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Wednesday 15 March 2023
Uniontown Man Sentenced to 17.5 Years in Prison and Lifetime Supervision for Making Live Videos of Himself Molesting a ChildRead the Press Release
PITTSBURGH, PA- A former resident of Uniontown, Pennsylvania, has been sentenced in federal court to 210 months’ imprisonment and lifetime supervised release on his conviction of production of visual depictions of a minor engaged in sexually explicit conduct, Acting United States Attorney Troy Rivetti announced today.
Chief United States District Judge Mark R. Hornak imposed the sentence yesterday on Zachary Bosh, 39, following his July 12, 2022, guilty plea.
According to information presented to the court, on Friday, April 12, 2019, a law enforcement officer acting in an undercover capacity (UC) entered a public chat group titled #parentstoys, using an internet-based, free mobile application. The user “ascott5505,” later identified as Bosh, initiated a private chat with the UC. During the conversation, Bosh sent the UC approximately seven video clips and/or images of a minor victim, one of which depicted the sexual exploitation of the minor victim, and verified with the UC that the video clips and/or images were “live.” The Court was further informed of the full content and context of the communications between Bosh and the UC. Investigators were able to obtain emergency disclosures from the mobile application as well as internet service provider, enabling them to identify – on the same day – the residence where the video of the minor victim’s sexual exploitation had been produced. During a search of the residence, which also occurred that day, law enforcement seized bedsheets that matched the sheets visible in the video.
In imposing the sentence, of 210 month’s imprisonment and lifetime supervision, which is a guideline range sentence, Judge Hornak stated that he would not “reduce [the defendant’s] conduct to a descriptive term” – such as egregious or terrible – because it would not be “sufficient” and risked “minimizing” Bosh’s conduct. The Court explained that its sentence was “sufficient to fulfill the goals of sentencing” and “no greater than needed.” Based upon the evidence before it, the Court also found that the record “strongly suggests” that Bosh engaged in illicit conduct in the “past” and his statements to the UC expressed “desires” to engage in “more physical sexual” conduct in the future. To that end, in imposing lifetime supervision, the Court expressed its intent that this would deter Bosh and others from committing similar crimes.
Assistant United States Attorney Rebecca L. Silinski prosecuted this case on behalf of the government.
“This defendant will spend the next 17.5 years in prison for preying upon, exploiting and abusing a young girl who was under the defendant’s care for his own sexual gratification,” said Acting United States Attorney Rivetti. “This sentence sends a clear message that predatory crimes, such as child exploitation offenses, will continue to be vigorously prosecuted by this office.”
Acting United States Attorney Rivetti further praised the work of the Federal Bureau of Investigation in conjunction with the FBI Washington Field Office’s (WFO) Child Exploitation and Human Trafficking Task Force that conducted the investigation that led to the prosecution of Bosh.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc..
United States Attorney Dawn N. Ison Announces Implementation of New Voluntary Self-Disclosure PolicyRead the Press Release
DETROIT - United States Attorney Dawn N. Ison announced that the U.S. Attorney’s Office for the Eastern District of Michigan has implemented the new United States Attorney’s Offices’ Voluntary Self-Disclosure Policy. The policy, which became effective in February, details the circumstances under which a company will be considered to have made a voluntary self-disclosure (VSD) of misconduct to a United States Attorney’s Office (USAO), and provides transparency and predictability to companies and the defense bar concerning the concrete benefits and potential outcomes in cases where companies voluntarily self-disclose misconduct, fully cooperate and timely and appropriately remediate.
The goal of the policy is to standardize how VSDs are defined and credited by USAOs nationwide, and to incentivize companies to maintain effective compliance programs capable of identifying misconduct, to expeditiously and voluntarily disclose and remediate misconduct, and to cooperate fully with the government in corporate criminal investigations. The policy was developed pursuant to the Deputy Attorney General’s September 15, 2022 memorandum, “Further Revisions to Corporate Criminal Enforcement Policies Following Discussions with Corporate Crime Advisory Group” (Monaco Memo), which directed each Department of Justice (DOJ) component that prosecutes corporate crime to review its policies on corporate voluntary self-disclosure and, if there was no formal written policy to incentivize self-disclosure, draft and publicly share such a policy.
Under the new VSD policy, a company is considered to have made a VSD if it becomes aware of misconduct by employees or agents before that misconduct is publicly reported or otherwise known to the DOJ, and discloses all relevant facts known to the company about the misconduct to a USAO in a timely fashion prior to an imminent threat of disclosure or government investigation. A company that voluntarily self-discloses as defined in the policy and fully meets the other requirements of the policy, by—in the absence of any aggravating factor—fully cooperating and timely and appropriately remediating the criminal conduct (including agreeing to pay all disgorgement, forfeiture, and restitution resulting from the misconduct), will receive significant benefits, including that the USAO will not seek a guilty plea; may choose not to impose any criminal penalty, and in any event will not impose a criminal penalty that is greater than 50% below the low end of the United States Sentencing Guidelines (USSG) fine range; and will not seek the imposition of an independent compliance monitor if the company demonstrates that it has implemented and tested an effective compliance program.
The policy identifies three aggravating factors that may warrant a USAO seeking a guilty plea even if the other requirements of the VSD policy are met: (1) if the misconduct poses a grave threat to national security, public health, or the environment; (2) if the misconduct is deeply pervasive throughout the company; or (3) if the misconduct involved current executive management of the company. The presence of an aggravating factor does not necessarily mean that a guilty plea will be required; instead, the USAO will assess the relevant facts and circumstances to determine the appropriate resolution. If a guilty plea is ultimately required, the company will still receive the other benefits under the VSD policy, including that the USAO will recommend a criminal penalty of at least a 50% and up to a 75% reduction off the low end of the USSG fine range, and that the USAO will not require the appointment of a monitor if the company has implemented and tested an effective compliance program.
In cases where a company is being jointly prosecuted by a USAO and another DOJ component, or where the misconduct reported by the company falls within the scope of conduct covered by VSD policies administered by other DOJ components, the USAO will coordinate with, or, if necessary, obtain approval from, the DOJ component responsible for the VSD policy specific to the reported misconduct when considering a potential resolution. Consistent with relevant provisions of the Justice Manual and as allowable under alternate VSD policies, the USAO may choose to apply any provision of an alternate VSD policy in addition to, or in place of, any provision of its policy.
The Attorney General’s Advisory Committee (AGAC), under the leadership of United States Attorney for the Southern District of New York Damian Williams, requested that the White Collar Fraud Subcommittee of the AGAC, under the leadership of United States Attorney for the Eastern District of New York Breon Peace, develop policies in response to the Deputy AG’s memo. The policy announced today was prepared by a Corporate Criminal Enforcement Policy Working Group comprised of U.S. Attorneys from geographically diverse districts, including U.S. Attorney Peace, as well as U.S. Attorney for the Eastern District of Virginia Jessica Aber, U.S. Attorney for the District of Connecticut Vanessa Avery, U.S. Attorney for the District of Hawaii Clare Connors, U.S. Attorney for the Eastern District of North Carolina Michael F. Easley, Jr., U.S. Attorney for the Northern District of California Stephanie Hinds, U.S. Attorney for the Western District of Virginia Christopher Kavanaugh, and U.S. Attorney for the District of New Jersey Philip Sellinger. Assistant U.S. Attorney Amanda Riedel, White Collar Crimes Coordinator for the Executive Office for U.S. Attorneys, also participated in the development of the policy.
U.S. Postal Employee Sentenced to Nine Months for Mail TheftRead the Press Release
CHICAGO — A federal judge has sentenced a former U.S. Postal Service employee to nine months in federal prison for stealing mail that he was entrusted with.
DIAMANTE WILLIAMS, 25, of Chicago was indicted by a federal grand jury on three counts of mail theft by a U.S. Postal employee in March 2022 for events which occurred in March and April 2018. In September, 2022 Williams plead guilty to one count of mail theft. As stated in William’s plea agreement, on or about March 28, he stole mail and contents of mail from individuals residing on his route in Morgan Park, including financial instruments. Williams admitted to stealing a check intended for Company A in the amount of $1,274.
U.S. District Court Judge Martha M. Pacold sentenced Williams to nine months in federal prison on March 9, 2023.
The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois; Scott Pierce, Special Agent in Charge of the U.S. Postal Service, Office of Inspector General, Central Area Field Office; and Ruth M. Mendonça, Inspector-in-Charge of the Chicago Office of the U.S. Postal Inspection Service. The government is represented by Assistant U.S. Attorney Malgorzata Tracz Kozaka.
U.S. Attorney’s Office and Department of Justice Host Two-Day Human Trafficking Seminar for Law Enforcement and Victims’ Services AgenciesRead the Press Release
INDIANAPOLIS, IN- United States Attorney Zachary A. Myers is proud to announce the successful completion of the first Human Trafficking Seminar held in the Southern District of Indiana. This two-day, educational event was hosted by the U.S. Attorney’s Office, Southern District of Indiana, and the Civil Rights Division of the Department of Justice’s Human Trafficking Prosecution Unit (HTPU).
The seminar was organized by Assistant U.S. Attorney Lawrence D. Hilton, the U.S. Attorney’s Office’s Human Trafficking Coordinator, and the agenda included presentations from the HTPU’s Deputy Director, Matt Grady, National Program Manager, Sean Tepfer, and Trial Attorney Julie Pfluger. Topics covered included proving coercion, documenting a human trafficking crime scene, anticipating and overcoming common defenses, trauma informed interviewing, trial preparation, evidence collection, and prosecuting human trafficking crimes at a federal level.
“Human trafficking is a horrific crime that inflicts lasting trauma on survivors who are often already vulnerable,” said U.S. Attorney Myers. “These complex crimes require prosecutors to work closely with investigators to get traffickers off the streets, while collaborating with agencies and organizations who provide vital resources to support survivors. Human traffickers, especially those who employ force, fraud, or coercion, and who sell minors for sex, should take notice: these crimes one of our top priorities, and convictions will result in lengthy terms in federal prison with no possibility of parole. Survivors, especially those who are still in the grips of traffickers, should know that there are specially trained police, prosecutors, and service providers who support you, believe in you, and will work tirelessly to get you the help you need.”
An example of these collaborative efforts in the Southern District of Indiana can be seen in the recent sentencing of Damion Alexander to fifteen years in federal prison for the sex trafficking of a minor. See release here.
U.S. Attorney Myers encourages the community to be aware of indicators of trafficking and report suspicious activity. Recognizing key indicators is the first step in identifying victims and can help save them from further exploitation.
Indicators of human trafficking can include the following:
- An individual with an inability to produce identification or other documents because they are in a third party’s possession and control.
- An individual who is unable to freely contact friends or family.
- An individual who is coached on what to say to law enforcement or other authority figures.
- An individual who lacks knowledge or awareness as to what happens to the money they earn/are supposed to earn.
- An individual who lacks knowledge or awareness as to how much money they earn.
- An individual who is unable move or travel freely.
- Garnishment of a salary to pay off a fee imposed by their employer.
- Juveniles engaged in commercial sex.
- Frequent visits to the emergency department.
Anyone who has information about a potential human trafficking situation or thinks they or someone they know may be a victim of human trafficking should contact the National Human Trafficking Hotline toll-free at 1-888-373-7888, which is available 24 hours a day, seven days a week. Individuals can also text 233733 or email [email protected].
For more information about human trafficking, please visit www.humantraffickinghotline.org.
Information on the Department of Justice’s efforts to combat human trafficking can be found at www.justice.gov/humantrafficking.
The federal, state, and local law enforcement agencies and partners who participated in the Seminar included:
- Allen County Prosecuting Attorney’s Office
- Assistant Commonwealth Attorney for Anderson, Spencer and Shelby County, Kentucky
- Boone County Prosecutor’s Office
- Boone County Sheriff’s Office
- Crawfordsville Fire Department
- Cherish Child Advocacy Center. Noblesville, IN
- Child and Parent Services. Elkhart, IN
- Child Advocacy Center. Marion County, IN
- Child Advocates Inc. Indianapolis, IN
- Clinton County Prosecutor’s Office
- Community Health Network of Indiana
- Damien Center. Indianapolis, IN
- Department of Child Services- Hancock County
- Department of Homeland Security- Investigations
- Eskenazi Health COH
- Family Service Association of Indianapolis
- FBI
- Firefly Children & Family Alliance. Indianapolis, IN
- Freedom Network USA
- Hancock County Prosecutor’s Office
- Indiana Attorney General’s Office- Investigations Division
- Indiana Coalition to End Sexual Assault and Human Trafficking
- Indiana Legal Services
- Indiana Department of Child Services
- Indiana Department of Workforce Development
- Indianapolis Metropolitan Police Department
- Indiana Protection of Abused and Trafficked Humans Taskforce
- Indiana State Parole
- Indiana State Police
- Indiana Trafficking Victims Assistance Program
- Indiana Youth Services Association
- Johnson County Human Trafficking Task Force
- Marion County Behavioral Health Court
- Marion County Juvenile Probation
- Marion County Prosecutor's Office
- Marion Superior Court Probation Department
- Moyars Consulting
- Riley Children’s Hospital
- Salvation Army
- Sheridan Police Department
- Stepping Stone Shelter for Women, Inc. Michigan City, IN
- Sylvias Child Advocacy Center. Lebanon, IN
- Tippecanoe County Prosecutor’s Office
- U.S. Attorney’s Office- Northern District of Indiana
- U.S. Marshal Services
- Vigo County Prosecutor's Office
- Whitestown Metropolitan Police Department
- Washington Township School Police Department
- West Lafayette Police Department
- Zionsville Police Department
- Zoey's Place Child Advocate. Greenfield, IN
Two Waterbury Residents Involved in Fentanyl and Heroin Trafficking Ring Sentenced to PrisonRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that two Waterbury residents were sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford for their participation in a fentanyl and heroin trafficking organization. ELIAS SANCHEZ-MARTINEZ, 31, was sentenced to 135 months of imprisonment, and IMIRICI SOSA-ORTIZ, also known as “Mimi,” 36, was sentenced to 94 months of imprisonment.
According to court documents and statements made in court, this matter stems from a joint investigation headed by the DEA New Haven Task Force and the Waterbury Police Department into a Waterbury-based drug trafficking operation headed by Nestor Sosa-Ortiz. The investigation, which included the use of court-authorized wiretaps, physical surveillance, and controlled purchases of narcotics, revealed that Sosa-Ortiz’s organization received large quantities of fentanyl and heroin from suppliers in Connecticut and New York and distributed the narcotics through a network of co-conspirators, including Sanchez-Martinez. After Sosa-Ortiz was arrested in New York City on a separate federal heroin and fentanyl trafficking charge in May 2019, he continued to control his drug network while incarcerated by using smuggled cell phones to communicate with various co-conspirators, including his sisters, Imirici Sosa-Ortiz and Isamelis Sosa-Ortiz.
The organization used an apartment located at 330 Bishop Street in Waterbury to store kilogram-quantities of fentanyl and heroin, and to process and package the drugs for street sale. Imirici Sosa-Ortiz helped manage the operation at this location.
Sanchez-Martinez, Imirici Sosa-Ortiz, Isamelis Sosa-Ortiz and several co-defendants were arrested on October 29, 2019. On that date, investigators executed search warrants at the Bishop Street apartment and four other locations and seized approximately six kilograms of fentanyl and heroin, approximately 100,000 bags of fentanyl/heroin packaged for street distribution, approximately 1,000 fentanyl pills disguised as Percocet pills, one firearm, and approximately $50,000 in cash. Nearly 50 grams of fentanyl were seized from Sanchez-Martinez’s Charlevoux Street residence.
Imirici Sosa-Ortiz has been detained since her arrest. On January 22, 2020, she pleaded guilty to conspiracy to possess with intent to distribute one kilogram or more of heroin and 400 grams or more of fentanyl.
Sanchez-Martinez, who is a citizen of the Dominican Republic, was detained from the date of his arrest until June 20, 2020, when he was released on a $100,000 bond due the COVID-19 pandemic. Shortly thereafter he fled to the Dominican Republic. He was located and arrested in the Dominican Republic on June 9, 2021, and has been detained since that date.
On motion from the government, Judge Bryant ordered the forfeiture of Sanchez-Martinez’s bond. The five individuals who signed Sanchez-Martinez’s bond are responsible for paying $100,000.
On August 29, 2022, Sanchez-Martinez pleaded guilty to conspiracy to possess with intent to distribute heroin and fentanyl. He faces immigration proceedings when he completes his prison term.
Seventeen individuals were charged as a result of this investigation. Nestor Sosa-Ortiz and Isamelis Sosa-Ortiz pleaded guilty. Nestor Sosa-Ortiz is awaiting sentencing. On December 21, 2022, Isamelis Sosa-Ortiz was sentenced to 94 months of imprisonment.
This investigation has been conducted by the Drug Enforcement Administration New Haven Task Force and the Waterbury Police Department. The DEA New Haven Task Force includes participants from the DEA, U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division, Connecticut State Police and the New Haven, Waterbury, East Haven, Branford, West Haven, Ansonia, Meriden, Naugatuck, and Shelton Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys Lauren C. Clark and Jocelyn Courtney Kaoutzanis through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Two Previously Deported Men Charged with Illegal ReentryRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that two previously deported men were indicted separately by a federal grand jury for illegal reentry into the United States.
According to United States Attorney Gerard M. Karam, Daniel Godinez-Pelcastre, age 54, of Mexico, was indicted by a federal grand jury with illegal reentry into the United States by a previously removed alien. The indictment alleges that Godinez-Pelcastre was previously removed from the United States on March 29, 2017, through Brownsville, Texas, and it is alleged that he reentered the United States without first obtaining legal permission to do so. The indictment also alleges that on November 21, 2022, Godinez-Pelcastre was encountered in Adams County, Pennsylvania.
The case was investigated by U.S. Immigration Customs and Enforcement (ICE) and the Pennsylvania State Police.
Hector Cristales-Najarro, age 25, of Guatemala, was indicted by a federal grand jury with illegal reentry into the United States by a previously removed alien. The indictment alleges that Cristales-Najarro was previously removed from the United States on February 11, 2020, through San Antonio, Texas, and it is alleged that he reentered the United States without first obtaining legal permission to do so. The indictment also alleges that on December 26, 2022, Cristales-Najarro was encountered in Dauphin County, Pennsylvania.
The case was investigated by U.S. Immigration Customs and Enforcement (ICE) and the Harrisburg Police Department.
Assistant U.S. Attorney Jaime M. Keating is prosecuting the case.
