforcement partners to investigate these crimes and bring the perpetrators to justice.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Stefan Zappey sexually abused four of his former elementary school students between 2006 and 2010. At the time, Zappey was employed by the Department of Defense Education Activity (DODEA) federal school system as a first- through third-grade teacher at Patch Elementary school. The school is located on a U.S. military installation near Stuttgart, Germany.
Specifically, in 2019, Army criminal investigators were notified that one of Zappey’s former students reported that Zappey touched her inappropriately under her clothing when she was a student at Patch Elementary in 2009 and 2010. An investigation that followed revealed that four of Zappey’s former students reported that Zappey placed his hand inside their underwear and directly touched their genitals on multiple occasions. The victims were between six and eight years old and were elementary school students at the time of the sexual abuse. At trial, other students and faculty members of Patch Elementary reported that Zappey frequently hugged students, had them sit on his lap, and touched their backs and stomachs under their clothes.
Stefan Zappey, 57, of Stuttgart, Germany, has been sentenced to life in prison, and to pay a special assessment of $800.00. Zappey was found guilty by a jury on January 18, 2023.
This case was investigated by the Federal Bureau of Investigation and U.S. Army Criminal Investigative Division.
Assistant U.S. Attorney Leanne M. Marek and Trial Attorney Eduardo Palomo of the Criminal Division’s Child Exploitation and Obscenity Section prosecuted the case.
This case is being brought as part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former Mississippi Tax Return Preparer Pleads Guilty to Conspiracy to Defraud the United StatesRead the Press Release
A former Mississippi tax preparer pleaded guilty today to conspiring to defraud the United States by preparing false tax returns.
According to court documents and statements made in court, from 2015 through 2017, John Wells, Jr. worked at Sunbelt Tax Services, a return preparation business with a primary office located in Jackson, Mississippi. Wells conspired with others at Sunbelt Tax Services to claim fraudulently inflated tax refunds for clients by reporting false education credits, itemized deductions, and business profits or losses.
Wells is scheduled to be sentenced on September 20, 2023, and faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart Goldberg of the Justice Department's Tax Division made the announcement.
Trial Attorneys Casey Smith, Patrick Elwell, and Mary Frances Richardson of the Justice Department’s Tax Division and Assistant U.S. Attorney Bert Carraway of the Southern District of Mississippi are prosecuting the case.
Former Fulton High School Coach Arrested on Federal Charges for Receiving, Transporting, and Possessing Child PornographyRead the Press Release
SYRACUSE, NEW YORK – Joshua Demars, age 37, of Fulton, New York, was arrested today on a federal complaint charging him with receiving, transporting, and possessing child pornography.
The announcement was made by United States Attorney Carla B. Freedman and Matthew Scarpino, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations.
The complaint alleges that, on March 19, 2023, the New York State Police (“NYSP”) and Homeland Security Investigations (“HSI”) executed a search warrant at Demars’ residence in Fulton, New York. The search warrant was obtained, in part, because a CyberTipline Report from the National Center for Missing and Exploited Children (“NCMEC”) indicated that Demars had uploaded child pornography to Dropbox. At the time of the search warrant execution, Demars worked as a teaching assistant and coach in the Fulton City School District.
As outlined in the criminal complaint, during the search of Demars’ residence, law enforcement located several electronic devices that contained hundreds of images and videos depicting child pornography. On those devices, law enforcement found evidence that Demars had indeed transported a video of a 5-7 year old female being sexually abused by an adult male to his Dropbox account, and dozens of recordings of Demars receiving live videos of children who were engaging in sexually explicit conduct. The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
Demars appeared before United States Magistrate Judge Andrew T. Baxter today and was ordered detained pending a detention hearing scheduled for May 5, 2023. If convicted, Demars faces at least 5 years and up to 20 years in prison, a term of supervised release of up to life, and a fine of up to $250,000, and will be required to register as a sex offender after his release from prison. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
HSI and NYSP are investigating the case, and it is being prosecuted by Assistant U.S. Attorneys Paul Tuck and Jessica Carbone as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Former Elementary School Teacher Sentenced to Life in Prison for Sexually Abusing ChildrenRead the Press Release
A former school teacher was sentenced today to life in prison for sexually abusing elementary school students on a U.S. military installation in Germany.
According to court documents and evidence presented at trial, Stefan Zappey sexually abused four of his former elementary school students between 2006 and 2010. At the time, Zappey was a teacher for first through third grade students at an elementary school in Germany. The school is part of the Department of Defense Education Activity, which serves dependents of U.S. military service members stationed overseas.
“The successful prosecution of Stefan Zappey demonstrates the Justice Department’s commitment to prosecuting U.S. citizens who prey on young and vulnerable children regardless of where and when the crimes occurred,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “Zappey’s offenses are especially egregious because he was entrusted with teaching the children of our brave service members overseas. The courage of the victims and the perseverance of investigators and prosecutors ensured that Zappey’s offenses were exposed and will prevent him from abusing even more children.”
“Zappey abused a position of trust as an elementary school teacher and sexually abused multiple students,” said U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia. “His crimes were horrific, and the community is safer now that he no longer has access to children.”
In 2020, one of Zappey’s former students notified Army criminal investigators that Zappey touched her under her clothing when she was a student at the school in 2009 and 2010. Further investigation revealed that Zappey sexually abused four of his former students by placing his hand inside their underwear and directly touching them on multiple occasions. The victims were between six and eight-years-old at the time of the sexual abuse. Other students and faculty members reported that Zappey frequently hugged students, had them sit on his lap, and touched their backs and stomachs under their clothes.
On Jan. 18, a jury convicted Zappey of four counts of aggravated sexual abuse of a child and four counts of abusive sexual contact.
“Cases like these demonstrate the FBI’s dedication to protecting children from those who seek to exploit their innocence,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “The FBI and our partners remain committed to pursuing justice for our most innocent victims and those who are unable to defend themselves.”
“Victimizing and preying on Department of Defense dependents is unacceptable,” said Special Agent in Charge Ryan Hall of the Department of the Army Criminal Investigation Division’s (Army CID) Europe Field Office. “Army CID will continue to work closely with our law enforcement partners to investigate these crimes and bring the perpetrators to justice.”
The FBI and Army CID investigated the case.
Trial Attorney Eduardo Palomo of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Leanne M. Marek for the Northern District of Georgia prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the 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 Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former Commonwealth Edison Executives and Associates Found Guilty of Conspiring to Influence and Reward Former Illinois House SpeakerRead the Press Release
CHICAGO — A federal jury has found four former Commonwealth Edison (“ComEd”) executives and associates guilty on all counts charged, including conspiring to influence and reward the former Speaker of the Illinois House of Representatives in order to assist with the passage of legislation favorable to the electric utility company, in addition to multiple bribery and record falsification charges.
The jury found the following defendants guilty of all charges:
- MICHAEL McCLAIN, 75, of Quincy, who worked as a lobbyist and consultant for ComEd after serving in the Illinois House of Representatives in the 1970s and early 1980s.
- ANNE PRAMAGGIORE, 64, of Barrington, who served as CEO of ComEd from 2012 to 2018, and later served as a senior executive at an affiliate of Exelon Corp., of which ComEd was a subsidiary.
- JOHN HOOKER, 74, of Chicago, who served as ComEd’s executive vice president of legislative and external affairs from 2009 to 2012, after which he worked as an external lobbyist for ComEd.
- JAY DOHERTY, 69, of Chicago, who owned Jay D. Doherty & Associates, which performed consulting services for ComEd from approximately 2011 to 2019.
Sentencing dates have not been set. Count 1, charging the conspiracy, has a possible punishment of up to five years in federal prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense. Counts 2, 5, 6, and 8, charging bribery, have a possible sentence of up to 10 years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense. Counts 3, 4, 7, and 9, charging record falsification, have a possible punishment of up to 20 years in federal prison, a fine of $5,000,000, or twice the gross gain or loss from the offense.
The verdicts were announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois; Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the Federal Bureau of Investigation; and Justin Campbell, Special Agent-in-Charge of Internal Revenue Service Criminal Investigation in Chicago. The government was represented by Assistant U.S. Attorneys Amarjeet S. Bhachu, Diane MacArthur, Sarah E. Streicker, and Julia Schwartz.
Former Belmont County attorney sentenced to 5 years in prison for stealing more than $800,000 from elderly victim with dementiaRead the Press Release
COLUMBUS, Ohio – A former Belmont County attorney was sentenced in U.S. District Court today to 60 months in prison for committing mail fraud related to stealing more than $882,000 from an elderly woman with dementia while purporting to act in her best interests under a Power of Attorney.
From 2012 through August 2019, Mark Alan Thomas, 63, of St. Clairsville, Ohio, defrauded a client and took the victim’s money without her knowledge or permission to use it for his own benefit.
As part of his sentence, Thomas is required to pay $882,502 in restitution.
