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Thursday 2 March 2023
Previously Convicted Sex Offender Sentenced to 15 Years in Federal Prison for Possession of Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge Stephanie A. Gallagher has sentenced August Candeloro III, a/k/a “Nick,” age 35, of Catonsville, Maryland, today to 15 years in federal prison, followed by lifetime supervised release, for a federal charge of possession of child pornography.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge James C. Harris of Homeland Security Investigations (HSI) Baltimore; Acting Superintendent of the Maryland State Police Colonel Roland L. Butler, Jr.; and Interim Chief Dennis J. Delp of the Baltimore County Police Department.
According to his guilty plea, beginning in 2019 Candeloro began using a messaging application to send images depicting the sexual abuse of children. After additional investigation, law enforcement executed a search warrant at Candeloro’s residence and seized his cellular phone from his bedroom. The phone was found to contain conversations between Candeloro and other users of the messaging application. Candeloro also joined private chat groups on the messaging application, many of which had chatroom names indicative of trading child pornography. Candeloro posted links to a secure cloud storage platform in many of the chatrooms. The secure cloud storage platform allows the user to create links containing encrypted files and chats with keys controlled by the user. Candeloro’s phone also revealed over 2000 images of suspected child pornography, including images involving prepubescent minors and depicting sadistic and masochistic conduct.
Candeloro was previously convicted in two cases for a second-degree sex offense involving a 13-year-old victim in Howard County and Baltimore County Circuit Courts. As a result of those convictions, Candeloro was required to register as a sex offender.
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.
United States Attorney Erek L. Barron commended the HSI, Maryland State Police, and the Baltimore County Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Colleen E. McGuinn, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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Pinon Man Sentenced to 22 Years for Second Degree Murder in Child Homicide CaseRead the Press Release
PHOENIX, Ariz. – Ferin Billy Nez, 36, of Pinon, Arizona, was sentenced yesterday by United States District Judge Diane J. Humetewa to 22 years in prison. Nez, an enrolled member of the Navajo Nation, pleaded guilty to Second Degree Murder for killing his infant son.
On February 27, 2018, Nez had custody of his infant son, when the child became unresponsive and later died. A medical examination revealed that the victim had injuries consistent with having been shaken and thrown. On March 24, 2021, Nez was charged in a six-count indictment with murder and child abuse. He pleaded guilty to Second Degree Murder on October 17, 2022.
The Federal Bureau of Investigation conducted the investigation in this case. Assistant U.S. Attorneys Jennifer E. LaGrange and Sharon K. Sexton, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-21-08016-PCT-DJH
RELEASE NUMBER: 2023-027_Nez# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Pennsylvania Resident Convicted of Conspiracy in Scheme to Defraud and Extort Crypotocurrency ExecutivesRead the Press Release
SAN FRANCISCO – Today, Anthony Francis Faulk pleaded guilty to a federal charge of conspiracy in connection with a scheme to defraud more than a dozen executives of cryptocurrency-related companies and cryptocurrency investors of money and other property, announced United States Attorney Stephanie M. Hinds and FBI Special Agent in Charge Robert K. Tripp. The guilty plea was accepted by the Honorable William H. Orrick, United States District Judge.
Faulk, 26, of Latrobe, Penn., acknowledged his role in the conspiracy in a written plea agreement filed with the Court. According to his plea agreement, Faulk admitted from October 2016 through May 2018, he conspired with others to defraud and extort cryptocurrencies and other money from executives of cryptocurrency-related companies and cryptocurrency investors. Faulk acknowledged that the scheme involved extortion as well as “SIM swapping,” whereby Faulk and his co-conspirators gained access to their victims’ email, electronic storage, and other accounts to defraud the victims of their property.
SIM stands for Subscriber Identity Module or Subscriber Identification Module. A SIM card is a technology used to identify and authenticate subscribers on mobile phone devices. According to his plea agreement, Faulk admitted that he used fraud, deception, and social engineering techniques to induce representatives of cellphone service providers to transfer or port cellphone numbers from SIM cards in the devices possessed by victims into SIM cards of devices possessed by members of the conspiracy. Once in possession of the illegally obtained information, members of the conspiracy reset passwords of their victims’ email, electronic storage, and other accounts. The co-conspirators then were able to control the accounts, access cryptocurrency accounts, and transfer cryptocurrencies from accounts owned by the victims to accounts, or wallets, controlled by Faulk and his co-conspirators.
Further, Faulk admitted that in addition to transferring cryptocurrencies, the co-conspirators also contacted some of their victims by telephone and threatened to compromise further accounts unless the victims paid additional money to the fraudsters.
In the plea agreement, Faulk agreed to forfeit a home in Pennsylvania valued at approximately $942,500, two bank accounts with a combined value of more than $18,500,000, luxury cars, jewelry, and other property – all constituting or is derived from proceeds traceable to the conspiracy.
On December 10, 2019, a federal grand jury indicted Faulk, charging him with one count of conspiracy to commit wire fraud, in violation of 18 U.S. C. § 1349, and one count of interstate communications with intent to extort, in violation of 18 U.S.C. § 875(d). Pursuant to his plea agreement, Faulk pleaded guilty to the conspiracy count. If Faulk complies with the terms of the agreement, the extortion count will be dismissed at sentencing.
Faulk remains free on bail pending his sentencing. Judge Orrick scheduled the sentencing for June 8, 2023. Faulk faces a statutory maximum sentence of 20 years in prison and a maximum fine of twice the gain or loss realized from his crimes. In addition, the court could order Faulk to serve a maximum three-year term of supervised release, restitution, and other penalties. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant United States Attorney Robert Leach is prosecuting the case. This case is the result of an investigation from FBI, along with significant assistance from the Santa Clara County District Attorney's Office's REACT Task Force.
Peculiar Business Owner Sentenced for Tax EvasionRead the Press Release
KANSAS CITY, Mo. – The owner of a Peculiar, Mo., business was sentenced in federal court today for tax evasion.