The maximum penalty under federal law for these offenses are 10 years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Texas Woman Traveling Through Alabama Found Guilty of Possessing Six Kilograms of Heroin with Intent to DistributeRead the Press Release
Montgomery, Alabama – Today, United States Attorney Sandra J. Stewart announced that Melissa Vasquez-Guardado, 25, from Houston, Texas, was found guilty of possession of heroin with intent to distribute. The jury reached its verdict on March 14, 2023.
According to court records and evidence presented at trial, on July 27, 2021, law enforcement in Butler County, Alabama, stopped a vehicle on Interstate 65. The vehicle had three occupants. The driver had difficulty providing identification and stated she did not have a driver’s license. Officers eventually identified the driver as Fidelia Barrera-Villanueva, 39, also from Houston, Texas. Vasquez-Guardado was a passenger in the vehicle, along with Barrera-Villanueva’s 15-year-old daughter. When speaking with officers, Vasquez-Guardado and Barrera-Villanueva indicated that they were on their way to Atlanta, Georgia. Barrera-Villanueva gave officers permission to search the vehicle. During the search, officers saw a pillowcase underneath a box on the floorboard behind the front passenger seat. Inside the pillowcase were six cylindrical objects wrapped in black tape containing what turned out to be a total of 5.9 kilograms of heroin.
Following this conviction, Vasquez-Guardado faces a sentence 10 years to life in federal prison. Barrera-Villanueva previously pleaded guilty to possession of heroin with intent to distribute and could receive a maximum sentence of life in prison. A sentencing hearing for both Vasquez-Guardado and Barrera-Villanueva is scheduled for July 6, 2023.
The DEA, the Butler County Sheriff’s Office, the Covington County Sherriff’s Office, and the Greenville Police Department investigated this case. Assistant United States Attorneys Kevin P. Davidson, Justin L. Jones, and Mark E. Andreu are prosecuting the case.
Tampa Man Arrested for Possessing Fentanyl with the Intent to DistributeRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces the arrest of Perry Ivory Wims (37, Tampa) on a criminal complaint charging possession with intent to distribute a controlled substance. Wims was arrested on March 9, 2023 and ordered detained pending the outcome of his case.
According to the complaint, the Tampa Police Department (TPD) learned that Wims was selling fentanyl out of his room at the Garden View Motel located at 2500 East Busch Boulevard in Tampa. Based on that information, TPD obtained a warrant authorizing the search of Wims’ motel room. Prior to the execution of the warrant, officers observed Wims exit his motel room with a pistol tucked in the waistband of his shorts. Additionally, TPD learned that Wims had a verbal altercation with unknown individuals shortly before the execution of the warrant, during which Wims pointed a gun at people with whom he was arguing.
During the execution of the search warrant, officers located approximately 283 grams of a substance that field-tested positive for fentanyl, a loaded Ruger 9mm pistol, a Zaviar Arms AR-style pistol, $3,705 in cash, and other suspected narcotics.
Wims previously received a 15-year sentence in federal court for possessing a firearm as a convicted felon. He completed serving that sentence on December 21, 2022.
A complaint is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Tampa Police Department and the Drug Enforcement Administration. It will be prosecuted by Assistant United States Attorney David P. Sullivan.
Sterling Bancorp, Inc. to Plead Guilty to $69M Securities FraudRead the Press Release
*This press release was revised on April 12, 2023, to remove reference to uncharged third parties.
**This press release was revised on July 11, 2023, to include information concerning individuals convicted in relation to this case.
A Southfield, Michigan-headquartered bank holding company has agreed to plead guilty to securities fraud for filing false securities statements relating to its 2017 initial public offering (IPO) and its 2018 and 2019 annual filings.
According to a signed plea agreement that will be publicly filed in court, Sterling Bancorp, Inc. (the Company) was the holding company for its wholly owned subsidiary, Sterling Bank and Trust F.S.B. (the Bank, or together with the Company, “Sterling”). Sterling – with branches located in San Francisco, Los Angeles, Seattle, New York, and Southfield – completed an IPO in 2017, and the Company’s stock began trading on the NASDAQ exchange under the ticker symbol “SBT.”
“For years, Sterling originated residential mortgages that were rife with fraud to pad its bottom line and then lied about these loans in its IPO and subsequent public filings, defrauding unwitting investors,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “This proposed guilty plea reflects the nature and seriousness of the wrongdoing and demonstrates the Department of Justice’s commitment to protecting the integrity of our public markets, holding corporations accountable for their criminal misconduct, and compensating victims for their losses.”
The largest portion of the Bank’s loan portfolio was composed of residential mortgage loans. In or around 2011, the Bank established a residential mortgage loan program known as the Advantage Loan Program (ALP). Between 2011 and 2019, the Bank’s employees and agents originated at least $5 billion in ALP loans. The Bank touted the ALP’s flexible documentation requirements and fast underwriting and closing capabilities. The program required a minimum 35% down payment and charged higher rates and fees than generally were available elsewhere in the market, but it did not require submission of typical loan documentation, such as an applicant’s tax returns or payroll records.
“The consequences of this type of financial fraud scheme are damaging and far-reaching,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “The FBI and our law enforcement partners remain committed to protecting good-faith investors and safeguarding the integrity of our markets from companies that commit securities fraud.”
In the lead-up to the IPO, Sterling’s loan officers were encouraged to increase the volume of ALP loan originations to increase the Bank’s revenue through origination fees and interest payments. The Bank’s Underwriting Department maintained internal underwriting guidelines that governed the loan approval process for the ALP. The underwriting guidelines required loan officers to obtain various documents from the borrower and the borrower’s employer. In addition to collecting these documents, loan officers were supposed to calculate the borrower’s debt-to-income ratio, which was a personal-finance measure that compared the amount of debt a borrower had to the borrower’s overall income and was used to measure the borrower’s ability to manage monthly mortgage payments. Taken together, the various documents obtained from the borrower and the borrower’s employer, and related information, were critical to completing certain mortgage application forms and assessing the creditworthiness of a borrower’s application.
In connection with loans originated through the ALP, the Bank’s loan officers falsified, caused to be falsified, and concealed various information from the Bank’s Underwriting Department and Quality Control Department that the loan officers believed would delay or prevent the Bank from originating loans under the ALP.
The false information that the loan officers included and caused to be included in ALP applications was ultimately transmitted to, and relied upon by, the Bank’s Underwriting Department and caused the Bank to originate ALP loans and extend credit to borrowers who otherwise would not have qualified for credit from the Bank based upon the underwriting guidelines. These fraudulent loans directly increased the Bank’s revenue through fees and interest associated with the origination of the fraudulent loans.
In or around October 2017 – while Sterling was artificially inflating its revenue through the ALP – Sterling went public. In connection with its IPO, Sterling’s 2017 SEC Form S-1 contained materially false and misleading statements that touted the soundness of the ALP loans. In truth, the ALP was rife with fraud.
After Sterling’s IPO, the ALP fraud continued. In its 2018 and 2019 SEC Form 10-K filings, Sterling reiterated a series of materially false and misleading statements about the ALP. As a result of Sterling’s fraud, the total loss to Sterling’s non-insider victim-shareholders was nearly $70 million.
“Bank holding companies that engage in fraud to deceive the public and regulators must be brought to justice for their actions,” said Inspector General Mark Bialek of the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau. “I commend our agents and their federal law enforcement partners for their hard work and persistence, which ultimately led to today’s announcement.”
“This proposed guilty plea holds Sterling accountable for its role in defrauding non-insider victim-shareholders of millions of dollars by originating fraudulent loans through its Advantage Loan Program and filing false securities statements about the Program in its IPO and subsequent annual filings,” said Acting Inspector General Tyler Smith of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG). “The FDIC-OIG is committed to working with our law enforcement partners to investigate financial crimes that harm innocent investors and consumers and undermine the integrity of the banking sector.”
“This case is another example of Postal Inspectors relentlessly pursuing any individual or entity committing securities fraud,” said Inspector in Charge Eric Shen of the U.S. Postal Inspection Service (USPIS) Criminal Investigations. “I'm proud of the work done by all the investigators involved in this case and look forward to the continued collaborative efforts between Postal Inspectors and our law enforcement partners.”
Under the terms of the plea agreement, which must be accepted by the court, the Company will plead guilty to one count of securities fraud. The Company will also be required to serve a term of probation through 2026, submit to enhanced reporting obligations to the department, and pay more than $27.2 million in restitution to its non-insider victim-shareholders. The department considered a range of factors outlined in the department’s Inability to Pay Guidance and determined that any payment exceeding approximately $27.2 million is reasonably likely to threaten the continued viability of the Company, which may expose the Company’s shareholders to a further risk of loss. Accordingly, to ensure that the maximum amount of the Company’s funds is paid to restitution, the department has agreed not to seek a criminal fine in this case.
A number of relevant considerations contributed to the department’s criminal resolution with Sterling, including the nature and seriousness of the offense and the pervasiveness of the misconduct at the most senior levels of the Company. Sterling received credit for its cooperation with the department’s investigation and engaged in extensive remedial measures, including terminating employees involved in the ALP fraud, such that through terminations and resignations, more than 100 officers and employees left the bank; completely overhauling the Bank’s senior management, including terminations of former senior management; overhauling the Bank’s residential lending department, internal audit function, compliance function, and Bank Secrecy Act/Anti-Money Laundering function, and creating an enterprise risk management function; permanently ending the ALP; hiring a new chairman, chief executive officer, and president; increasing the number of independent directors on the Company’s board of directors; and implementing a new business model to reduce its risk profile.
As part of Sterling’s plea agreement, Sterling agreed to cooperate fully with the United States in all matters relating to the conduct covered by the plea agreement and other conduct under investigation by the United States, to self-report violations of U.S. federal criminal law, and to continue to implement a compliance and ethics program designed to effectively detect and deter violations of U.S. securities laws throughout its operations.
Three individuals previously pleaded guilty in connection with the underlying ALP fraud. YiHou Han, 39, of San Francisco, California, Hao Liang “Frank” Hu, 48, of Chino Hills, California, and Amy Lu, 33, of Brea, California, have each pleaded guilty. Han pleaded guilty to one count of conspiracy to commit bank fraud and wire fraud, Hu pleaded guilty to one count of conspiracy to commit bank fraud and wire fraud, and Lu pleaded guilty to one count of conspiracy to commit bank fraud and wire fraud. Han and Hu each face a maximum sentence of 30 years in prison, and Lu faces a maximum sentence of five years in prison. All are awaiting sentencing. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI Los Angeles Field Office, Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau Office of Inspector General, FDIC-OIG San Francisco, and USPIS investigated the case.
Assistant Chief Cory E. Jacobs and Trial Attorney Amanda Fretto Lingwood of the Criminal Division’s Fraud Section are prosecuting the case.
If you believe you are a victim in this case, please contact the Fraud Section’s Victim Witness Unit toll-free at (888) 549-3945 or by email at [email protected]. You are also encouraged to visit our webpage for this case at https://www.justice.gov/criminal-vns/case/united-states-v-sterling-bancorp-inc.
St. Charles County Man Accused of Pointing Laser at Police HelicopterRead the Press Release
ST. LOUIS –A man from Lake St. Louis, Missouri has been indicted and accused of pointing a laser at a Metro Air Support helicopter in the St. Louis area.
David Gammil, 44, was indicted in U.S. District Court in St. Louis on March 8 on one count of aiming a laser at an aircraft. Gammil’s indictment says the incident occurred on February 23.
Gammil was arrested Wednesday and made his first appearance in court, where he pleaded not guilty.
The charge carries a penalty of up to five years in prison, a $250,000 fine or both. For years, the FBI and aviation authorities have warned that lasers can blind pilots, and the incidents are on the rise. The Federal Aviation Administration reported 9,457 incidents in 2022, including dozens which resulted in reported injuries.
Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The case was investigated by the St. Charles County Police Department and the FBI. Assistant U.S. Attorney Colleen Lang is prosecuting the case.
Southern California Return Preparer Charged with Filing False Tax ReturnsRead the Press Release
A federal grand jury in Riverside, California, returned an indictment, unsealed Tuesday, charging a California man with 47 counts of preparing false tax returns.
According to the indictment, for tax years 2016 through 2021, Salvador Gonzalez operated a tax preparation business, Grace’s Lighthouse Resource Center, Inc., in Corona, California, and prepared individual and corporate income tax returns for clients to submit to the IRS that claimed tens of thousands of dollars in false business losses. Gonzalez also allegedly falsified additional deductions on client returns, including medical and dental expenses, unreimbursed employee expenses, and charitable contributions, knowing that the clients were not entitled to the amounts claimed.
If convicted, Gonzalez faces a maximum penalty of three years in prison for each false return count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Martin Estrada for the Central District of California made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorney Lauren K. Pope of the Justice Department’s Tax Division and AUSA Robert S. Trisotto of the U.S. Attorney’s Office for the Central District of California, Riverside Branch Office, are prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Six Charged with Drug Trafficking Operation, Shipping Methamphetamine from California to ChicagoRead the Press Release
CHICAGO — A federal grand jury has indicted five Chicago area residents and one California resident with a drug trafficking conspiracy for both shipping methamphetamine through the mail and distributing methamphetamine in and around Chicago.
Charged in the indictment under count one are STEPHEN R. JENKINS, 44, of Chicago, KEITH R. MCCORMICK, also known as “Keith Lopez”, 51, of Sacramento, CA, DANIEL HEISE, 40, of Chicago, DONALD W. GRENIER, JR., 61, of Chicago, JOSE HERNANDEZ, 45, of Chicago, and WILLIAM F. KOCH, 36, of Chicago. Jenkins, Heise, Koch, and Greiner, Jr. are also charged with additional drug trafficking counts, which occur on different dates, within the indictment. Heise is also charged with possession of a firearm in furtherance of a drug trafficking offense.
As alleged in the indictment and the criminal complaint filed in February 2023, from February 2022 to February 2023, Jenkins and Heise directed McCormick to ship parcels containing methamphetamine via U.S. Mail from Sacramento, California to Chicago. During their investigation, law enforcement identified more than 200 parcels suspected of containing methamphetamine, and recovered methamphetamine from at least ten parcels, including parcels addressed to Grenier, McCormick, Koch, Hernandez, and Heise. Jenkins and Heise, along with other members of the drug trafficking organization, are alleged to have shipped narcotics proceeds back to McCormick via private shipping companies, including FedEx and UPS.
The indictment is announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois; Ruth M. Mendonça, Inspector-in-Charge of the U.S. Postal Inspection Service (USPIS) in Chicago; Sheila G. Lyons, Special Agent-in-Charge of the Chicago Field Division of the U.S. Drug Enforcement Administration; Robert W. Wheeler, Jr., Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; David Brown, Superintendent of the Chicago Police Department. Valuable assistance was provided by the United States Attorney’s Office for the Eastern District of California, the Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Forces located in Chicago and Sacramento, the USPIS’s High Intensity Drug Trafficking Area Task Force (HIDTA) Parcel Interdiction Regional Enforcement Team located in Chicago, USPIS’s Narcotics and Economic Crimes Investigations Task Force located in Sacramento, Homeland Security Investigations in Sacramento, and North Riverside Police Department, Illinois. The government is represented by Assistant U.S. Attorney Elly Peirson.
The public is reminded that an indictment contains only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. The drug trafficking counts carry penalties driven by the amount of methamphetamine each defendant is responsible for trafficking; they range from no less than 5 years up to life in federal prison. For the firearms charge, Heise faces an additional penalty of five years in federal prison consecutive to the drug charges. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
This case is part of an OCDETF investigation. OCDETF identifies, disrupts, and dismantles drug traffickers and other alleged criminal offenders 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 alleged criminal networks.
Sex Offender Pleads Guilty to Sexual Exploitation of an InfantRead the Press Release
SYRACUSE, NEW YORK – Benjamin Munson, age 32, of Syracuse, pled guilty in United States District Court today to all counts of a thirteen-count Indictment charging him with six counts of Sexual Exploitation of a Child, Commission of a Felony Involving a Minor by a Registered Sex Offender, four counts of Distribution of Child Pornography, and two counts of Possession of Child Pornography. United States Attorney Carla B. Freedman, Special Agent in Charge Janeen DiGuiseppi of the Albany Field Office of the Federal Bureau of Investigation (FBI), and New York State Police Acting Superintendent Steven A. Nigrelli made the announcement.
As a part of his guilty plea, Munson, a registered sex offender, admitted that on at least six separate occasions between 2021 and 2022, while on supervised release for a 2011 federal conviction for distribution and possession of child pornography, he sexually abused an infant for the purpose of producing images and videos of his sexual exploitation of the child. He further admitted that he administered a network of approximately 20 child pornography trading groups on the internet, some of which were dedicated exclusively to trading in newly produced child pornography. Munson admitted that he distributed child pornography to those groups, including images and videos he produced of his abuse of the infant. Munson was arrested in August of 2022 after his online activities were discovered by the FBI, and the infant was located and rescued.
Munson also admitted to seven violations of his conditions of his federal supervised release, including for his new criminal conduct, contact with a minor, contact with a known felon, possession of unauthorized electronic devices, and possession of child pornography.
Munson is scheduled to be sentenced on July 13, 2023 before Hon. David N. Hurd in Utica, New York. For all thirteen offenses, Munson faces a mandatory minimum sentence of 35 years, and up to 560 years imprisonment, a fine of up to $250,000, and a term of supervised release of at least 5 years and up to life. He will also continue to be required to register as a sex offender. 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.
This case was investigated by the Federal Bureau of Investigation’s Mid-State Child Exploitation Task Force in cooperation with the New York State Police. It is being prosecuted by Assistant U.S. Attorney Lisa M. Fletcher, Project Safe Childhood Coordinator for the Northern District of New York.
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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Romanian Citizens Arrested and Charged with Laundering $1.4 Million in Proceeds from Jewelry Thefts and Covid FraudRead the Press Release
NEWS RELEASE SUMMARY – March 14, 2023
SAN DIEGO – Eduard Ghiocel and Floarea Ghiocel, married Romanian nationals and suspected leaders of a Romania-based transnational organized crime group, are charged in federal court with laundering $1.4 million in proceeds from dozens of small thefts, robberies and swindles targeting mostly elderly victims in San Diego County.
Also charged are four of the Ghiocels’ family members or close associates, including Gabriel Ghiocel, Marius Ghiocel, Larisa Ghiocel and Argentina Alexandru. All defendants are alleged associates of the larger Valcea Romanian Transnational Crime Group.
Eduard and Floarea Ghiocel were transferred from state to federal custody and are scheduled to make their first appearance in federal court today. The other defendants remain at large in Romania.