“Thomas’s grave abuse of power over this vulnerable victim demands today’s serious punishment,” U.S. Attorney Kenneth L. Parker said. “The victim in this case was 86 years old, exhibiting symptoms of dementia, and living in a senior-care facility. She trusted Thomas, and Thomas abused that trust to steal her money for more than seven years. His actions to take advantage of her were utterly shameful.”
According to court documents, Thomas improperly used the victim’s Power of Attorney and his status as a lawyer – even after his law license was revoked in 2015 – to convince various entities, including banks and life insurance companies, to transfer the victim’s money for his use.
In May 2012, a family member of the victim obtained a separate Power of Attorney for the victim, and Thomas drafted a revocation of the family member’s Power of Attorney for the victim to sign. Thomas acted as the notary to verify the victim’s signature on the revocation.
Furthermore, Thomas falsely told a banker he needed $200,000 from the victim’s investment account to set up an educational fund that the victim wanted to establish. Once he received the money from the bank, Thomas transferred the money to himself instead.
In January 2014, Thomas cashed more than $290,000 of the victim’s U.S. Treasury Bonds, then subsequently transferred $200,000 into his law firm’s bank account, and eventually into his own personal bank account.
According to court documents, in 2016, Thomas wrote letters to three life insurance companies purporting to be the victim asking to cash out the victim’s policies and direct all correspondence to Thomas.
Thomas was indicted by a federal grand jury in September 2021 and pleaded guilty in August 2022.
Kenneth L. Parker, U.S. Attorney, Southern District of Ohio; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and Ohio Attorney General Dave Yost announced the sentence imposed today by Chief U.S. District Judge Algenon L. Marbley. The Ohio Attorney General’s Health Care Fraud Unit and the FBI investigated the case. Assistant United States Attorneys David J. Twombly and S. Courter Shimeall are representing the United States in this case.
To report elder fraud, please visit the FBI’s IC3 Elder Fraud Complaint Center or contact the dedicated National Elder Fraud Hotline at 833–FRAUD–11 or 833–372–8311 Monday – Friday, 10:00 am – 6:00 pm EST.
# # #
Final Defendant in Multi-State Dog Fighting, Drug Conspiracy Case Pleads GuiltyRead the Press Release
MACON, Ga. – The 13th and final defendant involved in a multi-state dog fighting and drug distribution conspiracy based out of Middle Georgia pleaded guilty to his crimes on Friday.
Armard Davis aka “Black Jack,” 43, of Fort Valley, Georgia, pleaded guilty to conspiracy to possess with intent to distribute controlled substances and conspiracy to participate in an animal fighting venture before U.S. District Judge Tilman E. “Tripp” Self III on April 28. Davis faces a mandatory minimum of five years to a maximum sentence of 40 years in prison and a $5,000,000 fine for the drug conspiracy charge and a maximum sentence of five years and a $250,000 fine for the animal fighting conspiracy charge. Sentencing is scheduled for July 10.
“Shutting down this criminal organization, which was engaged in drug distribution and barbaric dog fighting, is the direct result of a lengthy and coordinated investigation involving many law enforcement agencies at the local, state and federal level,” said U.S. Attorney Peter D. Leary. “Their combined efforts have made our communities safer.”
According to court documents, law enforcement investigated a criminal organization involved in both cocaine distribution and organized dog fighting based out of Roberta, Georgia, which extended into North Georgia, Florida and Alabama from May 2019 until February 2020. Davis was regularly communicating about all elements of dog fighting including its planning, scheduling and attending dog fights; the weight of dogs engaged in fights; the amount of money bet on dog fights, as well as sponsoring dogs in fights; and selling, breeding, training and transporting dogs for the purpose of fights. On Feb. 24, 2020, law enforcement executed a search warrant at Davis’s property at 407 Vienna Street in Fort Valley, Georgia, where agents found nine pit-bull type dogs. Many of the dogs had scarring and visible injuries such as broken legs and open bleeding wounds, all consistent with dog fighting. Agents also seized a hanging scale, medical supplies consistent with dog fighting and miscellaneous pedigrees. For more information about this case, please visit: https://www.justice.gov/usao-mdga/pr/12th-defendant-sentenced-dog-fighting-drug-distribution-ring.
On Jan. 4, 2021, DEA agents learned that a drug transaction would be taking place between Davis and another person, at the direction of Antoine Riley, 46, of Butler, Georgia, a convicted defendant in a separate case who will be sentenced on May 3. The next day, agents observed Davis sell methamphetamine. Under surveillance, Davis was pulled over in Peach County, Georgia, and was arrested in possession of approximately 468 grams of suspected methamphetamine and $3,890 in cash. For information about the Riley case, please visit: https://www.justice.gov/usao-mdga/pr/nine-federally-charged-arrested-middle-ga-drug-trafficking-investigation.
This effort is part of an Organized Crime Drug Enforcement Task Force (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 dog-fighting and drug conspiracy case was investigated by the Drug Enforcement Administration (DEA), the U.S. Department of Agriculture - Office of the Inspector General, the U.S. Marshals Service, the Georgia Bureau of Investigation (GBI), the Bibb County Sheriff’s Office, the Crawford County Sheriff’s Office, the Houston County Sheriff’s Office, the Merriweather County Sheriff’s Office, the Peach County Sheriff’s Office, the Taylor County Sheriff’s Office, the Webster County Sheriff’s Office, the Byron Police Department and the Fort Valley Police Department. Deputy Criminal Chief Will Keyes with the U.S. Attorney’s Office for the Middle District of Georgia and Senior Trial Attorney Banu Rangarajan with the Department of Justice’s Environmental Crimes Section prosecuted the case.
The methamphetamine distribution case was investigated by the DEA, FBI, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Marshals Service, the Monroe County Sherriff’s Office, the Bibb County Sherriff’s Office and the Warner Robins Police Department. Assistant U.S. Attorney Alex Kalim is prosecuting the case.
Everett Man Indicted for Sex TraffickingRead the Press Release
BOSTON – A federal grand jury returned a four-count indictment today charging an Everett man with sex trafficking four female victims.
Trevor Jones, 45, was indicted on four counts of sex trafficking by force, fraud, or coercion. Jones was arrested on related state charges on March 23, 2023 and has remained in state custody since. He will appear in federal court in Boston at a later date.
“The allegations against Mr. Jones are incredibly serious and disturbing. As alleged, he specifically targeted victims suffering with substance use disorder, intensified their drug dependency to gain control, violently forced them to engage in sex acts for his own profit and, in some instances, used sexual violence to ensure their compliance,” said United States Attorney Rachael S. Rollins. “Sex trafficking is a very real and present threat in our Commonwealth. Every single day, Massachusetts residents are being subjected to unimaginable harm and trauma at the hands of traffickers. My office has dedicated substantial resources and created a dedicated team of prosecutors to combat this horrific conduct, hold traffickers accountable and bring justice to victims and survivors of these awful crimes.”
“The conduct we allege in this case is horrific. Trevor Jones is accused of preying on, drugging, and sexually victimizing women for his own financial gain. No human being should ever be lured into servitude, exploited, and forced to live their lives in fear where escape seems all but impossible, but that’s exactly what we believe happened here,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “The resiliency his victims have shown is commendable, and as a result, Jones will now face justice. Make no mistake, FBI Boston’s Child Exploitation – Human Trafficking Task Force will do everything in its power to help them get the services they need to heal.”
According to the charging documents, Jones ran a sex trafficking operation targeting victims who were suffering from substance use disorder. As part of his sex trafficking operation, Jones allegedly provided his victims with controlled substances, including heroin, fentanyl and cocaine to intensify their drug dependence and gain their compliance, while prohibiting the victims from obtaining controlled substances from other sources. He also routinely confiscated their identifications and other personal items to impede their ability to leave. Jones required victims to earn a daily quota and provide him with all the proceeds from their commercial sex acts. Jones allegedly enforced his requirements by punishing victims with acts of violence, threats of violence and withholding controlled substance from drug-dependent victims.
The charge of sex trafficking by force, fraud, or coercion provides for a mandatory minimum sentence of 15 years and up to life in prison, at least five years of supervised release and a fine of up to $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.
U.S. Attorney Rollins; FBI SAC Bonavolonta; John E. Mawn, Jr., Interim Colonel of the Massachusetts State Police; and Essex County District Attorney Paul F. Tucker made the announcement today. Valuable assistance was provided by the Revere and Boston Police Departments. Assistant U.S. Attorney Elizabeth Riley, Chief of Rollins’s Civil Rights and Human Trafficking Unit is prosecuting the case along with Essex County Assistant District Attorneys Jessica Strasnick and Marina Moriarty, who are serving as Special Assistant United States Attorneys.
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.
East Bay Man Charged with Running $39 Million Ponzi SchemeRead the Press Release
SAN FRANCISCO – A federal grand jury indicted Derek Vincent Chu, charging him with crimes related to an alleged $39 million Ponzi scheme involving over 100 victims, on April 26, 2023, announced United States Attorney Ismail J. Ramsey, Internal Revenue Service – Criminal Investigation (IRS-CI) Special Agent in Charge Darren Lian, and FBI Special Agent in Charge Robert K. Tripp.