Jason Rigoli, 43, was sentenced by U.S. District Judge Stephen R. Bough to one year and one day in federal prison without parole. The court also ordered Rigoli to pay $138,455 in restitution.
On Aug. 2, 2022, Rigoli pleaded guilty to one count of tax evasion. Rigoli, who has owned and operated Granite Construction Services, LLC, since 2006, admitted that he has not filed a federal personal, business, or employment tax return for eight years, from 2013 to 2020. Rigoli also failed to pay state income taxes, state employment taxes, workers’ compensation taxes and unemployment taxes.
As part of his scheme, Rigoli used his business bank accounts for all his personal expenses. Rigoli used proceeds of his tax fraud to pay for travel, restaurant meals, and liquor.
Rigoli falsely told IRS agents that he always paid his employees by check. Rigoli also falsely told IRS agents that he paid his employees “by 1099,” when in fact, Rigoli often paid employees with cash and filed no Forms W-2 or Forms 1099 for his employees.
According to court documents, special agents with IRS-Criminal Investigation executed a search warrant at Granite Construction Services. Agents recovered false returns, which were not filed with the IRS, and were labelled with notes such as, “Fake/High,” “2015 Completed F Taxes,” and “Real 2014.”
Rigoli told the agents an accountant that has an office in his same building would soon be preparing and filing all his personal and business tax returns at one time. He said if they had shown up just a month later, he would have had all his taxes filed. He said he was supposed to meet with the accountant that Friday regarding his tax returns. Agents later interviewed the accountant and she contradicted almost everything Rigoli said. The accountant said Rigoli was not a client, that she wasn’t preparing his returns, and that he had no scheduled appointment with her.
According to court documents, Rigoli applied for two Economic Injury Disaster Loans (EIDL) from the Small Business Administration for the same business but under two different names. He received a $150,000 loan for Granite Construction Services on Aug. 4, 2020. He applied for a second EIDL loan on Aug. 5, 2020, under the business name Patriot Construction Management, a shell company. For this second, fraudulent, loan, Rigoli used his parents’ address as the business address and the same employees as he used for his first EIDL loan. This loan was not granted by the Small Business Administration.
Rigoli kept very few books and records related to his business. To calculate taxes owing, the IRS reconstructed the business’s books using bank records and documents recovered from the business. Because Rigoli often used cash, because he comingled his accounts, and because the IRS gave him the benefit of the doubt on business expenses and depreciation, the tax loss is relatively low - $110,819 total from 2016-2019. When federal employment taxes are added, the total federal tax loss is $121,007. The Missouri state tax loss of $17,448 brings the total tax loss to $138,455.
In July 2022, Rigoli filed for tax years 2017 and 2018, so they were several years late. Rigoli reported taxes due and owing for those years. From 2014 to the date of sentencing, Rigoli paid just $139 in federal or state income or employment taxes.
This case was prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney. It was investigated by IRS-Criminal Investigation.
Organizer of firearms trafficking conspiracy sent to prisonRead the Press Release
McALLEN, Texas – A 20-year-old Pharr resident has been ordered to federal prison for organizing several individuals and having them purchase several firearms which were bound for Mexico, announced U.S. Attorney Alamdar S. Hamdani.
Christopher Tijerina pleaded guilty July 12, 2022.
Today, U.S. District Judge Micaela Alvarez ordered Tijerina to serve 78 months in federal prison to be immediately followed by a three-year-term of supervised release. At the hearing, the judge noted Tijerina was a leader/organizer in the conspiracy and cited the serious nature of the conduct, the number of firearms involved and the danger they pose to the community at large. The court further stated that being a good citizen requires being good to the whole community.
“We are facing an epidemic of gun violence across our nation,” said Special Agent in Charge Fred Milanowski of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). “The recent surge in gun violence is driven, in part, by individuals who are illegally trafficking firearms to countries like Mexico. When you illegally buy a gun for someone else, you are committing a federal crime and ATF will continue working with our law enforcement partners to stop firearms traffickers and straw purchasers who are contributing to gun violence in our community.”
In January 2022, Tijerina coordinated an effort to obtain firearms that would then be exported to Mexico. From Jan. 31 to Feb. 9, 2022, co-conspirators successfully purchased 13 firearms. Six were 7.62mm AK-47 variant rifles, while there were five 7.62mm AK variant pistols, one .40 caliber pistol and one 9mm pistol. They also attempted to purchase three additional 7.62mm AK-47 variant rifles, but were unsuccessful.
The purchases were made from local federal firearms licensees (FFLs) located in Hidalgo County.
Tijerina, admitted he recruited individuals for the purpose of purchasing firearms for him. Those individuals were eventually charged and convicted of straw purchasing firearms as they each represented on a Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) form they were in fact the true buyer of the firearm when they were not.
Thus far, those co-conspirators range in age from 19 to 23 and have received sentences of up to 70 months in federal prison.
Eduardo Guajardo, 26, a U.S. citizen believed to be residing in General Bravo, Nuevo Leon, Mexico, and Jesus Alexis Martine, 20, Edinburg, are both considered fugitives in the case and warrants remain outstanding for their arrests. Anyone with information about their whereabouts is asked to contact U.S. Marshals Service Enforcement Office at 956-558-6238.
Tijerina will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The ATF conducted the investigation. Assistant U.S. Attorneys Peter I. Brostowin and Sarina DiPiazza prosecuted the case.
Operators of Addiction Treatment Chain Charged in Alleged Health Care FraudRead the Press Release
PROVIDENCE – The Massachusetts operator of a chain of addiction treatment clinics is charged in federal court in Providence, RI, with millions of dollars of health care fraud, aggravated identity theft, money laundering and obstruction, announced United States Attorney Zachary A. Cunha. In addition, the treatment center and its former supervisory counselor were also charged with health care fraud.