Starting at 9 p.m. PST Monday night (6 a.m. Tuesday - Eastern European Time Zone), pursuant to seven Romanian search warrants issued by the Bucharest Tribunal and executed by police officers from the Romanian National Police's Directorate for Combatting Organized Crime, Service for Combatting Organized Criminal Groups, and Service for Combatting Organized Crime Valcea, assisted by FBI and IRS, officers seized Ghiocel assets across locations in Valcea County, Romania, including high-end luxury vehicles, gold coins, and cash, totaling $618,075.
According to a complaint and an international seizure warrant, the defendants conducted a series of 17 jewelry thefts in elderly communities in San Diego between March 2020 and September 2022. The complaint said the Ghiocels also filed false unemployment claims in order to steal about $32,250 in California unemployment insurance benefits intended to help workers impacted by the pandemic.
According to the complaint, the Ghiocels laundered the proceeds of their crimes by pawning expensive gold jewelry and watches for cash in jewelry stores in Los Angeles. The Ghiocels, who never had any legitimate employment, then systematically laundered that cash, along with the stolen unemployment insurance proceeds by sending wire transfers to Romania via Money Service Businesses, and by purchasing gold bars, gold coins, and high-end luxury vehicles from locations in Southern California and shipping these items to Romania. In total the Ghiocel Sub-Group repatriated $1,367,652.02 in assets from illicit funds to Romania, the complaint said.
“We have alleged that an organized crime group targeted and robbed members of San Diego’s senior community, many of whom lost items of great personal significance,” said U.S. Attorney Randy Grossman. “We will pursue justice for these crime victims wherever the evidence takes us, even as far as Romania.” Grossman thanked the prosecution team, investigating agencies and authorities in Romania for their excellent work on this case.
“The FBI would like to thank our local, state, federal, and Romanian partners for their incredible cooperation in this important matter,” said Special Agent in Charge Stacey Moy of the FBI’s San Diego Field Office. “The FBI and our partners are committed to scouring the globe to find those who have victimized our citizens, to hold them accountable for their crimes and to seize what they have stolen. A special thanks to the Romanian authorities who were essential, as the trail of this investigation led within their borders: prosecutors from the Directorate for Investigating Organized Crime and Terrorism and police officers from the Romanian National Police’s Directorate for Combating Organized Crime. Their assistance is an excellent example of what international cooperation can bring to bear.”
“This international organized crime ring targeted some of the most vulnerable of our population. It's important that we send a message to criminals that the safety of everyone in our community matters,” said San Diego Police Chief David Nisleit. “I want to thank the investigators and prosecutors who continue to work toward justice on behalf of the victims.”
“According to allegations in the complaint, the defendants victimized some of our most vulnerable citizens and targeted relief programs during the height of the COVID-19 pandemic,” said Tyler Hatcher, Special Agent in Charge of IRS Criminal Investigation's Los Angeles Field Office. “One of our main duties as financial investigators is to take the profit out of crime and hold criminals accountable for their actions, and that’s what this investigation is about. IRS-CI will continue to work closely with our partners locally and internationally to locate and hold criminal organizations accountable for their crimes.”
Assistance was provided by the Romanian National Police (Service for Combatting Organized Criminal Groups and Service for Combatting Organized Crime Valcea) and the Romanian Directorate for Investigating Organized Crime and Terrorism (Agency for Prosecuting Organized Crime). The Justice Department’s Office of International Affairs also provided significant assistance.
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
DEFENDANTS Case Number: 23MJ0474-MSB
Eduard Ghiocel (1) Age: 47 Transient, Romanian
aka Eduard Alexandru, aka “Filica”
Floarea Ghiocel (2) Age: 48 Transient, Romanian
aka Floarea Alexandru
Gabriel Ghiocel (3) Age: 25 Transient, Romanian
Marius Ghiocel (4) Age: 33 Transient, Romanian
Larisa Ghiocel (5) Age: 24 Transient, Romanian
Argentina Alexandru (6) Age: 31 Transient, Romanian
SUMMARY OF CHARGES
Title 18 U.S.C. § 1956(h) and Title 18 U.S.C. § 1956(a)(2)(A) — Conspiracy to Transport Funds to Promote Unlawful Activity
Maximum penalty: Twenty years in prison and $500,000 fine or twice the value of the monetary instrument or funds involved in the transportation, transmission, or transfer, whichever is greater
INVESTIGATING AGENCIES
Federal Bureau of Investigation
San Diego Police Department
Internal Revenue Service
California Employment Development Department Investigative Division
U.S. Department of Homeland Security
Department of Labor Office of Investigator General
Queens Man Sentenced to 16 Years in Prison for Enticing Three Minors to Engage in Sexual ConductRead the Press Release
Earlier today, in federal court in Brooklyn, Rogelio Vega was sentenced by United States District Judge Eric R. Komitee to 16 years in prison for enticing three minors to engage in sexual conduct. As part of his sentence, Vega will be required to register as a sex offender upon his release from prison. Vega pleaded guilty to the charges in September 2022.
Breon Peace, United States Attorney for the Eastern District of New York, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), announced the sentence.
Between approximately 2015 and January 2021, the defendant, while also serving as an ordained Deacon in the Catholic Church, used the Kik Internet messaging application, which is marketed to teens, and the Grindr Internet application, which is marketed to the LGBTQ+ community, to express his interest in “young guys” and coerce and entice three male victims between the ages of 14 and 16 to meet him for sexual acts. Messages found on the defendant’s cell phones revealed a series of communications in which the victims identified themselves as underage and the defendant arranged to meet them multiple times for sexual encounters in his car or at motels.
Anyone with information about crimes perpetrated by Vega is asked to contact the FBI at 1-800-CALL-FBI and reference this case.
Department of Justice Trial Attorney Patrick J. Campbell is in charge of the prosecution.
The Defendant:
ROGELIO VEGA
Age: 52
Maspeth, New YorkE.D.N.Y. Docket No. 21-CR-563 (EK)
Providence Man Sentenced for Fraud, Theft of Government Funds, and Identity Theft Committed While on Federal Supervised Release for Sex TraffickingRead the Press Release
Mackenzy Scott, 26, began filing fraudulent applications for pandemic-related benefits on March 28, 2020, one day after the CARES Act, passed by Congress to provide economic assistance programs in response to the COVID-19 pandemic, became law. Scott’s fraudulent activity was discovered in February 2021 by a United States Probation Officer, during an investigation into alleged violations of the terms of Scott’s federal supervised release related to his earlier conviction for sex trafficking.
Scott used his own name and the names of others to carry out the scheme in an attempt to collect COVID-related, federally-funded unemployment benefits from state agencies in ten states: North Dakota, Massachusetts, Arizona, Nevada, Kentucky, Texas, Hawaii, Pennsylvania, Michigan, and Indiana. In each of the applications he filed, Scott made false statements about employment and/or his residence.
Scott pleaded guilty on December 21, 2022, to conspiracy to commit wire fraud, seven counts of wire fraud, theft of government money, and four counts of aggravated identity theft. He was sentenced on Tuesday by U.S. District Court Chief Judge John J. McConnell, Jr., to 30 months of incarceration to be followed by 3 years of federal supervised release. Scott was ordered to pay restitution in the amount of $16,336.
These matters and other cases of alleged criminal activity related to fraudulent applications for unemployment insurance benefits due to the pandemic are being investigated jointly by the FBI and Rhode Island State Police, with the assistance of the U.S. Department of Labor, Office of Inspector General. Cases are jointly reviewed, charged, and prosecuted by a team of prosecutors to include Assistant U.S. Attorneys Stacey A. Erickson, Denise M. Barton, G. Michael Seaman, and Rhode Island Assistant Attorney General John M. Moreira, chief of the Rhode Island Attorney General’s Public Integrity Unit. Assistant U.S. Attorney Lee H. Vilker represented the government at today’s sentencing hearing.
Rhode Islanders who believe their personal identification has been stolen and used to fraudulently obtain unemployment benefits are urged to contact the Rhode Island State Police at [email protected] or the FBI Providence office at (401) 272-8310.
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.
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Plaquemines Parish Man Sentenced for Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – THEODORE HOLMES, age 34, a resident of Plaquemines Parish, Louisiana, was sentenced on March 7, 2023, to 18 months imprisonment, 3 years of supervised release, and a $200 mandatory special assessment fee by U.S. District Judge Susie Morgan, announced U.S. Attorney Duane A. Evans.
HOLMES previously pled guilty to conspiracy to distribute and possess with intent to distribute methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(C), and 846, and the use of a communication facility in causing or facilitating the commission of felonies under the Controlled Substances Act, in violation of Title 21, United States Code, Section 843(b) and Title 18, United States Code, Section 2.
According to court documents, a Drug Enforcement Administration (DEA) investigation revealed that HOLMES was involved in a narcotics distribution conspiracy with several other co-conspirators between June 8, 2020, and June 5, 2021. As part of the conspiracy, HOLMES regularly distributed amounts of methamphetamine.
This case was investigated by the Drug Enforcement Administration and Plaquemines Parish Sheriff’s Office. The prosecution was handled by Assistant United States Attorney J. Benjamin Myers of the Narcotics Unit.
Pittsburgh Man Sentenced to More Than 5 Years in Prison for Possession of Child Sexual Abuse MaterialRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania has been sentenced in federal court to 63 months’ imprisonment followed by 10 years’ supervised release on his conviction of possession of material depicting the sexual exploitation of a minor, Acting United States Attorney Troy Rivetti announced today.
U.S. District Judge Marilyn J. Horan imposed the sentence on Desair McCray, age 22.
According to information presented at the change of plea hearing and in the indictment, on or about March 11, 2020, McCray knowingly possessed images and videos containing child sex abuse material. Specifically, the Court was informed that a search warrant was executed at McCray’s residence after a law enforcement officer acting in an undercover capacity received links created by an individual associated with that residence. A forensic examination of McCray’s iPad and cellular telephone recovered during that search showed that he possessed almost 200 video files and 23 images containing child sexual abuse material. McCray also admitted to law enforcement that he sent links containing child sexual abuse material to other individuals online.
Assistant United States Attorney Karen Gal-Or is prosecuting this case on behalf of the government.
Acting United States Attorney Rivetti commended the Federal Bureau of Investigations and other members of the Western Pennsylvania Violent Crimes Against Children Task Force for the investigation leading to the successful prosecution of McCray.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Parkersburg Woman Sentenced to Prison for Fentanyl CrimeRead the Press Release
CHARLESTON, W.Va. – Mary Elizabeth Curran, 37, of Parkersburg, was sentenced today to four years in prison, to be followed by four years of supervised release, for possession with intent to distribute 40 or more grams of fentanyl.
According to court documents and statements made in court, on April 27, 2021, Curran obtained a quantity of fentanyl in Columbus, Ohio, which she intended to distribute in the Parkersburg area. On that date, Curran was a passenger in a vehicle stopped by law enforcement officers after it entered Wood County from Ohio. Officers suspected that Curran was hiding controlled substances on her person, and she was transported to the North Central Regional Jail for an X-ray body scan.
While awaiting the body scan, Curran clogged a bathroom toilet when she attempted to flush two plastic bags containing powder. The toilet was taken apart and the bags were recovered. The West Virginia State Police Forensic Laboratory confirmed one bag contained approximately 56 grams of fentanyl and the other bag contained approximately 28.5 grams of a separate controlled substance. The lab also found Curran’s DNA on one bag, and her fingerprint on the other.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Parkersburg Drug and Violent Crime Task Force and the West Virginia State Police.
United States District Judge Joseph R. Goodwin imposed the sentence. Assistant United States Attorney Nowles Heinrich prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-136.
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Paducah Man Sentenced to 10 Years in Federal Prison for Methamphetamine DistributionRead the Press Release
Paducah, KY – A Paducah man was sentenced yesterday to 10 years in prison followed by a 5-year term of supervised release for distributing and possessing with the intent to distribute methamphetamine. There is no parole in the federal system.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge J. Todd Scott of the DEA Louisville Field Division, Sheriff Ryan Norman of the McCracken County Sheriff’s Office, and Chief Brian Laird of the Paducah Police Department made the announcement.
According to court documents, Marcus S. Johnson, 38, distributed, or possessed with the intent to distribute, methamphetamine on multiple occasions in McCracken County in June of 2022. In total, the methamphetamine weighed over 250 grams.
“I appreciate the ongoing collaboration between our federal and local law enforcement partners as we continue to encounter methamphetamine trafficking throughout the Western District,” said U.S. Attorney Bennett. “We will continue working as a team to identify and prosecute drug dealers responsible for the destruction of lives and the related devastation brought on by drug addiction.”
The case was investigated by the DEA Paducah Post of Duty office, the McCracken County Sheriff’s Office, and the Paducah Police Department.
Assistant U.S. Attorney Seth Hancock, of the U.S. Attorney’s Paducah Branch Office, prosecuted the case.
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One More Individual Sentenced for Conspiring to Stage Automobile Accidents to Defraud Insurance and Trucking CompaniesRead the Press Release
NEW ORLEANS, LOUISIANA – TROY SMITH (“SMITH”), age 58, of Houma, Louisiana, was sentenced on March 8, 2023 for Conspiracy to Commit Mail Fraud, in violation of Title 18, United States Code, Section 371, arising out of staged automobile accidents with tractor-trailers occurring in New Orleans, announced United States Attorney Duane A. Evans.
According to court documents, on May 17, 2020, SMITH, along with participants Damian Labeaud (“Labeaud”), Bernell Gale (“Gale”), Marvel Francois (“Francois”), and another passenger, participated in a staged accident in the vicinity of Louisa Street and Chickasaw Street. Labeaud fled the scene after intentionally colliding with a tractor trailer. Francois falsely reported to the NOPD that she had been driving and that the tractor-trailer had struck her vehicle.
United States District Judge Lance M. Africk sentenced SMITH to 6 months imprisonment, upon release from imprisonment, 3 years supervised release, and payment of a $100 mandatory special assessment fee.
The U.S. Attorney’s Office would also like to acknowledge the assistance of the Federal Bureau of Investigation, Louisiana State Police, and the Metropolitan Crime Commission with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Chief of the Financial Crimes Unit; Assistant U.S. Attorneys Edward Rivera, Maria Carboni and Brandon Long, also of the Financial Crimes Unit.
Midland Man Sentenced to 30 Years in Prison for Meth Distribution and Firearm ChargeRead the Press Release
MIDLAND, Texas – A Midland man was sentenced last week to 360 months in prison for possessing approximately 1,000 grams of methamphetamine and possessing a handgun in furtherance to a drug activity.
According to court documents, on September 23, 2022, Midland Police officers found that Fabian Hernandez, 33, was a guest at a downtown hotel. In a search of his room, officers found over two pounds of methamphetamine and a 9mm Rock Island Armory handgun.
On December 15, 2022, Hernandez pleaded guilty to one count of conspiracy to possess with intent to distribute over 50 grams of Methamphetamine and one count of possession of a firearm in furtherance of a drug trafficking activity. Hernandez has remained in federal custody since his arrest on September 23, 2022.
“The court imposed a substantial sentence in this case. This should be a clear message to drug traffickers that dealing drugs while possessing a firearm is a serious crime that will result in serious punishment,” said U.S. Attorney Jaime Esparza of the Western District of Texas. “We are grateful for the collaboration between the Drug Enforcement Administration (DEA) and the Midland Police Department that resulted in the removal of another dealer from the streets.”
“Illicit synthetic drugs like methamphetamine and fentanyl continue to drive addiction and fatal poisonings in our country,” said Greg Millard, Special Agent in Charge of the DEA’s El Paso Division. “It is the top priority of the men and women of DEA to relentlessly pursue those manufacturing and distributing these poisons in our communities.”
The DEA’s Midland Resident Office and the Midland Police Department investigated the case.
Assistant U.S. Attorney Mary Lopez prosecuted the case.
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Mexico, Mo., Man Involved in Police Chase that Ended in Multi-Vehicle Crash, Sentenced for Illegal Firearms, Meth TraffickingRead the Press Release
JEFFERSON CITY, Mo. – A Mexico, Mo., man who was in a vehicle that led officers on a high-speed chase before crashing into several other vehicles was sentenced in federal court today for illegally possessing firearms and methamphetamine to distribute.
Myron Samare Mahaney, 23, was sentenced by U.S. District Judge Stephen R. Bough to seven years and three months in federal prison without parole.
On Nov. 1, 2022, Mahaney pleaded guilty to one count of possessing methamphetamine with the intent to distribute and one count of being a felon in possession of firearms.
A Missouri State Highway Patrol trooper attempted to stop a Nissan Rouge, in which Mahaney was a passenger, that was traveling 95 miles per hour on U.S. Highway 54 on March 14, 2022. The Nissan accelerated rapidly when the trooper turned on his lights and siren then drove onto U.S. Highway 50 in Jefferson City, traveling 107 miles per hour. The Nissan exited onto Dix Road and crashed into multiple vehicles that were stopped in traffic on southbound Dix Road.
Mahaney fled on foot from the vehicle but was taken into custody by Jefferson City police officers. Mahaney was carrying a crossbody bag that contained approximately 219 grams of methamphetamine, drug paraphernalia, a loaded Smith and Wesson 9mm semi-automatic handgun and a loaded Springfield .45-caliber semi-automatic handgun. He had $2,086 in cash in his front pocket.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Mahaney has a prior felony conviction for unlawful use of a weapon after he pulled up to a residence, got out of his vehicle, yelled for the residents to come out and fight and then started shooting toward the residence with his firearm, a Glock 19 with a 50-round drum.
The driver of the white Nissan was Malik Miller, 25, of Mokane, Mo. Miller pleaded guilty in Cole County, Mo., Circuit Court to felony charges of accessory to trafficking drugs, unlawful possession of a firearm, unlawful use of a weapon and resisting arrest. Miller was also sentenced in federal court on Feb. 10, 2023, to 15 years in federal prison without parole for being a felon in possession of a firearm in a separate and unrelated case.
This case was prosecuted by Special Assistant U.S. Attorney Heather D. Richenberger. It was investigated by the Missouri State Highway Patrol and the Jefferson City, Mo., Police Department.
Mescalero man charged with assault on federal officerRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced that Jeremy Daniel Dennis made an initial appearance in federal court on March 14 on a criminal complaint charging him with assault on a federal officer. Dennis, 43, of Mescalero, New Mexico, and an enrolled member of the Mescalero Apache Tribe, will remain in custody pending trial, which has not been scheduled.
According to the criminal complaint, on Dec. 25, 2022, Dennis allegedly assaulted a BIA Officer conducting a welfare check on him by punching and kicking the officer and attempting to strangle them by pressing the officer’s bulletproof vest into their throat. The incident occurred in Otero County, New Mexico, within the bounds of the Mescalero Apache Tribe.
