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Thursday 9 March 2023
Ipswich Man Sentenced for Child Pornography OffensesRead the Press Release
BOSTON – An Ipswich man was sentenced yesterday in federal court in Boston for distributing and possessing child sexual abuse material photo (CSAM).
Julien Toulotte, 24, was sentenced by U.S. Senior District Court Judge William G. Young to 104 months in prison and five years of supervised release, as well as restitution to multiple minor victims. In November 2022, Toulotte pleaded guilty to one count of distribution of child pornography and one count of possession of child pornography.
In mid-January 2021, Toulotte began communicating with an undercover agent purporting to be a 15-year-old girl through social media applications. Toulotte sent multiple nude photos of himself and encouraged the purported teenager to send photos of herself in return and asked to meet.In late-January 2021, Toulotte began communicating over the internet with the undercover agent, purporting to be an adult female with whom Toulotte had previously been communicating with on-line and to whom he had previously sent photo depicting CSAM. In February 2021, Toulotte sent two videos depicting CSAM to the undercover agent purporting to be the adult female. On March 11, 2021, a search of Toulotte’s residences in Ipswich and Boston resulted in the recovery of his electronic devices. One of the electronic devices contained approximately 385 videos and approximately 320 images depicting CSAM – including child pornography videos and images depicting infants and toddlers. CSAM was also found on other electronic devices seized on that date and on another date in this case.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Ipswich Police Chief Paul Nikas; Boston Police Commissioner Michael Cox; and Lincoln Police Chief A. Kevin Kennedy made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Rollins’ Major Crimes Unit prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.Honduran National Who Had Been Previously Deported Four Times Sentenced to Time Served for Illegal Re-Entry After DeportationRead the Press Release
NEW ORLEANS – SANTOS RAMOS-CASTILLO, a/k/a “Santos Ramos-Espinoza”, age 36, was sentenced on March 8, 2023 for illegal reentry of a removed alien in violation of Title 8, United States Code, Section 1326(a) on March 8, 2023, announced U.S. Attorney Duane A. Evans.
According to court documents, SANTOS RAMOS-CASTILLO (“RAMOS-CASTILLO”) admitted reentering the United States after being previously deported on November 16, 2015. He had been deported three times prior to the fourth removal. RAMOS-CASTILLO was sentenced by the Honorable Ivan L. R. Lemelle, U.S. District Judge, Eastern District of Louisiana, to time served, which was over 6 months.
U.S. Attorney Evans praised the work of the United States Immigration and Customs Enforcement in investigating this matter. Assistant U.S. Attorney Carter K. D. Guice, Jr. of the General Crimes Unit is in charge of the prosecution.
Grand Junction Man Sentenced to Life in Federal Prison for Sexually Abusing Two ChildrenRead the Press Release
Grand Junction – The United States Attorney’s Office for the District of Colorado announces a federal judge today sentenced Michael Tracy McFadden, age 51, of Grand Junction, to life in federal prison after being convicted of crossing state lines with intent to engage in a sexual act with a minor under the age of 12, and transportation of a minor with intent to engage in sexual activity.
According to facts presented at trial, McFadden was a long-haul truck driver who took at least two children on multiple trips out of state. Over a span of at least six years, McFadden repeatedly sexually assaulted the children, both in his home in Grand Junction and in his semi truck in other states. Two of his victims bravely testified at trial, relating to the jury the countless times McFadden abused them.
Judge Christine M. Arguello sentenced the defendant on March 6, 2023. Judge Arguello presided over the five-day trial. The jury returned its guilty verdict on November 14, 2022.
McFadden was previously charged and convicted in state court with sexual assault of six separate children. However, his convictions were overturned on appeal due to a speedy trial violation, preventing any further state court prosecution. Upon learning this, the Federal Bureau of Investigation (FBI) Denver Division immediately launched an investigation into potential federal violations. McFadden was indicted by a federal grand jury in 2019, and rearrested on federal charges.
"As U.S. Attorney, my office is committed to ensuring that those who prey on innocent children are held accountable for their heinous crimes. Today's sentencing of Michael McFadden is a testament to our unwavering dedication to justice for victims of child sexual abuse,” said United States Attorney Cole Finegan. “Of course, no punishment will make the victims and their families whole or give them back what the defendant stole from them. But a sentence that ensures the defendant will never be free in any community ever again will at least send the right message—that perpetrators of this kind of horrendous, unforgivable crime will die in prison.”
“This predator took advantage of the trusting nature inherent in children and committed unspeakable assaults against his young victims," said FBI Denver Special Agent in Charge Mark Michalek. “The FBI prioritizes the safety of society's most vulnerable citizens and will continue to relentlessly pursue criminals who target children.”
The investigation in this case was conducted by the FBI Denver Division with substantial assistance from the Grand Junction Police Department and the 21st Judicial District Attorney’s Office. The prosecution was handled by Assistant United States Attorney Andrea Surratt and former Assistant United States Attorney Jeremy Chaffin.
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 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 individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
CASE NUMBER: 19-CR-243
Gladstone Couple Pleads Guilty to Producing, Distributing Child PornographyRead the Press Release
KANSAS CITY, Mo. – A Gladstone, Mo., husband and wife pleaded guilty in federal court today to producing and distributing pornographic images of two child victims.
Joshua Paul Goodspeed, 47, and Jennifer Goodspeed, 38, pleaded guilty in separate appearances before U.S. District Judge Brian C. Wimes. Joshua Goodspeed pleaded guilty to one count of conspiracy to produce child pornography, one count of attempting to distribute child pornography over the internet, and one count of receiving child pornography over the internet. Jennifer Goodspeed pleaded guilty to one count of attempting to distribute child pornography over the internet.
By pleading guilty today, Joshua Goodspeed admitted he used two child victims to produce child pornography from Jan. 1, 2011, to March 12, 2012. Goodspeed also admitted that he attempted to distribute child pornography on Nov. 17, 2020, and that he received child pornography over the internet on Feb. 29, 2012.
Jennifer Goodspeed admitted that she attempted to distribute an image of child pornography over the internet on Feb. 29, 2012.
Joshua Goodspeed pleaded guilty without a plea agreement.
According to Jennifer Goodspeed’s plea agreement, an FBI undercover investigation identified a social media file-sharing platform, which was knowingly accessing, importing, and maintaining video files that depicted the sadistic sexual exploitation, torture, and abuse of a toddler. Joshua Goodspeed was linked to an account on this social media site.
On June 16, 2012, the FBI executed a search warrant at the Goodspeeds’ residence. Federal agents seized Joshua Goodspeed’s iPhone, laptop and one computer hard drive, and interviewed both defendants. According to the plea agreement, Joshua and Jennifer Goodspeed admitted they took nude photos of two child victims.
Jennifer Goodspeed told investigators she sometimes sent some of the photos to her husband via cell phone or email while he was traveling.
Forensic examiners found hundreds of images of child pornography on the devices seized by agents, including photos of the two child victims that were produced by the Goodspeeds.
Under federal statutes, Joshua Goodspeed is subject a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of 70 years in federal prison without parole. Jennifer Goodspeed is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
Under the terms of her plea agreements, Jennifer Goodspeed must pay $5,000 in restitution to each of 12 victims, or $3,000 to each victim if paid within 30 days of the sentencing hearing.
This case is being prosecuted by Assistant U.S. Attorney Catherine A. Connelly. It was investigated by the FBI and the Kansas City, Mo, Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by 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.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Fort Wayne Man Sentenced to 120 Months in PrisonRead the Press Release
FORT WAYNE – Calvin Brantley, age 25, of Fort Wayne, was sentenced before United States District Court Judge Holly A. Brady after pleading guilty to possession with intent to distribute fentanyl and heroin along with possession of a firearm in furtherance of a drug trafficking crime, announced United States Attorney Clifford D. Johnson.
Brantley was sentenced to 120 months in prison followed by 4 years of supervised release.
According to documents in this case, from September to October 2020, Brantley sold fentanyl and heroin to law enforcement on multiple occasions. A search warrant executed on his residence resulted in the recovery of approximately 200 grams of heroin,180 grams of fentanyl, over 1000 grams of marijuana and $1,600 in U.S. currency. Two firearms were also located in the residence; a loaded Glock, extended magazine and drum magazine were found in Brantley’s bedroom by his drug stash. The estimated street value of the drugs located in the residence was approximately $48,000.
The case was investigated by the Drug Enforcement Administration with the assistance of the Fort Wayne Police Department. This case was prosecuted by Assistant United States Attorney Brent A. Ecenbarger.
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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Former Wall Street Precious Metal Traders Sentenced for Wire FraudRead the Press Release
Two former Wall Street traders were each sentenced today to one year and one day in prison for engaging in a multi-year fraud scheme to manipulate U.S. commodities markets for publicly traded precious metals futures contracts.
According to court documents, Edward Bases, 61, of New Canaan, Connecticut, a former senior trader employed at Deutsche Bank and Bank of America in New York, and John Pacilio, 59, of New York, a former senior trader employed at Bank of America and Morgan Stanley in New York, fraudulently pushed market prices up or down by placing large “spoof” orders in the precious metals futures markets that they did not intend to fill. Bases and Pacilio did so to manipulate prices for their own gain and the banks’ gain, and to defraud other traders on the Commodity Exchange Inc. and the New York Mercantile Exchange Inc., both of which are exchanges run by the CME Group Inc.
Bases and Pacilio also taught other traders how to engage in the practice of spoofing. As a result of Bases and Pacilio’s scheme, other market participants were induced to trade at prices, quantities, and times that they otherwise would not have traded.
On Aug. 4, 2021, Bases and Pacilio were convicted at trial of conspiracy to commit wire fraud affecting a financial institution and multiple counts of wire fraud affecting a financial institution. Pacilio also was convicted of commodities fraud.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division and Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division made the announcement.
The FBI New York Field Office investigated the case.
Deputy Chief Avi Perry, Assistant Chief Scott Armstrong, and Trial Attorney John J. Liolos of the Criminal Division’s Fraud Section prosecuted the case.
Former Tax Return Preparer Pleads Guilty to Making False Statement on a Tax ReturnRead the Press Release
Hattiesburg, Miss. – A former Laurel, Mississippi, tax return preparer pled guilty to knowingly making a false statement on an income tax return, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge James Dorsey of IRS Criminal Investigation, Atlanta Field Office.
Kakeia Latiece Williams, 38, pled guilty in U.S. District Court in Hattiesburg.
According to documents and information provided to the court, Williams owned and operated a tax return preparation business with activity in the Laurel and Stringer, Mississippi, area known as Massive Tax or Massive Tax Corporation. The business also had various other names that included KBG Enterprises or KBG Enterprises, LLC. Between at least 2014 and 2015, KBG Enterprises, doing business as Massive Tax, prepared and filed client tax returns.
Williams personally prepared client tax returns as well as her own personal tax returns. An Internal Revenue Service (IRS) Criminal Investigation review revealed that Williams knowingly and intentionally made false material statements in her own personal tax returns for 2014 and 2015, which were filed by Williams with the IRS under penalty of perjury. In her personal federal income tax returns, Williams willfully failed to report substantial income that she had earned as a tax return preparer for her business.
Williams will be sentenced on June 14, 2023 and faces a maximum sentence of three years in federal prison and a $250,000. Williams also could be ordered to pay restitution to the federal government for unpaid taxes. In her publicly filed plea agreement, Williams agreed to pay restitution to the IRS in the amount of $98,000. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case was investigated by IRS Criminal Investigation.
The case was prosecuted by Assistant U.S. Attorney Stan Harris.
Former President of International Aircraft Parts Distributor Sentenced to 84 Months in Prison for Role in Multi-Million-Dollar Fraud SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that STEFAN GILLIER, a/k/a “Stephan Gillier,” a/k/a “Stefan R.R. Gillier,” a/k/a “Roland Gillier,” a/k/a “Roland Van Gorp,” was sentenced today in Manhattan federal court by United States District Judge Paul A. Engelmayer to 84 months in prison for engaging in a conspiracy to fraudulently obtain over six million dollars’ worth of aircraft parts. GILLIER was convicted in September 2022 following a one-week jury trial.
U.S. Attorney Damian Williams said: “With today’s sentence, Stefan Gillier’s aircraft parts fraud scheme has been grounded. As the sentence for this extradited defendant shows, those who flee justice will be held accountable for their crimes, no matter how long it takes.”
According to the Indictment, documents previously filed in the case, and evidence introduced at trial:
GILLIER was the president and ran the day-to-day business activities of RTF International Inc. (“RTF”), a broker of aircraft parts. RTF began obtaining aircraft parts from Honeywell International, Inc. (“Honeywell”) in June 2004. Starting in 2005, RTF began increasing the number of parts it ordered from Honeywell, paying for them by check. RTF paid with checks written in foreign currency and for amounts well above the cost of the parts, which created an apparent credit balance in RTF’s favor in Honeywell’s accounting system. RTF wrote approximately $17 million worth of checks to Honeywell but stopped payment on approximately $15 million worth of checks.
In particular, GILLIER signed checks to Honeywell on behalf of RTF but repeatedly caused stop payment orders to be placed after Honeywell shipped the parts to RTF. When questioned by Honeywell’s employees about these stop payment orders, GILLIER, using the alias “Roland Van Gorp,” falsely represented that the stop payment orders were the result of a misunderstanding with the bank and that he would check with RTF’s finance department. In fact, as GILLIER knew, he had issued the stop payment orders, and RTF did not have a finance department.
In total, GILLIER was able to obtain over $6 million worth of aircraft parts from Honeywell without paying for the parts.
In June 2006, Honeywell executed a civil attachment order and recovered some of the aircraft parts stolen by GILLIER. Following the execution of the civil attachment order by Honeywell, GILLIER caused various large transfers of fraud proceeds into bank accounts controlled by him, his relatives, and a co-conspirator (“CC-1”). The day after making those transfers, on June 15, 2006, GILLIER left the United States for Canada.
After Honeywell discovered that it was being victimized by RTF, GILLIER and CC-1 continued their fraud scheme through a new corporate entity, “UN Air Services, Inc.” (“UAS”) (which had no relation to the United Nations). In 2006, UAS began obtaining aircraft parts from Pratt & Whitney Component Solutions, Inc. (“Pratt & Whitney”). Like RTF, UAS began stopping payment on checks it had written to Pratt & Whitney for the aircraft parts after Pratt & Whitney delivered the aircraft parts to UAS.
GILLIER was arrested and extradited from Italy in 2019.
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In addition to the prison sentence, GILLIER, 49, a citizen of Belgium, was sentenced to three years of supervised release.
Mr. Williams praised the outstanding investigative work of Homeland Security Investigations and the U.S. Department of Defense, Defense Criminal Investigative Service.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Dina McLeod, Micah F. Fergenson, and Michael Neff are in charge of the prosecution.
Former Major League Baseball Player and Co-Conspirator Convicted of Drug ConspiracyRead the Press Release
Memphis, TN – Paul Seib, age 46 and a Canadian citizen, was convicted of conspiracy to possess with the intent to distribute 5 kilograms of cocaine after a four-day federal jury trial. In the same case, former professional baseball player Luther Hackman, 48, pled guilty to money laundering and conspiring to distribute cocaine.
According to U.S. Attorney Ritz, the charges, and information presented in court, in October 2021 investigators with Homeland Security Investigations received information that “Pablo” was in search of multi-kilogram quantities of cocaine for his clients. After a series of communications, investigators identified Seib as “Pablo” and arranged a meeting to transfer 10 kilograms of cocaine. Both Seib and Hackman were present during this meeting; however, the transfer did not occur because the individual responsible for paying for the narcotics did not arrive.
In January 2022, Hackman provided a confidential source with $96,800 in cash and told the source about a shipment of multiple kilograms of cocaine and methamphetamine coming from California. Investigators intercepted the 20 pounds of methamphetamine and 4 kilograms of cocaine and detained Hackman as he arrived to pick up the shipment.