Michael Brier, 60, of Newton, MA, Mi Ok Bruining, 62, of Warwick, RI, and Recovery Connections Centers of America, Inc. (RCCA) are charged by criminal complaint with health care fraud. Michael Brier was also charged in the complaint with aggravated identity theft, money laundering and obstruction.
It is alleged in court documents that, Brier, Bruining, and RCCA shortchanged Rhode Island and Massachusetts substance abuse disorder patients out of much needed counseling and treatment services, while defrauding Medicare, Medicaid, and other health insurers out of millions of dollars.
At a press conference announcing the culmination of this investigation and resulting criminal charges and arrests, United States Attorney Zachary A. Cunha commented, “What makes the fraud scheme that we have charged today particularly pernicious – is that not only was this scheme, as we allege, designed to defraud by enriching these defendants with federal and private healthcare dollars they did not earn, but that in the process it cheated a vulnerable population of recovery patients out of the full, genuine support and treatment that they need to have a chance at recovery.”
"Today’s arrests serve as a strong reminder that we will not tolerate fraud schemes that target our federal health care programs, as alleged, nor will we accept anything less than high quality care for the people served by those programs,” said Special Agent in Charge Phillip M. Coyne of the U.S. Department of Health and Human Services, Office of Inspector General. “Our agency’s mission is to protect the well-being of the public and the integrity of the federal health care system, and we will hold accountable those who seek to exploit the opioid epidemic for personal gain.”
“Today, we arrested and charged Michael Brier, Mi Ok Bruining, and Recovery Connections Centers of America, for a wide-ranging scheme in which they are accused of abusing our health care system, cheating taxpayers, and leveraging the opioid crisis to take advantage of those struggling with substance abuse so the company could rake in millions,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “The allegations set forth in this case represent one of the most brazen and egregious examples of health care fraud the FBI has seen here in Rhode Island in recent history, and make no mistake, it is not a victimless crime. Anytime the integrity of our federal health care programs is undermined, we all pay the price through the cost of higher insurance premiums, greater out-of-pocket expenses, and co-pays, and even reduced or lost benefits.”
According to the charging documents, Brier, Bruining and RCCA operated a chain of addiction treatment centers but failed to provide the patients with the required counseling sessions and treatment, while simultaneous billing Medicare, Medicaid and other health care payors for 45-minute counseling sessions on a routine basis even though the sessions were not more than 15 minutes, and often only 5-10 minutes or less. At times, so many counseling sessions were billed at this level that the total amount of time would be impossible for the available therapist to have provided in any 24 hours period.
Brier and RCCA are also alleged to have caused a fraudulent application to be submitted to Medicare which, among other things, misrepresented and concealed the role that Brier was playing in the business and failed to disclose Brier’s 2013 criminal conviction for federal tax crimes, which was relevant to Medicare’s consideration of the application.
The Complaint also alleges that Brier purported to practice medicine and wrote and caused to be filled fraudulent prescriptions using the names and prescriber information, including Drug Enforcement Administration numbers, of doctors without their permission.
Brier is also alleged to have falsified a document in a matter within the jurisdiction of an agency of the United States by causing the Medical Director to sign a false and back-dated document.
The complaint alleges that defendants caused millions of dollars in fraudulent billings to be submitted to Medicare and millions more in fraudulent billings to other health care payors.
The government is also seeking to forfeit thirteen bank accounts, two buildings, and two vehicles allegedly realized by the defendants as a result of the alleged criminal conduct.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant United States Attorneys Sara Miron Bloom and Kevin Love Hubbard.
The matter was investigated by the U.S. Department of Health and Human Services, Office of Inspector General and the Federal Bureau of Investigation. United States Attorney Cunha thanks the IRS, Customs and Border Protection, and the Rhode Island Office of the Attorney General for their assistance in the investigation.
Additionally, United States Attorney Cunha thanks the United States Department of Health and Human Services and the Centers for Disease Control, and their partners in Rhode Island and Massachusetts, for their quick response to establish services for patients who may be impacted by this law enforcement action.
Additionally, United States Attorney Cunha thanks the United States Department of Health and Human Services Centers for Disease Control and Prevention’s Opioid Rapid Response Program, and their partners in Rhode Island Department of Behavioral Healthcare and Massachusetts Department of Public Health, for assisting patients who may be impacted by this law enforcement action.
Rhode Island Department of Behavioral Healthcare, Developmental Disabilities and Hospitals is working to assure continuity of treatment for RCCA patients. Rhode Island patients in need of a new or immediate bridge prescription are urged to call (401) 606-5454; Rhode Island patients in need of behavioral health referrals for physicians, counselor, or clinic information may call (410) 414-LINK.
Massachusetts Department of Public Health, Bureau of Substance Addiction Service is working to assure continuity of care and treatment RCCA patients. Massachusetts patients in need of a new or immediate bridge prescription are urged to call (617) 414-4175; Massachusetts patients in need of behavioral health referrals for physicians, counselor, or other services may call (800) 327-5050 or use helplinema.com.
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Ohio man pleads guilty to investment fraud scheme defrauding Pike County investorsRead the Press Release
COLUMBUS, Ohio – An Ohio man pleaded guilty in U.S. District Court here today to orchestrating an investment fraud scheme in Pike County and to failing to remit more than $50,000 that had been withheld from employee paychecks to employee retirement funds.
Robert W. Walton, Jr., 54, of Loveland, Ohio, pleaded guilty to one count of wire fraud and one count of theft from an employee benefit plan.
According to court documents, Walton engaged in a scheme to defraud investors of Hadsell Chemical Processing, LLC (HCP) and related entities. Walton was the president of HCP and fraudulently sought investments in the form of promissory notes from dozens of victim investors.
Walton claimed the notes were personally guaranteed by a prominent local business owner when in fact they were not. Walton repeatedly forged the business owner’s signature from 2012 through 2015 without the business owner’s authority on several loan documents and promissory notes.