A complaint is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Dennis faces up to 8 years in prison.
The Las Cruces Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Bureau of Indian Affairs. Assistant United States Attorney Eliot Neal is prosecuting the case.
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Mescalero man charged with assault in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced that Danny Deron Morgan made an initial appearance in federal court on March 14 on a criminal complaint charging him with assault of an intimate partner by strangling in Indian Country. Morgan, 50, of Mescalero, New Mexico, and an enrolled member of the Mescalero Apache Tribe, will remain in custody pending trial, which has not been scheduled.
According to the criminal complaint, on Feb. 20, Morgan allegedly assaulted a victim, identified as Jane Doe, by attempting to strangle them in Otero County, New Mexico, within the bounds of the Mescalero Apache Tribe.
A complaint is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Morgan faces up to 10 years in prison.
The Bureau of Indian Affairs investigated this case. Assistant United States Attorney Eliot Neal is prosecuting the case.
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Merrimack Man Sentenced to 18 Months Imprisonment for Unlicensed Firearm Dealing and Making False Statements During the Acquisition of FirearmsRead the Press Release
CONCORD, N.H. - Leith Sukkar, 23, of Merrimack New Hampshire, was sentenced to 18 months in federal prison on one count of unlicensed firearm dealing and two counts of making a false statement during the acquisition of a firearm, United States Attorney Jane E. Young announced today.
According to court documents and statements made in court, Between September 2021 and May 3, 2022, Sukkar purchased 24 firearms from four federally licensed firearms dealers in New Hampshire. Sukkar falsely represented that he was the actual purchaser of the firearms when, in fact, he was purchasing the firearms for other people. On May 3, 2022, Sukkar made a false statement during the purchase of a Glock model 29, 10mm pistol and a Glock model 43, 9mm pistol from Shooter’s Outpost, a federally licensed firearms dealer, located in Hooksett, New Hampshire. Similarly on April 27, 2022, Sukkar made a false statement during the purchase of a Taurus model G2S, 9mm pistol, from Shooter’s Outpost. Other evidence obtained during the investigation showed that he was charging $900 for firearms and accepted drugs as payment for at least one firearm. Sukkar does not have a federal license to sell or deal in firearms.
After sentencing U.S. Attorney Young said, “this defendant’s deliberate actions were designed to thwart the application of firearms laws and merit the term of imprisonment he received. The defendant’s crimes facilitated crimes of violence and other crimes, including drug offenses, in New Hampshire and neighboring states.”
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Manchester Police Department Special Investigations Unit, and the New Hampshire Sate Police. The case was prosecuted by Assistant U.S. Attorneys Geoffrey Ward, Anna Krasinski, and Deb Walsh.
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Manager of Transnational Fraud Scheme Sentenced to 41 Months in PrisonRead the Press Release
Earlier today, in federal court in Central Islip, Kamal Zafar was sentenced by United States District Judge Joan M. Azrack to 41 months in prison for conspiracy to commit wire fraud in connection with a fraudulent scheme directed at thousands of individuals in the United States. As part of the sentence, Zafar was also ordered to pay restitution in the amount of $3.2 million and forfeiture of $232,362. Zafar pleaded guilty to the charge in June 2022.
Breon Peace, United States Attorney for the Eastern District of New York, announced the sentence.
Mr. Peace thanked the Internal Revenue Service-Criminal Investigation, Treasury Inspector General for Tax Administration and New York City Police Department for their assistance with the case.
As alleged in the indictment and other court filings and proceedings, Zafar managed the fraud scheme by recruiting individuals to open bank accounts in the names of inactive and shell corporations and also assisted in the laundering of fraud proceeds. Between January 2018 and September 2018, operating from call centers in India, the scheme targeted victims in the United States and falsely claimed to be employees of the Internal Revenue Service, the Social Security Administration or the Drug Enforcement Administration. The victims who were taxpayers were informed that they owed a sum of money to the Internal Revenue Service. The victims who were medical professionals were informed that they owed a sum of money to the DEA in connection with their licenses. Both groups of victims were told that they would be arrested the next day if the debts were not immediately paid. After the victims wired payments to bank accounts that Zafar had opened or directed to be opened to receive the fraud proceeds, the funds were either withdrawn and laundered through additional bank accounts or wired to foreign countries. The scheme netted over $2 million from victims across the United States.
Zafar’s six co-conspirators previously pleaded guilty. In January 2022, Ajay Sharma, the leader and organizer of the fraud scheme, was sentenced to 78 months in prison and five others are awaiting sentencing.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Charles P. Kelly, Charles N. Rose and Diane Leonardo are in charge of the prosecution.
The Defendant:
KAMAL ZAFAR
Age: 53
South Huntington, New YorkDefendants Who Have Previously Pleaded Guilty:
AJAY SHARMA
Age: 44
Mumbai, IndiaANKUR SHARMA
Age: 25
Bellerose, New YorkRICARDO URBINO, also known as “Ricardo Urbina”
Age: 30
Queens, New YorkHARPREET SINGH
Age: 33
Queens Village, New YorkE.D.N.Y. Docket No. 19-CR-024 (JMA)
JAMAL ZAFAR
Age: 48
Huntington, New YorkARMUGHANUL ASAR
Age: 68
College Point, New YorkE.D.N.Y. Docket No. 19-CR-385 (JMA)
Man Charged with Attempted Murder of ATF Agents, Robbery, and Carjacking After Opening Fire During A High-Speed Chase on Interstate 4Read the Press Release
Tampa, Florida–United States Attorney Roger B. Handberg announces the unsealing of an indictment charging Francisco Cabrera (28, Dover) with armed robbery, armed carjacking, and attempting to murder federal agents. If convicted on all counts, Cabrera faces a mandatory minimum sentence of 28 years, up to life, in federal prison.
According to the indictment, between January 13 and 17, 2022, Cabrera robbed two Smoke Shops and one gas station in the Tampa Bay area. During each robbery, Cabrera showed victims a loaded magazine, inserted it into his pistol, and pointed the gun at the victims. On January 19, 2022, Cabrera approached a victim at a gas station and carjacked him at gunpoint. The same day, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) agents and Lakeland Police Department officers found Cabrera and attempted to conduct a traffic stop. Cabrera fled at speeds exceeding 100 miles per hour in heavy midday traffic, including on Interstate 4. While fleeing, Cabrera fired multiple shots from his driver side window at the agents and officers pursuing him. ATF agents returned fire, striking Cabrera, which ended the pursuit. No other individuals were struck by the gunfire.
Cabrera has been charged separately by the State Attorney’s Office (10th Judicial Circuit) with attempted murder of local law enforcement officers.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Lakeland Police Department. It will be prosecuted by Assistant United States Attorney Diego F. Novaes.
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.
LaPorte Man Sentenced to 180 Months in PrisonRead the Press Release
SOUTH BEND – Anthony Sanders, 35 years old, of LaPorte, Indiana, was sentenced by United States District Court Judge Damon R. Leichty after pleading guilty to unlawful possession of a firearm by a felon, announced United States Attorney Clifford D. Johnson.
Sanders was sentenced to 180 months in prison followed by 3 years of supervised release.
According to documents in the case, in February 2021, Sanders was in Michigan City with a loaded 9mm semi-automatic pistol with an extended magazine. When police officers attempted to stop him, he ran and discarded the handgun. Police recovered not only the pistol, but two extended magazines, one with 28 rounds and the other with 17 rounds of ammunition. Sanders’ had prior convictions for robbery involving a firearm, two for burglary, and two for dealing cocaine and, as a convicted felon, he was prohibited from possessing the firearm.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Michigan City Police Department. This case was prosecuted by Assistant United States Attorney Molly E. Donnelly.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Kanawha County Man Sentenced to Prison for Child Pornography CrimeRead the Press Release
CHARLESTON, W.Va. – Jonathan Richard Chapman, 43, of St. Albans, was sentenced today to five years in prison, to be followed by 15 years of supervised release, for attempted distribution of child pornography. Chapman must also register as a sex offender.
According to court documents and statements made in court, from about June 5, 2021, until June 30, 2022, Chapman used a peer-to-peer file sharing program to make 704 digital media files of suspected child pornography available to others. Chapman admitted that the digital media files included an image depicting a prepubescent minor female subjected to sexually explicit conduct. Chapman further admitted to possessing 91 images of child pornography on his personal electronic devices on August 11, 2022. The child pornography included several images and videos depicting infants and toddlers subjected to sexually explicit conduct.
United States Attorney Will Thompson made the announcement and commended the investigative work of the U.S. Department of Homeland Security-Homeland Security Investigations (HSI).
Senior United States District Judge John T. Copenhaver, Jr., imposed the sentence. Assistant United States Attorney Julie White prosecuted the case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-174.
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Justice Department Investigation Leads to Takedown of Darknet Cryptocurrency Mixer that Processed over $3 Billion of Unlawful TransactionsRead the Press Release
The Justice Department announced today a coordinated international takedown of ChipMixer, a darknet cryptocurrency “mixing” service responsible for laundering more than $3 billion worth of cryptocurrency, between 2017 and the present, in furtherance of, among other activities, ransomware, darknet market, fraud, cryptocurrency heists and other hacking schemes. The operation involved U.S. federal law enforcement’s court-authorized seizure of two domains that directed users to the ChipMixer service and one Github account, as well as the German Federal Criminal Police’s (the Bundeskriminalamt) seizure of the ChipMixer back-end servers and more than $46 million in cryptocurrency.
Coinciding with the ChipMixer takedown efforts, Minh Quốc Nguyễn, 49, of Hanoi, Vietnam, was charged today in Philadelphia with money laundering, operating an unlicensed money transmitting business and identity theft, connected to the operation of ChipMixer.
“This morning, working with partners at home and abroad, the Department of Justice disabled a prolific cryptocurrency mixer, which has fueled ransomware attacks, state-sponsored crypto-heists and darknet purchases across the globe,” said Deputy Attorney General Lisa Monaco. “Today’s coordinated operation reinforces our consistent message: we will use all of our authorities to protect victims and take the fight to our adversaries. Cybercrime seeks to exploit boundaries, but the Department of Justice’s network of alliances transcends borders and enables disruption of the criminal activity that jeopardizes our global cybersecurity.”
“Today's announcement demonstrates the FBI's commitment to dismantling technical infrastructure that enables cyber criminals and nation-state actors to illegally launder cryptocurrency funds,” said FBI Deputy Director Paul Abbate. “We will not allow cyber criminals to hide behind keyboards nor evade the consequences of their illegal actions. Countering cybercrime requires the ultimate level of collaboration between and among all law enforcement partners. The FBI will continue to elevate those partnerships and leverage all available tools to identify, apprehend and hold accountable these bad actors and put an end to their illicit activity.”
According to court documents, ChipMixer – one of the most widely used mixers to launder criminally-derived funds – allowed customers to deposit bitcoin, which ChipMixer then mixed with other ChipMixer users’ bitcoin, commingling the funds in a way that made it difficult for law enforcement or regulators to trace the transactions. As detailed in the complaint, ChipMixer offered numerous features to enhance its criminal customers’ anonymity. ChipMixer had a clearnet web domain but operated primarily as a Tor hidden service, concealing the operating location of its servers to prevent seizure by law enforcement. ChipMixer serviced many customers in the United States, but did not register with the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) and did not collect identifying information about its customers.
As alleged in the complaint, ChipMixer attracted a significant criminal clientele and became indispensable in obfuscating and laundering funds from multiple criminal schemes. Between August 2017 and March 2023, ChipMixer processed:
- $17 million in bitcoin for criminals connected to approximately 37 ransomware strains, including Sodinokibi, Mamba and Suncrypt;
- Over $700 million in bitcoin associated with wallets designated as stolen funds, including those related to heists by North Korean cyber actors from Axie Infinity’s Ronin Bridge and Harmony’s Horizon Bridge in 2022 and 2020, respectively;
- More than $200 million in bitcoin associated either directly or through intermediaries with darknet markets, including more than $60 million in bitcoin processed on behalf of customers of Hydra Market, the largest and longest running darknet market in the world until its April 2022 shutdown by U.S. and German law enforcement;
- More than $35 million in bitcoin associated either directly or through intermediaries with “fraud shops,” which are used by criminals to buy and sell stolen credit cards, hacked account credentials and data stolen through network intrusions; and
- Bitcoin used by the Russian General Staff Main Intelligence Directorate (GRU), 85th Main Special Service Center, military unit 26165 (aka APT 28) to purchase infrastructure for the Drovorub malware, which was first disclosed in a joint cybersecurity advisory released by the FBI and National Security Agency in August 2020.
Beginning in and around August 2017, as alleged in the complaint, Nguyễn created and operated the online infrastructure used by ChipMixer and promoted ChipMixer’s services online. Nguyễn registered domain names, procured hosting services and paid for the services used to run ChipMixer through the use of identity theft, pseudonyms, and anonymous email providers. In online posts, Nguyễn publicly derided efforts to curtail money laundering, posting in reference to anti-money laundering (AML) and know-your-customer (KYC) legal requirements that “AML/KYC is a sellout to the banks and governments,” advising customers “please do not use AML/KYC exchanges” and instructing them how to use ChipMixer to evade reporting requirements.
“ChipMixer facilitated the laundering of cryptocurrency, specifically Bitcoin, on a vast international scale, abetting nefarious actors and criminals of all kinds in evading detection,” said U.S. Attorney Jacqueline C. Romero for the Eastern District of Pennsylvania. “Platforms like ChipMixer, which are designed to conceal the sources and destinations of staggering amounts of criminal proceeds, undermine the public’s confidence in cryptocurrencies and blockchain technology. We thank all our partners at home and abroad for their hard work in this case. Together, we cannot and will not allow criminals’ exploitation of technology to threaten our national and economic security.”
“Criminals have long sought to launder the proceeds of their illegal activity through various means,” said Special Agent in Charge Jacqueline Maguire of the FBI Philadelphia Field Office. “Technology has changed the game, though, with a site like ChipMixer and facilitator like Nguyen enabling bad actors to do so on a grand scale with ease. In response, the FBI continues to evolve in the ways we ‘follow the money’ of illegal enterprise, employing all the tools and techniques at our disposal and drawing on our strong partnerships at home and around the globe. As a result, there’s now one less option for criminals worldwide to launder their dirty money.”
“Together, with our international partners at HSI The Hague, we are firmly committed to identifying and investigating cyber criminals who pose a serious threat to our economic security by laundering billions of dollars’ worth of cryptocurrency under the misguided anonymity of the darknet,” said Special Agent in Charge Scott Brown of Homeland Securities Investigations (HSI) Arizona. “HSI Arizona could not be more proud to work alongside every agent involved in this complex international case. We thank all our domestic and international partners for their support.”
Nguyễn is charged with operating an unlicensed money transmitting business, money laundering and identity theft. If convicted, he faces a maximum penalty of 40 years in prison.
The FBI, HSI Phoenix and HSI The Hague investigated the case.
The U.S. Attorney’s Office for the Eastern District of Pennsylvania is prosecuting the case.
German law enforcement authorities took separate actions today under its authorities. The FBI’s Legal Attaché in Germany, the HSI office in The Hague, the HSI Cyber Crimes Center, the Justice Department’s Office of International Affairs and National Cryptocurrency Enforcement Team, EUROPOL, the Polish Cyber Police (Centralnego Biura Zwalczania Cyberprzestępczości) and Zurich State Police (Kantonspolizei Zürich) provided assistance in this case.
To report information about ChipMixer and its operators visit rfj.tips/Duhsup.
A criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Justice Department Investigation Leads to Takedown of Darknet Cryptocurrency Mixer that Processed over $3 Billion of Unlawful TransactionsRead the Press Release
Philadelphia – The Justice Department announced today a coordinated international takedown of ChipMixer, a darknet cryptocurrency “mixing” service responsible for laundering more than $3 billion worth of cryptocurrency, between 2017 and the present, in furtherance of among other activities, ransomware, darknet market, fraud, cryptocurrency heists and other hacking schemes. The operation involved U.S. federal law enforcement’s court-authorized seizure of two domains that directed users to the ChipMixer service and one Github account, as well as the German Federal Criminal Police’s (the Bundeskriminalamt) seizure of the ChipMixer back-end servers and more than $46 million in cryptocurrency
Coinciding with the ChipMixer takedown efforts, Minh Quốc Nguyễn, 49, of Hanoi, Vietnam, was charged today in Philadelphia with money laundering, operating an unlicensed money transmitting business and identity theft, connected to the operation of ChipMixer.
“This morning, working with partners at home and abroad, the Department of Justice disabled a prolific cryptocurrency mixers, which has fueled ransomware attacks, state-sponsored crypto-heists and darknet purchases across the globe,” said Deputy Attorney General Lisa O. Monaco. “Today’s coordinated operation reinforces our consistent message: we will use all of our authorities to protect victims and take the fight to our adversaries. Cybercrime seeks to exploit boundaries, but the Department of Justice’s network of alliances transcends borders and enables disruption of the criminal activity that jeopardizes our global cybersecurity.”
“Today's announcement demonstrates the FBI's commitment to dismantling technical infrastructure that enables cyber criminals and nation-state actors to illegally launder cryptocurrency funds,” said FBI Deputy Director Paul Abbate. “We will not allow cyber criminals to hide behind keyboards nor evade the consequences of their illegal actions. Countering cyber crime requires the ultimate level of collaboration between and among all law enforcement partners. The FBI will continue to elevate those partnerships and leverage all available tools to identify, apprehend, and hold accountable these bad actors and put an end to their illicit activity.”
According to court documents, ChipMixer – one of the most widely used mixers to launder criminally derived funds – allowed customers to deposit bitcoin, which ChipMixer then mixed with other ChipMixer users’ bitcoin, commingling the funds in a way that made it difficult for law enforcement or regulators to trace the transactions. As detailed in the complaint, ChipMixer offered numerous features to enhance its criminal customers’ anonymity. ChipMixer had a clearnet web domain but operated primarily as a Tor hidden service, concealing the operating location of its servers to prevent seizure by law enforcement. ChipMixer serviced many customers in the United States, but did not register with the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) and did not collect identifying information about its customers.