The sentencing hearing for Hackman is set for June 7, 2023, and Seib on July 12, 2023, both before United States District Judge Mark S. Norris.
This prosecution is part of an extensive investigation by the Organized Crime and Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking organizations and organized criminal enterprises, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
This case was investigated by Homeland Security Investigations and the Drug Enforcement Administration (DEA).
U.S. Attorney Kevin Ritz thanked Assistant United States Attorneys Jennifer Musselwhite and Joe Murphy, who prosecuted this case, as well as law enforcement partners who investigated the case.
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For more information, please contact Public Information Officer Cherri Green at 901-544-4231 or [email protected]. Follow @WDTNNews on Twitter for office news and updates.
Former Goldman Sachs Managing Director Sentenced to 10 Years in Prison for His Role in Massive Bribery and Money Laundering SchemeRead the Press Release
BROOKLYN, NY – Earlier today, Ng Chong Hwa, also known as “Roger Ng,” a citizen of Malaysia and a former Managing Director of The Goldman Sachs Group, Inc. (Goldman Sachs), was sentenced by United States District Judge Margo K. Brodie to 10 years’ imprisonment for conspiring to launder billions of dollars embezzled from 1Malaysia Development Berhad (1MDB), conspiring to violate the Foreign Corrupt Practices Act (FCPA) by paying more than $1.6 billion in bribes to a dozen government officials in Malaysia and Abu Dhabi, and conspiring to violate the FCPA by circumventing the internal accounting controls of Goldman Sachs. The forfeiture amount will be determined at a later date. In April 2022, Ng was convicted by a federal jury on all counts following a nine-week trial.
Breon Peace, United States Attorney for the Eastern District of New York; Kenneth A. Polite, Jr., Assistant Attorney General of the Justice Department’s Criminal Division; Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); and Tyler Hatcher, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, Los Angeles Field Office (IRS-CI), announced the sentence.
“Roger Ng was a central player in a brazen and audacious scheme that not only victimized the people of Malaysia, but also risked undermining the public’s confidence in governments, markets, businesses and other institutions on a global scale,” stated United States Attorney Peace. “Today’s sentence serves as a just punishment for the defendant’s crimes and a warning that there is a significant price to pay for corporate corruption.”
“Today, Roger Ng was sentenced for his role in a massive and egregious bribery and money laundering scheme involving the bribery of high-level foreign officials in Malaysia and the United Arab Emirates and theft of billions of dollars meant to benefit the Malaysian people,” stated Assistant Attorney General Polite. “The Justice Department remains firmly committed to holding accountable individuals who engage in corruption, undermine the rule of law, and abuse our financial system to launder their illicit funds. This sentence sends a strong message to criminals around the world: if you violate our laws, we will bring you to justice.”
“Roger Ng, a former Managing Director of Goldman Sachs, played a significant role in a corrupt financial scheme to launder billions of dollars embezzled from 1MDB that ultimately victimized the people of Malaysia. Today’s sentence serves as both punishment for Ng’s crimes and a stark reminder to those who endeavor to engage in similar conduct – the FBI and our partners remain vigilant in combatting corruption in all its forms,” stated FBI Assistant Director-in-Charge Driscoll.
“The 1MDB case and the sentencing of Mr. Ng, highlight IRS Criminal Investigation’s enforcement efforts to abolish international bribery schemes. U.S. Financial Institutions have safeguards in place to combat these frauds and Mr. Ng intentionally circumvented these safeguards. This sentence is a testament to what happens when you break US laws to bribe international government officials,” stated IRS-CI Special Agent-in-Charge Hatcher. “This case represents a model for domestic and international cooperation in significant cross-border money laundering investigations and we are proud of our domestic and international law enforcement partners in this complex financial investigation.”
1MDB is a Malaysian state-owned and controlled fund created to pursue investment and development projects for the economic benefit of Malaysia and its people.
Ng was employed as a Managing Director by various subsidiaries of Goldman Sachs and acted as an agent and employee of Goldman Sachs from approximately 2005 to May 2014.
Between approximately 2009 and 2014, Ng conspired with others to launder billions of dollars misappropriated and fraudulently diverted from 1MDB, including funds 1MDB raised in 2012 and 2013 through three bond transactions it executed with Goldman Sachs, known as “Project Magnolia,” “Project Maximus,” and “Project Catalyze.” As part of the scheme, Ng and others, including Tim Leissner, the former Southeast Asia Chairman and participating managing director of Goldman Sachs, and co-defendant Low Taek Jho, a wealthy Malaysian socialite also known as “Jho Low,” conspired to pay more than a billion dollars in bribes to a dozen government officials in Malaysia and Abu Dhabi to obtain and retain lucrative business for Goldman Sachs, including the 2012 and 2013 bond deals. They also conspired to launder the proceeds of their criminal conduct through the U.S. financial system by funding major Hollywood films such as “The Wolf of Wall Street,” and purchasing, among other things, artwork from New York-based Christie’s auction house including a $51 million Jean-Michael Basquiat painting, a $23 million diamond necklace, millions of dollars in Hermes handbags from a dealer based on Long Island, and luxury real estate in Manhattan.
Ng, Leissner, Low and their co-conspirators used Low’s close relationships with high-ranking government officials in Malaysia and Abu Dhabi to obtain and retain business for Goldman Sachs through the promise and payment of hundreds of millions of dollars in bribes. In the course of executing the scheme, Ng conspired with others at Goldman Sachs to circumvent the investment bank’s internal accounting controls. Through its work for 1MDB during that time, Goldman Sachs received approximately $600 million in fees and revenues, while Ng received more than $35 million for his role in the bribery and money laundering scheme. In total, Ng and the other co-conspirators misappropriated more than $2.7 billion from 1MDB.
As proven at trial, Ng spent years cultivating a relationship with Low in order to get him to bring business to Goldman Sachs. In the process of doing so, Ng attempted to onboard Low as a private wealth management client for Goldman Sachs and, when confronted with questions from Goldman Sachs compliance personnel about Low’s government connections and source of wealth, lied about the extent of his relationship with Low; Ng communicated with Low about business opportunities using personal email accounts to avoid detection by Goldman Sachs compliance personnel; and Ng and Leissner attempted to work with Low on a series of side deals that were not disclosed to Goldman Sachs, and in one such potential deal, Ng, Leissner and Low discussed paying a bribe to get a deal completed. With respect to the charged conduct, the trial evidence shows that Ng was instrumental in creating the structure of the bond deals, which enabled the theft of billions of dollars, and in lying to Goldman Sachs about Low’s involvement in the deals and the payment of bribes and kickbacks in order to get the deals approved. To receive his $35 million in kickbacks, Ng set up a shell company in the name of his mother-in-law, and he and his wife used a bank account in the name of that company, in addition to a number of other bank accounts in the names of family members, to conceal and further launder his ill-gotten gains. And when news about the 1MDB scheme started to become public, Ng deleted the contents of four email accounts that had been used in furtherance of the crimes, and lied to law enforcement authorities in Malaysia and Singapore investigating the scheme.
Low remains a fugitive. In August 2018, Leissner pleaded guilty to a two-count criminal information charging him with conspiring to launder money and conspiring to violate the FCPA by both paying bribes to various Malaysian and Abu Dhabi officials and circumventing the internal accounting controls of Goldman Sachs. Leissner has been ordered to forfeit $43 million and shares of stock valued at more than $200 million. Leissner is awaiting sentencing.
In October 2020, Goldman Sachs and Goldman Sachs (Malaysia) Sdn. Bhd. (GS Malaysia), its Malaysian subsidiary, admitted to conspiring to violate the anti-bribery provisions of the FCPA in connection with the scheme. Goldman Sachs entered into a deferred prosecution agreement with the United States Attorney’s Office for the Eastern District of New York and the Department of Justice’s Criminal Division, Fraud Section and Money Laundering and Asset Forfeiture Section (MLARS), and GS Malaysia pleaded guilty in the U.S. District Court for the Eastern District of New York to a one-count criminal information. Goldman Sachs also paid more than $2.9 billion as part of a coordinated resolution with criminal and civil authorities in the United States, the United Kingdom, Singapore, and elsewhere.
The investigation was jointly conducted by the FBI’s International Corruption Unit and IRS-Criminal Investigation. The government’s criminal case is being handled by the Business and Securities Fraud Section of the United States Attorney’s Office for the Eastern District of New York, MLARS and the Fraud Section. Assistant United States Attorneys Alixandra E. Smith, Drew G. Rolle and Dylan Stern, and MLARS Chief Brent Wible and FCPA Chief David Last are prosecuting the case; Jennifer Ambuehl, former Chief of MLARS’ Bank Integrity Unit, also prosecuted the case. Assistant United States Attorneys Tanisha Payne and Brian Morris of the Office’s Asset Recovery Section are handling forfeiture matters. The Criminal Division’s Office of International Affairs provided critical assistance in this case.
The Department also appreciates the significant cooperation and assistance provided by the U.S. Securities and Exchange Commission, and the Board of Governors of the Federal Reserve System along with the Federal Reserve Bank of New York. The Department also appreciates the significant assistance provided by the government of Malaysia, including the Attorney General’s Chambers of Malaysia, the Royal Malaysia Police and NCB Interpol Malaysia. The Department also appreciates the significant assistance provided by the Attorney General’s Chambers of Singapore, the Singapore Police Force-Commercial Affairs Division, the Office of the Attorney General of Switzerland, the Judicial Investigating Authority of the Grand Duchy of Luxembourg and the Criminal Investigation Department of the Grand-Ducal Police of Luxembourg.
The Defendant:
NG CHONG HWA (also known as “Roger Ng”)
Age: 50
Kuala Lumpur, MalaysiaE.D.N.Y. Docket No. 18-CR-538 (MKB)
Former Goldman Sachs Investment Banker Sentenced in $2.7B Bribery and Money Laundering SchemeRead the Press Release
A former managing director of The Goldman Sachs Group Inc. (Goldman Sachs) was sentenced today to 10 years in prison for his role in a multibillion-dollar bribery and money laundering scheme involving Malaysia’s state-owned investment and development fund, 1Malaysia Development Berhad (1MDB).
“Today, Roger Ng was sentenced for his role in a massive and egregious bribery and money laundering scheme involving the bribery of high-level foreign officials in Malaysia and the United Arab Emirates and theft of billions of dollars meant to benefit the Malaysian people,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “The Justice Department remains firmly committed to holding accountable individuals who engage in corruption, undermine the rule of law, and abuse our financial system to launder their illicit funds. This sentence sends a strong message to criminals around the world: if you violate our laws, we will bring you to justice.”
According to court documents, between approximately 2009 and 2014, Ng Chong Hwa, aka Roger Ng, of Malaysia, and his co-conspirators laundered billions of dollars misappropriated and fraudulently diverted from 1MDB, including funds 1MDB raised in 2012 and 2013 through three bond transactions it executed with Goldman Sachs. As part of the scheme, Ng and his co-conspirators, including Tim Leissner, the former Southeast Asia Chairman and participating managing director of Goldman Sachs, conspired to and did pay more than $1 billion in bribes to 12 government officials in Malaysia and the United Arab Emirates to obtain and retain lucrative business for Goldman Sachs, including the 2012 and 2013 bond deals. They also conspired to and did launder the proceeds of their criminal conduct through the U.S. financial system, including funding major Hollywood films such as “The Wolf of Wall Street,” and purchasing, among other things, a $51 million Jean-Michel Basquiat painting from New York-based Christie’s auction house, a $23 million diamond necklace from a New York jeweler, millions of dollars in Hermès handbags from a dealer based on Long Island, and luxury real estate in Manhattan.
“Roger Ng was a central player in a brazen and audacious scheme that not only victimized the people of Malaysia, but also undermined the public’s confidence in governments, markets, businesses and other institutions on a global scale,” said U.S. Attorney Breon Peace for the Eastern District of New York. “Today’s sentence serves as a just punishment for the defendant’s crimes and a stern warning that there is a significant price to pay for corporate corruption.”
Ng and his co-conspirators, including Low Taek Jho, aka Jho Low, a wealthy Malaysian socialite, used Low’s close relationships with high-ranking government officials in Malaysia and the United Arab Emirates to obtain and retain business for Goldman Sachs through the promise and payment of more than a billion dollars in bribes. In the course of executing the scheme, Ng, with others at Goldman Sachs, conspired to and did circumvent the investment bank’s internal accounting controls. Through its work for 1MDB during that time, Goldman Sachs received approximately $600 million in fees and revenue, while Ng received $35 million for his role in the bribery and money laundering scheme. In total, Ng and his co-conspirators misappropriated more than $2.7 billion from 1MDB.
“This sentencing sends a strong message that those who abuse the U.S. financial system for their own gain will be held accountable,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “The FBI and our domestic and international partners remain committed to combating international corruption and will continue to investigate and pursue those who perpetrate complex criminal schemes for profit.”
“The 1MDB case and the sentencing of Mr. Ng highlight IRS Criminal Investigation’s enforcement efforts to abolish international bribery schemes,” said Special Agent in Charge Tyler Hatcher for the IRS Criminal Investigation (IRS-CI). “U.S. financial institutions have safeguards in place to combat these frauds and Mr. Ng intentionally circumvented these safeguards. This sentence is a testament to what happens when you break U.S. laws to bribe international government officials. This case represents a model for domestic and international cooperation in significant cross-border money laundering investigations and we are proud of our domestic and international law enforcement partners in this complex financial investigation.”
In August 2018, Leissner pleaded guilty to conspiring to launder money and conspiring to violate the FCPA. Leissner agreed to forfeit $43 million and shares of stock valued at more than $200 million and is awaiting sentencing. Low was indicted in November 2018 and remains a fugitive.
In October 2020, Goldman Sachs and Goldman Sachs (Malaysia) Sdn. Bhd. (GS Malaysia), its Malaysian subsidiary, admitted to conspiring to violate the anti-bribery provisions of the FCPA in connection with the scheme. Goldman Sachs entered into a deferred prosecution agreement with the Criminal Division’s Fraud Section and Money Laundering and Asset Recovery Section (MLARS), and the U.S. Attorney’s Office for the Eastern District of New York. GS Malaysia pleaded guilty in the U.S. District Court for the Eastern District of New York. Goldman Sachs paid more than $2.9 billion as part of a coordinated resolution with criminal and civil authorities in the United States, the United Kingdom, Singapore, and elsewhere.
In April 2022, Ng was found guilty by a jury of conspiring to violate the FCPA and conspiring to launder billions of dollars.
The FBI’s International Corruption Unit and IRS-CI investigated the case.
Chief Brent Wible of the Criminal Division’s MLARS, Chief David Last of the Fraud Section’s FCPA Unit, and Assistant U.S. Attorneys Alixandra E. Smith, Drew G. Rolle, and Dylan Stern for the Eastern District of New York prosecuted the case. Former Chief of MLARS’ Bank Integrity Unit Jennifer Ambuehl also prosecuted the case. The Justice Department’s Office of International Affairs provided critical assistance.
The department also appreciates the significant cooperation and assistance provided by the U.S. Securities and Exchange Commission, and the Board of Governors of the Federal Reserve System along with the Federal Reserve Bank of New York. The department also appreciates the significant assistance provided by the government of Malaysia, including the Attorney General’s Chambers of Malaysia, the Royal Malaysia Police, NCB Interpol Malaysia, and the Malaysian Anti-Corruption Commission. The department also appreciates the significant assistance provided by the Attorney General’s Chambers of Singapore, the Singapore Police Force-Commercial Affairs Division, the Office of the Attorney General of Switzerland, the Judicial Investigating Authority of the Grand Duchy of Luxembourg, the Criminal Investigation Department of the Grand-Ducal Police of Luxembourg, the United Kingdom National Crime Agency, the United Kingdom Financial Conduct Authority, the United Kingdom Prudential Regulation Authority, the Attorney General's Chambers of the Territory of the British Virgin Islands, and the Attorney General’s Office of the Bailiwick of Guernsey and the Guernsey Economic Crime Division.