Walton admitted to falsely representing his company’s future revenues from another business to be in the millions by creating fake invoices. The actual total legitimate business revenue HCP had with that other business was approximately $50,000. He provided the fake invoices to investors. Walton also provided investors with a falsified profit and loss statement, changing HCP’s net income during January to May 2014 from approximately –$800,000 to nearly $395,000.
During part of his employment at HCP, Walton was responsible for approving the remittance of employee retirement funds to an employee benefit plan sponsored by HCP. Walton failed to remit approximately $53,000 withheld from employees’ pay, failing to transfer the funds into employee retirement funds.
The United States is seeking more than $8.6 million in restitution for the victims of the fraud scheme.
Wire fraud is punishable by up to 20 years in prison and embezzling from an employee benefit plan carries a potential maximum sentence of up to five years in prison. Congress sets the maximum statutory sentence. Sentencing of the defendant will be determined by the Court based on the advisory sentencing guidelines and other statutory factors.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI) Cincinnati Division; and L. Joe Rivers, Regional Director, United States Department of Labor Employee Benefits Security Administration, Cincinnati Regional Office announced the guilty plea entered today before U.S. District Judge Edmund A. Sargus, Jr. Assistant United States Attorney Peter K. Glenn-Applegate is representing the United States in this case.
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Ohio Man Sentenced to 12 Years in Prison for Child Exploitation CrimeRead the Press Release
CHARLESTON, W.Va. – Aaron Andrew Dement, 44, of Munroe Falls, Ohio, was sentenced today to 12 years in prison, to be followed by 10 years of supervised release, for attempted enticement of a minor. Dement must also register as a sex offender.
According to court documents and statements made in court, Dement used a dating-chat website to communicate with an individual he believed to be a minor female. Dement admitted to sending the minor female a photo of his genitals and a video of himself masturbating. Dement also asked the minor female to take and send him a photo of her genitalia.
On October 2, 2021, Dement contacted the minor female again and asked her to produce and send him a sexually explicit photo of herself and a sexually explicit voice message. Dement sent the minor female another sexually explicit video of himself. Dement further admitted that from October 7, 2021 until December 13, 2021, he continued to attempt to persuade, induce, entice or coerce the minor child to produce sexually explicit images of herself while also sending her sexually explicit images of himself, through online chats and text messages.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) Violent Crime Against Children (VCAC) Task Force.
United States District Judge Joseph R. Goodwin imposed the sentence. Assistant United States Attorneys Jennifer Rada Herrald and Kristin F. Scott prosecuted the case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-20 and 2:22-cr-199.
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New York Man Indicted for Firearms and Narcotics TraffickingRead the Press Release
BOSTON – A New York man was arrested yesterday in connection with allegedly trafficking drugs and firearms.
Jason Lebberes, 31, of Tuckahoe, N.Y., was indicted on one count of distributing more than 50 grams of methamphetamine; one count of transferring a firearm to an out-of-state resident; and one count of transferring a machinegun. Lebberres was arrested in New York this morning and appeared in federal court in the Southern District of New York yesterday. He will appear in federal court in Boston at a later date.
According to the indictment, Lebberes sold more than 50 grams of methamphetamine, a privately manufactured firearm, commonly known as a “ghost gun” and a Glock switch. A Glock switch is a device that converts firearms into automatic weapons. The investigation revealed that Lebberes had allegedly sold numerous Glock switches to other customers in the past.
It is further alleged that, during a search of Lebberes’ residence in Tuckahoe, N.Y. yesterday, a treasure trove of handguns, assault rifles, and ammunition were recovered, several of which appeared to be privately manufactured. A video of Lebberes discharging a handgun out of his car window was also allegedly recovered during the investigation.
The charge of possession with intent to distribute more than 50 grams of actual methamphetamine provides for a sentence of at least ten years and up to life years in prison, at least five years of supervised release and a fine of up to $5,000,000. The charge of transferring a firearm to an out-of-state resident provides for a sentence of up to 15 years in prison, up to three years of supervised release and a fine of up to $250,000. The charge of transferring a machinegun provides for a sentence of up to 15 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case
United States Attorney Rachael S. Rollins; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Office; Darnell Edwards, Acting Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; and James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division made the announcement today. Valuable assistance was provided by the New York State Police. Assistant U.S. Attorney Evan Panich of Rollins’ Narcotics & Money Laundering Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
New York City Man Indicted for Drug and Gun OffensesRead the Press Release
SYRACUSE, NEW YORK – Rasheed Mingues, 43, a resident of New York City staying in the Utica, NY area, was indicted today for possession of controlled substances with the intent to distribute them, possession of a firearm in furtherance of his drug trafficking crimes, and possession of a firearm as a convicted felon. United States Attorney Carla B. Freedman and Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division, made the announcement.
Mingues was previously charged by a federal complaint on December 10, 2022. He has been detained without bail since he made his initial appearance on December 10 before Magistrate Judge Thérèse Wiley Dancks.
The indictment alleges that, on December 9, 2022, Mingues possessed hundreds of grams of fentanyl, methamphetamine, and cocaine with the intent to distribute them. The indictment also alleges that Mingues possessed a loaded 9mm handgun in furtherance of his drug trafficking crimes. Federal law prohibits Mingues from possessing the firearm as a result of a prior felony conviction.
The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
The charges filed against Mingues carry a mandatory minimum prison sentence of 15 years and a maximum sentence of life, a fine of up to $10,000,000, and a term of supervised release of at least 5 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
The United States Drug Enforcement Administration (DEA) and New York State Police are investigating the case with assistance from the Utica Police Department, Syracuse Police Department, Oneida County Sheriff’s Office, and the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Assistant U.S. Attorney Jessica N. Carbone is prosecuting the case.
Nampa Woman Sentenced to 12 Years in Federal Prison for Possession with Intent to Distribute 15 Pounds of FentanylRead the Press Release
BOISE – Wathana Insixiengmay, 34, of Nampa, was sentenced to 144 months in federal prison for possessing, with the intent to distribute, 15 pounds of fentanyl, U.S. Attorney Josh Hurwit announced today.