As alleged in the complaint, ChipMixer attracted a significant criminal clientele and became indispensable in obfuscating and laundering funds from multiple criminal schemes. Between August 2017 and March 2023, ChipMixer processed:
- $17 million in bitcoin for criminals connected to approximately 37 ransomware strains, including Sodinokibi, Mamba and Suncrypt;
- Over $700 million in bitcoin associated with wallets designated as stolen funds, including those related to heists by North Korean cyber actors from Axie Infinity’s Ronin Bridge and Harmony’s Horizon Bridge in 2022 and 2020, respectively;
- More than $200 million in bitcoin associated either directly or through intermediaries with darknet markets, including more than $60 million in bitcoin processed on behalf of customers of Hydra Market, the largest and longest running darknet market in the world until its April 2022 shutdown by U.S. and German law enforcement;
- More than $35 million in bitcoin associated either directly or through intermediaries with “fraud shops,” which are used by criminals to buy and sell stolen credit cards, hacked account credentials and data stolen through network intrusions; and
- Bitcoin used by the Russian General Staff Main Intelligence Directorate (GRU), 85th Main Special Service Center, military unit 26165 (aka APT 28) to purchase infrastructure for the Drovorub malware, which was first disclosed in a joint cybersecurity advisory released by the FBI and National Security Agency in August 2020.
Beginning in and around August 2017, as alleged in the complaint, Nguyễn created and operated the online infrastructure used by ChipMixer and promoted ChipMixer’s services online. Nguyễn registered domain names, procured hosting services and paid for the services used to run ChipMixer through the use of identity theft, pseudonyms, and anonymous email providers. In online posts, Nguyễn publicly derided efforts to curtail money laundering, posting in reference to anti-money laundering (AML) and know-your-customer (KYC) legal requirements that “AML/KYC is a sellout to the banks and governments,” advising customers “please do not use AML/KYC exchanges” and instructing them how to use ChipMixer to evade reporting requirements.
“ChipMixer facilitated the laundering of cryptocurrency, specifically Bitcoin, on a vast international scale, abetting nefarious actors and criminals of all kinds in evading detection,” said U.S. Attorney Jacqueline C. Romero for the Eastern District of Pennsylvania. “Platforms like ChipMixer, which are designed to conceal the sources and destinations of staggering amounts of criminal proceeds, undermine the public’s confidence in cryptocurrencies and blockchain technology. We thank all our partners at home and abroad for their hard work in this case. Together, we cannot and will not allow criminals’ exploitation of technology to threaten our national and economic security.”
“Criminals have long sought to launder the proceeds of their illegal activity through various means,” said Special Agent in Charge Jacqueline Maguire of the FBI’s Philadelphia Field Office. “Technology has changed the game, though, with a site like ChipMixer and facilitator like Nguyen enabling bad actors to do so on a grand scale with ease. In response, the FBI continues to evolve in the ways we ‘follow the money’ of illegal enterprise, employing all the tools and techniques at our disposal and drawing on our strong partnerships at home and around the globe. As a result, there’s now one less option for criminals worldwide to launder their dirty money.”
“Together, with our international partners at HSI The Hague, we are firmly committed to identifying and investigating cyber criminals who pose a serious threat to our economic security by laundering billions of dollars’ worth of cryptocurrency under the misguided anonymity of the darknet,” said Special Agent in Charge Scott Brown of Homeland Securities Investigations (HSI) Arizona. “HSI Arizona could not be more proud to work alongside every agent involved in this complex international case. We thank all our domestic and international partners for their support.”
Nguyễn is charged with operating an unlicensed money transmitting business, money laundering and identity theft. If convicted, he faces a maximum penalty of 40 years in prison.
FBI, HSI Phoenix and HSI The Hague investigated the case.
The U.S. Attorney’s Office for the Eastern District of Pennsylvania is prosecuting the case.
German law enforcement authorities took separate actions today under its authorities. The FBI’s Legal Attaché in Germany, the HSI office in The Hague, the HSI Cyber Crimes Center, the Justice Department’s Office of International Affairs, National Cryptocurrency Enforcement Team, EUROPOL, the Polish Cyber Police (Centralnego Biura Zwalczania Cyberprzestępczości) and Zurich State Police (Kantonspolizei Zürich) provided assistance in this case.
To report information about ChipMixer and its operators visit rfj.tips/Duhsup.
A criminal complaint is merely an allegation. All defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Inland Empire Return Preparer Charged with Preparing False Tax Returns with Bogus Deductions for 5 YearsRead the Press Release
RIVERSIDE, California – An Inland Empire man was arrested this week after being named in a 47-count indictment alleging he prepared false tax returns for clients, the Justice Department announced today.
Salvador Gonzalez, of Corona, was arrested Monday afternoon by special agents with IRS Criminal Investigation after being charged last week by a federal grand jury. Gonzalez was arraigned on the indictment Tuesday afternoon in United States District Court, where he entered not guilty pleas. Gonzalez was ordered released on bond, and a trial in this case was scheduled for May 9.
The indictment charges Gonzalez with 47 counts of aiding and assisting in the preparation of false tax returns.
According to the indictment filed on March 8 and unsealed Tuesday, Gonzalez operated a tax preparation business called Grace’s Lighthouse Resource Center, Inc., in Corona.
For tax years 2016 through 2021, Gonzalez allegedly prepared income tax returns for individuals and corporate clients to submit to the IRS that claimed tens of thousands of dollars in bogus business losses. Gonzalez also allegedly falsified additional deductions on client returns, including medical and dental expenses, unreimbursed employee expenses, and charitable contributions, knowing that the clients were not entitled to the amounts claimed.
If convicted in this case, Gonzalez would face a statutory maximum penalty of three years in prison for each count alleged in the indictment. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
IRS Criminal Investigation is investigating the case.
Assistant United States Attorney Robert S. Trisotto of the Riverside Branch Office and Trial Attorney Lauren K. Pope of the Justice Department’s Tax Division are prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Ho Wan Kwok, A/K/A “Miles Guo,” Arrested for Orchestrating over $1 Billion Dollar Fraud ConspiracyRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of a twelve-count Indictment charging HO WAN KWOK, a/k/a “Miles Guo,” a/k/a “Miles Kwok,” a/k/a “Guo Wengui,” a/k/a “Brother Seven,” a/k/a “The Principal,” and KIN MING JE, a/k/a “William Je,” with various wire fraud, securities fraud, bank fraud, and money laundering charges. JE, who is KWOK’s financier, is also charged with obstruction of justice. The charges in the Indictment arise from an alleged sprawling and complex scheme by the defendants, and others, to solicit investments in various entities and programs through false statements and representations to hundreds of thousands of KWOK’s online followers. As alleged, KWOK and JE misappropriated hundreds of millions of dollars in fraudulently obtained funds during the course of their conspiracy. KWOK was arrested this morning in New York, New York, and will be presented this afternoon. JE is currently at large.
In addition, Mr. Williams announced that between September 2022 and March 2023, the U.S. Government seized approximately $634 million from 21 different bank accounts. The $634 million constitutes proceeds of KWOK’s alleged fraud, which the Government will seek to forfeit. Today, law enforcement also seized assets that were purchased with proceeds of KWOK’s alleged fraud, including a Lamborghini Aventador SVJ Roads.
U.S. Attorney Damian Williams said: “As alleged, Ho Wan Kwok, known to many as “Miles Guo,” led a complex conspiracy to defraud thousands of his online followers out of over $1 billion dollars. Kwok is charged with lining his pockets with the money he stole, including buying himself, and his close relatives, a 50,000 square foot mansion, a $3.5 million Ferrari, and even two $36,000 mattresses, and financing a $37 million luxury yacht.
As alleged, Kwok lied to his victims and promised them outsized returns if they invested, or provided money to, GTV, his so-called Himalaya Farm Alliance, G|CLUBS, and the Himalaya Exchange.
Kwok is further charged with laundering hundreds of millions of stolen funds to conceal the conspiracy’s illegal activities and continue the fraud’s operations. My office and our law enforcement partners will continue to do all that we can to protect the community from the devastating consequences of pernicious fraud schemes. If you believe you are a victim of Kwok and Je’s fraud, please contact [email protected] or https://forms.fbi.gov/NY_GTV. My Office and the FBI are here to help those who were harmed by this malicious fraud.”
FBI Assistant Director Michael J. Driscoll said: “The indictment today alleges the defendants were behind an elaborate scheme that defrauded thousands of individuals of over one billion dollars. Fraudulent investment scams make victims out of innocent people, ultimately harming the public’s confidence in the integrity of financial systems. The FBI continues to make investigating complex financial crimes a top priority, and anyone attempting these crimes will be made to face the consequences in the criminal justice system.”
As alleged in the Indictment unsealed in Manhattan federal court and court filings:[1]
From at least in or about 2018 through at least in or about March 2023, KWOK, JE, and others, conspired to defraud thousands of victims of more than approximately $1 billion. KWOK was the leader of this complex conspiracy.
KWOK is an exiled Chinese businessman who has resided in the United States since in or about 2015 and garnered a substantial online following. In or about 2018, KWOK founded two purported nonprofit organizations, namely, the Rule of Law Foundation and the Rule of Law Society. KWOK used the nonprofit organizations to amass followers who were aligned with his purported policy objectives in China and who were also inclined to believe KWOK’s statements regarding investment and money-making opportunities.
JE is a dual citizen of Hong Kong and the United Kingdom who principally resided in the United Kingdom. JE owned and operated numerous companies and investment vehicles central to the scheme and served as its financial architect and key money launderer.
KWOK and JE’s fraud relied on at least four interrelated parts: the GTV Media Group, Inc. (“GTV”) Private Placement, the Farm Loan Program, G Club Operations, LLC (“G|CLUBS”), and the Himalaya Exchange.
GTV Private Placement
On or about April 21, 2020, KWOK posted a video on social media announcing the unregistered offering of GTV Media Group, Inc. (“GTV”) common stock via a private placement. GTV was touted as a wide-ranging media company. In that video, KWOK described, in substance and in part, the investment terms for the GTV Private Placement, and directed people to contact him, via a mobile messaging application, with any questions about the GTV Private Placement. The video and GTV Private Placement materials included a written “Confidential Information Memorandum” (the “PPM”). The PPM stated on the cover “Everything Is Just the Beginning!,” provided information about GTV, and contained false representations regarding how the money raised from the GTV Private Placement would be used.
Between on or about April 20, 2020 and on or about June 2, 2020, approximately $452 million worth of GTV common stock was purportedly sold to more than 5,500 investors. Investors participated in the GTV Private Placement based, in part, on the belief that their money would be invested into GTV to develop and grow that business, as the PPM promised. In early June 2020, just days after the GTV Private Placement closed, KWOK and JE directed that $100 million of funds raised from the GTV Private Placement be invested in a high-risk hedge fund for the benefit of GTV’s parent company and its ultimate beneficial owner who was a close family relative of KWOK.
Farm Loan Program
KWOK, JE, and their co-conspirators fraudulently obtained more than approximately $150 million in victim funds through the “Himalaya Farm Alliance.” The Himalaya Farm Alliance, which KWOK organized and promoted, was a collective of informal groups (each known as a “Farm”) located in various cities around the world. KWOK, JE, and others working on their behalf and at their direction, obtained these funds by making further misrepresentations to the investors in the GTV Private Placement and fraudulently soliciting further investments, this time in the form of “loans” to a Farm, and promising that such loans would be convertible into GTV common stock at a conversion rate of one share per dollar loaned. On or about July 22, 2020, in a video distributed via social media, KWOK promoted the Farm Loan Program. After launching the Farm Loan Program, KWOK continued to promote GTV and to falsely represent the value of GTV. For example, on or about August 2, 2020, in a video distributed via social media, KWOK falsely stated, in substance and part, “How much is GTV? . . . a market value of 2 billion US dollars.” In truth and in fact, and as KWOK well knew, GTV’s market value was far less.
KWOK and JE misappropriated funds that were raised through the Farm Loan Program. For example: (i) approximately $2.3 million was used to cover maintenance expenses associated with an approximately 145-foot luxury yacht worth approximately $37 million, nominally owned by close family relative of KWOK and used by KWOK, which is pictured below; and (ii) approximately $10 million was transferred to personal bank accounts in the name of JE and/or JE’s spouse.
G|CLUBS
KWOK, JE and others known and unknown, fraudulently induced KWOK’s followers to transfer additional funds to a purported online membership club called G|CLUBS. From at least in or about October 2020 through at least in or about March 2023, KWOK, JE, and others fraudulently obtained more than approximately $250 million in victim funds through G|CLUBS. G|CLUBS claimed, on its website, to be “an exclusive, high-end membership program offering a full spectrum of services” and “a gateway to carefully curated world-class products, services and experiences.”
In truth and in fact, and as KWOK and JE well knew, G|CLUBS provided nothing close to “a full spectrum of services” and “experiences” to its members. Indeed, most of the money G|CLUBS members paid did not fund the business of G|CLUBS. Rather, the defendants misappropriated a substantial portion of the victim funds using, among other things, a complex web of entities and bank accounts to do so. For example, G|CLUBS funds were used by KWOK and JE: (i) toward the purchase of KWOK’s 50,000 square foot New Jersey mansion (pictured below); (ii) to purchase various furniture and decorative items including, among other items, Chinese and Persian rugs worth approximately $978,000, a $62,000 television, and a $53,000 fireplace log cradle holder; and (iii) to purchase a custom-built Bugatti sports car for approximately $4.4 million (pictured below):
Himalaya Exchange
KWOK, JE, and others known and unknown, fraudulently obtained more than approximately $262 million in victim funds through the Himalaya Exchange, a purported cryptocurrency “ecosystem” accessible on the Internet. The Himalaya Exchange included a purported stablecoin called the Himalaya Dollar (“HDO” or “H Dollar”) and a trading coin called Himalaya Coin (“HCN” or “H Coin”). In videos distributed via social media, KWOK trumpeted the prospects and valuation of the Himalaya Exchange and both HCN and HDO, which he publicly described as cryptocurrencies. For example, in a video posted on the Internet on or about October 20, 2021, KWOK falsely stated: “If the H Coin is worthless, [the issuer of H coin] can sell all 20% of the gold, exchange it to you, and become your money. Or take all the value of 20% gold and ask everyone to unify it and make it yours;” and “If anyone loses money, I can say that I will compensate 100%. I give you 100%. Whoever loses money, I will bear it.” The initial coin offering of HCN and HDO occurred on or about November 1, 2021. HCN began trading at 10 cents and, within approximately two weeks, the Himalaya Exchange website claimed that each HCN purportedly was worth approximately 27 HDO (i.e., $27), which represented a 26,900% increase in value and a total value of approximately $27 billion. JE also falsely claimed to media outlets that a €3.5 million Ferrari was purchased via the Himalaya Exchange. In truth, a Himalaya Exchange employee sent the Ferrari broker an international bank wire to cover the cost of the Ferrari, while also processing a corresponding “transaction” on the Himalaya Exchange to create the false appearance that the purchase had taken place using HDO in order to show HDO was easily tradeable and to promote the Himalaya Exchange. The buyer of the Ferrari was a close relative of KWOK.
U.S. Government Seizures
On or about September 20, 2022 and September 21, 2022, U.S. authorities served judicially-authorized seizure warrants on several domestic banks, and subsequently seized approximately $335 million of proceeds from bank accounts held in the names of Himalaya Exchange entities and other entities associated with KWOK and JE. Within approximately two days of the first judicially authorized seizures of Himalaya Exchange-related funds, on or about September 22, 2022, JE contacted the management of a domestic bank that held Himalaya Exchange bank accounts. JE sought to implement a wire transfer, which he and a Himalaya Exchange executive claimed to the domestic bank was needed to effectuate a “redemption” from HDO to U.S. dollars for an unnamed “VIP” (i.e., very important client of the Himalaya Exchange). In subsequent communications with the domestic bank, JE revealed that the VIP was, in fact, JE himself. JE provided the domestic bank with documents reflecting two purported HCN sales by JE on or about September 22, 2022—totaling 46 million HDO, which JE was attempting to “convert” into $46 million. JE twice emphasized to the domestic bank’s management, in substance and in part, that the $46 million transfer needed to happen “today or it is meaningless.”
U.S. Authorities subsequently seized additional funds from KWOK and JE-associated entities in October 2022 and March 2023. In total, U.S. Authorities seized more than approximately $634 million of fraud proceeds, including approximately $278 million from bank accounts held in the names of the Himalaya Exchange entities.
Today, pursuant to judicially-authorized warrants, U.S. Authorities are seizing additional items from KWOK-associated properties, which KWOK and JE allegedly purchased with fraud proceeds.
* * *
HO WAN KWOK, a/k/a “Miles Guo,” a/k/a “Miles Kwok,” a/k/a “Guo Wengui,” a/k/a “Brother Seven,” a/k/a “The Principal,” 52, of New York, New York, and KIN MING JE, a/k/a “William Je,” 56, of London, England, are charged in an Indictment with the following offenses:
Count
Charge
Defendant
Maximum Penalty
1
Conspiracy to Commit Wire Fraud, Bank Fraud, Securities Fraud and Money Laundering
KWOK and JE
5 years in prison
2
Wire Fraud (GTV Private Placement)
KWOK and JE
20 years in prison
3
Securities Fraud (GTV Private Placement)
KWOK and JE
20 years in prison
4
Wire Fraud (Farm Loan Program)
KWOK and JE
20 years in prison
5
Securities Fraud (Farm Loan Program)
KWOK and JE
20 years in prison
6
Wire Fraud (G|CLUBS)
KWOK and JE
20 years in prison
7
Securities Fraud (G|CLUBS)
KWOK and JE
20 years in prison
8
Wire Fraud (Himalaya Exchange)
KWOK and JE
20 years in prison
9
International Promotional Money Laundering
KWOK and JE
20 years in prison
10
International Concealment Money Laundering
KWOK and JE
20 years in prison
11
Unlawful Monetary Transactions
KWOK and JE
10 years in prison
12
Obstruction of Justice
JE
20 years in prison
The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the investigative work of the FBI. Mr. Williams further thanked the U.S. Securities and Exchange Commission, which today filed a parallel civil action against KWOK and JE, for its assistance and cooperation in this investigation. Mr. Williams also expressed appreciation for the assistance of the United States Marshals Service, the Justice Department’s Office of International Affairs, and the U.K. Metropolitan Police.
If you believe you are a victim of KWOK and JE’s fraud, please find more information here: https://www.justice.gov/usao-sdny/united-states-v-ho-wan-kwok-aka-miles-guo-and-kin-ming-je-aka-william-je
The case is being handled by the Complex Frauds and Cybercrime Unit of the Office’s Criminal Division. Assistant U.S. Attorneys Ryan B. Finkel, Juliana N. Murray, and Micah F. Fergenson are in charge of the prosecution.