According to the indictment, between late 2013 and 2020, Chu, 41, of Alamo, Calif., used several companies to raise $39 million by fraudulently soliciting investments in the purchase and resale of professional basketball tickets and luxury suites at Oracle Arena, in Oakland, California; the Staples Center, in Los Angeles, California; and the Chase Center, in San Francisco, California. The indictment further alleges that Chu induced investors by making numerous materially false misrepresentations, including how the investor funds would be used, how investors would be repaid, and whether the investments were secured by collateral.
According to the allegations in the indictment, Chu commingled the investors’ money between his own personal accounts and his companies’ accounts, which resulted in investor money being used to repay other, earlier investors, and for other unrelated expenses. Furthermore, the indictment alleges that Chu misappropriated and diverted more than $7.3 million of investor funds for his own personal benefit, which included paying credit card debts; making cash withdrawals; paying for travel, luxury automobile and jewelry purchases; and paying utilities bills, among other things.
The indictment charges Chu with eight counts of wire fraud, in violation of 18 U.S.C. §§ 1343 and 2, and three counts of money laundering, in violation of 18 U.S.C. §§ 1957 and 2.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. Each wire fraud count has a maximum statutory sentence of 20 years in prison and a fine in the amount of $250,000. Each money-laundering count has a maximum statutory sentence of 10 years in prison and a fine in the amount of $250,000. The court also may order a term of supervised release, fines or other assessments, restitution, and forfeiture, if appropriate. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Chu was arrested this morning and made an initial appearance before the Hon. Laurel Beeler, U.S. Magistrate Judge for the Northern District of California. Chu’s next appearance is scheduled before Judge Beeler on Wednesday, May 10, 2023, for appearance of counsel.The Special Prosecutions Section of the United States Attorney’s Office for the Northern District of California is prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service – Criminal Investigation, the Federal Bureau of Investigation, and the San Francisco Police Department.
Individuals who believe that they may be a victim in this case should contact the United States Attorney’s Office for the Northern District of California’s victim specialists by email at: [email protected].
Delaware Man Admits Distributing Heroin in New JerseyRead the Press Release
CAMDEN, N.J. – A Delaware man today admitted he distributed and possessed with intent to distribute heroin, U.S. Attorney Philip R. Sellinger announced.
Carl L. Jones, 49, of Newport, Delaware, pleaded guilty before U.S. District Judge Christine P. O’Hearn in Camden federal court to an information charging him with one count of distribution and possession with intent to distribute a mixture and substance containing a detectable amount of heroin.
According to documents filed in this case and statements made in court:
On March 29, 2019, Jones distributed, and possessed with intent to distribute, at least 700 grams, but less than one kilogram, of a mixture and substance containing a detectable amount of heroin to a confidential source who was working with law enforcement in a commercial parking lot in Mt. Laurel, New Jersey.
Jones faces a maximum potential penalty of 20 years in prison and a maximum fine of up to $1 million. Sentencing is scheduled for Sept. 6, 2023.
U.S. Attorney Sellinger credited special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Ricky J. Patel in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Kristen M. Harberg in Camden.
jones.information.pdfDearborn Heights Doctor Pleads Guilty to $925,000 Fraud SchemeRead the Press Release
DETROIT – A Dearborn Heights doctor pleaded guilty today to defrauding Medicare of more than $925,000 in health care payments, announced United States Attorney Dawn N. Ison.
Ison was joined in the announcement by Mario Pinto, Special Agent in Charge, United States Department of Health and Human Services – Office of Inspector General, and James A. Tarasca, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.
Fares Yasin, age 59, pleaded guilty before United States District Judge Stephen J. Murphy, III. According to court records, Yasin operated Michigan Home Visiting Physicians, in Dearborn, Michigan. Beginning in January 2015, Yasin was suspended from submitting claims to Medicare for any services that he rendered. However, during his suspension, Yasin continued to treat Medicare beneficiaries, and then he fraudulently submitted claims to Medicare utilizing the names and identification numbers of other doctors, including co-defendant Nura Yasin, in order to receive reimbursement for the services he rendered.
As part of the guilty plea, Yasin agreed to forfeit approximately $367,000 in cash seized by federal agents during the course of the investigation.
A sentencing hearing is set for September 14, 2023. Yasin faces up to ten years in federal prison.
“After being banned from submitting claims to Medicare, this doctor defrauded the government to continue receiving Medicare reimbursements.” stated U.S. Attorney Ison. “Physicians occupy a position of trust in our community, and my office remains committed to prosecuting medical providers who abuse that trust and steal taxpayer dollars.”
“Fares Yasin abused his position of trust by treating patients while on suspension and continuing to file claims with Medicare,” said James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Field Office. “The FBI and our law enforcement partners are dedicated to pursuing providers who disregard medical and regulatory requirements in order to line their own pockets.”
"Not only did this provider continue to submit claims to Medicare after being suspended from Federal health care programs; he also used his patients' information to try and steal from those programs," said Mario M. Pinto, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). "HHS-OIG will continue in our efforts to identify and investigate those who violate the privacy and trust of their patients and steal from taxpayers for selfish financial gain."
This case was prosecuted by Assistant United States Attorneys Wayne Pratt and Alison Furtaw.
Dallas Woman Pleads Guilty in $7 Million COVID-19 Testing FraudRead the Press Release
A Dallas woman pleaded guilty today to scamming insurers out of more than $7 million for COVID-19 testing that was never actually performed, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Connie Jo Clampitt, 52, was indicted in December. She pleaded guilty Tuesday to conspiracy to commit healthcare fraud before U.S. Magistrate Judge Irma Carrillo Ramirez.
“As the country struggled to cope with a devastating pandemic, this defendant conspired to swindle insurance providers out of millions of dollars. She exploited the healthcare system when it was at its most vulnerable, indirectly raising healthcare costs for everyday Americans. We are proud to hold her accountable for her role in this conspiracy, and look forward to proving our case against her co-conspirators in court,” said U.S. Attorney Leigha Simonton.
According to plea papers, Ms. Clampitt admitted that she and her co-conspirators accessed private patient information – including names, dates of birth, and insurance subscriber numbers – through various clinics where one defendant worked as a contract lab technician.
They then used the patient information to submit claims to insurance providers – including Blue Cross Blue Shield, Cigna, United Healthcare, Aetna, Humana, and Molina Health Care – for COVID-19 testing that was never performed. (The patients had not requested COVID-19 testing, nor were they aware their information was being used to submit claims.)
Ms. Clampitt admitted that the “labs” at which the co-conspirators claimed the testing occurred, including TC Diagnostics, ME Diagnostics, and PHR Diagnostics, were, in fact, shell entities that never operated as labs. Collectively, these three entities submitted approximately $30 million in claims and were paid more than $7 million in reimbursements for fake testing.
Ms. Clampitt now faces up to five years in federal prison. According to the terms of her plea agreement, she has agreed to a $7.29 million forfeiture money judgment and will forfeit a number of items seized during the investigation, including $2.5 million in funds from numerous bank accounts, two residences, six vehicles, and six luxury watches.
Also charged in the scheme are Terrance Barnard, 39, William Paul Gray, 49, and Donn Hogg, 37. Mr. Barnard, Mr. Gray, and Mr. Hogg are presumed innocent until proven guilty in a court of law.
The Dallas Regional Office of the United States Department of Labor – Employee Benefits Security Administration, the Dallas Office of the Department of Labor – Office of Inspector General, the Texas Department of Insurance Fraud Unit's Fort Worth Field Office, and the Federal Bureau of Investigation's Dallas Field Office conducted the investigation. Assistant U.S. Attorney Renee Hunter is prosecuting the case; Assistant U.S. Attorney Dimitri Rocha is handling the forfeiture.
For more information about the Justice Department’s response to wrongdoing connected to the COVID-19 pandemic, visit https://www.justice.gov/coronavirus.
Camden County Woman Sentenced to Five Years in Prison for Fraudulently Obtaining 30 Loans Meant to Help Small Businesses During COVID-19 PandemicRead the Press Release
CAMDEN, N.J. – A Camden County, New Jersey, woman was sentenced on May 1, 2023, to 60 months in prison, five years of supervised release and ordered to pay $3.18 million in restitution and forfeit $1.03 million for conspiring to fraudulently obtain 30 Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loans (EIDL) totaling more than $3 million, and to laundering the proceeds. Rhonda Thomas, 38, of Sicklerville, New Jersey, pleaded guilty by videoconference on June 28, 2022, before U.S. District Judge Karen M. Williams to an information charging her with one count of bank fraud conspiracy and one count of money laundering.
Butler Man Sentenced to 8 Years of Incarceration for Drug and Gun CrimesRead the Press Release
PITTSBURGH, PA - A former resident of Butler City, Pennsylvania, has been sentenced in federal court to eight years of incarceration and three years of supervised release on his convictions for conspiracy to possess with intent to distribute fentanyl, possession with intent to distribute fentanyl, and possession of a firearm in furtherance of a drug trafficking crime, Acting United States Attorney Troy Rivetti announced today.
United States District Judge Christy Criswell Wiegand imposed the sentence on Joshua McKenzie, age 38.