The Criminal Division’s Fraud Section is responsible for investigating and prosecuting FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
The Bank Integrity Unit in MLARS investigates and prosecutes complex, multi-district, and international criminal cases involving financial institutions. The unit’s prosecutions focus on banks and other financial institutions, including their officers, managers, and employees, whose actions threaten the integrity of the individual institution or the wider financial system.
Former Employee Sentenced to 3+ Years in Prison for Embezzling $339,000 from St. Louis County CompanyRead the Press Release
ST. LOUIS – U.S. District Judge Stephen R. Clark on Thursday sentenced a man from Waterloo, Illinois who embezzled $339,844 from his employer to three years and five months in prison and ordered him to repay the money.
Ronald Scott Miller, who was the warehouse and labor supervisor for a small floor covering business in St. Louis County, worked for the company for 25 years. Beginning March 27, 2014, he used several schemes over the next six and one-half years to steal, “again and again and again,” Assistant U.S. Attorney Derek Wiseman said in court Thursday.
Miller submitted false timesheets for his partner, who did not work for the company. He then collected his partner’s paycheck and forged his partner’s signature to deposit the money in his own account, his plea agreement says.
Miller falsely inflated the hours worked by his son without his son’s knowledge and did the same for himself by falsely claiming he was working on installation projects.
Miller also submitted fraudulent invoices claiming he’d made purchases at two fake companies and paid himself with company credit cards or caused the company to issue checks to pay the fake invoices.
Finally, Miller altered and inflated receipts for legitimate purchases that he made and then sought reimbursement from his company.
Miller, then 54, pleaded guilty in September to one count of wire fraud.
The FBI and the Maryland Heights Police Department investigated this case. Assistant U.S. Attorney Derek Wiseman is prosecuting the case.
Former CEO of Medical Device Company Indicted for Creating and Selling A Fake Medical Component That Was Implanted into PatientsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Michael J. Driscoll, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Fernando P. McMillan, the Special Agent in Charge of the New York Field Office of the U.S. Food and Drug Administration – Office of Criminal Investigations (“FDA-OIC”), announced today the filing of a two-count Indictment (the “Indictment”) charging Laura PERRYMAN, the former Chief Executive Officer (“CEO”) of STIMWAVE LLC, a Florida-based medical device company, in connection with a scheme to create and sell a non-functioning dummy medical device for implantation into patients suffering from chronic pain, resulting in millions of dollars in losses to federal healthcare programs. PERRYMAN was arrested this morning in Delray Beach, Florida, and will be presented later today in the United States District Court for the Southern District of Florida.
In addition, Mr. Williams announced the unsealing of a non-prosecution agreement (the “Agreement”) with STIMWAVE LLC ("STIMWAVE"), which filed for bankruptcy on June 15, 2022. The Agreement was entered into on October 29, 2022, and was sealed by the United States Bankruptcy Court for the District of Delaware, pending the Government’s ongoing investigation. Under the terms of the Agreement, STIMWAVE has accepted responsibility for its conduct by, among other things: (i) making admissions and stipulating to the accuracy of an extensive Statement of Facts; (ii) paying a $10,000,000 monetary penalty; and (iii) maintaining an adequate compliance program, to include employing a Chief Compliance Officer and holding regular compliance committee meetings. STIMWAVE is also required to cooperate fully with the Government. STIMWAVE’s obligations under the Agreement will continue for a period of three years from the date of execution of the Agreement.
The U.S. Attorney’s Office also unsealed a civil fraud lawsuit filed against STIMWAVE under the False Claims Act (“FCA”), and the parties’ settlement of that suit (the “FCA Settlement”). The settlement has been submitted to United States District Judge George B. Daniels for approval. In connection with the FCA Settlement, STIMWAVE admitted and accepted responsibility for conduct alleged in the Government’s civil complaint and agreed to pay $8,600,000 to the United States. This payment will be credited towards the $10,000,000 monetary penalty discussed above. The civil complaint also brings claims against PERRYMAN under the FCA, which are pending.
U.S. Attorney Damian Williams said: “As alleged, at the direction of its founder and CEO Laura Perryman, Stimwave created a dummy medical device component — made entirely of plastic — designed to be implanted in patients for the sole purpose of causing doctors to unwittingly bill Medicare and private insurance companies more than $16,000 for each implantation of the piece of plastic. The defendant and Stimwave did this so that they could charge medical providers many thousands of dollars for purchasing their medical device. Our Office will continue to do everything in its power to bring to justice anyone responsible for perpetuating health care fraud, which in this case led to patients being used as nothing more than tools for financial enrichment.”
FBI Assistant Director Michael J. Driscoll said: “Ms. Perryman, as the Chief Executive Officer of Stimwave, allegedly led a scheme to sell medical devices that contained a non-functioning component that doctors unwittingly implanted into patients suffering from chronic pain. As a result of her illegal actions, not only did patients undergo unnecessary implanting procedures, but Medicare was defrauded of millions of dollars. Today’s action demonstrates the FBI’s continuing commitment to protect Medicare and other government programs from financial fraud and abuse.”
FDA-OIC Special Agent in Charge Fernando P. McMillan said: “Individuals and companies that manufacture and distribute medical devices with non-functional components put the health of patients at significant risk. We will continue to pursue and bring to justice those who jeopardize the health of their patients and of the public.”
According to the documents unsealed today in Manhattan federal court and the United States Bankruptcy Court for the District of Delaware:[1]
STIMWAVE was a medical device company that manufactured and distributed implantable neurostimulation devices designed to treat intractable, chronic pain. Founded in 2010 by PERRYMAN and others, STIMWAVE was headquartered in Pompano Beach, Florida.
STIMWAVE was founded on the premise that its products would provide non-opioid alternatives to chronic pain management. As the founder and CEO of STIMWAVE, PERRYMAN oversaw the design of the StimQ PNS System (the “Device”), a neurostimulator medical device that treated chronic pain by producing electrical currents to target peripheral nerves outside the spinal cord. From at least in or about 2017 up to and including her termination in or about 2019, PERRYMAN, as STIMWAVE’s CEO, engaged in a multi-year scheme (the “Scheme”) to design, create, manufacture, and market an inert, non-functioning component of the Device — called the “White Stylet” — that served no medical purpose but was included with the Device through in or about 2020 in order to make the product financially viable for doctors to purchase.
When STIMWAVE originally brought the Device to market in or about 2017, it contained three primary components: (i) an implantable electrode array (the “Lead”) that stimulated the nerve; (ii) an externally worn battery that sat outside the body and wirelessly provided power to the Lead through the patient’s skin (the “Battery”); and (iii) a separate implantable receiver measuring approximately 23 centimeters in length with a distinctive pink handle — called the “Pink Stylet.” The Pink Stylet contained copper and, unlike the White Stylet, functioned as a receiver to transmit energy from the Battery to the Lead.
STIMWAVE sold the Device to doctors and medical providers for over approximately $16,000. Medical insurance providers, including Medicare, would reimburse medical practitioners for implanting the Device into patients through two separate reimbursement codes, one for implantation of the Lead and a second for implantation of the Pink Stylet. The billing code for implanting the Lead provided for reimbursement at a rate of between approximately $4,000 and $6,000, while the billing code for implanting a receiver, like the Pink Stylet, provided for reimbursement at a rate of between approximately $16,000 and $18,000.
Soon after the Device was released, physicians informed STIMWAVE that they were having trouble implanting the Pink Stylet in certain patients because the Pink Stylet was too long. STIMWAVE and PERRYMAN knew that the Pink Stylet could not be cut or trimmed to shorten it without interfering with the functionality of the Pink Stylet as a receiver, and without a receiver component for doctors to implant and seek reimbursement for, doctors would incur a substantial financial loss with every purchase of the Device, thereby making it more difficult for STIMWAVE to sell the Device to doctors and medical providers at the approximately $16,000 price.
However, STIMWAVE — at the direction of PERRYMAN — did not lower the price of the Device so that its cost to doctors and medical providers could be covered by reimbursement for the implantation of only the Lead, nor did PERRYMAN recommend that doctors not implant the Device or its receiver component in cases where the Pink Stylet could not fit comfortably. Instead, PERRYMAN directed that STIMWAVE create the White Stylet — a dummy component made entirely of plastic that served no medical purpose but which STIMWAVE misrepresented to doctors as a customizable receiver alternative to the Pink Stylet. The White Stylet could be cut to size by the doctor for use in smaller anatomical spaces and was created solely so that doctors and medical providers would continue to purchase the Device for use in those scenarios and continue to bill for the implantation of a receiver component. To perpetuate the lie that the White Stylet was functional, PERRYMAN oversaw training that suggested to doctors that the White Stylet was a “receiver,” when, in fact, it was made entirely of plastic, contained no copper, and therefore had no conductivity. In addition, PERRYMAN directed other STIMWAVE employees to vouch for the efficacy of the White Stylet, when she knew that the White Stylet was actually non-functional.
As a result of these misrepresentations regarding the functionality of the White Stylet, PERRYMAN caused doctors and medical providers to unwittingly implant the non-functional White Stylet into patients and submit fraudulent reimbursement claims for implantation of the White Stylet to Medicare, resulting in millions of dollars in losses to the federal government.
On June 15, 2022, STIMWAVE filed for bankruptcy in Delaware under Chapter 11 of the Bankruptcy Code, through which it sold substantially all of its assets to a third-party through an auction.
* * *
PERRYMAN, 54, of Delray Beach, Florida, has been charged with one count of conspiracy to commit wire fraud and health care fraud, which carries a maximum potential sentence of 20 years in prison, and one count of health care fraud, which carries a maximum potential sentence of 10 years in prison.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the investigative work of the FBI and thanked the FDA for its assistance.
The criminal case is being handled by the Complex Frauds and Cybercrime Unit of the Office’s Criminal Division. Assistant U.S. Attorneys Louis A. Pellegrino, Jacob M. Bergman, and Mónica P. Folch are in charge of the prosecution. The civil case against STIMWAVE and PERRYMAN is being handled by the Civil Frauds Unit of the Office’s Civil Division. Assistant U.S. Attorneys Jacob M. Bergman and Mónica P. Folch are in charge of the civil case.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment constitutes only allegations, and every fact described herein should be treated as an allegation.
Former Bureau of Prisons Nurse Pleads Guilty to Contraband Smuggling and Bribery ConspiracyRead the Press Release
MIAMI – Miami-Dade resident Ruben Montanez-Mirabal, 33, has pled guilty in federal district court to conspiring to commit bribery, conspiring to provide contraband in a federal prison, and providing contraband in a federal prison.
According to the two-count information and facts admitted at the change of plea hearing, from around November 2021 through late August 2022, Ruben Montanez-Mirabal, who was a registered nurse working for the Federal Bureau of Prisons (“BOP”) at the Federal Detention Center – Miami (“FDC-Miami”) in downtown Miami, solicited and obtained illegal payments from FDC-Miami inmates in exchange for bringing in and delivering to them prohibited objects, including controlled substances that had been soaked into sheets of paper. In exchange for violating his official duties by providing these drug-soaked papers and other prohibited items, Montanez-Mirabal accepted thousands of dollars in bribes from these inmates and their associates. Along with these payments, Montanez-Mirabal also solicited and received other things of value from inmates, including the free use of a Lamborghini and a Rolls-Royce.
Montanez-Mirabal would bring these prohibited items into FDC-Miami and then either deliver them directly to the inmates or hide them in places where the inmate paying him would be able to recover the contraband. Those inmates would then re-sell the pages to other inmates at a rate of $1,500 per page. As admitted at the change of plea, Montanez-Mirabal made a number of these deliveries for inmates, including one delivery where he was observed hiding thirty-seven drug-soaked pages underneath a shelving unit in a mop closet accessible to the inmate paying him. Investigators were able to recover these pages from the closet and laboratory testing revealed that the pages were laced with a synthetic cannabinoid-controlled substance and had the defendant’s fingerprints on them.
Montanez-Mirabal also admitted that during the charged conduct, he was aware that inmates were reselling the pages for $1,500 each, and that he delivered between 100 and 140 such pages to inmates inside FDC-Miami in exchange for the bribes he received.
United States District Judge Jose E. Martinez will sentence Montanez-Mirabal in Miami on May 16, at 11:30 a.m. Montanez-Mirabal faces up to 15 years in prison.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, acting Special Agent in Charge Maged Behnam of the FBI Miami Field Office, and Special Agent in Charge James Boyersmith, Department of Justice Office of Inspector General, Miami Field Office, announced the guilty plea.
FBI Miami and DOJ-OIG Miami investigated the case. Assistant U.S. Attorney Edward N. Stamm is prosecuting it.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-cr-20051.
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Former 21st Century Fox Executive and Argentina-Based Sports Marketing Company Full Play Group S.A., Convicted of Bribing Soccer Officials in FIFA CaseRead the Press Release
Former 21st-Century Fox Executive Hernan Lopez and Argentine sports marketing company Full Play Group S.A., were convicted today by a federal jury in Brooklyn on all counts of a superseding indictment charging them with wire fraud and money laundering conspiracies for their participation in schemes to bribe executives of soccer’s highest governing bodies—FIFA, CONMEBOL, and, in Full Play’s case, CONCACAF—for the media and broadcasting rights to lucrative soccer tournaments. The verdict followed a seven-week trial before United States District Judge Pamela K. Chen. When sentenced, Lopez faces up to 40 years in prison and millions of dollars in penalties to be determined by Judge Chen. Full Play faces millions of dollars in financial penalties. Co-defendant Carlos Martinez was acquitted on both counts.
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 Tyler Hatcher, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, Los Angeles Field Office (IRS-CI), announced the verdict.
“Today’s verdict is a resounding victory for justice and for soccer fans around the world. The defendants cheated by bribing soccer officials to act in their own greedy interests rather than in the best interests of the sport,” stated United States Attorney Peace. “The verdict today reflects this Office’s ongoing commitment to rooting out corruption at the highest levels. Companies and individuals alike should understand that, regardless of their wealth or power, they will be brought to justice if they use the U.S. financial system to further corrupt ends.”
Mr. Peace extended his thanks to the agents and other investigative personnel at the FBI New York Eurasian Joint Organized Crime Squad, the FBI’s Integrity in Sport and Gaming Initiative and the IRS-CI Los Angeles Field Office, as well as their colleagues and law enforcement partners in the United States and abroad.
“The many bribery schemes that the beautiful game has endured are brought one step closer to justice by the convictions of Mr. Lopez and Full Play Group S.A.. Soccer fans around the world had a front row seat to these schemes as we watched tournaments by FIFA, CONMEBOL, and, in Full Play’s case, CONCACAF, through the media and broadcasting rights procured by fraud,” stated IRS-CI Special Agent-in-Charge Hatcher. “The defendants hid their corrupt acts behind middlemen, offshore bank accounts, and a facade of respectability, but they could not hide from justice. The IRS and our partners at the FBI and the Department of Justice work tirelessly to expose these corrupt acts, and today these defendants were held accountable for their actions.”
The international soccer federation known as FIFA is comprised of six continental confederations, including the Confederation of North, Central American and Caribbean Association Football (CONCACAF), headquartered in the United States, and the Confederación Sudamericana de Fútbol (CONMEBOL).
As proven at trial, the defendants used their positions in the world of international soccer to engage in schemes involving the solicitation, offer, acceptance, payment and receipt of bribes and kickbacks, principally to obtain lucrative broadcast rights to various international soccer tournaments and events.