The allegations in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
HO WAN KWOK, 豪万郭（音译）a/k/a，“MILES GUO”别称“迈乐斯郭”因策划超过 10 亿美元的欺诈阴谋而被捕Read the Press Release
美国纽约南区检察官 Damian Williams（达米安威廉姆斯）和联邦调查局 (“FBI”) 纽约外地办事处负责人助理主任 Michael J. Driscoll 宣布公开一份12项的起诉书，指控 HO WAN KWOK 豪万郭（音译），a/k/a “Miles Guo”别称”迈乐斯郭”， a/k/a “Miles Kwok”, a/k/a 别称“郭文贵”, a/k/a 别称“七哥”, a/k/a别称“领头人”和 KIN MING JE，吉建明（音译），又名“William Je”“威廉吉”，涉及多种电汇欺诈、证券欺诈、银行欺诈和洗钱指控。 JE吉是郭的财务设计师，他同时还被控妨碍司法公正。起诉书中的指控源于被告和其他人操纵庞大而复杂的阴谋，目的是通过向数十万 KWOK 郭的在线粉丝提供虚假陈述和陈述来招揽对各种实体和项目的投资。如指控所述，KWOK郭和JE吉在串谋过程中挪用了数亿美元的欺诈所得资金。KWOK郭今天早上在纽约市，纽约州被捕，将于今天下午出庭。JE吉目前在逃。
此外，威廉姆斯先生宣布在2022年9月至2023年3月期间，美国政府从21个不同的银行账户中扣押了约6.34亿美元。这6.34亿美元构成了郭某涉嫌欺诈的收益，政府将寻求没收这些收益。今天，执法部门还从KWOK郭的财产中扣押了以下资产，这些资产是 KWOK郭 用涉嫌欺诈的收益购买的，其中包括一辆Lamborghini Aventador SVJ Roads兰博基尼。
美国检察官Damian Williams达米安威廉姆斯说：“正如所指控的那样，HO WAN KWOK 豪万郭（音译），许多人称他为 “Miles Guo”迈乐斯郭”， 操纵一个复杂的阴谋，从他数千名在线追随者骗取了超过10亿美元的资金。郭被控用偷来的钱财中饱私囊，包括为自己和他的近亲购买一座50,000平方英尺的豪宅、一辆价值350万美元的法拉利，甚至还有两张价值 36,000 美元的床垫，以及出资获取一艘价值3700万美元的豪华游艇。
如指控所言，Kwok郭对他的受害者撒谎，并承诺如果他们投资或提供金钱给GTV、给所谓的喜马拉雅农场联盟，G|CLUBS俱乐部和喜马拉雅交易所，就会获得丰厚的回报。郭还被指控洗钱数亿被盗资金，以掩盖串谋从事非法行为并继续进行欺诈活动。我的办公室和我们的执法伙伴将继续竭尽全力保护社区免受恶性欺诈带来破坏性后果。如果您认为自己是 Kwok郭和Je吉的欺诈的受害者，请联系[email protected]或访问 http://forms.fbi.gov/NY_GTV。我的办公室和联邦调查局是来帮助那些受到这种恶意欺诈伤害的人们的。”
FBI联邦调察局助理局长Michael J. Driscoll（迈克尔 J. 吉尔斯克勒）说：“今天的起诉书指控的被告是一个精心策划的计划的幕后黑手，该阴谋骗取了数千人超过10亿美元。欺诈性投资骗局使无辜者成为受害者，最终损害公众对金融体系完整性的信心。FBI联邦调察局继续将把调查复杂的金融犯罪作为首要任务，任何企图实施这些犯罪的人都将面临刑事司法系统带来后果。 ”
正如曼哈顿联邦法院开封的起诉书和法院文件中所称：[1]
从至少在2018年左右到至少在2023年3月左右，KWOK郭、JE吉和其他人共谋诈骗了数千名受害者超过约10亿美元。郭是这个复杂阴谋的领头人。
KWOK郭是一名流亡的中国商人，自2015年左右以来一直居住在美国，并在网上拥有大量追随者。大约在2018年左右，郭成立了两个据称是非营利的组织，即法治基金会和法治协会。郭利用非营利组织招聚追随者，这些追随者与他声称的在中国的政策目标一致，并且也倾向于相信郭关于投资和赚钱机会的陈述。
JE吉为香港及英国双重公民，主要居住于英国。JE吉拥有并经营为数众多的公司和对阴谋成败悠关投资工具，并担任其金融设计师和主要洗钱者。
KWOK郭和JE吉的欺诈至少依赖于四个相互关联的部分：GTV Media Group GTV 媒体团队, Inc. (“GTV”)Private Placement(GTV)私募、The Farm Loan Program 农场贷款项目、G Club Operations, LLC (“G|CLUBS”)G俱乐部操作有限公司和Himalaya Exchange喜马拉雅交换所 。
GTV私募
2020年4月21日前后，KWOK郭在社交媒体上发布了一段视频，宣布通过私募方式未注册发行 GTV Media Group, Inc.(“GTV”) 普通股。 GTV被吹捧为一家范围广泛的媒体公司。在那段视频中，KWOK 实质上和部分地描述了 GTV 私募的投资条款，并指示人们通过移动信息的应用程序与他联系，询问有关 GTV 私募的任何问题。视频和 GTV 私募材料包括书面的“机密信息备忘录”（“PPM”）。 PPM在封面上写着“一切都只是开始！”，提供了有关 GTV 的信息，并包含有关如何使用 GTV 私募筹集的资金的虚假陈述。
在 2020 年 4 月 20 日或前后至 2020 年 6 月 2 日左右，价值约 4.52 亿美元的 GTV 普通股出售给了5，000多名的投资者。投资者参与 GTV 私募的部分原因是相信他们的资金将投资于 GTV 以发展和壮大该业务，正如 PPM 所承诺的那样。 2020 年 6 月上旬，就在GTV私募结束几天后，KWOK郭和JE吉指示从GTV私募筹集的1亿美元资金投资于高风险对冲基金，以受惠于GTV的母公司及它的最终受益拥-郭某的近亲。
农场贷款项目
KWOK郭、JE吉和他们的同谋者通过“喜马拉雅农场联盟”骗取了超过约 1.5亿美元受害人资金。由郭氏组织及推动的喜马拉雅农场联盟，是一个由分布于世界各地不同城市的（每个单元叫“农场”）的非正式团队组成。KWOK郭、JE吉和其他代表他们并在他们的指导下工作的人通过在GTV私募中进一步向投资者作出虚假陈述，并以欺诈方式招揽更多投资，这次是以向农场“贷款”的形式获得这些资金，以及承诺此类贷款可以转换为 GTV 普通股，转换率为每借出 1 美元一股。 2020 年 7 月 22 日前后，KWOK郭在通过社交媒体发布的一段视频中宣传了农场贷款项目。推出农场贷款项目后，KWOK郭继续宣传GTV并虚假陈述GTV的价值。例如，在 2020 年 8 月 2 日左右，在通过社交媒体传播的一段视频中，KWOK郭实质地和部分地虚假陈述，“GTV值多少钱？ . . .市值20亿美元。”事实上，正如 KWOK郭所了解的那样，GTV的市值要低很多。
KWOK郭和JE吉挪用了通过农场贷款项目筹集的资金。例如:(i)约230万美元用于支付与价值约3700万美元的约145英尺豪华游艇相关的维护费用,该游艇名义上由郭的近亲拥有并由郭使用，如下图所示;(ii) 约1000万美元转入JE吉和/或JE吉的配偶名下的个人银行账户。
G|俱乐部
KWOK郭、JE吉及其他已知和未知的人以欺诈手段引诱KWOK郭的追随者将额外资金转移到一个名叫G/俱乐部— 一个号称为在线会员的俱乐部。从至少在2020年10月左右到至少在2023年3月左右，KWOK郭、JE吉和其他人通过G|俱乐部，欺诈性地获得了超过约 2.5 亿美元的受害人资金。 G|俱乐部在其网站上号称是“提供全方位服务的独家高端会员项目”和“通往精心策划的世界级产品、服务和体验的门户”。
事实上，正如 KWOK郭和JE吉所熟知的那样，G|俱乐部并未为其会员提供任何接近于“全方位服务”和“体验”的东西。事实上，G|俱乐部会员支付的大部分钱并没有为 G|俱乐部的业务提供资金。相反，被告挪用了受害人的很大部分地资金，其中包括使用复杂的网络实体和银行账户来执行。例如，KWOK郭和JE吉使用 G/俱乐部的资金： ( i ) 用于购买 KWOK郭50,000平方英尺的新泽西豪宅（如下图）；(ii) 购买各种家具和装饰品，其中包括价值约978,000美元的中国和波斯地毯、价值62,000美元的电视和价值53,000美元的壁炉架； (iii) 以大约440万美元的价格购买一辆定制的布加迪跑车（如下图）：
喜马拉雅交易所
KWOK郭、JE吉和其他已知和未知的人通过 Himalaya Exchange喜马拉雅交易所欺诈性地获得了超过约2.62 亿美元的受害人资金，这是一个自称可以在互联网上使用的加密货币“生态系统”。喜马拉雅交易所包括一种名为 Himalaya Dollar喜马拉雅美元（“HDO”或“H Dollar”H美元）的稳定币和一种名为 Himalaya Coin喜马拉雅硬币（“HCN”或“H Coin”H硬币）的交易币。在通过社交媒体发布的视频中，KWOK郭大肆宣扬喜马拉雅交易所以及HCN（H硬币和HDO（H美元）的前景和估值，他公开将其描述为加密货币。例如，在 2021 年 10 月 20 日前后发布在互联网上的一段视频中，KWOK郭谎称：“如果 H硬币不值钱，[H硬币的发行人]可以卖掉20%的所有的黄金，换给你，并成为你的钱。或者把价值20%的黄金全部拿走，让大家统一起来，使之成为你的；” “如果有人赔钱，我可以说我会100%赔偿。我给你100%。谁亏了钱，我来承担。” HCN(H硬币)和 HDO（H美元） 的首次代币发行发生在2021年11月1日左右。HCN（H硬币）以10美分的价格开始交易，在大约两周内，喜马拉雅交易所网站声称每个HCN（H硬币）价值约27HDO（H美元）（即 27 美元），价值增长了 26,900%，总价值约为 270 亿美元。JE吉还向媒体谎称一辆价值 350万欧元的法拉利是通过喜马拉雅交易所购买的。事实上，喜马拉雅交易所的一名员工向法拉利经纪人发送了一封国际银行电汇，以支付法拉利的费用，同时还在喜马拉雅交易所处理了相应的“交易”，以制造购买是使用 HDO（H美元）进行的虚假表象，以便展示 HDO（H美元）易于交易并促进喜马拉雅交易所。法拉利的买家是郭某的近亲。
美国政府扣押行动
在 2022年9月20日和2022年9月21日前后，美国当局向几家国内银行发出了司法授权的扣押令，随后从以喜马拉雅交易所的实体和其他与郭和吉相关的实体持有的银行账户中扣押了约 3.35 亿美元。在 2022年9月22日左右，即首次司法授权扣押 Himalaya Exchange（喜马拉雅交易所）相关资金后的大约两天内，JE吉联系了一家持有Himalaya Exchange(喜马拉雅交易所)银行账户的国内银行的管理层。 JE吉试图实施电汇，他和喜马拉雅交易所的一位高管向国内银行声称需要电汇才能为一位未具名的“VIP”（即喜马拉雅交易所非常重要的客户）实现从HDO（H美元）“赎回” 美元 .在随后与国内银行的沟通中，JE吉透露，VIP（重要人物）其实就是JE吉本人。 JE吉向国内银行提供的文件反映了JE吉在2022年9月22日左右进行的两笔 HCN（H硬币）销售——总计 4600 万 HDO（H美元），JE吉试图将其“转换”为4600万美元。 JE吉两次实质上和部分地向国内银行的管理层强调，4600万美元的转账需要“在今天进行，否则就毫无意义”。
美国当局随后于2022年10月和2023年3月从KWOK郭和JE吉相关联的实体扣押了额外资金。美国当局总共扣押了超过约 6.34 亿美元的欺诈收益，其中包括来自以喜马拉雅交易所实体持有的银行账户的约 2.78 亿美元。
今天，根据司法授权的逮捕令，美国当局从KWOK郭和JE吉涉嫌用欺诈所得购买的与 KWOK郭相关的财产中没收了其他物品.
* * *
HO WAN KWOK, 豪万郭（音译），a/k/a “Miles Guo”别称”迈乐斯郭”, a/k/a, a/k/a “郭文贵”, a/k/a “七哥”, a/k/ a “领头人”, 52 岁，来自纽约市， 纽约州，KIN MING JE(建明吉)，又名“William Je”（威廉吉），56岁，来自英国伦敦，起诉书指控以下的犯罪行为：
项数
指控
被告
最高刑罚
一
串谋从事电汇诈骗、银行诈骗、证券诈骗和洗钱
郭与杰
5年监禁
二
电汇诈骗（GTV私募）
郭与杰
20年监禁
三
证券欺诈(GTV私募)
郭与杰
20年监禁
四
电汇欺诈（农场贷款计划）
郭与杰
20年监禁
五
证券欺诈（农业贷款计划）
郭与杰
20年监禁
六
电汇欺诈 (G|俱乐部)
郭与杰
20年监禁
七
证券欺诈(G|俱乐部)
郭与杰
20年监禁
八
电汇欺诈（喜马拉雅交易所）
郭与杰
20年监禁
九
国际促销洗钱
郭与杰
20年监禁
十
国际隐瞒洗钱
郭与杰
20年监禁
十一
非法货币交易
郭与吉
10年监禁
十二
妨碍司法公正
吉
20年监禁
法定最高刑期由国会规定，此处仅供参考，因为对被告判的的任何刑期都将由法官决定。
威廉姆斯先生赞扬了联邦调查局的调查工作。威廉姆斯先生进一步感谢美国证券交易委员会在本次调查中的协助与合作，该委员会今天对KWOK郭和JE吉提出了平行民事诉讼。威廉姆斯先生还对美国法警部，司法部国际事务办公室和英国大都会警察局的协助表示感谢。
如果您认为自己是KWOK郭和JE吉欺诈的受害者，请在此处查找更多信息：http//www.justice.gov/usao-sdny/united-states-v-ho-wan-kwok-aka-miles-guo-and-kin-ming-je-aka-william-je 。
此案由该办公室刑事部的多层面欺诈和网络安全小组负责。美国助理检察官Ryan B. Finkel、Juliana N. Murray 和 Micah F. Fergenson负责起诉。
起诉书中的指控仅仅是指控，被告被假定为无罪，除非并直到被证明有罪。
[1] 正如介绍性的短句所言，起诉书的全文本以及此处对起诉书指控的描述，构成仅仅是指控，所描述每一个实情都应作为指控来对待。
Grand Rivers Man and Woman Sentenced to Federal Prison for Methamphetamine TraffickingRead the Press Release
Paducah, KY – A Grand Rivers man and woman were sentenced today for possession with the intent to distribute methamphetamine.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge J. Todd Scott of the DEA Louisville Field Division, and Sheriff Ryan Norman of the McCracken County Sheriff’s Office made the announcement.
Today, in the United States District Court for the Western District of Kentucky, Paducah Division, Edward Ibold, 38, was sentenced to 120 months in prison followed by 5 years of supervised release for possession with the intent to distribute 264 grams of methamphetamine. Ibold was also sentenced to an additional 20 months in prison for violation of the terms his supervised release from a previous federal conviction. He received a total sentence of 140 months in prison.
Nikole Console, 28, was sentenced to 36 months in prison followed by 3 years of supervised release for possession with the intent to distribute 264 grams of methamphetamine.
There is no parole in the federal system.
The case was investigated by the DEA Paducah Post of Duty Office and the McCracken County Sheriff’s Office.
Assistant U.S. Attorney Leigh Ann Dycus, of the U.S. Attorney’s Paducah Branch Office, prosecuted the case.
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Grand Jury Returns IndictmentsRead the Press Release
MADISON, WIS. - A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments today. You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Michigan Man Charged with Making Threats
Arvin Raj Mathur, 32, Grass Lake, Michigan, is charged with six counts of transmitting communications containing threats to injure other persons. The indictment alleges that on six occasions in February 2023, Mathur sent electronic communications threatening to injure a Wisconsin citizen, for the purpose of issuing threats and with knowledge that the communications would be viewed as threats.
Mathur previously was charged with transmitting communications containing threats in a sealed complaint filed in U.S. District Court for the Western District of Wisconsin on March 8, 2023. The complaint was unsealed following his arrest in Detroit, Michigan on Friday, March 10.
Mathur made an initial appearance in U.S. District Court for the Eastern District of Michigan on Saturday, March 11 and a detention hearing was held yesterday. The Court ordered that he remain in federal custody pending his arraignment in federal court in Madison, Wisconsin. The date for his arraignment in Wisconsin has not been set.
If convicted, Mathur faces a maximum penalty of five years in federal prison on each count. The charges against him are the result of an investigation by the University of Wisconsin-Madison Police Department, Federal Bureau of Investigation, and Homeland Security Investigations. Assistant U.S. Attorney Zachary Corey is handling the prosecution. Assistant U.S. Attorney Mark Bilkovic handled Mathur’s appearances in the Eastern District of Michigan.
Man Charged with Conspiring to Launder Proceeds of Fraud Scheme
Paul Williams Anti, 59, a citizen of Ghana, is charged with conspiring with unknown others to launder the proceeds of a wire fraud scheme. The indictment alleges that from October 13, 2020 to October 20, 2020, the fraud perpetrators used false pretenses to cause an employee of Organization A in the Western District of Wisconsin to wire transfer the organization’s funds to the conspirators, including Williams Anti.
The indictment alleges that the conspirators gained unauthorized access to the work email account of an employee of Organization A, and without the employee’s knowledge, obtained copies of incoming emails containing genuine invoices sent to the organization for payment and altered the invoices to increase the amounts due and change where payment was to be directed. The indictment further alleges that the fraud perpetrators sent emails containing the altered invoices to a second employee for payment, and the second employee directed the organization’s bank to wire funds to bank accounts, including two controlled by Williams Anti, who then transferred some of the fraud proceeds to other accounts he maintained under false identities.
According to the indictment, of the approximately $2.4 million fraudulently obtained from Organization A, approximately $1 million was wired to the two bank accounts controlled by Williams Anti.
Williams Anti was arrested in the Southern District of New York on Monday, March 13. A date for his initial appearance in Wisconsin has not been set.
If convicted, Williams Anti faces a maximum penalty of 20 years in federal prison. The charge against him is the result of an investigation by Homeland Security Investigations and the Federal Bureau of Investigation. Assistant U.S. Attorney Meredith Duchemin is handling the prosecution.