According to information presented to the court, in and around March 2020 and continuing until May 2020, McKenzie conspired to possess with intent to distribute and distributed fentanyl. In addition, McKenzie, a previously convicted felon, did knowingly possess a firearm in furtherance of this drug trafficking crime.
Assistant United States Attorney Michael L. Mitchell prosecuted this case on behalf of the government.
Acting United States Attorney Rivetti commended the Butler County District Attorney’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives for conducting the investigation that led to the prosecution of McKenzie.
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.
Bronx Man Charged with Mid-Afternoon Shooting on Crowded Manhattan SidewalkRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Michael J. Driscoll, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Keechant L. Sewell, the Commissioner of the New York City Police Department (“NYPD”), announced today that MICHAEL ROWE, a/k/a “MJ,” was charged with being a felon in possession of ammunition during a shooting that occurred on Saturday afternoon, April 29, 2023, on a crowded sidewalk near 46th Street and Ninth Avenue in Manhattan. ROWE surrendered last night and was presented today before United States Magistrate Judge Stewart D. Aaron.
U.S. Attorney Damian Williams said: “As alleged, this past Saturday afternoon, Michael Rowe opened fire on a busy sidewalk in Hell’s Kitchen, endangering the life of his intended victim and the lives of countless bystanders. Thanks to the swift action of our law enforcement partners, the defendant is now being held accountable for his actions.”
FBI Assistant Director in Charge Michael J. Driscoll said: "Rowe's alleged actions endangered numerous innocent people simply attempting to live their lives safely - something we all should feel free to do. The charges today should serve as a warning to any individual willing to settle arguments in a similar fashion - the FBI and our partners in law enforcement will hold you accountable in the criminal justice system."
NYPD Commissioner Keechant L. Sewell said: “The NYPD will never relent in our fight against gun violence in our city. And anyone who threatens our public safety with such reckless behavior must be held accountable to the fullest extent of the law. This work is critically important, and I want to thank the U.S. Attorney’s Office for the Southern District of New York, the New York Field Office of the FBI, and everyone else who aided in this arrest.”
According to the allegations contained in the Complaint:[1]
On or about April 29, 2023, MICHAEL ROWE got into a disagreement with another individual on the sidewalk in the vicinity of 650 Ninth Avenue in Manhattan. Video footage from the scene reveals ROWE appearing to express annoyance and then brandishing a firearm on the crowded sidewalk and shooting at the other individual. Screenshots of video footage showing the argument and ROWE’s subsequent shooting of the individual are below:
A discharged shell casing was recovered from the ground at the scene of the shooting. ROWE was not permitted to possess ammunition because of prior state and federal felony convictions.
* * *
MICHAEL ROWE, 23, of the Bronx, New York, is charged with possessing ammunition after a felony conviction, which carries a mandatory minimum sentence of 15 years in prison and a maximum sentence of life in prison.
The statutory minimum and maximum penalties 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 work of the FBI and the NYPD. Mr. Williams also thanked the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the New York County District Attorney’s Office for their assistance in this case.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Frank Balsamello, Peter Davis, and Jamie Bagliebter are 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 entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Bergen County Man Charged in Car Theft and Fraudulent Resale SchemeRead the Press Release
NEWARK, N.J. – A former Bergen County, New Jersey, man has been charged with running a large, multistate car theft and fraud ring, U.S. Attorney Philip R. Sellinger announced.
Warren Guerrier, 46, formerly of Hackensack, New Jersey, is charged by indictment with one count of conspiracy to commit wire fraud, five counts of wire fraud, and one count of aggravated identity theft. He was arraigned today before U.S. District Judge William J. Martini in Newark federal court and pleaded not guilty.
According to documents filed in this case and statements made in court:
From November 2016 to June 2020, Guerrier and several conspirators acting at his direction orchestrated a scheme to steal and then fraudulently sell vehicles to unsuspecting buyers. They identified vehicles to steal, then photographed, tracked, and advertised them for sale on the Internet. At the sales, the buyer victims were provided with electronically programmed keys and falsified certificates of title for the stolen vehicles in exchange for a negotiated purchase price in cash. Buyer victims also were provided with fraudulent identity documents utilized by conspirators to obscure their true identities.
The scheme involved the theft of at least 40 stolen vehicles, approximately 30 of which were sold by Guerrier and his conspirators to buyer victims, and as a result of which Guerrier and his conspirators collected approximately $285,000.
The conspiracy to commit wire fraud count and each count of wire fraud is punishable by a maximum penalty of 20 years in prison and a maximum $250,000 fine. The aggravated identity theft count is punishable by a sentence of two years in prison, which must be served consecutively to any other term imposed, and a maximum $250,000 fine.
U.S. Attorney Sellinger credited the FBI Newark Violent Incident Crimes Task Force, Garrett Mountain Resident Agency, under the direction of Special Agent in Charge James E. Dennehy in Newark and Special Agent in Charge Douglas Williams in New Orleans, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorneys Jessica R. Ecker of the General Crimes Unit and Kendall Randolph of the Organized Crime/Gangs Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
guerrier.indictment.pdfBarbour County man charged with firearms violationsRead the Press Release
CLARKSBURG, WEST VIRGINIA – A Philippi, West Virginia, man with a prior domestic violence conviction is facing federal firearms charges.
Ethan D. Delauder, 31, was indicted today for unlawful possession of a firearm and for possessing an unregistered firearm. According to court documents, West Virginia State Police conducted a traffic stop of Delauder during which a shotgun with an illegal shortened barrel was visible on the passenger seat. Delauder is prohibited from having firearms because of domestic violence conviction from Barbour County Magistrate Court in 2017.
If convicted, Delauder faces up to 10 years in prison for each charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Bureau of Alcohol, Tobacco, Firearms & Explosives and the West Virginia State Police investigated the case.
Assistant U.S. Attorney Christopher Bauer is prosecuting the case on behalf of the government.
An indictment is merely an allegation, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Bank Robber Sentenced to More Than Nine Years; Robbed Same Credit Union TwiceRead the Press Release
NEWS RELEASE SUMMARY – April 25, 2023
SAN DIEGO – Akil Saeed Daniels was sentenced in federal court to 110 months in prison for robbing credit unions in Poway and Chula Vista in 2022 - months after he was released from a long stint in prison for robbing the same Chula Vista credit union more than a decade earlier.
That twice-robbed credit union – California Coast on H Street in Chula Vista – was one of five financial institutions Daniels robbed in 2011. For that he was sentenced to more than 13 years in prison. Following his release in June 2022, he then robbed the same Chula Vista location of California Coast Credit Union only three months later, on September 27, 2022. He robbed the Mission Federal Credit Union the next day.
During the most recent robbery of California Coast, Daniels used a demand note. Coincidentally, the teller he robbed at that location in 2011 still works for the credit union. That teller was standing beside another teller when Daniels robbed that location again 11 years later.
When Daniels robbed the Mission Federal Credit Union in Poway, he used a demand note that read, “Hand me all the money, don’t make me get violent” or “Hand me all the money, I don’t want to get violent.”
Daniels was arrested on October 3, 2022, and was indicted for those robberies in November 2022. He was convicted by a federal jury following a two-day trial in January 2023.
“Employees who have been through a robbery are impacted for the rest of their lives,” said U.S. Attorney Randy Grossman. “This defendant made the decision to terrorize the same people not once, but twice. And now, not once, but twice, he will pay for his crime with a lengthy prison term.” Grossman thanked the prosecution team and the FBI for their excellent work on this case.
“This is not the first time that Daniels has had to face the consequences for this type of crime,” said Acting Special Agent in Charge Houtan Moshrefi. “May this 110-month sentence be a reminder of the severity of his actions. Violent crimes such as these in our community are intolerable. The FBI and our law enforcement partners are committed to holding those responsible who choose to rob banks as a means of income.”
This case is the result of the ongoing efforts of the Violent Crime and Human Trafficking (VCHT) Section. Formed in 2019, the VCHT is tasked with leading collaborations between federal and local law enforcement in the investigation and prosecution of cases involving violent crimes, firearms and gang cases; sex trafficking and child exploitation; civil rights, and labor trafficking. The VCHT Section oversees the Southern District of California Coordinators for Project Safe Neighborhoods, Human Trafficking, and Project Safe Childhood. The VCHT Section also provides federal prosecutors to the San Diego Violent Crimes Task Force, the downtown San Diego Violent Crimes Task Force-Gang Group, the North County Gang Task Force, and the East County Gang Task Force.
This case is also 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.
DEFENDANT Case Number 22cr2505-LL
Akil Saeed Daniels Age: 41 San Diego, CA
SUMMARY OF CHARGES
Bank Robbery – Title 18, U.S.C., Section 2113(a)
Maximum penalty: Twenty years in prison
Bank Robbery – Title 18, U.S.C., Section 2113(a)
Maximum penalty: Twenty years in prison
AGENCY
Federal Bureau of Investigation – Violent Crimes Task Force
Auto Zone robber convictedRead the Press Release
HOUSTON – A 31-year-old Houston resident has entered a guilty plea to two counts of Hobbs Act robberies as well as discharging a firearm during one of the crimes, announced U.S. Attorney Alamdar S. Hamdani.