Full Play, a sports marketing company incorporated in Uruguay, based in Buenos Aires, Argentina, and owned by father-and-son defendants Hugo Jinkis and Mariano Jinkis, participated in numerous schemes to pay bribes to officials of CONMEBOL and CONCACAF in exchange for media and marketing rights to various soccer events, including World Cup qualifier and friendly matches, the Copa Libertadores, and multiple editions of the Copa América, a national team tournament administered by CONMEBOL. Hugo and Mariano Jinkis, charged in the first indictment in the case unsealed on May 27, 2015, remain fugitives.
Lopez, a formerly high-ranking executive of Fox subsidiaries responsible for developing and carrying out Fox’s sports broadcasting businesses in Latin America, joined Full Play and other co-conspirators in a scheme involving the annual payment of millions of dollars in bribes to officials of CONMEBOL in exchange for the lucrative broadcasting rights to the Copa Libertadores, the region’s most popular club tournament, among other events. Lopez also relied on loyalty secured through the payment of bribes to certain CONMEBOL officials to advance the business interests of Fox, including to obtain confidential bidding information for the rights to broadcast the 2018 and 2022 World Cup tournaments in the United States, rights that Fox successfully obtained.
Today’s conviction is the latest accomplishment in the investigation of corruption in international soccer being led by the U.S. Attorney’s Office of the Eastern District of New York, the FBI’ s New York Field Office and the IRS-CI Los Angeles Field Office. Criminal charges have been brought against more than 50 defendants from more than 20 countries, resulting to date in guilty pleas by more than 30 individual and corporate defendants and trial convictions of 3 individuals and 1 corporation. In addition, 2 corporations have resolved via deferred prosecution agreements and 3 corporations have resolved via non-prosecution agreements. Each has agreed to pay substantial financial penalties.
The government’s case was prosecuted by Assistant United States Attorneys Kaitlin T. Farrell, Robert T. Polemeni, Victor Zapana and Eric Silverberg, with key assistance provided by Assistant United States Attorneys Kristin Mace and Brian D. Morris, paralegals Matthew Flink, Jordi Martinez and Kavya Kannan, and the Justice Department’s Office of International Affairs and Organized Crime and Gang Section.
The Defendants:
HERNAN LOPEZ
Age: 52
Los Angeles, CaliforniaFULL PLAY GROUP S.A.
Buenos Aires, ArgentinaE.D.N.Y. Docket No. 15-CR-252 (S-3) (PKC)
Fifteen Years in Federal Prison for Sisseton Man Convicted of Abusive Sexual ContactRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Charles B. Kornmann has sentenced a Sisseton, South Dakota, man, convicted of Abusive Sexual Contact. The sentencing took place on March 3, 2023 in Aberdeen, South Dakota.
Conrad Brown, age 44, was sentenced to 15 years in federal prison, followed by 10 years of supervised release. He was ordered to pay $300 as a statutorily required special assessment to the Federal Crime Victims Fund.
Brown was indicted for Aggravated Sexual Abuse of a Child and Abusive Sexual Contact by a federal grand jury in July of 2022. He pleaded guilty to Abusive Sexual Contact on October 25, 2022.
According to court documents, between approximately 2019 through 2021, Brown engaged in abusive sexual contacts with minor victims. The victims were threatened or placed in fear in order for Brown to perpetrate the abusive sexual contacts. The abuse took place in Northeastern South Dakota and within the tribal lands of the Sisseton-Wahpeton Oyate Sioux Tribe.
This case was investigated by the Sisseton-Wahpeton Oyate Tribe’s Law Enforcement and the FBI. Assistant U.S. Attorney Jeremy R. Jehangiri prosecuted the case.
Brown was remanded to the custody of the U.S. Marshals Service to continue serving his sentence.
Felon with Two Prior Robbery Convictions Sentenced to 15 Years in Federal Prison for Armed Robbery of Evansville Circle KRead the Press Release
EVANSVILLE- Darion Cartwright, 33, of Vanderburgh County, Indiana, was sentenced to 15 years in federal prison after pleading guilty to armed robbery and illegally possessing a firearm as a convicted felon.
According to court documents, on July 8, 2019, Cartwright entered the Circle K Kangaroo Express located on South Kentucky Avenue in Evansville, Indiana and robbed an employee at gunpoint. After brandishing a .22 caliber revolver and threatening the employee, Cartwright walked away with approximately $365. Evansville Police Department (EPD) Officers were alerted to the robbery and quickly asked for assistance from the public by providing security camera images of Cartwright’s unique arm tattoos.
Later that same evening, EPD officers were dispatched to the Arbors at Eastland Apartment Complex on a report of intimidation. The victim told officers that Cartwright forced her to drive him to an Enterprise Car Rental and rent a vehicle for him. Cartwright threatened the victim, telling her that “bad things were going to happen” if she did not comply with his demands. The victim used her information to pay for a rental Dodge Journey for Cartwright to use.
Officers obtained a search warrant for the vehicle and for Cartwright’s apartment unit. After a short stand-off with a SWAT team, Cartwright exited the apartment and was taken into custody. During a search of the Dodge Journey, officers recovered a black duffle bag that contained synthetic marijuana, 54.1 grams of methamphetamine, the same .22 caliber revolver used in the Circle K robbery, and $431 in cash.
Prior to his arrest, Cartwright was convicted of felony Armed Robbery and felony Robbery in Vanderburgh County. These previous felony convictions prohibit Cartwright from lawfully possessing a firearm.
United States Attorney for the Southern District of Indiana, Zachary A Myers and Herbert J. Stapleton, Special Agent in Charge of the FBI’s Indianapolis Field Office made the announcement.
“This repeat, armed robber has been a menace to the people of Vanderburgh County,” said U.S. Attorney Myers. “His violent crimes have no place in our communities, and we are safer with him behind federal prison bars. I commend the bravery of the victim who sought assistance from law enforcement officers, and the work of the FBI and Evansville Police Department to ensure he is held responsible for his actions.”
“The success of this case highlights the hard work of our agents and law enforcement partners to identify and remove a violent individual such as this from our streets and ensure residents feel safe in their community,” said FBI Indianapolis Special Agent in Charge Herbert J. Stapleton. “We remain committed to holding those who engage in criminal activity accountable for their crimes.”
The FBI investigated this case with valuable assistance provided by the Evansville Police Department. The sentence was imposed by U.S. District Court Judge Richard L. Young. Judge Young also ordered that Cartwright be supervised by the U.S. Probation Office for 5 years following his release from federal prison. Cartwright must also pay $365 in restitution to Circle K.
U.S. Attorney Myers thanked Assistant United States Attorney Matthew B. Miller, who prosecuted this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Federal Grand Jury Indicts Urbana, Illinois, Women for Wire Fraud Related to COVID Relief FundsRead the Press Release
URBANA, Ill. – A grand jury returned an indictment on March 8, 2023, against two Urbana, Illinois, women, Tasheena White, 32, of the 2400 block of Goodfield Drive, and Uniqua Whitaker, 26, of the 1200 block of Clifford Drive, charging each with one count of wire fraud related to Paycheck Protection Program (PPP) loans.
The indictment alleges that both White and Whitaker, United States Postal Service employees, engaged in a scheme to submit falsified loan applications and supporting documentation to acquire PPP loans in Spring 2021. White and Whitaker each obtained approximately $20,000 in PPP loans funds. Both have been issued a summons to appear in federal court in Urbana.
If convicted, the statutory penalties for wire fraud are a maximum of 30 years’ imprisonment, up to a three-year term of supervised release, up to a $1,000,000 fine, and restitution.
Agencies participating in the investigation include the Federal Bureau of Investigation, Springfield Field Office; the United States Postal Inspection Service; the Small Business Administration Office of Inspector General; the Department of Labor Office of Inspector General; and the United States Postal Service Office of Inspector General. Assistant U.S. Attorney Nathan Bertrand is representing the government in the prosecution.
COVID-19 disaster relief benefits are intended to help people and businesses suffering as a result of the pandemic. If members of the public suspect that anyone fraudulently obtained or misused benefits, they should contact the National Center for Disaster Fraud (NDCF) Hotline at 1-866-720-5721 or submit the NCDF Web Complaint Form. The NCDF is a national coordinating agency within the Department of Justice’s Criminal Division dedicated to improving the detection, prevention, investigation, and prosecution of criminal conduct related to natural and man-made disasters and other emergencies, such as the coronavirus (COVID-19). Hotline staff will obtain information regarding complaints, which will then be reviewed by law enforcement officials. More information is available at https://www.justice.gov/disaster-fraud.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Federal Grand Jury Indicts Hardin County Man for Possession of Destructive DevicesRead the Press Release
Louisville, KY – A federal grand jury in Louisville, Kentucky returned an indictment yesterday charging a Hardin County man with illegal possession of destructive devices.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky and Acting Special Agent in Charge Robert Maynard of the ATF Louisville Field Division made the announcement.
According to the indictment, Frank Taylor, 61, of Cecilia, Kentucky, was charged with one count of possessing four destructive devices not registered to him in the National Firearms Registration and Transfer Record.
Taylor will make his initial court appearance before a U.S. Magistrate Judge in the Western District on a later date. If convicted, Taylor faces a maximum sentence of 10 years in prison. A federal district court judge will determine any sentence after considering the sentencing guidelines and other statutory factors. There is no parole in the federal system.
This case is being investigated by the ATF Louisville Division Office with assistance from the Kentucky State Police.
Assistant U.S. Attorney Robert Bonar is prosecuting this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Federal Authorities Seize Internet Domain Selling Malware Used to Illegally Control and Steal Data from Victims’ ComputersRead the Press Release
LOS ANGELES – As part of an international law enforcement effort, federal authorities in Los Angeles this week seized an internet domain that was used to sell computer malware used by cybercriminals to take control of infected computers and steal a wide array of information.
A seizure warrant approved by a United States Magistrate Judge on March 3 and executed on Tuesday led to the seizure of www.worldwiredlabs.com, which offered the NetWire remote access trojan (RAT), a sophisticated program capable of targeting and infecting every major computer operating system. “A RAT is a type of malware that allows for covert surveillance, allowing a ‘backdoor’ for administrative control and unfettered and unauthorized remote access to a victim’s computer, without the victim’s knowledge or permission,” according to court documents filed in Los Angeles.
As part of this week’s law enforcement action, authorities in Croatia on Tuesday arrested a Croatian national who allegedly was the administrator of the website. This defendant will be prosecuted by Croatian authorities. Additionally, law enforcement in Switzerland on Tuesday seized the computer server hosting the NetWire RAT infrastructure.
The FBI in Los Angeles in 2020 opened an investigation into worldwidelabs, the only known online distributor of NetWire. Undercover investigators with the FBI created an account on the website, paid for a subscription plan, and “constructed a customized instance of the NetWire RAT using the product’s Builder Tool,” according to the affidavit in support of the seizure warrant.
While the website marketed NetWire as a legitimate business tool to maintain computer infrastructure, the affidavit states that NetWire is a malware used for malicious purposes, the software was advertised on hacking forums, and numerous cyber security companies and government agencies have documented instances of the NetWire RAT being used in criminal activity.
“Today’s action is a testament to the innovation and flexibility necessary to fighting cybercriminals who operate without borders,” said United States Attorney Martin Estrada. “Our office will continue to forge international alliances to protect our communities from cyber threats. Criminals used NetWire on a global scale, and we have responded by dismantling the infrastructure that has caused untold harm to victims around the world.”
“By removing the Netwire RAT, the FBI has impacted the criminal cyber ecosystem,” said Donald Alway, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “The global partnership that led to the arrest in Croatia also removed a popular tool used to hijack computers in order to perpetuate global fraud, data breaches and network intrusions by threat groups and cyber criminals.”
The referenced media source is missing and needs to be re-embedded.This matter is the result of the United States’ strong law enforcement cooperation with Croatia and other global partners. The FBI’s Los Angeles Field Office; the Croatia Ministry of the Interior, Criminal Police Directorate; Zurich Cantonal Police in Switzerland; the Europol European Cybercrime Center; and the Australian Federal Police conducted the investigation in this matter.
Assistant United States Attorneys Lisa Feldman of the Cyber and Intellectual Property Crimes Section and Maxwell Coll of the Asset Forfeiture and Recovery Section obtained the seizure warrant for the internet domain. The Office of International Affairs in the Justice Department’s Criminal Division provided substantial assistance during the investigation.
Detroit Gang Member Sent to Prison for Two Murders as Part of Racketeering ConspiracyRead the Press Release
DETROIT – A former Detroit resident was sentenced to 25 years in prison for murdering a rival gang member and an innocent 13-year-old bystander as part of a racketeering conspiracy, United States Attorney Dawn N. Ison announced today.
Ison was joined in the announcement by Special Agent in Charge James A. Tarasca, Federal Bureau of Investigation, Detroit Division. Carlo Wilson, aka “Los,” age 29, received the sentence from the United States District Judge Mark A. Goldsmith.
At his guilty plea, Wilson admitted to being a member of the “6 Mile Chedda Grove” gang, which is a street gang that operated on the eastside of Detroit. 6 Mile Chedda Grove was a violent organization responsible for murders, assaults, robberies, and narcotics trafficking in the Detroit metropolitan area and in other states. The gang used violence to retaliate against rivals and to advance members’ positions within the gang.
As a part of his plea, Wilson admitted to participating in the 2015 murder of a rival gang member and an innocent bystander. According to plea documents, Wilson was with another gang member, Edwin Mills, when they saw the rival in a car outside of a market on the eastside of Detroit. Wilson and Mills killed the rival gang member and an innocent bystander when they fired multiple shots at the vehicle. Wilson and Mills also seriously injured two children who had been sitting on the hood of the car driven by the rival gang member. Mills also pled guilty and is currently awaiting sentencing in the case.
“Today’s sentence is a stark reminder of how gun violence devastates our community and is robbing innocent children of their future. It also serves as a warning to those who use guns to commit violence: I will use every resource of the federal government to seek justice for all of the people in this district,” U.S. Attorney Ison said.
“We are extremely proud of the outstanding work done by our Violent Gang Task Force, which is committed to countering violent crime, illegal drugs, and organized criminal activity in our communities by investigating gang members like Mr. Wilson, ”said James A. Tarasca, Special Agent in Charge of the FBI's Detroit Field Office. "The continued success and impact of this Task Force is persuasive evidence of how interagency collaboration results in tangible public safety benefits to the citizens who live in the Detroit metropolitan area."
The case was investigated by special agents of the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorneys Robert Moran and Andrew R. Picek.
Department of Justice Fiscal Year 2024 Funding RequestRead the Press Release
Note: Read the Department of Justice FY2024 Budget Fact Sheets here.
Today, the President submitted to Congress his Budget for Fiscal Year 2024 (FY24), which requests a total of $39.7 billion in discretionary resources, an increase of $2.3 billion, or 6 percent, over the Fiscal Year 2023 enacted level, and $9.7 billion in mandatory funding for the Department of Justice.
“The Justice Department’s mission is to uphold the rule of law, keep our country safe, and protect civil rights,” said Attorney General Merrick B. Garland. “This increase in resources to our law enforcement agencies, U.S. Attorney’s Offices, and litigating and grantmaking components will enable us to build on our efforts to fulfill that mission. The Department will put these resources to work in communities across the country -- including to combat violent crime and gun violence, address the deadly fentanyl crisis, counter threats to our national security, investigate and prosecute hate crimes, safeguard voting rights, address environmental harm, advance economic fairness, and uphold the rule of law.”
Key investments to keep our country safe include:
- More than $21 billion in investments to expand the capacity of the Department’s law enforcement and U.S. Attorneys’ Offices to keep our country safe from a wide range of complex and evolving threats, including $11.3 billion for the FBI and $2.9 billion for the U.S. Attorneys’ Offices to carry out their complex mission sets, including keeping our country safe from violent crime, cybercrime, hate crimes, terrorism, espionage, and the proliferation and potential use of weapons of mass destruction. The budget also includes:
- $11.4 billion to tackle violent crime.