Two Charged with Defrauding Tribal Housing Authority
In related cases charged in separate indictments, two individuals have been charged with engaging in fraud schemes to defraud the St. Croix Chippewa Housing Authority, a tribal agency of the St. Croix Chippewa Indians of Wisconsin. The first indictment charges Karen Johnson, 55, Cumberland, Wisconsin, with three counts of wire fraud, theft from a federally funded organization, and aggravated identity theft. This indictment alleges that from November 2018 to June 2019, Johnson, while employed as a housing specialist with the St. Croix Chippewa Housing Authority, created false invoices and vouchers for work allegedly done by Individual A on behalf of the Housing Authority and then wrote checks payable to Individual A from the Housing Authority’s bank account. The indictment further alleges that Johnson endorsed each check by forging the signature of Individual A and deposited the proceeds into her personal bank account. According to the indictment, Individual A did not perform the work for the Housing Authority or create the invoices and he was unaware his identity was used in this manner. The wire fraud charges involve three Housing Authority checks totaling $12,700.
The second indictment charges Duane Emery, 64, Hertel, Wisconsin, with three counts of wire fraud and one count of theft from a federally funded program. The indictment alleges that from February 2015 to June 2019, Emery, while employed as the housing director for the Housing Authority, requested a fellow employee to write checks drawn on the Housing Authority account payable to Sears, claiming that the checks constituted reimbursement for his expenses related to his employment with the Housing Authority. The indictment alleges that Emery used the funds to make payments to his personal Sears credit card account. The wire fraud charges involved three Housing Authority checks totaling $6,600.
If convicted, Johnson and Emery face a maximum penalty of 20 years in federal prison on each wire fraud count and 10 years on the theft from a federally funded program count. The aggravated identity theft count Johnson is charged with carries a mandatory two-year penalty. The charges against Johnson and Emery are the result of an investigation by the U.S. Department of Housing and Urban Development’s Office of Inspector General with the full support and cooperation of the St. Croix Tribe. Assistant U.S. Attorney Taylor Kraus is handling the prosecutions.
La Crosse Man Charged with Possessing Methamphetamine for Distribution
Devin A. Lewis, 37, La Crosse, Wisconsin, is charged with possessing 50 grams or more of methamphetamine with intent to distribute. The indictment alleges that he possessed the methamphetamine on February 20, 2023.
If convicted, Lewis faces a mandatory minimum penalty of five years and a maximum of 40 years in federal prison. The charge against him is the result of an investigation by the La Crosse Police Department. Assistant U.S. Attorney Anita Marie Boor is handling the prosecution.
Two Charged with Illegally Reentering U.S.
In unrelated cases, two citizens of Mexico have been charged with illegally reentering the United States after having been removed. The first indictment charges Gilberto De Leon-Lopez, also known as Rolando Joel De Leon De Paz, 38, living in Rock County, Wisconsin. The indictment alleges he was found in the United States on January 13, 2023. The second indictment charges Eloy Flores-Zuniga, 38, living in Rock County. The indictment alleges that he was found in the United States on January 3, 2023.
If convicted, Gilberto De Leon-Lopez faces a maximum penalty of 20 years and Eloy Flores-Zuniga faces a maximum penalty of 10 years in federal prison. The charges against them are the result of investigations by U.S. Immigration and Customs Enforcement. Assistant U.S. Attorney Robert Anderson is handling the prosecutions.
Fugitive Wanted in Alleged Athens Armed Fentanyl Trafficking RingRead the Press Release
ATHENS, Ga. – Federal agents are searching for an Athens man charged in a 28-count, ten-defendant indictment alleging an armed fentanyl trafficking ring responsible for distributing multiple kilograms of fentanyl into the Athens-Clarke County community.
Christopher King, 34, is charged with one count of conspiracy to distribute and to possess with intent to distribute heroin and fentanyl and one count of possession with intent to distribute fentanyl. If convicted, King faces a maximum sentence of life in prison and a mandatory minimum sentence of ten years in prison and a $10,000,000 fine. Anyone with information regarding King’s whereabouts are urged to contact the U.S. Marshals Service (USMS), Macon, Georgia, office at 478-870-1017 or you can submit a tip anonymously by calling 1-877-WANTED-2.
King and nine co-defendants are facing federal drug and gun charges after a federal grand jury returned a 28-count indictment on Oct. 11, 2022; the indictment was unsealed on Dec. 22, 2022. According to the indictment, all of the defendants allegedly conspired to distribute more than one kilogram of heroin and more than 400 grams of fentanyl between Feb. 2021 and Sept. 2022. Additionally, defendants James Hill, Jasmine Jackson, Jose Camacho and Kristopher Ellison are charged with conspiring to distribute more than 50 grams of methamphetamine and more than 500 grams of cocaine. The indictment alleges fentanyl and other drug trafficking occurred at various locations in northeast Georgia, mostly in Athens: an apartment at 120 Chateau Terrace, the Fairfield Inn and Suites and the Howard Johnson’s Motel in Athens, and 3073 Hardman Morris Road in Colbert (Madison County), Georgia.
During the course of the investigation, agents seized more than 3.6 kilograms of fentanyl, over one kilogram of heroin, more than 500 grams of cocaine and 313 grams of methamphetamine. Additionally, 21 firearms were seized, including three machine guns, sixteen pistols, one AK-47 rifle and one shotgun. Hundreds of rounds of ammunition and $116,567 in drug proceeds were also seized.
The following eight co-defendants are charged in the indictment with King; they’ve had their initial appearances before U.S. Magistrate Judge Charles H. Weigle and were remanded to federal custody:
James Jerome Hill aka “Keith,” 40, of Athens, is charged with one count of conspiracy to distribute and to possess with intent to distribute heroin and fentanyl, one count of conspiracy to distribute and to possess with intent to distribute methamphetamine and cocaine, one count of possession with intent to distribute heroin and fentanyl, one count of possession of a firearm in furtherance of a drug trafficking crime, one count of maintaining a drug involved premises and one count of possession of a firearm by a convicted felon;
Lanel Chambers aka “LC” aka “Lanel Rankin,” 44, of Lilburn, Georgia, is charged with one count of conspiracy to distribute and to possess with intent to distribute heroin and fentanyl;
Jose Camacho, 22, of Colbert, Georgia, is charged with one count of conspiracy to distribute and to possess with intent to distribute heroin and fentanyl, one count of conspiracy to distribute and to possess with intent to distribute methamphetamine and cocaine, one count of possession with intent to distribute fentanyl, one count of possession with intent to distribute cocaine, one count of possession with intent to distribute methamphetamine, one count of possession with intent to distribute marijuana, one count of possession of a firearm in furtherance of a drug trafficking crime, one count of illegal possession of a machine gun and one count of maintaining a drug involved premises;
Michael Arnold, 50, of Athens, is charged with one count of conspiracy to distribute and to possess with intent to distribute heroin and fentanyl;
Kristopher Ellison aka “Soldier,” 32, of Athens, is charged with one count of conspiracy to distribute and to possess with intent to distribute heroin and fentanyl, one count of conspiracy to distribute and to possess with intent to distribute methamphetamine and cocaine, one count of possession with intent to distribute fentanyl, one count of possession with intent to distribute methamphetamine, one count of possession with intent to distribute marijuana and one count of possession of a firearm by a convicted felon;
Antonio Young, 38, of Athens, is charged with one count of conspiracy to distribute and to possess with intent to distribute heroin and fentanyl and one count of possession with intent to distribute fentanyl;
Hendrex Nicely aka “Hen,” 34, of Athens, is charged with one count of conspiracy to distribute and to possess with intent to distribute heroin and fentanyl, one count of possession with intent to distribute fentanyl, one count of possession of a firearm in furtherance of a drug trafficking crime and one count of possession of a firearm by a convicted felon; and
Favian Curry aka “Favo,” 41, of Athens, is charged with one count of conspiracy to distribute and to possess with intent to distribute heroin and fentanyl, two counts of possession with intent to distribute fentanyl, one count of possession of a firearm in furtherance of a drug trafficking crime and two counts of maintaining a drug involved premises.
The following defendant is charged, had her initial appearance before the Honorable Judge Weigle and was released on bond:
Jasmine Jackson, 28, of Athens, is charged with one count of conspiracy to distribute and to possess with intent to distribute heroin and fentanyl, one count of conspiracy to distribute and to possess with intent to distribute methamphetamine and cocaine, one count of possession with intent to distribute heroin and fentanyl and one count of maintaining a drug involved premises.
Each defendant faces a mandatory minimum sentence of ten years in prison up to a maximum sentence of life in prison and a $10,000,000 fine.
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 case is being investigated by the Drug Enforcement Administration (DEA), U.S. Marshal Service (USMS), FBI Athens Middle Georgia Safe Streets Gang Task Force, Northeast Georgia Regional Drug Task Force, Athens-Clarke County Police Department (ACCPD), Clarke County Sheriff’s Office, Greene County Sheriff’s Office, Gwinnett County Police Narcotics Unit the Georgia State Patrol (GSP).
Assistant U.S. Attorney Mike Morrison is prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Fort Wayne Pimp Sentenced to 15 Years in Federal Prison for Sex Trafficking of a Minor at Indianapolis-Area HotelsRead the Press Release
INDIANAPOLIS- Damion Alexander, 28, of Fort Wayne, Indiana, was sentenced to 15 years in federal prison after pleading guilty to sex trafficking of a minor.
According to court documents, Damion Alexander met a 17-year-old girl online sometime in 2021. After meeting the minor and her adult friend in person, Alexander convinced them both to travel with him and caused them to engage in commercial sex acts that financially benefited him. From at least May 15, 2021, to June 2, 2021, Alexander transported the minor victim back and forth from Fort Wayne to engage in commercial sex in Indianapolis-area hotels on multiple occasions.
Alexander took sexually explicit photos and videos of the minor victim and the adult and used them for online commercial sex advertisements. Cell phone videos obtained during the investigation showed Alexander berating and abusing the minor victim while she was severely impaired.
Alexander corresponded with the commercial sex buyers, set prices, and directed the minor victim as to how long to spend with them and what acts to perform. Commercial sex buyers used CashApp to make payments that were transferred to Alexander’s account. Alexander received and kept thousands of dollars obtained by trafficking the minor victim in commercial sex, assuring her that he was “holding” the money and would give it back to her if she ever needed it.
On June 2, 2021, Indianapolis Metropolitan Police Department officers recovered the minor victim at the Sheraton Hotel located at Keystone Crossing in Indianapolis. Alexander was found loitering outside of the victim’s hotel room, and he fled the scene when approached by officers.
“Trafficking vulnerable minors’ bodies for financial gain is a despicable crime that merits significant punishment,” said Zachary A. Myers, United States Attorney for the Southern District of Indiana. “Pimps like this defendant inflict lasting trauma with utter disregard for the safety or dignity of those they exploit. Our office and our law enforcement partners, including the FBI and IMPD, are fully committed to rescuing survivors from sex trafficking and putting pimps in prison. The sentence imposed today should serve as a warning to would-be traffickers: if you sell minors for sex you will spend many years in federal prison.”
The Federal Bureau of Investigation and IMPD investigated this case. The sentence was imposed by U.S. District Court Judge Jane Magnus-Stinson. Judge Stinson also ordered that Alexander be supervised by the U.S. Probation Office for 15 years following his release from federal prison and pay $13,000 in restitution to the victims. Alexander must also register as a sex offender where he lives, works, and goes to school, as required by law.
U.S. Attorney Myers thanked Assistant United States Attorneys Kristina M. Korobov and Lawrence D. Hilton, who prosecuted this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc
Former Wells Fargo Executive Agrees to Plead Guilty to Obstructing Bank Examination Involving the Opening of Millions of Accounts Without Customer AuthorizationRead the Press Release
LOS ANGELES – The former head of Wells Fargo Bank’s retail banking division has agreed to plead guilty to obstructing a government examination into the bank’s widespread sales practices misconduct, which included opening millions of unauthorized accounts and other products, federal authorities announced today.
In a plea agreement filed today in United States District Court, Carrie L. Tolstedt, 63, of Scottsdale, Arizona, agreed to plead guilty to one count of obstruction of a bank examination. Tolstedt is expected to make her initial court appearance in Los Angeles in the coming weeks, with the parties requesting the court to set a hearing for April 7.
The Office of the Comptroller of the Currency (OCC), which investigated misconduct at Wells Fargo, also has reached a resolution with Tolstedt in a regulatory proceeding. As part of the consent order resolving that matter, Tolstedt agreed to a ban from working in the banking industry and to pay a $17 million civil penalty.
“The justice system and regulators rely on corporations and their executives to fully cooperate during investigations into potential wrongdoing. But, in this case, Ms. Tolstedt took steps to cover up misconduct at Wells Fargo,” said Acting United States Attorney Joseph T. McNally. “Obstructing an investigation compromises the mission of those seeking the truth, and we will hold accountable any individual who attempts to conceal wrongdoing.”
“The plea agreement filed today sends a clear message that bank executives who commit fraud and deliberately deceive regulators will be brought to justice for their actions. I commend our agents and their federal law enforcement partners for their hard work and persistence, which ultimately led to this outcome,” said Mark Bialek, Inspector General for the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau.
“Today’s plea agreement holds the defendant accountable for her role in obstructing the examination into the unlawful sales practices at Wells Fargo, which deceived millions of clients who placed their trust in the institution,” said Acting Inspector General Tyler Smith of the Federal Deposit Insurance Corporation, Office of Inspector General. “We remain committed to working with our law enforcement partners to investigate any individuals, including bank executives, who threaten to undermine the integrity of the banking sector.”
“Obstructing lawful governmental reviews of bank operations undermines the integrity of our financial institutions,” said Robert K. Tripp, the Special Agent in Charge of the FBI’s San Francisco Field Office. “The resolution of this case is the result of diligent work by the FBI and our law enforcement partners, who spent years uncovering corporate misconduct in this case. This investigation demonstrates our unwavering commitment to rooting out white-collar crimes, regardless of their complexity, and protecting our economy.”
From approximately 2007 to September 2016, Tolstedt was Wells Fargo’s senior executive vice president of community banking and was head of the Community Bank, which operated Well Fargo’s consumer and small business retail banking business. The Community Bank managed many of the products that Wells Fargo sold to individual customers and small businesses, including checking and savings accounts, CDs, debit cards, bill pay, and other products.
Wells Fargo previously admitted that, from 2002 to 2016, excessive sales goals led Community Bank employees to open millions of accounts and other financial products that were unauthorized or fraudulent. In the process, Wells Fargo collected millions of dollars in fees and interest to which it was not entitled, harmed customers’ credit ratings, and unlawfully misused customers’ sensitive personal information.
Many of these practices were referred to within Wells Fargo as “gaming.” Gaming strategies included using existing customers’ identities – without their consent – to open accounts. Gaming practices included forging customer signatures to open accounts without authorization, creating PINs to activate unauthorized debit cards, and moving money from millions of customer accounts to unauthorized accounts in a practice known internally as “simulated funding.”
Gaming also included opening credit cards and bill pay products without authorization, altering customers’ contact information to prevent customers from learning of unauthorized accounts and to prevent Wells Fargo employees from reaching customers to conduct customer satisfaction surveys, and encouraging customers to open accounts they neither wanted nor needed.
According to the plea agreement filed today, by no later than 2004, Tolstedt was aware of sales practices misconduct within the Community Bank and the fact that employees were terminated each year for gaming. By no later than 2006, Tolstedt was learning about the gaming practices from corporate investigations and, over time, learned that terminations for gaming in the Community Bank were steadily increasing, that the misconduct was linked in part to sales goals within the Community Bank, and that termination numbers likely underestimated the scope of the problem.
Although the Community Bank eventually took steps purportedly designed to proactively identify sales misconduct, the measures used by the bank flagged only a small portion of the potentially problematic activity for investigation. As of July 2014, only the most egregious .01 to .05 percent of employees engaging in activity considered a “red flag” for sales practices misconduct were investigated – with the remaining 99.95 to 99.99 percent left unexamined under this process.
In May 2015, Tolstedt participated in the preparation of a memorandum, which she knew would be provided to the OCC in connection with its examination of sales practice issues at Wells Fargo. To minimize the scope of the sales practices misconduct within the Community Bank, Tolstedt corruptly obstructed the OCC’s examination by failing to disclose statistics on the number of employees who were terminated or resigned pending investigation for sales practices misconduct. She also failed to disclose that the Community Bank proactively investigated only a very small percentage of employees who engaged in activity flagged as potential sales practices misconduct.
“We are proud to work with our partner agencies to help bring justice to the many people who were harmed by the unscrupulous sales practices of Wells Fargo,” said Brian Tomney, Inspector General of the Federal Housing Finance Agency. “The results of this case should be a clear signal that FHFA-OIG and its partner agencies will hold accountable those who seek to put profits ahead of legal and fair banking practices.”
“This plea agreement demonstrates the determination and cooperation of Postal Inspectors and our federal law enforcement partners. Postal Inspectors are committed to investigating anyone holding a position of trust in the financial system that would engage in a fraud to deceive their customers,” said Rafael Nuñez, Inspector in Charge of the United States Postal Inspection Service, San Francisco Division.
Wells Fargo in 2020 acknowledged the widespread sales practices misconduct within the Community Bank and paid a $3 billion penalty in connection with agreements reached with the United States Attorneys’ Offices for the Central District of California and the Western District of North Carolina, the Justice Department’s Civil Division, and the Securities and Exchange Commission.
The statutory maximum sentence for obstruction of a bank examination is five years in federal prison. Tolstedt has entered into a plea agreement which calls for a prison sentence of up to 16 months in prison, which prosecutors believe is the high end of the sentencing guideline range for the obstruction offense. The plea agreement is “binding,” which means the court must accept or reject all aspects of it. Should the court reject the plea agreement, including the agreed-upon sentencing range, any party may withdraw from it.
The FBI; the Federal Deposit Insurance Corporation, Office of Inspector General; the Federal Housing Finance Agency, Office of Inspector General; the Office of Inspector General for the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau; and the United States Postal Inspection Service are investigating this matter. The OCC and the United States Securities and Exchange Commission provided substantial assistance.
This matter is being prosecuted by Assistant United States Attorneys Alexander B. Schwab and Carolyn S. Small of the Major Frauds Section, along with Special Attorney Benjamin S. Kingsley and Assistant United States Attorney Daniel S. Ryan of the Western District of North Carolina.