According to court records, Insixiengmay was a main fentanyl distributor for a large drug trafficking organization with direct ties to Mexico. Insixiengmay received between 12 and 15 pounds of fentanyl (approximately 60,000 pills) on a weekly basis for local distribution. In return she was sending between $50,000 and $100,000 back to the supplier each following week. When she was arrested on June 7, 2022, she had over 30,000 fentanyl pills (approximately seven pounds), nearly eight pounds of fentanyl powder, 180 grams of methamphetamine, and $12,435 in drug proceeds. This remains one of the largest, if not the largest, individual seizure of fentanyl in the District of Idaho’s history.
Senior U.S. District Judge B. Lynn Winmill also ordered Insixiengmay to pay a $500 fine and to serve five years of supervised release following her prison sentence. Insixiengmay pled guilty to the charge on October 24, 2022.
U.S. Attorney Hurwit commended the investigation by the Drug Enforcement Administration Task Force consisting of officers from the United States Marshals Service, United States Probation Office, Nampa Police Department, Boise Police Department, Meridian Police Department, Ada County Sheriff’s Office, Canyon County Sheriff’s Office, and the Idaho Department of Correction.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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Michigan Resident Uses Twitter to Threaten to Kill Jewish Government OfficialsRead the Press Release
DETROIT – A Tipton, Michigan resident was charged in a criminal complaint with using Twitter to threaten to kill Jewish government officials in Michigan, 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.
According to the criminal complaint filed in the case, on February 17, 2023, Jack Eugene Carpenter, III, 41, of Tipton, Michigan, using Twitter while located in Texas, made threats against Jewish government officials in Michigan. One post read, in part: “I’m heading back to Michigan now threatening to carry out the punishment of death to anyone that is jewish in the Michigan govt if they don’t leave, or confess.” Carpenter continued his threats of violence in a second post, which read, in part: “I’ll be coming back to Michigan, still driving with expired plates. You may want to let everyone know, and Wayne County sheriff as well, any attempt to subdue me will be met with deadly force in self-defense.”
The complaint indicated that Carpenter had three 9 mm semi-automatic pistols registered to him, and that he was under investigation by the Michigan State Police for stealing a fourth pistol. According to the complaint, it is also believed that Carpenter also owned a shotgun and two hunting rifles in addition to the pistols.
Carpenter was originally arrested by federal agents in Texas where he appeared in federal court on February 21, 2023. After his hearing in Texas, Carpenter was transported in custody to Detroit, where he made his initial appearance yesterday in federal court. The United States has requested that Carpenter be detained pending trial. He is scheduled for a pretrial detention hearing on Friday, March 3, 2023.
“No one should be threatened or targeted with violence because of their religious beliefs,” said U.S. Attorney Ison. “Anyone who communicates a threat to kill or injure others can expect serious criminal consequences.” “This investigation was greatly aided by concerned citizens who timely came forward to law enforcement and thereby helped us keep our communities safe,” continued U.S. Attorney Ison. “Our community members are the first line of defense in cases like this: so please, if you hear or see something that has you concerned that someone may commit a violent act, please reach out to your local, state, or federal law enforcement agency and help us keep Michigan safe.”
“Threats such as this are intended to create fear, and this case clearly shows targeting someone based on religious beliefs will not be tolerated,” said James A. Tarasca, Special Agent in Charge of the FBI in Michigan. “Crimes motivated by bias will be investigated by the FBI in coordination with the Michigan State Police, and perpetrators held responsible for their actions.”
Based on the charges in the criminal complaint, Carpenter faces up to 5 years in prison if convicted.
A complaint is only a charge and is not evidence of guilt. Trial cannot be held on felony charges in a complaint. When the investigation is completed, a determination will be made whether to seek a felony indictment. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being investigated by special agents of the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Hank Moon.
Michigan City Man Sentenced to 151 Months in PrisonRead the Press Release
SOUTH BEND – Cory Thomas, 49 years old, of Michigan City, Indiana, was sentenced by United States District Court Chief Judge Jon E. DeGuilio after pleading guilty to possession with intent to distribute cocaine, announced United States Attorney Clifford D. Johnson.
Thomas was sentenced to 151 months in prison followed by 3 years of supervised release.
According to documents in the case, in May 2022, Thomas was pulled over on his motorcycle while transporting over 125 grams of cocaine. This is Thomas’s fifth felony conviction related to the distribution of controlled substances.
This case was investigated by the Drug Enforcement Administration with the assistance of the LaPorte County Drug Task Force and the LaPorte County Sheriff’s Office. This case was prosecuted by Assistant United States Attorney Molly E. Donnelly and former Assistant United States Attorney Frank E. Schaffer.
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Mexican Nationals Charged with Offenses Stemming from Smuggling and Labor Trafficking SchemeRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, Robert Fuller, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and Hartford Police Chief Jason Thody today announced that MARIA DEL CARMEN SANCHEZ POTRERO, also known as Maria Carmela Sanchez, 69, and APOLINAR FRANCISCO PAREDES ESPINOZA, also known as “Pancho,” 56, both of citizens of Mexico residing in Hartford, were arrested yesterday on federal criminal complaints charging each with offenses stemming from their smuggling of aliens into the U.S., harboring them at their Hartford residence, forcing them to work, and threatening to harm them in various ways if they failed to pay exorbitant fees, interest and other living expenses.
Sanchez and Paredes appeared yesterday before U.S. Magistrate Judge Robert A. Richardson in Hartford who ordered them detained. A bond hearing for Sanchez is scheduled for March 8.