- $2.7 billion for the Drug Enforcement Administration (DEA) to continue the fight against dangerous drug trafficking gangs and cartels and to prevent the flow of deadly drugs into our communities. This includes $19 million in enhancements for the DEA and $696 million in grants for the Office of Justice Programs (OJP), and the Office of Community Oriented Policing Services (COPS) to continue the fight against dangerous drug trafficking organizations, and doubles grant programs, including two new programs aimed at protecting America’s youth and identifying the next generation of psychoactive substances.
- $1.9 billion for the U.S. Marshals Service (USMS) to assist local law enforcement in apprehending violent fugitives from our neighborhoods and to protect our nation’s judges and courts.
- $1.9 billion for the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) for reducing gun violence and violent crime.
- Almost $7.7 billion for national security programs, including $32.7 million in program increases to expand the Department’s ability to counter terrorism and keep pace with rising national security threats, while protecting civil rights and civil liberties, and $179.7 million in program enhancements to support the Department’s efforts to respond to cybersecurity and cyber threats.
- $939.3 million to protect the most vulnerable by enforcing human smuggling laws, combating child exploitation, combatting gender-based discrimination and harassment, and protecting victims of violence and abuse.
- $300 million in mandatory funding over three years for COVID fraud enforcement.
- $1.5 billion in critical investments to support the Justice Department’s mission of protecting civil rights, including:
- $261 million to preserve, protect, and defend civil rights. The request prioritizes advancing racial justice, promoting equity for underserved communities, and enforcing civil rights across the Nation. This funding will support police reform, provide for the prosecution of hate crimes across the nation, defend voting rights, and other important civil rights activities.
- $89 million to support the department’s Body Worn Camera Initiative.
- $300 million for the Office of Justice Programs Accelerating Justice System Reform initiative to provide states the tools and incentives to address existing drivers of correctional rates, racial disparities, and adverse outcomes for civilians.
- $446 million for Office on Violence Against Women programs to combat domestic/dating violence, sexual assault, and stalking and support survivors.
- $84 million in critical investments to uphold the Rule of Law, including:
- $8 million to enforce federal law related to voting. This funding would expand the Civil Rights Division’s ability to address language access obligations, rebuild enforcement capacity, and address violations of the National Voter Registration Act. The division will also expand its ability to review and resolve potential violations of the National Voting Rights Act.
- $21 million for Judicial Security and Protective Operations for the United States Marshals Service to enhance protective operations by funding two full-time protective services details to support high-threat mitigation throughout the Judicial and Executive Branches.
- More than $21 billion in investments to expand the capacity of the Department’s law enforcement and U.S. Attorneys’ Offices to keep our country safe from a wide range of complex and evolving threats, including $11.3 billion for the FBI and $2.9 billion for the U.S. Attorneys’ Offices to carry out their complex mission sets, including keeping our country safe from violent crime, cybercrime, hate crimes, terrorism, espionage, and the proliferation and potential use of weapons of mass destruction. The budget also includes:
Columbia County Man Charged with Fraud, Theft, and Identity Theft for Obtaining Driver License and Food Stamps Using the Identity of A Deceased PersonRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging Luis Alberto Villazon (63, Fort White) with wire fraud, theft of government property, making false statements to a federal agency, fraudulent use of a Social Security number, and aggravated identity theft. If convicted, the wire fraud charges each carry a maximum penalty of 20 years in federal prison, theft of government property carries a maximum penalty of 10 years’ imprisonment, the false statements and fraudulent use of a Social Security number charges each carry a maximum penalty of 5 years, and the aggravated identity theft charges each carry a mandatory 2-year sentence, at least one of which must run consecutively to any other sentence. The indictment also notifies Villazon that the United States intends to seek forfeiture of approximately $50,000, the estimated amount of proceeds obtained as a result of the offenses.
According to the indictment and other court documents, in 1998, Villazon, who had previously lived in New York, applied for and obtained a Florida driver license using the name, date of birth, and Social Security number of a person who was born in New York in July 1959, and died in New York in 1976. Villazon was born in August 1959. Villazon renewed the license several times, on one occasion presenting a New York birth certificate and a Social Security document under the false identity. During the same time-period, Villazon obtained and renewed a license in his real name. Both licenses were still valid at the end of 2022.
Beginning in 2011, Villazon applied for and obtained Supplemental Nutrition Assistance Program (SNAP) benefits, formerly called food stamps, under both the false identity and his true identity. The program required Villazon to submit renewal applications about every six months and each time he applied under the false identity, he provided the name, date of birth, and Social Security number of the person who died in 1976. Villazon received benefits totaling $25,388 under the false identity through December 2022 and received benefits under his real name totaling $22,902 through November 2021.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by Homeland Security Investigations (HSI), the Department of Agriculture – Office of Inspector General, the Social Security Administration – Office of the Inspector General, and the Columbia County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Arnold B. Corsmeier.
Download IndictmentChicago Felon Sentenced to 70 Months in Federal Prison for Illegal Possession of a FirearmRead the Press Release
MINNEAPOLIS – A Chicago man has been sentenced to 70 months in prison followed by two years of supervised release for illegal possession of a firearm, announced United States Attorney Andrew M. Luger.
According to the defendant’s guilty plea and court documents, on June 21, 2022, a St. Paul police officer responded to an apartment after receiving a 911 call reporting a domestic incident. The officer encountered Allen Denzel Oliver-Hall, 28, who attempted to get the officer to turn his back to him so that he could hide a gun, a stolen American Tactical 92 9mm pistol with an extended magazine. The officer saw the gun and tried to remove it from Oliver-Hall’s possession. During the struggle, the firearm was pointed towards the officer. Eventually, the officer was able to disarm Oliver-Hall.
Because Oliver-Hall has multiple prior felony convictions in Cook County, Illinois, he is prohibited under federal law from possessing firearms or ammunition at any time.
On October 25, 2022, Oliver-Hall pleaded guilty to one count of possessing a firearm as a felon. Oliver-Hall was sentenced today in U.S. District Court before Chief Judge Patrick J. Schiltz.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the St. Paul Police Department.
Assistant U.S. Attorney Laura M. Provinzino prosecuted the case.
California Woman Pleads Guilty to Embezzling More Than $1 Million from Her EmployerRead the Press Release
MINNEAPOLIS – A California woman has pleaded guilty to wire fraud, aggravated identity theft, and filing a false tax return after embezzling more than $1 million from her employer, announced U.S. Attorney Andrew M. Luger.
According to the guilty plea and court documents, Mai Houa Xiong, 47, of Fresno, California, was employed as a financial manager for a Minneapolis-based property management company that provided financial services to homeowners’ associations (HOAs) throughout the Twin Cities metro area. Xiong’s duties included bookkeeping, and as a manager she had access to the victim associations’ financials, bank accounts, vendor and contractor payments, and bookkeeping systems. Between February 2015 and February 2022, Xiong devised and executed a fraud scheme to embezzle funds directly from the accounts to which she had access. These funds were HOA fees collected from residents intended to pay for maintenance, construction, and other costs incurred by the victim associations.
As part of the scheme, Xiong repeatedly accessed bank accounts and conducted electronic transfers of funds directly into her personal bank accounts. Xiong disguised these transfers by mislabeling them to make it appear as if they were legitimate homeowner association expenses. Xiong also used her authority as a signatory to make cash withdrawals directly from the HOAs’ accounts, including making withdrawals after she was fired from her position in July 2021. After her termination, Xiong began collecting Unemployment Insurance (UI) funds. However, even after Xiong found new employment, she continued to wrongfully obtain public UI benefits.
Xiong pleaded guilty today in U.S. District Court before Chief Judge Patrick J. Schiltz to one count of wire fraud, one count of aggravated identity theft and one count of making and subscribing a false tax return. A sentencing hearing will be scheduled at a later time.
This case is the result of an investigation conducted by the IRS – Criminal Investigations, the Minnesota Bureau of Criminal Apprehension, and the Minneapolis Police Department.
Assistant U.S. Attorney Allison K. Ethen is prosecuting the case.
CEO of Major Defense Contractor Charged with BriberyRead the Press Release
UPDATE
This press release has been updated to reflect the current charges against Rafaraci.
The chief executive officer (CEO) of Company 1, a multi-national corporation headquartered in Malta and with operations in the United Kingdom, United Arab Emirates, Singapore, and the United States was charged with bribery in an indictment returned on September 30, 2019.
According to the indictment, between 2013 and 2021, Rafaraci gave, offered, and promised money to Public Official 1, a Marine Liaison Officer for the U.S. Navy’s Fifth Fleet in Manama, Bahrain, in exchange for Public Official 1 using his official position to take action benefitting Company 1 as opportunities arose.
“Frank Rafaraci allegedly bribed a Navy official for years,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “The Criminal Division remains committed to combating corruption in defense contracting around the world.”
“This defendant is alleged to have engaged in a long-running scheme to bribe a public official for his own gain,” said Acting U.S. Attorney Channing D. Phillips of the District of Columbia. “The U.S. Attorney’s Office will continue to pursue and hold accountable those that seek to take advantage of our military through corruption.”
“The criminal case against Rafaraci is the result of painstaking investigative efforts by the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS) agents, and our partner agencies,” said Special Agent in Charge Stanley A. Newell of the DCIS Transnational Operations Field Office. “Let today’s action serve as a sobering reminder to those who seek to enrich themselves at the expense of the U.S. military and American taxpayers. DCIS is resolutely committed to ensuring the integrity of the DoD’s global procurement operations.”
“Rafaraci’s alleged long-running criminal scheme cheated the U.S. taxpayer and wasted tremendously valuable resources,” said Special Agent in Charge Eric Maddox of the Naval Criminal Investigative Service (NCIS) Economic Crimes Field Office. “NCIS and our law enforcement partners remain steadfast in our commitment to root out bribery and corruption that threaten to diminish the operational readiness and warfighter superiority of the Navy and Marine Corps.”
If convicted of bribery, Rafaraci faces a maximum penalty of 15 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Rafaraci was provisionally arrested in Malta on Sept. 27, 2021, at the request of the United States. Proceedings in Malta concluded upon his voluntary return to the United States on Oct. 18.
DCIS, NCIS, IRS-CI, and Army Criminal Investigative Division are investigating the case. Valuable assistance was provided by the FBI, U.S. Department of State’s Diplomatic Security Service, the Malta Police Force, Malta Office of the Attorney General, Essex Police, and U.K. International Crime Cooperation Center.
Principal Assistant Chief Justin Weitz, Trial Attorney Michael P. McCarthy of the Criminal Division’s Fraud Section, and Assistant U.S. Attorney Amanda R. Vaughn are prosecuting the case. Former Deputy Chief Brian R. Young of the Fraud Section participated in the investigation. The Justice Department’s Office of International Affairs provided significant assistance.
Anyone with information relating to fraud or corruption should contact the NCIS anonymous tip line at www.ncis.navy.mil or the DoD hotline at www.dodig.mil/hotline, or call (800) 424-9098.
An indictment is merely an allegation, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Rafaraci Indictment Rafaraci AffidavitBuffalo Man Going to Prison on Multiple Drug, Gun and Covid-19 Fraud CrimesRead the Press Release
BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Joseph Bella, 50, of Buffalo, NY, who was convicted of possession with intent to distribute cocaine, being a drug user in possession of a firearm, and wire fraud, was sentenced to serve 42 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorneys David J. Rudroff and Nicholas T. Cooper, who handled the case, stated that on April 23, 2020, investigators executed a search warrant at Bella’s residence and recovered drug paraphernalia and quantities of cocaine, MDMA, and marijuana. Investigators also recovered a 12-gauge shotgun and ammunition. At that time, Bella was an unlawful user of controlled substances, including marijuana and cocaine.
In addition, Bella defrauded a Salt Lake City, Utah, corporation (Victim) that developed and manufactured COVID-19 test kits, by falsely representing that his company, Medcor Staffing, Inc., was laboratory certified to perform high-complexity molecular testing, that Medcor Staffing was an “end-user” of the tests, and that Medcor Staffing would not attempt to resell them. As a result, the Victim sold Bella 5,000 COVID-19 tests that he could not safely and accurately process, could not provide end-user support for, and, in fact, intended to re-sell at a substantial mark-up.
In March 2020, Bella advertised on his personal Facebook account that he was selling “FDA approved COVID-19 Test Kits.” In April 2020, Bella communicated with an undercover federal agent by telephone, text message, and email, falsely telling the agent that he had 50,000 COVID-19 tests for sale; that the COVID-19 tests were being stored in a warehouse in San Diego, California at -20 degrees Celsius; that Medcor Staffing was an “exclusive licensed reseller” of the tests; and that Medcor Staffing employed doctors and scientists to answer customers' questions. Bella attempted to sell the tests to the agent for $30 per test, or more, after fraudulently obtaining the tests for only $8 apiece.
Bella also fraudulently obtained a loan from the Small Business Association under the Economic Injury Disaster Loan (EIDL) Program, which is designed to provide low-interest loans to qualifying small businesses to help them meet financial obligations and operating expenses in the event of a disaster. At Bella’s direction, a subordinate submitted a falsified application for a loan under the EIDL Program for another business Bella owns called BuyMyCard, a purchaser and re-seller of gift cards. The application grossly inflated BuyMyCard’s annual revenue, grossly underreported BuyMyCard’s annual expenses, and falsely stated that Bella was not subject to formal criminal charges at the time of the application. As a result of the falsified application, the SBA approved and funded a $149,900 loan to BuyMyCard under the EIDL Program.
The sentencing is the result of an investigation by the Homeland Security Investigations, under the direction of Special Agent-in-Charge Matthew Scarpino; Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy; U.S. Customs and Border Protection, Air and Marine Operations, under the direction of Brian Manaher; U.S. Border Patrol, under the direction of Patrol Agent in Charge Jeffrey T. Wilson; the United States Postal Inspection Service, under the direction of Inspector-in-Charge Ketty Larco-Ward of the Boston Division; the Bureau of Alcohol Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. DeVito, New York Field Division; and Buffalo Police Department, under the direction of Commissioner Joseph Gramaglia.
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Browning man sentenced for assaulting teenage girlRead the Press Release
GREAT FALLS — A Browning man who admitted to assaulting and kicking a teenage girl in the face during an argument on the Blackfeet Indian Reservation was sentenced on March 8 to five months in prison, to be followed by two years of supervised release, U.S. Attorney Jesse Laslovich said today.
Jasper Ryan Rattler, 20, pleaded guilty in October 2022 to assault resulting in substantial bodily injury.
Chief U.S. District Judge Brian M. Morris presided.
The government alleged in court documents that on Feb. 12, 2021, Rattler was consuming alcohol with the then 16-year-old victim, identified as Jane Doe. After getting into an argument, Rattler assaulted the victim, including kicking her in the face. The assault caused the victim substantial injuries.
Assistant U.S. Attorney Amanda L. Myers and Ryan G. Weldon prosecuted the case, which was investigated by the Bureau of Indian Affairs, FBI, Blackfeet Law Enforcement Services and Spokane Law Enforcement Services.
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Brooklyn High School Paraprofessional Sentenced to 15 Years for Production of Child Pornography and Sextortion SchemeRead the Press Release
Earlier today, in federal court in Brooklyn, Brian Quinones was sentenced by United States District Judge Hector Gonzalez to 15 years in prison for sexually exploiting a child. As part of his sentence, Quinones will be required to register as a sex offender upon his release from prison. Quinones pleaded guilty to the charge in September 2022.
Breon Peace, United States Attorney for the Eastern District of New York, announced the sentence.