Former Rochester, New Hampshire Man Sentenced to 68 Months for Conspiracy to Distribute FentantylRead the Press Release
CONCORD – Craig Wiggin, 44, formerly of Rochester, New Hampshire was sentenced to 68 months in federal prison for conspiracy to distribute controlled substances, United States Attorney Jane E. Young announced today.
According to court documents and statements made in court, in July 2021, Wiggin conspired with other individuals to sell quantities of fentanyl to an individual cooperating with the Federal Bureau of Investigation (“FBI”) and to an FBI Task Force Officer, who was acting in an undercover capacity as a drug customer. The drug sales occurred at various locations in Rochester, New Hampshire and totaled approximately 225 grams of fentanyl.
“Fentanyl continues to be a major threat to the safety of New Hampshire citizens. Those individuals who choose to distribute the drug in New Hampshire will be vigorously prosecuted,” said U.S. Attorney Jane E. Young.
“Today’s sentence should put other drug traffickers who are following in Craig Wiggin’s footsteps on notice that the FBI and our law enforcement partners are working together to identify, disrupt, and remove from our communities anyone who peddles deadly fentanyl,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division.
The case is being investigated by the FBI’s New Hampshire Major Offender Task Force and the New Hampshire State Police’s Narcotics Investigations Unit. The case is being prosecuted by Assistant United States Attorney Jennifer C. Davis.
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Former Mexican governor and presidential candidate sentenced for money launderingRead the Press Release
HOUSTON – The former governor of Tamaulipas, Mexico, has been sentenced to nine years in prison for accepting over $3.5 million in illegal bribe money and using it to fraudulently purchase property in the United States, announced U.S. Attorney Alamdar S. Hamdani.
Tomas Yarrington Ruvalcaba, 66, was also a former candidate for president of Mexico. He pleaded guilty March 25, 2021.
Today, U.S. District Judge Rolando Olvera sentenced Yarrington to 108 months imprisonment. Not a U.S. citizen, Yarrington is expected to face removal proceedings following his imprisonment. In handing down the sentence, the court noted that as an elected official, Yarrington violated his oath of office, weakening the country of Mexico and promoting criminal activity. As part of his sentence, Yarrington has also forfeited a Port Isabel condominium.
“Even if you are governor of a Mexican state, we will not stand idly by when you use your position to wrongfully fill your pockets and violate the laws of the United States.” said Hamdani. “Today’s prison sentence for Yarrington concludes a multi-year, multi-agency international investigation spanning two continents concluding in bringing a corrupt politician to justice.”
“HSI relentlessly disrupts and dismantles transnational criminal organizations that pose a threat to U.S. national security, to include any corrupt public officials who use their position for criminal gain,” said Craig Larrabee, Acting Special Agent in Charge of Homeland Security Investigations (HSI) in San Antonio. “HSI is dedicated and determined to investigate those involved in criminal activity and who launder their ill-gotten gains in the United States.”
Yarrington accepted bribes from individuals and private companies in Mexico to do business with the state of Tamaulipas while he served as governor. Yarrington was in that position from 1999 to 2005. He was also an Institutional Revolutionary Party candidate for president of Mexico in 2005.
Yarrington used the bribery money he received while governor to purchase properties in the United States. He had prestanombres - nominee buyers -purchase property in the United States to hide Yarrington’s ownership of the properties and the illegal bribery money used to purchase them. Yarrington laundered his illegally obtained bribe money in the United States by purchasing beachfront condominiums, large estates, commercial developments, airplanes and luxury vehicles.
“IRS-Criminal Investigation (CI) special agents are experts in following the money in a financial crime, and we found plenty of money to follow that helped to unravel Yarrington’s criminal enterprise,” said acting Special Agent in Charge Rodrick J. Benton of IRS-CI’s Houston Field Office. “Working alongside other law enforcement agencies, the U.S. Attorney’s Office and the other U.S. and international partners helps U.S. taxpayers know that justice is a global concept and no criminal is out of reach.”
“The Drug Enforcement Administration (DEA), HSI, IRS-CI and FBI, along with our state, local and international law enforcement partners, were a force multiplier in this case who collaborated to halt the threat of corrupt money into our country,” said Special Agent in Charge Daniel C. Comeaux of the DEA – Houston Division. “There will always be zero tolerance for those who abuse their power for self-gain at our communities' expense. This sentence highlights our continued commitment to bringing those who misuse that power to justice.”
“This individual took advantage of his position to enrich himself at the expense of those who trusted him,” said Special Agent in Charge Oliver E. Rich Jr. of the FBI - San Antonio Division. “Today’s sentencing serves as a powerful reminder to any corrupt official that these activities will not be tolerated. The FBI remains committed to working alongside our law enforcement partners to hold corrupt officials accountable to the communities they were sworn to serve.”
In April 2017, authorities captured Yarrington in Italy while traveling under an assumed name and false passport. He was taken into custody on a provisional arrest warrant based on the indictment returned in May 2013. Although Yarrington contested extradition, Italian authorities eventually authorized his extradition to the United States. He arrived in April 2018. He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
HSI led the Organized Crime Drug Enforcement Task Forces (OCDETF) operation dubbed Operation Green Tide with the assistance of IRS – CI, DEA, FBI and Texas Attorney General’s Office. It included agents and officers in Brownsville, San Antonio, Houston, Corpus Christi and New York. The Justice Department’s Office of International Affairs handled the extradition in this matter. The U.S. government also acknowledges with gratitude the significant assistance received from the government of Mexico in the course of this investigation. Additionally, the United States acknowledges the assistance of the U.S. Marshals Service, HSI-Rome, HSI-Mexico City, the Italian Ministry of the Interior (particularly Interpol Rome and the Central Operations Service of the Italian National Police) and the Italian Ministry of Justice in Yarrington’s extradition.
OCDETF identifies, disrupts and dismantles the highest-level drug traffickers, money launderers, gangs and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage.
Assistant U.S. Attorneys Jody Young, Jon Muschenheim and Karen Betancourt are prosecuting the case.
Former Leon County Corrections Officer Indicted for Distribution, Possession, and Receipt of Child PornographyRead the Press Release
TALLAHASSEE, FLORIDA – James Anthony Linton, 60, of Tallahassee, Florida, was indicted by a federal grand jury charging him with receiving, distributing, and possessing material constituting child pornography. The indictment was announced by Jason R. Coody, United States Attorney for the Northern District of Florida. Linton made his initial appearance in federal court to face the charges this afternoon.
The indictment alleges that, between November 2021, and February 2022, Linton received, distributed, and possessed material containing child pornography. The pornographic material allegedly found in Linton’s possession involved minors under the age of 12.
Trial for Linton is set for May 24, 2023, at 8:15 a.m., at the United States Courthouse in Tallahassee before the Honorable United States Chief District Judge Mark E. Walker.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.
The case was investigated by Homeland Security Investigations and the Leon County Sheriff’s Office. The case is being prosecuted by Assistant United States Attorney Meredith L. Steer.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office for the Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Florida Man Charged with Federal Hate Crimes for Racially Motivated Attack Against Group of Black MenRead the Press Release
A federal grand jury in Gainesville, Florida, returned a six-count indictment charging David Emanuel, 61, with committing hate crimes for his racially motivated attack on a group of Black men who were surveying land along a public road in Cedar Key, Florida.
The indictment returned by a federal grand jury alleges that on Sept. 6, 2022, Emanuel willfully intimidated the victim, F.D.D., and attempted to injure, intimidate and interfere with him, through the use of Emanuel’s vehicle, because of F.D.D.’s race and color.
Emanuel is further alleged to have willfully intimidated and interfered with, and attempted to intimidate and interfere with, five additional victims, through the use of his vehicle, because of the victims’ race and color. According to the indictment, all six victims were Black males who were surveying land owned by one of the victims at the time of the alleged offenses.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Jason R. Coody for the Northern District of Florida, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division and Special Agent in Charge Sherri E. Onks of the FBI Jacksonville Field Office made the announcement.
The FBI Jacksonville Field Office and Gainesville Resident Agency investigated the case, with assistance from the Levy County Sheriff’s Office.
Assistant U.S. Attorney Kaitlin Weiss for the Northern District of Florida and Trial Attorney Laura-Kate Bernstein of the Civil Rights Division’s Criminal Section are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent unless proven guilty beyond a reasonable doubt in a court of law.
Florida Man Charged with Federal Hate Crimes for Racially Motivated Attack Against Group of Black MenRead the Press Release
A federal grand jury in Gainesville, Florida, returned a six-count indictment charging David Emanuel, 61, with committing hate crimes for his racially motivated attack on a group of Black men who were surveying land along a public road in Cedar Key, Florida.
The indictment returned by a federal grand jury alleges that on Sept. 6, 2022, Emanuel willfully intimidated the victim, F.D.D., and attempted to injure, intimidate and interfere with him, through the use of Emanuel’s vehicle, because of F.D.D.’s race and color.
Emanuel is further alleged to have willfully intimidated and interfered with, and attempted to intimidate and interfere with, five additional victims, through the use of his vehicle, because of the victims’ race and color. According to the indictment, all six victims were Black males who were surveying land owned by one of the victims at the time of the alleged offenses.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Jason R. Coody for the Northern District of Florida, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division and Special Agent in Charge Sherri E. Onks of the FBI Jacksonville Field Office made the announcement.
The FBI Jacksonville Field Office and Gainesville Resident Agency investigated the case, with assistance from the Levy County Sheriff’s Office.
Assistant U.S. Attorney Kaitlin Weiss for the Northern District of Florida and Trial Attorney Laura-Kate Bernstein of the Civil Rights Division’s Criminal Section are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent unless proven guilty beyond a reasonable doubt in a court of law.
Ferguson Man Caught with Gun After Police Chase Sentenced to 19 Years in PrisonRead the Press Release
ST. LOUIS – A felon from Ferguson, Missouri who was caught with a gun after fleeing from police in St. Louis was sentenced to 19 years in prison.
On July 19, 2021, Anthony Willis, now 30, fled from St. Louis Metropolitan Police Department officers who tried to pull him over after he failed to stop at a stop sign in the Wells Goodfellow neighborhood.
Willis drove past another stop sign before other officers used spike strips to deflate his tires. He kept driving until he hit another vehicle at Goodfellow and Natural Bridge, then got out and ran. He was caught a short distance away. Willis left a loaded .40 caliber Glock handgun in the car.
As a convicted felon, Willis is barred from possessing a firearm. Willis was convicted of the 2010 robbery of a Del Taco in St. Louis and the robbery of a Popeye’s Chicken manager in St. Louis County on two occasions in 2010. He was sentenced to 10 years in prison and was on parole at the time of the police chase. Due to his prior convictions, he was considered an “armed career criminal,” which meant he faced a mandatory minimum of 15 years in prison.
Willis was found guilty by a jury November 16 of a felony charge of being a felon in possession of a firearm.
The St. Louis Metropolitan Police Department investigated the case. Assistant U.S. Attorneys Matthew Martin and Donald Boyce are prosecuting the case.
Federal jury returns verdict in two violent armed robberiesRead the Press Release
HOUSTON – A 51-year-old Houston man has been convicted of two 2019 armed robberies, announced U.S. Attorney Alamdar S. Hamdani.
The Houston jury deliberated for approximately two hours after a three-day trial before convicting Hezron Benjamin Stuart on two counts of interference with commerce by robbery and two counts of discharging a firearm during a crime of violence.
The jury found that Stuart robbed The Corner Food Mart located at 3502 Mangum and discharged his firearm May 18, 2019. On May 23, 2019, Stuart also robbed the Citgo Gas Station located at 3839 South Loop East. During the Citgo robbery, Stuart shot the store clerk when he refused to give up the cash.
This kind of violent crime has to stop,” said Hamdani. “To those trigger-pullers that want to inflict harm on our community... be aware…we are coming after you. This man put lives in danger and was found guilty. I am happy that because of this jury and the dedicated work of our prosecutors and partners, he will now face the consequences of his actions.”
At trial, the jury heard from witnesses in both cases, including the surviving shooting victim, who were able to identify Stuart as the person who robbed and shot at them. The jury also heard from a firearms examiner who testified regarding firearms evidence collected from both scenes and the similarities between the evidence. A fingerprint examiner had compared a fingerprint left at the scene of the Citgo Gas Station robbery to Stuart and determined that it was the same.
Stuart represented himself during the trial and claimed he was not the individual who committed the robberies. The jury did not believe those claims and found him guilty as charged.
U.S. District Judge Lee Rosenthal presided over trial and set sentencing for July 27. At that time, Stuart faces up to 20 years for the robbery and up to life for the firearms charges which must be served consecutively to any other prison term imposed.
Stuart has been and will remain in custody pending sentencing.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the FBI conducted the investigation as part of the ATF Houston Crime Gun Strike Force with the assistance of the Houston Police Department (HPD) and the Houston Forensic Science Center. Assistant U.S. Attorneys Carolyn Ferko and Britni Cooper prosecuted the case.
The ATF Houston Crime Gun Strike Force was created as a joint effort between the ATF And HPD to combat the growing trend in crimes involving firearms.
Federal jury convicts Heron man of kidnapping son, fleeing to Costa RicaRead the Press Release
MISSOULA — A federal jury today convicted a Heron man of kidnapping his son in violation of a parenting plan and taking him to Costa Rica, U.S. Attorney Jesse Laslovich said.
A jury found Jacob Israel Strong, aka Jacob Israel Guill, 37, guilty of international parental kidnapping. The two-day trial began on March 14. Strong faces a maximum of three years in prison, a $250,000 fine and one year of supervised release.
U.S. District Judge Dana L. Christensen presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for July 27. Strong was detained pending further proceedings.
“Maintaining the safety of Montanans, especially children, is a top priority for our office, which is why I am pleased with the jury’s verdict. This case shows the extensive efforts we will make to bring kidnappers to justice, including working with law enforcement across international borders. I am grateful to First Assistant U.S. Attorney Timothy J. Racicot and Assistant U.S. Attorney Brian C. Lowney, along with the FBI, for investigating and prosecuting this case,” U.S. Attorney Laslovich said.
The government alleged in court documents and at trial that in January 2020, Strong and his ex-wife entered into a parenting plan for their then two-year-old son as part of a divorce proceeding. Prior to a court date in August 2021, Strong failed to return their son to his mother as scheduled. The mother was unable to locate Strong and ultimately contacted the Sanders County Sheriff’s Office. Law enforcement also was unable to contact Strong. The Sanders County Attorney’s Office subsequently charged Strong with felony parental interference and a state arrest warrant was issued for Strong. Still, law enforcement was unable to find him.
The government further alleged that in September 2021, the FBI opened an investigation to assist Sanders County in the search for Strong and his son. In January 2022, the FBI discovered Strong and the child were living in Costa Rica, and learned that Strong and his son left the United States in approximately October 2021, near Midland, Texas. Strong paid a man to transport them to Costa Rica, and Strong and the child lived with the man for about six weeks. In May 2022, the FBI received specific information about Strong’s whereabouts, and Costa Rica officials arrested and deported him back to the United States. The child’s mother traveled to Costa Rica to take custody of her son and returned with him to the United States.
Assistant U.S. Attorneys Timothy J. Racicot and Brian C. Lowney are prosecuting the case, which was investigated by the FBI.
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Federal Jury Convicts Tampa Armed Felon on Drug Trafficking ChargesRead the Press Release
Tampa, FL –United States Attorney Roger B. Handberg announces that a federal jury has found Dempsey Gilmore (32, Tampa) guilty of conspiracy to distribute methamphetamine and marijuana, possession with intent to distribute methamphetamine and marijuana, carrying a firearm in furtherance of a drug trafficking crime, and possessing a firearm as a convicted felon. He faces a maximum penalty of life in federal prison. His sentencing hearing is scheduled for May 24, 2023. Gilmore had been charged in a superseding indictment on January 11, 2023.
According to evidence and testimony presented at trial, on February 9, 2022, a Tampa Police Department (TPD) officer observed a red Dodge Charger fail to stop for a stop sign and attempted a traffic stop, but the vehicle fled at speeds of over 100 miles per hour. A TPD Air Support Unit tracked and recorded the vehicle as it fled from the police, ultimately stopping near a residence, where the driver and passenger got out, scaled a fence, and ran into a house. During the flight, the air unit recorded the vehicle temporarily stopping and its occupants throwing items from the car. TPD Officers arrived at that location and, along the side of the road, found a bag containing almost 200 grams of 100% pure methamphetamine, a zip-top bag labeled “Dempsey,” and a fully loaded firearm. They also found a box with bags of marijuana and a digital scale nearby.
After obtaining a search warrant for the house which the suspects had entered, officers ordered the occupants to exit the house. Several individuals immediately complied, but Gilmore and another man initially remained inside the house, ultimately coming out. Officers found a security video from the house showing Gilmore and the other man running into the residence and located more marijuana inside the Dodge Charger that had been abandoned near the residence. A fingerprint recovered from the vehicle matched that of Gilmore.
Gilmore was previously convicted of multiple felonies, including being a felon in possession of a firearm and escape. Therefore, he is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Tampa Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Samantha Beckman.
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.
Fargo, ND, Man Pleads Guilty to Preparation of False Tax ReturnsRead the Press Release
FARGO – United States Attorney Mac Schneider, District of North Dakota, announced that on March 14, 2023, Thompson B. Tarr, age 43, from Fargo, ND, pled guilty in Federal Court, Fargo, ND, before Chief Judge Peter D. Welte, to the offenses of Aiding and Assisting in the Preparation and Presentation of a False and Fraudulent Return. Sentencing is scheduled for August 7, 2023.
Investigation revealed that while living in Fargo, ND, Tarr prepared or assisted in the preparation of hundreds of tax returns for individuals. At the plea hearing, Tarr pled guilty to one violation of aiding and abetting the preparation of a false tax return. Tarr admitted that he claimed tax exemptions on behalf of a taxpayer who was not entitled to the exemption. IRS Criminal Investigations discovered 30 other false tax returns prepared by Tarr for 13 taxpayers, which resulted in the tax loss from false deductions and credits in the amounted of $105,474.00.
“Honest taxpayers are the ones hurt by deliberate violations of federal tax laws,” Schneider said. “Protecting those taxpayers and public funds are key priorities of the United States Attorney’s Office.”
“Mr. Tarr admitted to adding false information to the tax returns of his clients. That’s why it’s imperative that taxpayers review the information they submit to the IRS even when they have someone else prepare their return,” said Acting Special Agent in Charge Thomas F. Murdock, St. Louis Field Office. “This case shows how easy it is for dishonest return preparers to take advantage of unsuspecting taxpayers.”
This case was investigated by the IRS Criminal Investigations and prosecuted by Assistant U.S. Attorney Matthew D. Greenley.
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