As alleged in court documents and statements made in court, beginning in September 2022, the FBI and Hartford Police interviewed approximately 10 Mexican nationals who disclosed that they were smuggled from Mexico into the U.S. and transported to Hartford. The victims typically stated that they had arranged with Sanchez and her associates in Mexico to cross the border into the U.S. in exchange for a fee of between $15,000 and $20,000 that each would need to pay once they were in the U.S. In most cases, the victims were required to turn over a property deed as collateral before leaving Mexico. They were then smuggled across the border and transported to Sanchez’s and Paredes’ residence on Madison Street in Hartford.
It is also alleged that after the victims arrived in Hartford, Sanchez informed them that they would have to pay $30,000, with interest, and that they would have to pay her for rent, food, gas and utilities. Sanchez and Parades created false documents for the victims, including Permanent Residence cards and Social Security cards, and helped the victims find employment in the Hartford area. In addition to their own jobs, some victims were required to perform work around the house, or to assist Paredes in his job responsibilities without compensation and without having their debt reduced.
It is further alleged that Sanchez rarely provided victims with an accounting of their debt. If victims failed to make regular payments, or in amounts that she expected, Sanchez and Paredes would threaten the victims, including threatening to harm family members in Mexico, to take property in Mexico that had been secured as collateral, to reveal victims’ immigration status to U.S. authorities, and to raise their interest payments. In one instance, Sanchez threatened to call police to say that a victim had tried to rape her.
Sanchez and Paredes are charged with conspiracy to smuggle, transport, harbor, and encourage or induce aliens to enter and reside in the U.S., an offense that carries a maximum term of imprisonment of 10 years; conspiracy to commit labor trafficking, an offense that carries a maximum term of imprisonment of 20 years; and extortion, an offense that carries a maximum term of imprisonment of 20 years.
U.S. Attorney Avery stressed that a criminal complaint is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the Federal Bureau of Investigation, Hartford Police Department, U.S. Department of Labor – Office of Inspector General, U.S. Department of Labor, U.S. Customs and Border Protection, U.S. Citizenship and Immigration Services, and U.S. Immigration and Customs Enforcement. The case is being prosecuted by Assistant U.S. Attorneys Angel Krull and Shan Patel.
Mexican National Sentenced for Illegally Entering the U.S. Three TimesRead the Press Release
KANSAS CITY, Mo. – A Mexican national who was arrested for driving while intoxicated has been sentenced in federal court for illegally entering the United States for the third time.
Juan Antonio Tejeda-Quiroz, 42, residing in Grandview, Mo., was sentenced by U.S. District Judge Greg Kays on Wednesday, March 1, to three years and six months in federal prison without parole.
On Sept. 22, 2022, Tejeda-Quiroz pleaded guilty to one count of illegally reentering the United States after having been deported following a conviction for a crime of violence.
On April 30, 2022, around 2:30 a.m., a white Buick Century driven by Tejeda-Quiroz reversed out of a driveway and crashed into a marked Grandview police patrol vehicle parked on the 13000 block of 15th Street in Grandview. Tejeda-Quiroz was arrested for driving while intoxicated.
Tejeda-Quiroz, a citizen and national of Mexico, illegally entered the United States in February 1994. On Sept. 6, 2001, Tejeda-Quiroz was convicted of two counts of aggravated assault with a deadly weapon and one count of arson. He threw a firebomb inside a car occupied by his wife, causing her to jump from the moving car that caught fire and exploded, and then used his car to threaten her. He was sentenced to five years of probation and received a deferred sentence. On Dec. 4, 2001, Tejeda-Quiroz was deported to Mexico.
Tejeda-Quiroz illegally entered the United States a second time. He was arrested for burglary of a vehicle on Dec. 8, 2002. On March 17, 2006, he was arrested for illegally reentering the United States, which violated the terms of his probation. His probation was revoked on June 16, 2006, and he was sentenced to six years and six months in prison. On July 13, 2012, Tejeda-Quiroz was again deported to Mexico.
Tejeda-Quiroz illegally reentered the United States a third time in 2018. On May 25, 2018, he was arrested in Lawrence, Kansas for driving under the influence. He was arrested in Liberty, Mo., in July 2021 for driving without a valid license and no insurance. He was arrested in Olathe, Kan., in March 2022 for driving without a license.
Tejeda-Quiroz used alias names, according to court documents, presumably to avoid detection. Tejeda-Quiroz has used controlled substances, including cocaine, and heroin, snorting around one-half gram of heroin a day up until his arrest, according to court documents.
This case was prosecuted by Assistant U.S. Attorney Rudolph R. Rhodes IV. It was investigated by the Grandview, Mo., Police Department and U.S. Immigration and Customs Enforcement.
McComb Woman Found Guilty of Conspiracy and False Statements in Connection with Federal Unemployment FraudRead the Press Release
Jackson, Miss. – A federal jury convicted a McComb woman for one count of conspiring to commit wire fraud, one count of conspiring to commit theft of public money, one count of theft of public money, and one count of making a false statement to a federal agent.
U.S. Attorney Darren J. LaMarca of the Southern District of Mississippi and Mathew Broadhurst, Special Agent in Charge for the Southeast Region of the U.S. Department of Labor Office of Inspector General made the announcement.
According to court documents and evidence presented at trial, Laketia Andrews Crossley, 51, conspired with Sedrick Pittman, Marcus Parker, Austin Bahm, and Calveshar Isaac to receive federal unemployment insurance benefits. During the early months of the COVID-19 pandemic, Pittman, Parker, Bahm, and Isaac were inmates housed at the South Mississippi Correctional Institution in Mississippi Department of Corrections custody. The inmates fraudulently applied for federal unemployment insurance benefits by stating on their applications that they were able and available to immediately accept employment.
Due to the overwhelming number of applications for unemployment insurance, these fraudulent applications were not immediately detected, and benefits were approved for the group of prison inmates. The unemployment insurance benefits were sent by mail on debit cards to Crossley. Crossley then converted the funds on the debit cards to funds that she transmitted to Pittman, with whom she had a long-term romantic relationship, via cell phone. When questioned about her actions by special agents of the Department of Labor, Office of Inspector General (DOL-OIG), Crossley made false statements. It is contrary to federal law to fraudulently apply for or receive federal unemployment insurance benefits. It is also contrary to federal law to make false statements to a federal agent.