“The defendant’s sextortion of a minor is unconscionable, cruel, and deserving of the punishment he received today in order to protect our communities for the lifetime of harm he has inflicted on his victims,” stated United States Attorney Peace. “I urge parents and caregivers to have frank conversations with their children about the dangers of communicating online with strangers who can pretend to be anyone or anything while making inappropriate requests for photos and videos.”
Mr. Peace thanked the Federal Bureau of Investigation, New York Field Office, and the New York City Police Department for their investigative work on the case.
Between September 2019 and January 2020, Quinones, who worked as a paraprofessional (a teaching assistant) at Midwood High School, used an instant messaging mobile application to trade dozens of videos and images depicting child pornography with another individual who has since been charged with child pornography-related offenses. Following a court-authorized search of Quinones’s residence and the seizure of his electronic devices, FBI special agents discovered a series of sexually explicit messages between Quinones, who was impersonating a woman, and a minor male victim, who Quinones lured into creating and sending sexually explicit videos. Quinones then threatened to post the victim’s material on the Internet unless the victim agreed to make additional sexually explicit content. For example, Quinones discussed an extortion scheme in a series of direct messages with another user on his Twitter account, urging the other user: “Threaten him to do more . . . I like making boys into slaves[.]”
This prosecution is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Department of Justice Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The government’s case is being handled by the Office’s General Crimes section. Assistant United States Attorney Eric Silverberg is in charge of the prosecution.
The Defendant:
BRIAN QUINONES
Age: 30
Brooklyn, New YorkE.D.N.Y. Docket No. 22-CR-218
Anchorage Man Sentenced for 2022 Robbery of Wells Fargo BankRead the Press Release
ANCHORAGE – Robert Marley Chapas was sentenced on March 8, 2023, to 60 months in prison for bank robbery.
According to court documents, on April 27, 2022, Chapas entered an Anchorage Wells Fargo branch. Chapas approached a teller window and passed a note to the teller that stated: “This is a robbery, I have a gun. Empty your drawer & let me leave like a normal transaction. I am not alone, there are other people with me. Do not try to be a hero & get someone hurt. Do not call police or alert anyone! Until I leave the building or I will shoot, This can be easy your choice.” Chapas then obtained $2,450 from the teller.
In sentencing Chapas to a term of 60 months, followed by 3 years of supervised release, Judge Timothy M. Burgess noted the terrifying nature of the crime and Chapas’ history of committing other serious crimes, including a 2018 assault conviction from the State of Alaska that involved Chapas pointing a gun at a fellow motorist. The Court also ordered Chapas to pay $2,450 in restitution for the loss to Wells Fargo.
Chapas was indicted along with co-defendant, Isiah Ishom Perry. In January 2023, Perry pleaded guilty to his part in the Wells Fargo bank robbery. Perry is set to be sentenced in April 2023.
U.S. Attorney S. Lane Tucker of the District of Alaska made the announcement.
The Federal Bureau of Investigation (FBI) and the Anchorage Police Department (APD) investigated the case.
Assistant U.S. Attorney Seth Brickey prosecuted the case.
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Akron Man Charged with Conspiracy to Defraud the United StatesRead the Press Release
AKRON - Romeo Travis, 39, of Akron, Ohio, was charged by way of information on one count of conspiracy to defraud the United States and one count of wire fraud. The information alleges that Travis impeded, impaired, and obstructed the lawful government functions of the Internal Revenue Service of the Department of the Treasury in computing, assessing, and collecting his individual income taxes. The information further alleges that, with Travis’ knowledge and consent, his professional sports agent altered Travis’ basketball contracts with overseas teams by understating his income, prior to sending those contracts to Travis’ tax preparer. As a result, Travis reduced his tax liability. The wire fraud count alleges that the false tax returns from the above scheme, that falsely under-reported Travis’ income, were used to reduce Travis’ child support payments to an unidentified individual as managed by the Stark County Child Support Enforcement Agency.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the information was conducted by the Internal Revenue Service, Criminal Investigation Division. The case is being prosecuted by Senior Litigation Counsel for Tax, Robert J. Patton.
A information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial during which it will be the government’s burden to prove guilt beyond a reasonable doubt.
6 traffickers convicted for smuggling meth for Michoacan cartelRead the Press Release
LAREDO, Texas – Five U.S. citizens and one Mexican national have been convicted of conspiring to possess with the intent to distribute a total of approximately 75 kilograms of meth associated with an independent drug cartel located in Michoacan, Mexico, announced U.S. Attorney Alamdar S. Hamdani.
Gerardo Martinez, 63, Laredo, pleaded guilty to leading a conspiracy to bring meth into the United States from Mexico and on to San Antonio, Dallas and beyond. Maria Valdez, 30, Rodrigo Sandoval, 31, and Karina Garcia, 26, all also of Laredo, previously pleaded guilty to their roles in the conspiracy as did Mexican national Jose Alfredo Cruz-Salas, 37, and Ernesto Diaz-Velazquez, 40, Dallas.
The investigation revealed a complex conspiracy which began Feb. 1, 2017, and continued through Sept. 29, 2018. Martinez assisted drug traffickers in Mexico by finding and recruiting drivers willing to transport large quantities of high-purity meth through Laredo and further into the United States.
As part of his plea today, Martinez admitted to coordinating five drug trafficking events involving the illegal distribution of meth through Laredo.
Sandoval, Cruz-Salas, Valdez, Diaz-Velazquez and Garcia each previously pleaded guilty to conspiring to deliver and transport meth through Laredo while working for Martinez. Martinez maintained a front as an independent taxi driver while working on behalf of the Michoacan cartel.
U.S. District Judge Marina Garcia Marmolejo will impose sentencing at a later date. At that time, each faces up to life in prison and a possible $10 million maximum fine.
All six have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the Organized Crime Drug Enforcement Task Forces (OCDETF) Operation Codigo Siete with the assistance of the Texas Department of Public Safety, Laredo Police Department and Webb County Sheriff’s Office. 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, mutlti-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. Attorney Francisco J. Rodriguez is prosecuting the case.
3 Mexican Nationals Charged in Federal Criminal Complaint Alleging They Possessed 1 Million Fentanyl Pills in Their CarRead the Press Release
LOS ANGELES – Three Mexican men arrested in El Monte on Wednesday for allegedly possessing 1 million fentanyl pills have been charged in a criminal complaint with violating federal drug laws, the Justice Department announced today.
The complaint filed today charges the following defendants – each of whom is from Sinaloa, Mexico – with one count of possession with intent to distribute controlled substances:
- Florencio Camacho Allan, 28;
- Gerardo Gaixola-Patino, 29; and
- Alex Valdez Oroz, 25.
The defendants are expected to make their initial appearances this afternoon in United States District Court in downtown Los Angeles.
According to an affidavit filed with the complaint, the defendants met with two buyers at a restaurant in El Segundo on Tuesday to discuss a 10,000-fentanyl-pill sample sale which would be followed by a deal for 1 million fentanyl pills. During the meeting, Allan and Gaixola met with the buyers while Oroz remained in the car, a white Volkswagen Jetta, the affidavit states.
After the meeting, Allan and Gaixola went to the parking lot where they allegedly sold 10,000 fentanyl pills to the buyers for $7,500. The defendants then left the restaurant under the surveillance of law enforcement.
Later that day, Allan allegedly confirmed with one of the buyers that they were interested in doing the 1 million pill deal later that day and showed one buyer the pills, which appeared to be in the Jetta’s trunk, via a WhatsApp video call.
Upon receiving information about the pills’ location, law enforcement conducted a traffic stop on the Jetta, which was stationed in a lot at an El Monte hotel, searched the car, and allegedly found approximately 1 million fentanyl pills in the car’s body and trunk. Law enforcement then arrested the three defendants on Wednesday morning.
A complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
If convicted, each defendant would face a statutory maximum sentence of life in federal prison.
The Drug Enforcement Administration is investigating this matter as part of the High Intensity Drug Trafficking Area (HIDTA) program with Homeland Security Investigations, the Hawthorne Police Department, the Fullerton Police Department, the El Monte Police Department, and the California National Guard providing assistance.
Assistant United States Attorneys Lyndsi C. Allsop of the Violent and Organized Crime Section and K. Afia Bondero of the General Crimes Section are prosecuting this case.
26-Year-Old Fraudster Sentenced to 14 Years in Prison Following Boasts About Criminal ConductRead the Press Release
A young man who turned to fraud to fund the lavish lifestyle he craved was sentenced today to 14 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
J. Nicholas Bryant, 26, of Slaton, Texas, pleaded guilty to wire fraud in November 2022. He was sentenced today by U.S. District Judge James Wesley Hendrix, who handed down a sentence five years longer than the guideline range based on the defendant’s cavalier attitude and the egregious nature of the scheme.
Mr. Bryant engaged in various wire fraud schemes to defraud at least 56 unsuspecting individuals and small businesses during an 18-month crime spree that spanned multiple states.
The fruits of his crimes brought him luxury goods and services – including private jet rides, private yacht excursions, and extravagant meals complete with champagne and steak.
In many instances, Mr. Bryant manipulated online payment platforms like QuickBooks and Veem to make it appear that payments were forthcoming. Knowing that the software would generate payment confirmations immediately but would take several days to notify victims of cancelled payments, Mr. Bryant satisfied vendors and business owners that payments were forthcoming when due, he admitted in plea papers. The payments never funded.
In all, he defrauded and attempted to defraud victims of more than $3.5 million, and successfully racked up nearly $1.2 million in actual losses to the victims, prosecutors said at Thursday’s sentencing hearing.
In one fraud scheme, Mr. Bryant convinced small businesses to front money and equipment to reopen an oil well. In the process, he exploited the trust of former colleagues, friends, and acquaintances who worked in the West Texas oil and gas industry, where business is often conducted with a handshake, the government said. In several others, he defrauded small business owners who were eager for business during the COVID-19 pandemic.
Mr. Bryant did so for pretention, ostentation, and Instagram moments, the government noted at sentencing. The government also observed that rather than expressing remorse for targeting companies that were struggling to survive in the midst of a pandemic that had gutted their business models, Mr. Bryant reveled in his notoriety, bragging about his crimes to media outlets and to his friends.
Judge Hendrix determined that Mr. Bryant had failed to accept responsibility for his crimes and revoked the credit he was set to receive based on acceptance of responsibility. Judge Hendrix also ordered Mr. Bryant to pay $1,185,691.38 in restitution to his victims.
The U.S. Secret Service’s Lubbock Resident Office, the Texas Department of Public Safety’s Criminal Investigations Division, the Lubbock Police Department, the Brazos County Sheriff’s Office, the Brownwood Police Department, Texas Parks & Wildlife of Coleman County, the Lafayette Parish Sheriff’s Office in Louisiana, and the Cody Police Department in Wyoming conducted the investigation. Assistant U.S. Attorney Ann Howey prosecuted the case with the help of Assistant U.S. Attorney Beverly Chapman.
Wednesday 8 March 2023
Woman Sentenced for $5.8 Million COVID-19 Loan Fraud ConspiracyRead the Press Release
NEWPORT NEWS, Va. – A Stockbridge, Georgia, woman was sentenced today to 51 months in prison for conspiring with others to submit millions of dollars in fraudulent disaster-related loan applications in connection with the COVID-19 pandemic.
According to court documents, Nikki Mitchum, 45, participated in a conspiracy to obtain disaster-related loan benefits in the form of Small Business Administration (SBA) sponsored Economic Injury Disaster loans (EIDL) and Paycheck Protection Program (PPP) loans. These programs, initiated and expanded under the Cares Act, are designed to provide support for small businesses for expenses related to the COVID-19 pandemic. Nikki Mitchum and her co-conspirators, including Malik Mitchum, 27, and Jenna Mitchum, 27, of Hampton, submitted fraudulent claims for government benefits in the name of businesses that they falsely represented were struggling during the COVID-19 pandemic.
Between March 2020 and May 2021, approximately 13 fraudulent applications for pandemic-related loan benefits were submitted using Nikki Mitchum’s information that contained false statements and misrepresentations about their income, employment, and claimed business entities. Nikki Mitchum is further linked to four other fraudulent loan applications by the IP address used to submit the applications. Finally, Nikki Mitchum is connected with 17 fraudulent loan applications submitted by other co-conspirators who paid kickbacks in an approximate amount of $204,000 to the companies owned and operated by Nikki Mitchum.
Malik and Jenna Mitchum previously pleaded guilty and were linked to more than $5.5 million in intended loss and caused approximately $1.4 million in actual loss to the United States and participating financial institutions. Malik Mitchum was sentenced to 51 months in prison and Jenna Mitchum was sentenced to 48 months in prison for their respective roles in the conspiracy. Nikki Mitchum has agreed to pay approximately $1.8 million in restitution to the United States for actual losses from her role in the conspiracy and is linked with intended fraud loss of more than $5.8 million.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen.
This case was investigated by the Newport News Financial Crimes Task Force, a partnership between local, state and federal law enforcement to combat financial crimes on the Virginia Peninsula.
Assistant U.S. Attorney D. Mack Coleman prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:21-cr-85 and 4:22-cr-47.
Wolf Point man suspected in convenience store robbery, carjackings in Billings and Cascade County arraigned on chargesRead the Press Release
GREAT FALLS — A Wolf Point man suspected in a convenience store robbery in Billings and armed carjackings in Billings and Cascade County appeared for arraignment on March 7 on multiple charges, U.S. Attorney Jesse Laslovich said today.
Santana Cruz Ledeau, 26, pleaded not guilty to an indictment filed on March 2 charging him with robbery affecting commerce, two counts of carjacking, attempted carjacking and two counts of using, carrying and brandishing a firearm in furtherance of a crime of violence. If convicted of the most serious crime, Ledeau faces a maximum of 20 years in prison, a $250,000 fine and three years of supervised release on the robbery charge and a mandatory minimum seven years to life in prison, consecutive to any other sentence, a $250,000 fine and three years of release on the firearm charge.
U.S. Magistrate Judge John T. Johnston presided. Ledeau was detained pending further proceedings.
The indictment alleges that on June 11, 2022, Ledeau robbed On the Run, a gas station convenience store in Billings, and threatened an employee, identified as John Doe #1. The indictment further alleges that on Sept. 30, 2022 near Billings, Ledeau brandished a firearm while carjacking a vehicle from a victim identified as Jane Doe. In addition, Ledeau is accused of using a firearm while carjacking a vehicle from a victim identified as John Doe #3 on Oct. 17, 2022 near Cascade, in Cascade County, and attempting to carjack a vehicle from a victim identified as John Doe #2 near Ulm, in Cascade County, also on Oct. 17, 2022.
An indictment is merely an accusation, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Assistant U.S. Attorneys Jessica A. Betley and Jeffrey K. Starnes are prosecuting the case, which was investigated by the Great Falls Police Department, Cascade County Sheriff’s Office, Cascade County Attorney’s Office, Bureau of Alcohol, Tobacco, Firearms and Explosives, Yellowstone County Sheriff’s Office, Yellowstone County Attorney’s Office, Billings Police Department, Musselshell County Sheriff’s Office and Montana Highway Patrol.
PACER case reference. 23-23.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl
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Virginia Beach Naval Nurse Sentenced for Attempted Coercion of a MinorRead the Press Release
NORFOLK, Va. – A Virginia Beach man was sentenced today to 10 years in prison for attempting to coerce and entice a 14-year-old minor to have sex with him.
According to court documents, Curtis Wade Spencer, 44, was on active duty in the Navy Nurse Corps. On or about July 27, 2022, Spencer contacted who he believed to be a 14-year-old minor online and began to have sexually explicit conversations with the minor. Spencer also sent videos and photographs of his genitals to the purported minor. On August 17, 2022, Spencer left his workplace at the Langley Air Force Base Hospital and traveled to a prearranged meeting spot expecting to meet the minor for sex. Instead, Spencer was arrested as the 14-year-old minor he hoped to meet was an undercover agent.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Mack Hickman, Special Agent in Charge of the of the Naval Criminal Investigative Service (NCIS) Norfolk Field Office, made the announcement after sentencing by Senior U.S. District Judge John A. Gibney.