Dominique Andrews robbed two Auto Zone locations in Houston.
On Feb. 4, 2022, Andrews entered the Auto Zone on Cullen Boulevard and robbed an employee at gunpoint. He produced a silver semi-automatic firearm and demanded money from the victim. Fearing for her life, the employee complied. Andrews also took two car scanners. During the robbery, he discharged a round from his firearm.
The same day, Andrews went to another Auto Zone on Telephone Road. He again produced a silver semi-automatic firearm and demanded money from the employee victim. Andrews discharged several rounds from the firearm he was carrying while in the commission of the robbery.
U.S. District Judge David Hittner accepted the plea and set sentencing for July 27. At that time, Andrews faces up to 20 years for the robberies as well as a mandatory minimum of 10 years and up to life for the firearms charge which must be served consecutively to any other prison term imposed. Both charges also carry a possible $250,000 maximum fine.
He has been and will remain in custody pending that hearing.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Houston Police Department conducted the investigation.
This case is an example of coordination between law enforcement who are part of the Houston Law Enforcement Violent Crime Initiative which combines personnel and resources from numerous federal, state and local agencies. The goal is to proactively fight and reduce violent crime across the Greater Houston area by targeting the region’s most violent offenders, augmenting investigative and prosecutorial efforts and enhancing training, public awareness and education. It stems from the Project Safe Neighborhoods (PSN) Program. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them.
Assistant U.S. Attorney Joe Porto is prosecuting the case.
American living in Mexico caught trying to export 5,680 rounds of ammunitionRead the Press Release
LAREDO, Texas – A 32-year-old U.S. citizen has pleaded guilty to smuggling goods from the United States, announced U.S. Attorney Alamdar S. Hamdani.
Jesus Alberto Olivarez admitted to attempting to export 5,680 rounds of assorted pistol ammunition.
“All too often, the smuggling of illegal firearms and ammunition to Mexico is used to fuel a scourge of violence that threatens law enforcement and security officials, as well as the communities they serve,” said Deputy Attorney General Lisa O. Monaco. “To protect our law enforcement partners and the people of both our nations, the Justice Department will continue to use all of the tools at our disposal to stop those who would traffic illegal guns and ammunition to Mexico.”
“Olivarez was about to drive into Mexico with almost 6,000 rounds of live ammunition until the expertise and keen ear of a law enforcement officer thwarted his plan,” said Hamdani. “Stopping the illegal flow of firearms and ammunition into Mexico saves lives and will always be a priority of the Southern District of Texas and our local, state and federal law enforcement partners.”
On Feb. 27, Olivarez drove his black PT Cruiser to the Lincoln Juarez International Bridge on his way home to Nuevo Laredo, Tamaulipas, Mexico. Authorities noted one of the vehicle’s doors rattled as if something was hidden in it and seemed unusually heavy.
A subsequent search of all four of the Cruiser’s door panels yielded a total of 5,680 live rounds of pistol ammunition in assorted calibers - 3,600 rounds of .40 caliber S&W, 900 rounds of .380 caliber, 900 rounds of .45 caliber, 100 rounds of 9-millimeter and 180 rounds of .38 SPL +P ammunition.
Olivarez admitted he had agreed to smuggle the ammunition into Mexico and had just received the ammunition a few hours prior. He personally hid the ammunition throughout the vehicle’s door and rear panels.
U.S. District Judge Marina Garcia Marmolejo will impose sentencing Aug. 9. At that time, Olivarez faces up to 10 years in prison and a possible $250,000 maximum fine.
He has been and will remain in custody pending that hearing.
Homeland Security Investigations (HSI) assigned to the HSI-Laredo Border Enforcement Task Force, working in coordination with the Laredo Police Department’s Texas Anti-Gang Unit, conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorney Homero Ramirez is prosecuting the case.
This case is being prosecuted as part of the joint federal, state and local Project Safe Neighborhoods (PSN) Program. In May 2021, Attorney General Merrick B. Garland announced a new effort to reduce violent crime, including the gun violence that is often at its core. Integral to that effort was the reinvigoration of PSN, a two-decade old, evidence-based and community-oriented program focused on reducing violent crime. The updated PSN approach, outlined in the department’s Comprehensive Strategy for Reducing Violent Crime is guided by four key principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence, setting focused and strategic enforcement priorities and measuring the results of our efforts. The fundamental goal is to reduce violent crime, not simply to increase the number of arrests or prosecutions.
American Airlines Mechanic Convicted of Conspiring to Import Cocaine Bricks in Compartment Under Cockpit of JetlinerRead the Press Release
UPDATE
The defendant’s conviction for the conduct described in the press release below was vacated by the United States Court of Appeals for the Second Circuit on January 23, 2026. See 20-CR-219 (DLI) ECF No. 169.
Today, a federal jury in Brooklyn convicted Paul Belloisi, an American Airlines mechanic at John F. Kennedy International Airport (JFK Airport), of all three counts of an indictment charging him with conspiring to possess cocaine, conspiring to import cocaine, and importing cocaine. The verdict followed a one-week trial before United States District Judge Dora L. Irizarry. When sentenced, Belloisi faces up to 20 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 (HSI), and Francis J. Russo, Director of Field Operations, U.S. Customs and Border Protection, New York Field Office (CBP), announced the verdict.
“As proven, the defendant was caught red-handed trying to facilitate the smuggling of a large stash of cocaine hidden in an electronics compartment of the aircraft.” stated United States Attorney Peace. “This corrupt airline mechanic not only abused his position of trust and undermined the security of a vital border crossing in our district, but was also willing to potentially endanger the safety of travelers as well as the community.”
“Not only did Belloisi violate the law by conspiring to traffic cocaine into the United States, but he used his trusted position as an American Airlines mechanic at JFK International Airport to facilitate his criminal activity,” said HSI New York Special Agent in Charge Ivan J. Arvelo. “Cocaine addiction is a serious problem throughout the country due in large part to the traffickers who place profit above the safety of others. HSI is committed to working with law enforcement partners to identify, arrest and prosecute those responsible for importing illicit drugs into the United States.”
“This case serves as a great example of collaborative law enforcement efforts to combat international narcotics trafficking conspirators. U.S. Customs and Border Protection thanks our partners at HSI and U.S. Immigration and Customs Enforcement for their continued cooperation,” stated CBP Director of Field Operations Russo.
As proven at trial, on February 4, 2020, American Airlines flight 1349 arrived at JFK Airport’s Terminal 8 from Montego Bay, Jamaica. The aircraft was selected for a routine search by CBP officers from the JFK Airport Anti-Terrorism Contraband Enforcement Team. The officers found 10 bricks of cocaine weighing 25.56 pounds—hidden inside an electronics compartment on the underside of the cockpit. The cocaine was replaced with fake bricks and sprayed with a substance that glows when illuminated with a special light. CBP officers and HSI special agents placed the aircraft under surveillance from a distance and shortly before it was scheduled to take off for its next flight, they observed Belloisi drive up and pull himself inside the electronics compartment. Belloisi was confronted by law enforcement who observed his gloves glowing under the black light indicating he had handled the fake bricks. Belloisi was also carrying an empty tool bag and the lining of his jacket had cutouts sufficiently large enough to hold the bricks. The cocaine found in the aircraft had a street value of approximately $285,000 to $320,000.
The government’s case is being handled by the Office’s International Narcotics & Money Laundering Section. Assistant United States Robert Pollack and Margaret Schierberl are in charge of the prosecution with the assistance of Paralegal Specialist Sophia Cronin.
The Defendant:
PAUL BELLOISI
Age: 55
Hicksville, New YorkE.D.N.Y. Docket No. 20-CR-219 (DLI)
1 May 2023
Washington Family Pleads Guilty to Indian and Arts and Crafts Act ViolationsRead the Press Release
JUNEAU – A Washington family has pleaded guilty to conspiracy to violate the Indian Arts and Crafts Act for crimes committed when they owned and operated several businesses in Ketchikan, Alaska, involving the sale of Philippine produced stone carvings and wood totem poles as authentic Alaska Native produced artwork.
According to court documents, between April 2016 through December 8, 2021, Cristobal “Cris” Magno Rodrigo, 59, Glenda Tiglao Rodrigo, 46, and Christian Ryan Tiglao Rodrigo, 24, operated Alaska Stone Arts, LLC, Rail Creek, LLC, and Rodrigo Creative Crafts. During the course of the conspiracy the Rodrigos operated Alaska Stone Arts, LCC, which primarily sold stone carvings, and Rail Creek, LLC, that primarily sold wood totem poles in Ketchikan, Alaska. Those carvings were sourced from Glenda Rodrigo’s company, Rodrigo Creative Crafts, located in the Philippines. This Philippine business was created for the sole purpose of producing carvings featuring Alaskan Native designs and motifs through the use of Philippine labor. The carvings were shipped to the United States and subsequently to the Rodrigo’s stores in Ketchikan, and were then sold as authentic Alaskan Native art to unsuspecting customers in Alaska and elsewhere.