While Pittman, Parker, Bahm, and Isaac all pled guilty to various charges, Crossley asserted her right to a jury trial. After a three-day trial at the federal courthouse in Natchez, a jury found Crossley guilty of all charges.
Crossley is scheduled to be sentenced by Senior United States District Judge David Bramlette III on June 1, 2023, at the federal courthouse in Natchez.
The Department of Labor Office of Inspector General investigated the case.
Assistant U.S. Attorneys Kimberly T. Purdie and Charles W. Kirkham are prosecuting the case.
Maryland Man Sentenced to Five Months Incarceration for Simple Assault ChargesRead the Press Release
WASHINGTON – Robert Anderson, 55, of Hanover, Maryland, was sentenced today to five months of incarceration for a series of simple assaults on Metropolitan Police Department employees and officers that involved offensive touching and brandishing a knife. At the time of these assaults, Anderson was a sworn officer with the Metropolitan Police Department. The announcement was made by U.S. Attorney Matthew M. Graves and Chief Robert J. Contee, III.
On February 1, 2023, a jury found Anderson guilty of four counts of assault. The verdict followed a three-day trial in the Superior Court of the District of Columbia, before the Honorable Heidi Pasichow who sentenced him to 480 days in jail suspended after 150 days with the condition that Anderson successfully complete 18 months of probation.
According to the government’s evidence, on January 14, 2019, at approximately 9:00 p.m., an officer victim was working at the Fifth District Police Station when Anderson, who was on duty, came up beside her and beckoned to her to stand up. When she did not stand up, Anderson leaned down and kissed her ear and neck without consent. In response to this conduct, the Metropolitan Police Department reassigned then-Officer Anderson to the Fourth District Police Station. Only several weeks later, in early February 2019, Anderson approached another female officer from behind, wrapped his arms around her, touched her breast, and kissed her ear and face without consent. And on February 5, 2019, Anderson approached two female employees and began to touch them on their heads without their consent. When a civilian employee intervened to stop Anderson from touching the women, Anderson brandished a knife at him.
In announcing the sentence, U.S. Attorney Graves commended the work of those who investigated the case from the Metropolitan Police Department. He also expressed appreciation for the work of those who handled the case at the U.S. Attorney’s Office, including Lead Paralegal Specialist Wanda Trice and other support personnel.
Finally, he commended the efforts of Assistant U.S. Attorney Jacqueline Yarbro and Assistant U.S. Attorney Bonnie Lindemann, who prosecuted the case, and Assistant U.S. Attorneys Felice Roggen and Tamara Rubb, who investigated the case.
Man Convicted, Fined for Operating a Guide Company on BLM Land Without a PermitRead the Press Release
ANCHORAGE – A federal magistrate judge in Alaska sentenced a Fairbanks man to pay a fine for unlawfully selling and operating a tour on federal land without a permit. The land is owned by the Bureau of Land Management (BLM).
According to court documents and statements in court, Jun Liang, 40, is the sole owner of AK Aurora Travel Inc. Through that company, Liang sold and operated tours of various places in Alaska, including Castner Glacier Trail, located at milepost 217.3 on the Richardson Highway. In December 2022, Liang sold a tour to tourists without a Permit, despite having been told that he needed a permit to do so lawfully. Liang lacked the required Permit.
The law requires tour operators to have a Special Use Permit to sell or operate tours on BLM land. Castner Glacier trail has complex environmental and topographical challenges. Extreme winds, fast changing water levels, active glaciers, and rockfalls all present hazards.
Federal Magistrate Judge Scott Oravec commented that it was important to understand that it is unlawful to operate tours on BLM land without a permit. The Court warned Liang that there could be more serious penalties if he unlawfully operates more tours.
“Unlawful tours pose a threat to unwitting tourists and natural resources,” said BLM Law Enforcement Ranger Joseph Crane. “Today’s sentencing demonstrates that BLM and its partner agencies are committed to protecting federal land and pursuing those whose illegal acts threaten our natural resources and endanger visitors.”
The sentencing occurred on March 1, 2023. U.S. Attorney S. Lane Tucker of the District of Alaska made the announcement.
The Bureau of Land Management investigated the case.
Assistant U.S. Attorney Jonas M. Walker prosecuted the case.
For more information about Castner Glacier, see: https://www.blm.gov/visit/castner-glacier-trail
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Man Admits Methamphetamine Sales, Gun ChargeRead the Press Release
ST. LOUIS – A man arrested at a St. Charles County motel with an assault rifle and a ballistic vest labeled “Police” pleaded guilty to drug and gun charges Thursday.
Brett A. Stone, 42, pleaded guilty in front of U.S. District Judge Rodney W. Sippel to two counts of possession with the intent to distribute methamphetamine and one count of possession of a firearm in furtherance of a drug trafficking crime.
On July 7, 2020 members of the St. Charles County Regional Drug Task Force learned that Stone was selling drugs at a St. Charles County motel and had a gun. Investigators conducted surveillance and saw Stone walking around the outside of the hotel, carrying an assault-type weapon and wearing a ballistic vest with the words “Police” on the back, Stone’s plea agreement says.
The investigators then detained someone who left Stone’s hotel room and found about 12 grams of methamphetamine, drug paraphernalia and a firearm.
Stone was taken into custody outside his hotel room, and a woman who told authorities she was there to buy methamphetamine was arrested inside the room. A court-authorized search of that room found a stolen AR-15 rifle, a shotgun, a muzzle loader pistol, the ballistic vest, ammunition, a money counter, methamphetamine and drug paraphernalia. Stone was released while charges were being sought.
On Oct. 13, 2020 a confidential informant bought $300 worth of methamphetamine from Stone.