Special Assistant U.S. Attorney Victoria Liu prosecuted the 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. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:22-cr-117.
Utah Pedestrian Struck by Vehicle during Alleged Drug Trafficker’s Attempt to Flee from PoliceRead the Press Release
Salt Lake City, Utah – A federal grand jury in Utah returned an indictment today charging a foreign national with possession of methamphetamine, heroin, and fentanyl with intent to distribute.
According to the complaint, on March 1, 2023, detectives with the Salt Lake Area Metro Gang Unit (MGU) witnessed Marcos Adrian Garcia Lugo, 21, speeding in the area of 3100 South Bangerter Highway in Salt Lake County, Utah. Detectives attempted to stop the vehicle with lights and sirens, but the driver fled, and detectives terminated their pursuit. Moments later, an MGU detective who is also an ATF task force officer observed Lugo make a sharp turn at 3600 West and 3150 South, where he slammed into another car that struck a pedestrian. The detective watched Lugo exit the driver’s seat and take off on foot away from the crash. Along Lugo’s flight path, detectives found a softball-sized amount of field-tested-positive methamphetamine and a stolen Smith and Wesson Shield 9mm firearm. Lugo was later arrested at a residence north of the crash. In Lugo’s vehicle, detectives also found 3.5 pounds of field-tested-positive methamphetamine, a half-pound of heroin, approximately 3,000 fentanyl pills, and $2,557.00 in cash.
Lugo is charged with possession of methamphetamine with intent to distribute; possession of heroin with intent to distribute, possession of fentanyl with intent to distribute, and alien in possession of a firearm. The defendant is scheduled for his arraignment hearing March 9, 2023, at 9:15 a.m. in courtroom 8.4 before a U.S. Magistrate Judge at the Orrin G. Hatch United States District Courthouse in Salt Lake City, Utah.
U.S. Attorney Trina A. Higgins for the District of Utah made the announcement.
The case is being investigated jointly by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), U.S. Drug Enforcement Administration (DEA) and the Salt Lake Area Metro Gang Unit.
Assistant U.S. Attorney, Stephen L. Nelson, for the District of Utah is prosecuting the case.
Learn more about the danger of illicit fentanyl at https://www.dea.gov/fentanylawareness or www.dea.gov/onepill.
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 make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement, and the local community to develop effective, locally based strategies to reduce violent crime.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
United States Settles with United Alloys and Steel Corporation for the Release of Mercury in the Village of Rye BrookRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Lisa F. Garcia, the Regional Administrator for the U.S. Environmental Protection Agency (“EPA”), Region 2, announced today that the United States has filed a civil lawsuit against UNITED ALLOYS AND STEEL CORPORATION (“Defendant”) and has simultaneously filed a consent decree settling the lawsuit. In the complaint, brought pursuant to the Comprehensive Environmental Response, Compensation, and Liability Act (“CERCLA”) – commonly known as the Superfund statute – the United States alleged that the Defendant arranged for the disposal or treatment of mercury by Port Refinery, Inc. (“Port Refinery”), a mercury refining business in the Village of Rye Brook, New York, which led to releases of mercury into the environment. The consent decree provides for a payment of $260,000 by the Defendant for costs incurred by EPA in conducting clean-up activities at the Port Refinery site (the “Site”).
U.S. Attorney Damian Williams said: “United Alloys and Steel Corporation played a part in causing contamination in a residential community by delivering 17,253 pounds of scrap mercury for re-smelting purposes to Port Refinery, and it is paying a share of the costs that EPA had to incur to clean up this site. The parties responsible for this environmental contamination are now being held accountable.”
EPA Regional Administrator Lisa F. Garcia said: “This company sent scrap mercury to the site operator, which handled mercury in a way that resulted in it being released into the environment and contaminating homes. Even relatively small amounts of mercury can cause serious health problems. EPA has addressed mercury vapors in people’s homes at the site, and now we are holding this company accountable for its part in putting people at risk.”
As alleged in the complaint filed today in White Plains federal District Court:
The Defendant arranged for Port Refinery’s treatment or disposal of scrap mercury at the Site. Port Refinery’s treatment and processing of mercury sent by the Defendant and other parties led to extensive releases of mercury into the environment, necessitating two separate clean-up actions by EPA. In connection with the second clean-up, EPA incurred costs at the Site for investigative and removal activities, including, among other things, excavating and disposing of more than 9,300 tons of mercury-contaminated soil from the Site.
In the consent decree filed today, the Defendant admits and accepts responsibility for the following:
- EPA has determined that from the 1970s through the early 1990s, Port Refinery engaged in, among other things, the business of mercury reclaiming, refining, and processing;
- Port Refinery operated in the Village of Rye Brook out of a two-story garage bordered by private residences on its south, east, and west sides;
- EPA has determined that Port Refinery took virtually no environmental precautions or safety measures during its mercury refinement process;
- EPA has determined that Port Refinery released a significant amount of mercury into the environment, contaminating the Site;
- EPA has determined that mercury from the Defendants’ mercury-containing products was comingled at the Site and contributed to the mercury released into the environment; and
- United Alloys and Steel Corporation delivered 17,253 pounds of scrap mercury for re-smelting purposes to Port Refinery during its period of operations.
* * *
Pursuant to the consent decree, the Defendant will pay a total of $260,000 in costs incurred by EPA. The payment amount was based on the Defendant’s documented inability to pay its full share of the costs incurred.
This lawsuit is the United States’ eighth lawsuit against responsible parties to recover clean-up costs for the second clean-up at the Site. With this settlement, the United States has recovered a total of $3,079,392 from responsible parties.
The consent decree will be lodged with the District Court for a period of at least 30 days before it is submitted for the Court’s approval to provide public notice and to afford members of the public the opportunity to comment on the consent decree.
Mr. Williams thanked the assigned EPA Region 2 Assistant Regional Counsel for his critical work on this matter.
This case is being handled by the Office’s Environmental Protection Unit. Assistant U.S. Attorney Anthony J. Sun is in charge of the case.
United States Obtains Warrant for Seizure of Airplane Owned by Russian Oil Company Valued at over $25 MillionRead the Press Release
The United States of America obtained a warrant to seize a Boeing 737-7JU aircraft owned by PJSC Rosneft Oil Company (Rosneft), a Russian integrated energy company headquartered in Moscow, Russia headed by Igor Ivanovich Sechin. The United States District Court for the Eastern District of New York authorized the seizure, finding probable cause that the Boeing aircraft was subject to seizure based on violations of the Export Control Reform Act (ECRA) and the recent sanctions issued against Russia.
Breon Peace, United States Attorney for the Eastern District of New York, Task Force KleptoCapture Director Andrew C. Adams, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Jonathan Carson, Special Agent-in-Charge, US Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement, New York Field Office (BIS), announced the unsealing of the seizure warrant.
“Today’s enforcement action demonstrates there is a price to pay for Russian companies and oligarchs that flagrantly evade sanctions that the United States has imposed in response to the unjustified war against the people of the Ukraine,” stated United States Attorney Peace. “This Office, together with our law enforcement partners, will relentlessly pursue the proceeds of unlawful conduct, be it on land, in the air, or at sea.”
Mr. Peace thanked the Justice Department’s National Security Division, Office of International Affairs, and the U.S. Treasury Department’s Office of Foreign Assets Control for their assistance in the investigation.
“By violating Commerce Department export controls, Rosneft has converted its jet into contraband. Today’s unsealing provides a roadmap to those in the private sector and to our foreign partners who are committed to upholding the rule of law – and to stifling the Russian state’s efforts to wage an illegal war – who will refuse to provide refuge and support to the operators of this aircraft as the United States pursues its seizure and forfeiture in aid of Ukraine,” said Task Force KleptoCapture Director Adams.
“Our enforcement action today makes clear that the U.S. Government will not tolerate Russian companies and oligarchs evading BIS export controls in order to support Russia’s war effort,” stated BIS Special Agent-in-Charge Carson. “BIS’s Office of Export Enforcement, working with our Kleptocapture partners, will continue to aggressively investigate export violations and bring violators to justice.”
According to the seizure warrant and affidavit unsealed today:
In response to Russia’s invasion of Ukraine, in February 2022, the U.S. Department of Commerce’s Bureau of Industry and Security issued sanctions against Russia. The sanctions impose export controls and license requirements to protect U.S. national security and foreign policy interests. The Russia sanctions expanded prohibitions on the export, reexport or in-country transfer of, among other things, U.S.-manufactured aircraft to or within Russia without a valid license or license exception for aircraft owned or controlled, or under charter or lease, by Russia and/or Russian nationals. In this case, these sanctions bar a plane that was built or manufactured in the United States from entering Russia without a valid license.
Since February 2022, when the Russia sanctions went into effect, the plane has left and reentered Russia at least seven times, in violation of federal law. The Boeing jet, which was manufactured in the United States, was last in the United States in March 2014, and is currently believed to be in, or traveling to or from, Russia.
Rosneft—which is headed by sanctioned oligarch Igor Ivanovich Sechin—owns the Boeing aircraft. The Boeing was flown from a foreign country to Russia in violation of the ECRA and regulations issued thereunder, including the Russia sanctions. The Boeing (pictured below) is believed to be valued at over $25 million.
The government’s case is being investigated by the Eastern District of New York’s International Narcotics and Money Laundering Section and the Criminal Division’s Money Laundering and Asset Recovery Section. Assistant United States Attorneys Francisco J. Navarro, Tara B. McGrath and Madeline M. O’Connor are investigating the case in partnership with Trial Attorney Barbara Levy.
The seizure action is being coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export controls and economic countermeasures that the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2, 2022, and run out of the Office of the Deputy Attorney General, the task force will continue to leverage all the department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression.
E.D.N.Y. Docket No. 23-MJ-174
United States Obtains Warrant for Seizure of Airplane Owned by Russian Oil Company Valued at More Than $25 MillionRead the Press Release
The United States today announced the unsealing of a warrant for the seizure of a Boeing 737-7JU aircraft owned by PJSC Rosneft Oil Company (Rosneft), a Russian integrated energy company headquartered in Moscow, Russia, headed by Igor Ivanovich Sechin. The U.S. District Court for the Eastern District of New York authorized the seizure, finding probable cause that the Boeing aircraft was subject to seizure based on violations of the Export Control Reform Act (ECRA) and the recent sanctions issued against Russia.
According to court documents, in response to Russia’s invasion of Ukraine, in February 2022, the U.S. Department of Commerce’s Bureau of Industry and Security issued sanctions against Russia. The sanctions impose export controls and license requirements to protect U.S. national security and foreign policy interests. The Russia sanctions expanded prohibitions on the export, reexport or in-country transfer of, among other things, U.S.-manufactured aircraft to or within Russia without a valid license or license exception for aircraft owned or controlled, or under charter or lease, by Russia and/or Russian nationals. In this case, these sanctions bar a plane that was built or manufactured in the United States from entering Russia without a valid license.
Specifically, since February 2022, when the export controls that bar the United States-built plane’s re-entry to Russia went into effect, the plane has left and reentered Russia at least seven times, in violation of federal law. The Boeing jet, which was manufactured in the United States, was last in the United States in March 2014, and is currently believed to be in, or traveling to or from, Russia.
Rosneft – which is headed by Igor Ivanovich Sechin – owns the Boeing aircraft. The Boeing was flown from a foreign country to Russia in violation of the ECRA and regulations issued thereunder, including the Russia sanctions. The Boeing (pictured below) is believed to be worth approximately $25 million.
The United States today announced the unsealing of a warrant for the seizure of a Boeing 737-7JU aircraft owned by PJSC Rosneft Oil Company (Rosneft), a Russian integrated energy company headquartered in Moscow, Russia, headed by Igor Ivanovich Sechin. The U.S. District Court for the Eastern District of New York authorized the seizure, finding probable cause that the Boeing aircraft was subject to seizure based on violations of the Export Control Reform Act (ECRA) and the recent sanctions issued against Russia.
According to court documents, in response to Russia’s invasion of Ukraine, in February 2022, the U.S. Department of Commerce’s Bureau of Industry and Security issued sanctions against Russia. The sanctions impose export controls and license requirements to protect U.S. national security and foreign policy interests. The Russia sanctions expanded prohibitions on the export, reexport or in-country transfer of, among other things, U.S.-manufactured aircraft to or within Russia without a valid license or license exception for aircraft owned or controlled, or under charter or lease, by Russia and/or Russian nationals.
The FBI and Department of Commerce are investigating the seizure matter. The Justice Department’s Office of International Affairs provided valuable assistance.
The government’s case is being investigated by the Eastern District of New York’s International Narcotics and Money Laundering Section and the Criminal Division’s Money Laundering and Asset Recovery Section. Assistant U.S. Attorney Francisco J. Navarro, Tara B. McGrath and Madeline M. O’Connor, and Trial Attorney Barbara Levy are leading the seizure matter.
The investigation was coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export controls and economic countermeasures that the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2, 2022, and under the leadership of the Office of the Deputy Attorney General, the task force will continue to leverage all of the department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression.
The burden to prove forfeitability in a forfeiture proceeding is upon the government.
Union County Man Convicted of Multiple Armed Robberies and Firearms OffensesRead the Press Release
NEWARK, N.J. – A Union County man was convicted today for participating in a multi-state armed robbery spree that spanned several months, U.S. Attorney Philip R. Sellinger announced.
Vincent Chan-Guillen, 32, was convicted of conspiracy to commit Hobbs Act robbery, conspiracy to use and carry a firearm during a Hobbs Act robbery, three counts of Hobbs Act robbery, one count of attempted Hobbs Act robbery, three counts of brandishing a firearm during a Hobbs Act robbery, and unlawful possession of a firearm by a convicted felon. Chan-Guillen was convicted following a one-week trial before U.S. District Judge Stanley R. Chesler in Newark federal court.
According to court documents and evidence presented at trial:
Chan-Guillen committed nine armed robberies between August 2018 and November 2018, five of which occurred in New York, and four of which occurred in New Jersey. During each robbery, Chan-Guillen brandished a firearm, which he pointed at store employees and customers. The New Jersey robberies victimized liquor stores in Elizabeth, Woodbridge Township, Bloomfield, and Linden.
Chan-Guillen faces a maximum potential penalty of 20 years on each count of Hobbs Act robbery and attempted Hobbs Act robbery; a maximum potential penalty of life in prison and a mandatory minimum penalty of seven years in prison on each count of brandishing a firearm during a Hobbs Act robbery, each of which must run consecutively to any other prison term. Each count also carries a potential $250,000 fine.
U.S. Attorney Sellinger credited special agents with the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to today’s conviction. He also credited the Elizabeth, Rahway, Woodbridge, Bloomfield, Linden, Kenilworth, Union, and Lyndhurst police departments; the New Jersey State Police; the Bureau of Alcohol, Tobacco, Firearms and Explosives, New York Division; and the New York Police Department for their assistance.
The government is represented by Assistant U.S. Attorney Desiree Grace, Deputy Chief of the Criminal Division, and Assistant U.S. Attorney John F. Mezzanotte of the Office’s Organized Crime/Gangs Unit in Newark.
U.S. Coast Guard officer convicted of operating illegal firearms businessRead the Press Release
BROWNSVILLE, Texas – A chief petty officer has been convicted of running a firearms sales business without a license, announced U.S. Attorney Alamdar S. Hamdani.
Matthew Keith Staton was not a licensed dealer of firearms. However, he admitted he sold five Palmetto State Armory “Build the Wall” .308 caliber rifles to Luis Enrique Vallejo. Vallejo, 41, San Benito, was a former law enforcement officer who was federally convicted for his role in attempting to export the same firearms into Mexico with the serial numbers removed.