As part of the conspiracy, the Rodrigos also hired Alaskan Natives at Alaska Stone Arts, LLC and Rail Creek, LCC to represent and sell Philippine produced artwork as their own authentic Alaskan Native artwork in order to deceive customers into believing they were purchasing authentic Alaskan Native produced carvings. The investigation is still ongoing.
The defendants were arraigned and pled guilty on April 28, 2023, before Chief U.S. Magistrate Judge Matthew S. Scoble. If convicted, the Rodrigos face a maximum of 10 years in prison. A sentencing hearing has been set on August 17, 2023, before Senior District Court Judge Timothy M. Burgess in federal district court. The judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
“This type of fraud directly affects Alaska Native artisans and their ability to make a living and is an affront to Alaska Native artists that have produced these beautiful works throughout the history of their culture” said U.S. Attorney S. Lane Tucker. “The United States Attorney’s Office and our law enforcement partners will continue to work to protect this cultural heritage, protect unwitting consumers, and prosecute and hold accountable those who perpetrate this type of fraud.”
“Protecting Alaska Native and American Indian culture and traditions is a critical part of the Indian Arts and Crafts Act,” said Edward Grace, Assistant Director of the U.S. Fish and Wildlife Service Office of Law Enforcement. “The U.S. Fish and Wildlife Service has a dedicated team of special agents that work on Indian Art and Crafts Act violations on behalf of the U.S. Department of the Interior and the Indian Arts and Crafts Board. Their investigative efforts protect consumers from those who choose to misrepresent Indian arts and crafts products. This exploitation of Alaska Natives for personal and financial gain is unacceptable. We thank our partners at the U.S. Department of Justice and the Indian Arts and Crafts Board for their assistance with this investigation.”
“Alaska has a very rich cultural heritage in which Alaska Native arts and crafts play a central role, including the passing down of cultural traditions from generation to generation. Accordingly, the Indian Arts and Crafts Board (IACB) is very pleased that these defendants have been brought to justice for their roles in producing as well as selling counterfeit Tlingit totem poles and stone carvings,” said U.S. Department of the Interior IACB Director Meridith Stanton. The IACB is responsible by statute for administering the Indian Arts and Crafts Act, an anti-counterfeiting statute enacted to rid the Alaska Native and American Indian arts and crafts market of fakes like those being misrepresented by defendants Cristobal M. Rodrigo, Glenda T. Rodrigo, and Christian Ryan T. Rodrigo. “Cases like these, particularly in popular Alaska tourist destinations which attract consumers from all over the world, are critical to preserving the integrity and viability of authentic Alaska Native art and craftwork, culture, and economies,” Director Stanton added. “The IACB applauds the diligent work of the U.S. Attorney’s Office, District of Alaska and the U.S. Fish and Wildlife Service Indian Arts and Crafts Act Enforcement Division in investigating and prosecuting these important cases.”
The Department of Interior – U.S. Fish and Wildlife Service/Office of Law Enforcement lead the investigation with the assistance of the Indian Arts and Crafts Board, U.S. Customs and Border Protection, and U.S. Department of Agriculture.
Assistant U.S. Attorney Jack Schmidt is prosecuting the case.
If you were a customer of Alaska Stone Arts, LLC or Rail Creek, LLC and purchased a stone carving or wood totem pole believing that it was an authentic Alaskan Native artwork, please contact U.S. Fish and Wildlife Special Agent Sherrell at 907-586-7545.
If you suspect potential Indian Arts and Crafts Act violations being committed, a complaint may be submitted through the Indian Arts and Crafts Board’s online complaint form, www.doi.gov/iacb/should-i-report-potential-violation, email, [email protected], or toll free number, 888-278-3253.
###
usao/ak/23-034
U.S. Attorney Joins Law Enforcement, Stakeholders to Combat AntisemitismRead the Press Release
COLUMBUS, Ga. – The U.S. Attorney’s Office for the Middle District of Georgia, the Department of Justice’s (DOJ) Civil Rights Division, the FBI, the Columbus Police Department (CPD) and the Anti-Defamation League (ADL) joined with Temple Israel in Columbus to discuss the rise of antisemitism in the nation and ways for citizens to safely and effectively respond to and report antisemitic activity. The program was developed by the U.S. Attorney’s Office, in part, due to antisemitic literature being distributed in Columbus neighborhoods in the recent past.
Hosted by Temple Israel on Sunday, April 30, U.S. Attorney Peter D. Leary kicked off the three-hour program entitled, “Combating Antisemitism: A Legal Perspective.” He was joined by the Civil Rights Coordinators for the Middle District of Georgia, Assistant U.S. Attorneys Lance Simon and Hannah Couch. Panel discussions were led by DOJ’s Civil Rights Division Deputy Chief Barbara Bosserman; FBI-Columbus Supervisory Special Resident Agent Richard Bilson; Columbus Police Department Lt. Jeff Bridges; ADL Southern Division Sr. Associate Director for Jewish Community Outreach Eric Ross; and ADL Center on Extremism Associate Investigative Researcher Katie McCarthy.
“It makes sense that this timely gathering of federal prosecutors, law enforcement and stakeholders to discuss the rise of antisemitism and how best to combat it as a community should occur at Temple Israel, one of the first Jewish congregations in Georgia,” said U.S. Attorney Peter Leary. “Antisemitism is a growing threat to both the safety of our Jewish citizens and the United States, undermining the very foundation upon which our nation was built. My hope is that more communities in the Middle District of Georgia will join in this discussion, as we work together to defeat hatred and the violence it creates.”
“Of all the forms of religious and ethnic hatred, anti-Semitism is one of the oldest and most persistent, and it is on the rise,” said Assistant Attorney General Kristen Clarke. “The Justice Department continues to use all resources at its disposal to hold accountable people who engage in unlawful, bias-motivated acts of hate, including acts of anti-Semitism. In addition to our prosecutions of those who commit hate crimes against Jewish individuals and houses of worship, we are bringing together the Justice Department, local law enforcement and community leaders through our United Against Hate program, to strengthen our overall efforts to combat hate crimes and prevent hate incidents. Our communities, schools, workplaces and religious institutions are all safer when we stand unified in the fight against hate.”
“We feel privileged to host such a prestigious panel, the Jewish communities and its allies to discuss the realities of antisemitism and the dangers it poses to our city, state and the entire country,” said Terrie Potts, Temple Israel’s President. “It’s encouraging to see the extent to which law enforcement resources are being used to fight this and other forms of hate against all people.”
“Antisemitic incidents have reached an all-time high in this country, and Georgia is no exception. In this state, we saw a 63% increase in incidents from 2021 to 2022, and numbers that nearly quadrupled since 2020,” said Eytan Davidson, ADL Southeast Regional Director. “It’s incumbent upon us all to combat hate together, and the coming-together that we see at events like this is exactly what we all need to make the world a better, more inclusive and safer place.”
“The FBI is the lead investigative agency for criminal violations of federal civil rights statutes”, said Keri Farley, Special Agent in Charge of FBI Atlanta. “We are proud to work closely with our partners throughout Georgia communities to combat antisemitism, even when federal charges are not able to be pursued. If you have been a victim of a hate crime, the FBI wants to help. Call 1-800-CALL-FBI (225-5324) or visit tips.fbi.gov to report.”
“The Columbus Police Department appreciates any opportunity we have to meet with members of our community to discuss, teach and learn about concerns and issues. We commend Temple Israel’s leaders and congregates for their proactiveness in addressing the issues they’re experiencing in terms of antisemitism. We want to send a clear message that hate has no place in our community, and we will continue to do everything we can to help ensure citizens of all faiths and backgrounds have the peace, safety and security they deserve. This gathering and discussion is very much needed because it takes all of us to combat the issue of antisemitism and hatred in our community and the nation as a whole,” said Lt. Jeff Bridges with the Columbus Police Department.
More than 50 people were present for the panel discussions and dialogue, with speakers addressing many topics including the increase in antisemitic incidents, current examples of antisemitic extremism in the District and beyond, law enforcement’s response to such acts, suggested security measures and the Department’s record in prosecuting antisemitic hate crimes.
Citizens are urged to report antisemitic incidents to the local authorities first and then contact the FBI at 1-800-CALL-FBI (225-5324) or tips.fbi.gov and the U.S. Attorney’s Office for the Middle District of Georgia at 478-752-3511.
For more information about hosting a training to combat hate crimes in your community, please contact Pam Lightsey, Law Enforcement Coordinator with the U.S. Attorney’s Office, at [email protected].
U.S. Attorney Charges Former Westchester County Board of Legislators Employee with Attempted Enticement of A MinorRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that ANAND SINGH was arrested today and charged with one count of attempted enticement of a minor. The Complaint charges that SINGH communicated with an individual, who he believed to be a 14-year-old girl, on Hily, a dating application, and via text message and made plans to meet the individual at an apartment building to engage in sexual activity. SINGH was presented today before U.S. Magistrate Judge Judith C. McCarthy in White Plains federal court and detained pending a bail hearing on Wednesday.
U.S. Attorney Damian Williams said: “33-year-old Anand Singh allegedly attempted to entice an individual, who he believed to be a 14-year-old, to meet for sexual purposes, via dating and text apps. Today’s arrest is a reminder of the inherent danger the internet could potentially pose to our youth and the critical importance to protect them from online predators.”
As alleged in the criminal Complaint:[1]
In December of 2022, SINGH, then an employee of the Westchester County Board of Legislators, used a mobile dating application called “Hily” and text messages to entice an individual posing as a 14-year-old girl to engage in sexual activity with him. SINGH used the screen name “Anon” to communicate with the individual on the Hily application. During these communications, SINGH repeatedly expressed, in graphic and unambiguous terms, his desire to engage in sexual activity with the individual and made a plan to meet her at an apartment building in Newark, New Jersey, for the purposes of engaging in sexual activity. In the early hours of December 17, 2022, SINGH went to the location where he and the individual posing as a 14-year-old girl planned to meet.
* * *
ANAND SINGH, 33, of Tarrytown, New York, is charged with one count of attempted enticement of a minor, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison.
The statutory minimum and maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation’s (“FBI”) Westchester County Safe Streets Task Force. He also thanked the Westchester County Police Department and Westchester County District Attorney’s Office for their participation and support in this investigation.
The investigation is ongoing and there may be other victims of this alleged conduct. If you have information to report concerning ANAND SINGH, please contact the FBI at 1-800-CALL-FBI.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorney Kathryn Wheelock is in charge of the prosecution.
The allegations 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 entirety of the text of the Complaint and the description of the Complaint set forth herein are only allegations, and every fact described should be treated as an allegation.
Two DC-Area Men Plead Guilty to Drug Charges Connected to an Open-Air Drug Market in SE DCRead the Press Release
All Six Charged Defendants Have Now Entered Guilty Pleas
WASHINGTON – Douglas Campbell, 27, of District Heights, Maryland, and his brother Delonte Campbell, 27, of Southeast Washington D.C., pleaded guilty today, in U.S. District Court, to felony charges in connection with their roles in an open-air drug market.
Douglas Campbell pleaded guilty to possessing a firearm in furtherance of a drug trafficking crime. Delonte Campbell pleaded guilty to conspiracy to possess and distribute a controlled substance, and possession with intent to distribute a controlled substance within 1,000 feet of a school. Sentencing for both defendants is set for August 3, 2023.
The brothers are among six defendants charged with operating an open-air drug market at the Shell Gas Station located at 4700 South Capitol Street SE. According to court documents, law enforcement had observed individuals, including the six defendants charged, operating an open-air drug market at the Shell Gas Station. The gas station drew individuals who conducted daily drug transactions in the parking lot and surrounding area of the gas station, often while armed with firearms. The Shell Gas Station was the scene of increased violence suspected to be connected to drug trafficking in the months leading up to the defendants’ arrests.
The Campbells and their co-defendants trafficked narcotics at the Shell Gas Station through hand gestures and social media advertisements. Once a potential customer was procured, these individuals often measured and distributed controlled substances to their customers in plain view. The defendants sold alongside each other, coordinated sales with each other, and were in frequent communication through telephone and social media messaging, coordinating their activities with the goal of selling marijuana to customers at the Shell while securing their narcotics and drug trafficking proceeds with firearms, often carrying weapons in plain view.
Each of the six defendants charged for their role in the conspiracy have now pleaded guilty. Lavon Alphonso Blakeney, 28, of Southeast Washington D.C., and David Ashton, 24, of Hyattsville, Maryland, each pleaded guilty to possessing a firearm in furtherance of a drug trafficking crime. Keonte Obatunde Lorenzo Lewis, 20, of Southeast Washington D.C., pleaded guilty to possession with intent to distribute a controlled substance within 1,000 feet of a school and carrying a pistol without a license. Finally, Tyrell Davon Jones, 28, of Temple Hills, Maryland, pleaded guilty to conspiracy to possess and distribute a controlled substance and carrying a pistol without a license. All are awaiting sentencing.
The charge of possessing a firearm in furtherance of a drug trafficking crime carries a statutory maximum sentence of life imprisonment, with a mandatory minimum sentence of five years imprisonment to be imposed. The possession with intent to distribute a controlled substance within 1,000 feet of a school carries a statutory maximum sentence of 10 years’ imprisonment, with a mandatory minimum sentence of one year imprisonment to be imposed. The charge of conspiring to possess with the intent to distribute controlled substances carries a statutory maximum sentence of five years’ imprisonment. The charge of carrying a pistol without a license carries a statutory maximum sentence of five years’ imprisonment. A federal district court judge will determine the appropriate sentence after considering the guideline ranges and other factors.
This case is being prosecuted by Assistant U.S. Attorney Matthew W. Kinskey and former Special Assistant U.S. Attorney Aaron J. Stewart of the Violence Reduction and Trafficking Offenses Section (VRTO) of the U.S. Attorney’s Office for the District of Columbia.
The case was investigated by the FBI’s Washington Field Office’s Safe Streets Cross Border Task Force, the Bureau of Alcohol, Tobacco, Firearms, and Explosives’ Washington High Intensity Drug Trafficking Group, the Drug Enforcement Administration’s Washington Field Division, and the Metropolitan Police Department.
Springfield Man Indicted for Sexual Exploitation of a Child, Receipt and Possession of Child PornographyRead the Press Release
BOSTON – A Springfield man has been indicted by a federal grand jury in Springfield for child exploitation offenses.
Bairon Ubeda, 42, was indicted on one count of sexual exploitation of a child, one count of receiving child pornography and one count of possession of child pornography.
According to court documents, from December 2018 through February 2019, Ubeda employed, used, persuaded, induced and coerced a three-year-old minor victim to engage in sexually explicit conduct for the purpose of producing child pornography. During that time period, it is alleged that Ubeda knowingly received and possessed child pornography.
The charge of sexual exploitation of a child provides for a mandatory minimum sentence of 15 years and up to 30 years in prison, at least five years of supervised release and a fine of up to $250,000. The charge of receipt of child pornography provides for a mandatory minimum sentence of five years and up to 20 years in prison, at least years of supervised release and a fine of up to $250,000. The charge of possession of child pornography provides for a sentenced of up to 20 years in prison, up to 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 Michael Mazur of Rollins’ Springfield Branch Office 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 indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
South Dakota Woman Sentenced to Ten Years for Possession of Drugs and FirearmRead the Press Release
United States Attorney Steven Russell announced that Kylah Whiting, 21, of Winner, South Dakota, was sentenced on April 28, 2023, by Senior United States District Court Judge John M. Gerrard to a total term of 10 years’ imprisonment following her conviction for possession of methamphetamine with the intent to distribute and carrying a firearm in relation to a drug trafficking crime. After she completes her prison sentence, Whiting will also serve five years on supervised release. There is no parole in the federal system. Whiting pleaded guilty to both offenses on January 25, 2023.
On October 17, 2021, a Butler County Sheriff’s deputy attempted to stop a vehicle driven by Whiting. Whiting refused to stop and a highspeed chase ensued for the next 14 miles. Whiting lost control of the vehicle and wrecked. The vehicle driven by Whiting flipped over and was upside down as officers approached. Two occupants were seen attempting to climb out of the vehicle. Whiting told police there was a gun in the car. A sheriff’s deputy then spotted a Smith & Wesson handgun near the driver’s door. Whiting told police the handgun, as well as a backpack inside the vehicle, were hers. Whiting and her passenger were transported by ambulance to the hospital.
Police searched the car. Whiting’s backpack was found to contain two more firearms, a purse, numerous small baggies which are commonly used to package drugs for resale, four additional baggies containing approximately 293 grams of methamphetamine, and a digital scale. Police also found additional evidence in and around the vehicle consistent with drug distribution.
This case was investigated by the Butler County Sheriff’s Department and the Nebraska State Patrol.
South Carolina Man and Florida Woman Sentenced in COVID-19 Unemployment Insurance Fraud SchemeRead the Press Release
FLORENCE, SOUTH CAROLINA — Mohammad Ribhi Farraj, 43, of Florence, South Carolina, and Marvet Masoud, 34, of Homestead, Florida, were sentenced to federal prison after pleading guilty to conspiracy to commit wire fraud related to unemployment insurance benefits.
Evidence presented to the court showed that Farraj and Masoud engaged in a scheme with others to fraudulently obtain unemployment insurance benefits during the COVID-19 pandemic. As part of the scheme, members of the conspiracy submitted applications in four states – Arizona, New York, Florida, and South Carolina – using the personal identifying information of other individuals, sometimes without the person’s permission. In some instances, members of the conspiracy would apply for benefits in multiple states using the same individual’s information. Members of the conspiracy then received the funds associated with the fraudulent claims, primarily through either direct deposit or debit cards. The investigation revealed a total of 69 fraudulent claims associated with the scheme, resulting in a total loss of $454,074.00 in unemployment insurance funds. Through this scheme, defendants exploited the flexibility afforded to those unemployed during the COVID-19 pandemic.