At the time of the incident, Staton was a member of the U.S. Coast Guard and is currently an E7 chief petty officer.
U.S. District Judge Olvera accepted the plea and has set sentencing for May 31. At that time, Staton faces up to five years in federal prison and a possible $250,000 maximum fine.
Vallejo has already been sentenced to 13 months in federal prison for his crime.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation with the assistance of Homeland Security Investigations and the U.S. Coast Guard. Assistant U.S. Attorney David A. Lindenmuth is prosecuting the case.
U.S. Attorney Sellinger to Hold Second Town HallRead the Press Release
NEWARK, N.J. – U.S. Attorney Philip R. Sellinger and members of his staff will meet with residents in Jersey City later this month at the second in a series of planned town hall meetings.
The town hall will be held on March 21, 2023, from 6:00 p.m. to 7:30 p.m. at Temple Beth-El, 2419 John F. Kennedy Blvd., Jersey City, NJ, 07304. U.S. Attorney Sellinger will discuss the work of his office in a variety of areas, including hate crimes, civil rights, protecting the community from violence and the opioid crisis, and protecting the environment.
This is a community event and is open to the public.
U.S. Attorney Adair Boroughs Joins DOJ Delegation to Commemorate “Bloody Sunday” and Passage of Voting Rights Act of 1965Read the Press Release
COLUMBIA, SOUTH CAROLINA - Adair Boroughs, U.S. Attorney for the District of South Carolina, joined more than two dozen other U.S. Attorneys from across the country as a delegation to commemorate the 58th Anniversary of “Bloody Sunday,” the March over Selma’s Edmund Pettus Bridge, and the passage of the Voting Rights Act of 1965. Boroughs has served as a member of the Attorney General Advisory Committee’s (AGAC) Civil Rights Subcommittee since taking office in July 2022.
“It was an honor to join colleagues from across the United States on this trip to Montgomery and Selma, home to some of the most important moments in the Civil Rights Movement,” said U.S. Attorney Boroughs. “The Department of Justice was founded after the Civil War to ensure protection of civil rights, and the protection of civil rights remains one of the most basic and important parts of our mission. This mission is even more critical in states like South Carolina, where we lack a state hate crimes statute. My office is committed to using every power we have to protect civil rights across South Carolina.”
From March 4-7, 2023, U.S. Attorneys from across the country met with community and civil rights leaders while exploring some of the significant and educational civil rights institutions in Alabama. U.S. Attorney for the Western District of Washington, Nick Brown, hosted the delegation’s visit.
In addition to the March 5th Selma March, the U.S. Attorneys met with Assistant Attorney General Kristen Clarke of DOJ’s Civil Rights Division, as part of the subcommittee work supporting the AGAC.
Other meetings and visits during the trip focused on both historic civil rights conflicts and issues that are still alive today.
- The group met with distinguished jurist Myron Thompson, the first Black Assistant Attorney General for Alabama and the second Black Federal Judge in the state. As the former Chief Judge in the Middle District of Alabama, Judge Thompson was instrumental in preserving the Montgomery bus station where the Freedom Riders were attacked in 1961 and the establishment of the Freedom Rides Museum. Judge Thompson is a recipient of the Thurgood Marshall award for his “personal contributions and extraordinary commitment to the advancement of civil rights.”
- The group also met with Bryan Stevenson, Founder and Executive Director of the Equal Justice Initiative, a nonprofit organization that provides legal representation to people who have been wrongly convicted, unfairly sentenced, or abused in state jails and prisons.
- The attorneys also visited The Johnson Institute in the Montgomery federal courthouse where many key civil rights cases were decided. The Johnson Institute demonstrates through its programming the importance of the U.S. Constitution and the independent judiciary.
- The U.S. Attorneys visited The Legacy Museum, which provides a comprehensive history on the legacy of slavery. Lynching, codified racial segregation, and the emergence of over-incarceration in the 20th century are examined in depth and brought to life through film, images, and first-person narratives at the museum.
- At the Memorial for Peace and Justice, the group had an opportunity to reflect on America’s History of racial injustice. Set on a six-acre site, the memorial uses sculpture, art, and design to contextualize racial terror. The site includes a memorial square with 800 six-foot monuments to symbolize thousands of racial terror lynching victims in the United States.
The U.S. Attorneys from the following districts attended the Selma and Montgomery events: Massachusetts, Connecticut, New Jersey, South Carolina, Colorado, Nevada, Idaho, South Dakota, Kansas, Western and Middle Districts of Louisiana, Eastern District of Wisconsin, Eastern and Western Districts of Michigan, Middle District of Florida, Northern and Eastern Districts of California, Eastern and Middle Districts of Pennsylvania, Western District of Virginia, Western District of North Carolina, Southern District of Ohio, Western District of New York, and Southern District of West Virginia.
The Attorney General’s Advisory Committee was established nearly 50 years ago by Attorney General Elliott Richardson. The Committee’s purpose is to give United States Attorneys a voice in Department policies and to advise the Attorney General of the United States.
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Texas Woman Sentenced for Fraud and Money Laundering Conspiracies Targeting Federally Funded Meal Programs for Underprivileged YouthRead the Press Release
PITTSBURGH, PA – A resident of Dallas, Texas, was sentenced yesterday in federal court for her role in defrauding federally funded meal programs, Acting United States Attorney Troy Rivetti announced today.
United States District Judge Arthur J. Schwab sentenced Tanisha Jackson, 50, of Dallas, Texas, to 36 months’ incarceration following her guilty plea to conspiracy to commit mail and wire fraud and conspiracy to commit money laundering. Judge Schwab also ordered Jackson to pay restitution to the U.S. Department of Agriculture in the amount of $1,500,000 and to forfeit more than $427,000.
During Jackson’s plea hearing on May 18, 2022, she admitted, among other things, that she and co-conspirators Charles Simpson and Paige Jackson—Jackson’s daughter—operated HOIN, Inc. (HOIN), a Texas-based non-profit organization. Jackson caused HOIN (a/k/a Helping Others In Need) to enroll as a “sponsor” in two programs funded by the United States Department of Agriculture (USDA) for the purpose of providing meals to underprivileged youth—the Child and Adult Care Feeding Program (CACFP) and the Summer Food Service Program (SFSP) (collectively, “the feeding programs”). CACFP funded after-school meal service during the school year, while SFSP operated in the summer months. In Pennsylvania, the Pennsylvania Department of Education (PADOE) administered the USDA-funded feeding programs. Jackson also acknowledged that she previously had been excluded from participating in the same feeding programs in Texas and Arkansas.
As part of the conspiracy, Jackson admitted that she caused the submission of false enrollment documentation to PADOE on behalf of HOIN in connection with its participation in CACFP and SFSP between 2015 and 2019. Among other misrepresentations, HOIN’s applications to PADOE used aliases for Jackson and Simpson to obscure their involvement and falsely certified that none of the entity’s principals had been excluded from the feeding programs. Jackson further admitted causing HOIN to submit reimbursement claims for hundreds of thousands of meals that were never served to eligible children by either inflating the number of meals that, in fact, were served, or by seeking reimbursements for meals purportedly served on days on which the identified feeding site was not operating at all. To conceal their fraudulent conduct and justify HOIN’s claimed meal service, Jackson and Simpson submitted fabricated documents to PADOE in connection with periodic program reviews. On certain occasions, Jackson would impersonate her daughter Paige Jackson in interactions with PADOE.
Likewise, Paige Jackson used a fictitious name in dealings with PADOE. In total, PADOE issued reimbursement payments to HOIN in excess of approximately $4 million between 2015 and 2019.
In connection with the money laundering conspiracy, Jackson admitted that she and Simpson engaged in numerous financial transactions involving the proceeds of the fraud. Specifically, Jackson and Simpson spent hundreds of thousands of dollars in HOIN reimbursements on shopping sprees at high-end apparel stores, personal air travel and lodging, and the acquisition of at least nine luxury vehicles, including a Bentley, two Land Rovers, two Maseratis, two Mercedes, a Hummer, and a Porsche. Jackson and Simpson also withdrew cash from HOIN bank accounts in excess of $10,000 on more than a dozen occasions.
Simpson and Paige Jackson separately pleaded guilty for their roles in the conspiracy and were sentenced to 30 months’ imprisonment and three years’ probation, respectively. When announcing Jackson’s sentence, Judge Schwab rejected her claim that she was less culpable than Simpson, noting that Jackson had brought her own daughter, Paige Jackson, into the conspiracy.
Assistant United States Attorneys Eric G. Olshan and Nicole Vasquez Schmitt prosecuted this case on behalf of the government.
The United States Department of Agriculture – Office of Inspector General, Internal Revenue Service – Criminal Investigation, and Federal Bureau of Investigation conducted the investigation of the defendants in this case.
Suburban Houston man convicted for falsifying aircraft inspectionRead the Press Release
HOUSTON – A 52-year-old Pearland resident has pleaded guilty to making false statements in an aircraft maintenance log, announced U.S. Attorney Alamdar S. Hamdani.
Ronald P. Franklin admitted that on or about Oct. 9, 2020, he knowingly and willfully falsified an aircraft’s annual inspection records. Franklin had fraudulently represented himself as an Inspection Authorization (IA) holder and falsely certified he performed an annual inspection on an aircraft and determined it was in airworthy condition. The aircraft subsequently experienced an in-flight power loss leading to a crash.
The Federal Aviation Administration (FAA) regulates domestic aircraft and air travel. They require most U.S.-registered general aviation aircraft to undergo annual inspections to ensure they are airworthy which an FAA-certified mechanic must perform.
Following an annual inspection, FAA regulations require an IA holder to make an entry in the aircraft’s log book certifying the inspection was properly completed and the furnished information is true and correct. IA holders must certify each annual inspection they perform using their unique FAA certificate number.
Franklin was not an IA holder and did not perform the inspection as he falsely claimed.
U.S. District Judge Keith P. Ellison accepted the plea and has set sentencing for May 24. At that time, Franklin faces up to five years in federal prison as well as a possible $250,000 maximum fine.
Franklin was permitted to remain on bond pending that hearing.
The Department of Transportation – Office of Inspector General conducted the investigation. Assistant U.S. Attorneys Christian Latham and Jay Hileman are prosecuting the case.
Southfield Resident Sentenced to 7 Years for Role in Illegally Distributing over 90,000 Opioid Doses at A Medical ClinicRead the Press Release
DETROIT – A Southfield, Michigan man was sentenced today to seven years in federal prison for his role in distributing over 90,000 doses of Oxycontin, Percocet, and other opioids out of an area medical clinic, announced United States Attorney Dawn N. Ison.
Ison was joined in the announcement by James A. Tarasca, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation, Special Agent in Charge Orville Greene, Drug Enforcement Administration, Detroit Division, and Special Agent in Charge Mario Pinto of the U.S. Department of Health & Human Services, Office of Inspector General (HHS-OIG), Chicago Regional Office.
Lavar Carter, 45, was sentenced by United States District Judge Bernard A. Friedman. Carter initially became involved in the scheme as a patient recruiter where he used family members and people he encountered at soup kitchens to obtain information that was used to fill medically unnecessary opioid prescriptions. Carter eventually became employed at New Vision Rehab Center where he provided physicians with lists of patient names and identification that he knew were used to issue and fill medically unnecessary prescriptions. Carter and others exchanged the prescriptions for cash. Carter participated in the conspiracy between May 2019 and June 2020.
According to court records, Carter’s conduct was made even worse because, while released on bond in this case, he was surveilled by law enforcement agents working at another pain clinic to assist in the illegal distribution of more opioids.
U.S. Attorney Ison stated, “The devastation created by the opioid crisis harms our entire country. My office will zealously pursue medical providers, clinic staff, and others who inflict harm upon our community through illicit distribution of these powerful drugs.”
“The illegal distribution of opioids continues to have devastating effects on our community,” said James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Field Office. “The sentencing of Lavar Carter highlights how a partnership between the FBI, DEA, and HHS leads to the successful prosecution of individuals who seek to profit off the addiction of others.”
“Profiting from the suffering of vulnerable populations will not be tolerated. Mr. Carter’s scheme of illegally funneling prescription pills into communities and fueling overdose deaths in exchange for profits has come to an end. I want to thank our law enforcement partners who worked collectively on this investigation,” stated Special Agent in Charge Orville Greene, Drug Enforcement Administration, Detroit Division.
“Facilitating the unlawful administration of prescription opioids, and other controlled substances, places beneficiaries of our federal health care programs at risk,” said Mario M. Pinto, Special Agent in Charge with the U.S. Department of Health and Human Services, Office of Inspector General. “We will continue to work with our law enforcement partners to pursue those who defraud our federal health care programs and engage in other unlawful conduct that can bring harm on our nation’s beneficiaries.”
This case was prosecuted by Assistant United States Attorneys Regina R. McCullough and Philip A. Ross as part of the district’s efforts to address the nation’s opioid crisis. The Eastern District of Michigan is one of twelve districts included in the Attorney General’s Opioid Fraud Abuse and Detection initiative. The case was investigated by special agents of the Federal Bureau of Investigation, the Drug Enforcement Administration, and the U.S. Department of Health and Human Services, Office of Inspector General.
Social Security Administration Employee Pleads Guilty to Fraud and Money LaunderingRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announced Justin Skiff, age 36, of Castle Pines, pleaded guilty today to wire fraud, social security fraud and money laundering.
According to the plea agreement, beginning around August 2019 and continuing through September 2021, Skiff used his position as a claims specialist with the Social Security Administration (SSA), to fraudulently obtain money from the SSA. Skiff used his knowledge and access to establish Social Security Numbers for ten fictitious children. He then established fictitious records of entitlements for surviving child benefits which he connected to the record of a real deceased individual whose children would receive benefits. These benefits were deposited into a bank account accessible to Skiff through debit cards he directed to be mailed to a P.O. Box to which he had access. Skiff withdrew money and made purchases from this account from October 2019 through September 2021 for a total amount of $324,201.44.
Judge Daniel D. Domenico presided over the change of plea hearing on March 8, 2023. Skiff will be sentenced on June 6, 2023. Wire fraud carries a penalty of up to 20 years in prison and a fine of $250,000. Social Security fraud carries a penalty of up to 5 years in prison and a fine of $250,000. Money laundering carries a penalty of up to 20 years in prison and a fine of $500,000 or twice the value of the property involved in the transaction. Skiff must also forfeit any property derived from proceeds traceable to the scheme.
This case was investigated by Internal Revenue Service Criminal Investigation (IRS-CI) and the Social Security Administration Office of Inspector General. This case is being prosecuted by special Assistant U.S. Attorney Sonia J. Dave.
CASE NUMBER: 22-cr-00360
Snow Hill Man Sentenced to Prison for Role in COVID-19 Fraud SchemeRead the Press Release
NEW BERN, N.C. – A Snow Hill man was sentenced today to 31 months in prison and ordered to pay restitution for laundering fraudulently obtained Economic Injury Disaster Loan (“EIDL”) benefits. On November 8, 2022, Dexter Duncan pled guilty.
“This defendant used stolen identities to create fictitious businesses so he could divert taxpayer money intended to support small businesses challenged by the COVID-19 pandemic to himself,” said U.S. Attorney Easley. “My office will continue to make the investigation and prosecution of COVID-19 fraud a top priority.”
According to court documents and other information presented in court, Duncan, 24, conspired with others to apply for EIDL funds on behalf of fictitious companies and using stolen identities. Several of the EIDL applications were approved, and $180,988 in loan proceeds was disbursed to bank accounts owned and/or controlled by Duncan, who was not employed at the time but was known live a lavish lifestyle.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Internal Revenue Service, Criminal Investigations, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Harnett County Sheriff’s Office investigated the case and Special Assistant U.S. Attorney Lisa K. Labresh prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:22-CR-00196-FL.
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