As to Farraj, evidence presented to the court showed that Farraj obtained debit cards with unemployment insurance funds which were associated with the fraudulent claims and then withdrew the funds at ATMs. In addition, Farraj fraudulently obtained an Economic Injury Disaster Loan under the name of a fictitious business. After receiving a deposit of $149,900.00, Farraj transferred the funds to cryptocurrency accounts or used the funds to pay credit card bills.
As to Masoud, evidence presented to the court showed that Masoud completed withdrawals of funds associated with fraudulent unemployment insurance benefits claims and also received a deposit of $9,321.00 into an account in her name. The deposit was also associated with a fraudulent claim.
Farraj was sentenced to ten months, with five months to be served in the Bureau of Prisons and five months to be served on home detention with location monitoring, followed by a three-year term of court-ordered supervision. There is no parole in the federal system. Farraj was ordered to pay $604,074.00 in restitution.
Masoud was sentenced to 24 months of probation and ordered to pay $454,074.00 in restitution. United States District Judge Joseph Dawson, III imposed the sentences.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
This case was investigated by the Federal Bureau of Investigation, the U.S. Department of Labor, the South Carolina Department of Employment and Workforce, the Florida Department of Economic Opportunity, the New York State Department of Labor, the Arizona Department of Economic Security, and the Small Business Administration. Assistant U.S. Attorney Lauren Hummel is prosecuting the case.
###
Snohomish man who dealt drugs, even as he awaited sentencing for an earlier drug conviction, pleads guilty to drug, gun, and murder-for-hire related chargesRead the Press Release
Tacoma – A Snohomish, Washington, man who was rearrested following his sentencing in a drug trafficking scheme, has now pleaded guilty to new charges, including attempting to hire a hitman to kill a witness in his case, announced U.S. Attorney Nick Brown. Michael John Scott, 44, was sentenced in January 2020 to 78 months in prison for dealing fentanyl-laced pills and cocaine. One week later, before he was to report to serve his sentence, he was arrested on his way to a drug deal in Whatcom County. While at the federal detention center awaiting trial on these new drug charges, Scott tried to hire a hitman to kill a witness against him. Today, Scott pleaded guilty to four federal felonies.
Scott admitted two additional crimes connected to drug distribution. According to the facts in the agreement, even as Scott was awaiting sentencing for the earlier drug distribution crimes, he was continuing to set up drug deals. On January 30, 2020, he was arrested as he arrived to sell fentanyl pills to a person in Whatcom County. That person was working with law enforcement. A search of Scott’s home revealed a stolen, loaded firearm, a Colt Delta Elite 10mm semi-automatic pistol. Scott admits in his plea agreement that he had the gun in furtherance of his drug distribution conspiracy.
Following the January 30, 2020, arrest, while in custody at the Federal Detention Center in SeaTac, Washington, Scott agreed to pay an associate $2,000 if he would assist Scott in finding a hitman to kill a witness against him and an associate of that witness. Scott said he would pay $10,000 each for the murders. Scott told his associate that he wanted the deaths to appear to be fentanyl overdoses. In June and July 2021, Scott wrote letters disguised as ‘legal mail’ to the person he thought was the hitman and to a friend he wanted to handle payment for the crimes.
The FBI was aware of the scheme and had an agent pose as the hitman. The friend of Scott’s met with the “hitman” and provided him with a down payment.
Today, Scott pleaded guilty to: Conspiracy to Distribute Controlled Substances --punishable by up to 20 years in prison; Possession of a Firearm in Furtherance of a Drug Trafficking Crime – punishable by a mandatory consecutive five year prison term on top of any sentence imposed for the other counts of conviction; Use of Interstate Commerce Facilities in the Commission of Murder for Hire –punishable by up to ten years in prison; and Tampering with a Witness, Victim, or Informant – punishable by up to 30 years in prison.
Under the terms of the plea agreement, prosecutors will recommend no more than 20 years in prison and the defense can recommend no less than ten years in prison. U.S. District Judge Robert J. Bryan is not bound by the recommendations and can impose any sentence allowed by law when Scott is sentenced on July 27, 2023.
Scott pleaded guilty in June 2019 for his role in U.S. v Hernandez et al, a 32-defendant drug trafficking case that was unsealed in December 2018. Scott was a high-volume redistributor of fentanyl-laced imitation oxycodone pills and cocaine, who delivered hundreds of thousands of dollars in cash to his cartel suppliers for the drugs–sometimes as much as $150,000 at a time. When Scott’s home was searched in December 2018, law enforcement recovered illegal drugs, more than $40,000 in cash, and other tools of the drug trade.
In the current case, Scott is forfeiting more than $25,000 seized in the case as well as the firearm seized at his residence.
The case was investigated by the FBI, the Whatcom County Sheriff’s Office, and the Drug Enforcement Administration (DEA).
The case is being prosecuted by Assistant United States Attorneys Kristine Foerster and Max Shiner.
Schenectady Man Charged with Producing Child Pornography and Communicating a ThreatRead the Press Release
ALBANY, NEW YORK – Richard Nejame, age 27, of Schenectady, New York, was charged today with sexual exploitation of a child and communicating a threat to injure.
United States Attorney Carla B. Freedman and Special Agent in Charge Janeen DiGuiseppi, of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.
The criminal complaint alleges that between about October 2022 and May 1, 2023, Nejame communicated with several girls over a messaging application. During one series of communications, Nejame threatened a 14-year-old girl in Florida that if she did not take nude pictures of herself and send them to Nejame, bad people would come and harm her, or words to that effect. In another series of communications on the same messaging application, Nejame persuaded and coerced a 15-year-old girl in Virginia to take sexually explicit still images and videos of herself and send the images and videos to Nejame. The charges in the complaint are merely accusations. Nejame is presumed innocent unless and until proven guilty.
If convicted of sexual exploitation of a child, Nejame would face at least 15 years and up to 30 years in prison. The interstate communication of a threat charge carries a maximum sentence of 5 years in prison. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Nejame had his initial appearance today and was ordered detained pending a detention hearing scheduled for May 3, 2023 before United States Magistrate Judge Daniel J. Stewart.
The FBI’s Child Exploitation Task Force is investigating this case. Assistant U.S. Attorney Rick Belliss is prosecuting the case as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Russian charged with money laundering and illegally transmitting more than $150 millionRead the Press Release
ATLANTA - Feliks Medvedev has been indicted on one count of operating an unlicensed money transmitting business and 39 counts of money laundering.
“Medvedev allegedly used the American banking system to illegally transmit more than $150 million,” said U.S. Attorney Ryan K. Buchanan. “These types of criminal actions pose a serious danger to the integrity of our financial system.”
“Money laundering is not a victimless crime.” said FBI special agent in charge Keri Farley, “The FBI is committed to the fight against money laundering and to find those who are trying to hide right in our own backyard and illegally send cash overseas.”
According to U.S. Attorney Buchanan, the indictment, and other information presented in court: Feliks Medvedev allegedly registered eight companies in Georgia that were used to transmit over $150 million in a series of 1,300 transactions. The companies were purportedly headquartered in Buford, Georgia, and Dacula, Georgia. But the companies did not generate typical business expenses or maintain employees. The money was used, in part, to purchase more than $65 million in overseas gold bullion. Medvedev, a Russian citizen who resides in North Georgia, allegedly transferred millions overseas from multiple bank accounts in Georgia.
Feliks Medvedev, 41, of Buford, Georgia, was indicted by a federal grand jury for these offenses on April 11, 2023. Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorneys Christopher J. Huber and Radka T. Nations are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Roswell escrow manager pleads guilty to wire fraudRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced today that Christopher Adam Jensen-Tanner pleaded guilty to wire fraud and engaging in monetary transactions in property derived from specified unlawful activity. Jensen-Tanner, 44, of Roswell, is not in custody.
In his plea agreement, Jensen-Tanner admitted that from January 2017 through October 2019 while owning and operating Roswell Escrow Services, Inc. (RES) he knowingly and intentionally engaged in a scheme to defraud and obtain money by making fraudulent and false promises with a provable loss amount more than $550,000 and less than $1,500,000. Specifically, he admitted to making a personal purchase from an RES corporate account and making payment to Living Reflections, LLC, Luxury Rehabilitations in the amount of $53,000.00. Jensen-Tanner also admitted to purchasing a $19,500.00 cashier’s check payable to Bullock’s Jewelry.
Jensen-Tanner faces up to 20 years in prison.
If you were a client of Jensen-Tanner and/or RES and believe you are a victim, please contact the FBI tipline at 1-800-CALL-FBI (1-800-225-5324) or login at tips.fbi.gov to notify the Federal Bureau of Investigation.
The Roswell Division of the FBI and IRS Criminal Investigation investigated this case with assistance from the Securities and Financial Institutions Divisions of the New Mexico Regulation and Licensing Department. Assistant United States Attorneys Ry Ellison and Richard Williams are prosecuting the case.
# # #
23-92