Stone is scheduled to be sentenced June 1. The methamphetamine charges each carry a potential penalty of up to 20 years in prison, a $1 million fine or both. The gun charge carries a penalty of at least five years in prison.
The St. Charles County Regional Drug Task Force and the Drug Enforcement Administration investigated the case. Assistant U.S. Attorney Paul D’Agrosa is prosecuting the case.
Leader of Multi-Kilo Meth Distribution Ring Pleads Guilty, 16 Co-Defendants Admit Guilt Resulting from OCDETF InvestigationRead the Press Release
MACON, Ga. – Multiple defendants connected to a methamphetamine trafficking ring centered in Milledgeville, Georgia, that was responsible for distributing a total of five kilograms of methamphetamine pleaded guilty to their crimes recently resulting from an Organized Crime Drug Enforcement Task Force (OCDETF) operation.
Jarvis Havior aka “J Bo,” 31, of Milledgeville, pleaded guilty to possession of methamphetamine with intent to distribute on Feb. 16 before U.S. District Judge Marc Treadwell. Havior faces a minimum of ten years in prison to a maximum of life imprisonment to be followed by at least five years of supervised release and a $10,000,000 fine. Sentencing is scheduled for May 3.
“Through the Organized Crime and Drug Enforcement Task Force, law enforcement agents coordinated a successful take-down of a drug trafficking network pushing high volumes of methamphetamine into the Milledgeville area,” said U.S. Attorney Peter D. Leary. “Local, state and federal law enforcement are helping us hold those distributing large quantities of the most deadly and addictive illegal drugs accountable at the federal level.”
“Those who distribute methamphetamine pose a grave danger to the community. These traffickers can no longer deliver dangerous drugs on the streets and must now face the consequences of their actions,” said Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Division.
“The dangers associated with meth remain one of the most significant drug threats facing our community,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “With the help of our federal, state and local partners, this is a significant amount of poison that will not make it into our communities, driving crime and violence.”
“Illegal drugs are dangerous and threaten the safety of Georgia communities. The GBI is committed to getting these drugs off the streets by bringing to justice all those that take part in the illegal drug trade, from the supplier down to the dealer,” said GBI Director Mike Register.
According to court documents, agents with DEA, GBI and the Ocmulgee Drug Task Force (OCDETF) received credible information in June 2020 from multiple confidential sources that Havior was leading a multi-kilogram methamphetamine distribution ring operating in the Milledgeville community. A subsequent investigation determined the location of distribution “trap” houses and “stash” houses for bulk narcotics and cash that Havior and his criminal associates maintained.
On April 5, 2021, agents determined that Havior was going to replenish his methamphetamine supply at a location in Stone Mountain, Georgia, where he had previously traveled to for suspected drug re-supply runs. Agents observed Havior meet a man at a Publix parking lot in Stone Mountain and receive a fully laden green Publix bag. Havior traveled to a restaurant in Covington, Georgia, and gave the bag to co-defendant Anrico Taylor. Both defendants departed the restaurant in their respective vehicles and traffic stops were conducted on them in Baldwin County, Georgia. Taylor attempted to flee with the Publix bag, ripping apart several smaller bags of methamphetamine as he ran from officers, amounting to approximately one kilogram of methamphetamine spread on the ground. In total, four kilograms of methamphetamine was found inside the green Publix bag. In all, the drug trafficking ring is responsible for distributing at least five kilograms of methamphetamine.
The following co-defendants entered guilty pleas and will be sentenced at a later date:
- Dawn Carey, 47, of Milledgeville, pleaded guilty to one count of conspiracy to distribute controlled substances and faces a maximum of life in prison;
- Nicholas Cuevas-Flores, 37, of Lawrenceville, Georgia, pleaded guilty to one count of conspiracy to distribute controlled substances and faces a maximum of life in prison;
- Bruce Harrison, 39, of Milledgeville, pleaded guilty to one count possession of methamphetamine with intent to distribute and faces a maximum of life in prison;
- Paul Collins, 59, of Milledgeville, pleaded guilty to one count of conspiracy to distribute controlled substances and faces a maximum of 20 years in prison;
- Arturo Marshall aka Turo, 41, of Milledgeville, pleaded guilty to one count of conspiracy to distribute controlled substances and faces a maximum of 20 years in prison;
- Annie Collins, 21, of Milledgeville, pleaded guilty to one count of possession of methamphetamine with intent to distribute and faces a maximum of 20 years in prison;
- Tyrone Hitchcock aka T Y, 48, of Milledgeville, pleaded guilty to one count of possession of methamphetamine with intent to distribute and faces a maximum of 20 years in prison;
- Alicia Nugent, 38, of Milledgeville, pleaded guilty to one count of possession of methamphetamine with intent to distribute and faces a maximum of 20 years in prison;
- Anrico Taylor aka Rico, 34, of Milledgeville, pleaded guilty to one count of possession of methamphetamine with intent to distribute and faces a maximum of 20 years in prison;
- Amber Vanclief, 32, of Milledgeville, pleaded guilty to one count of possession of methamphetamine with intent to distribute and faces a maximum of 20 years in prison;
- Matthew Cameron, 47, of Milledgeville, pleaded guilty to possession of methamphetamine with intent to distribute and faces a maximum of ten years in prison;
- Paris Binion, 30, of Milledgeville, pleaded guilty to one count of the unlawful use of a communications facility and faces a maximum of four years in prison;
- Lamont Jackson, 48, of Milledgeville, pleaded guilty to one count of the unlawful use of a communications facility and faces a maximum of four years in prison;
- Perry Miller, 27, of Milledgeville, pleaded guilty to the unlawful use of a communications facility and faces a maximum of four years in prison;
- Macarthur Reeves aka Mac, 67, of Milledgeville, pleaded guilty to the unlawful use of a communications facility and faces a maximum of four years in prison; and
- Ryan Rickard, 49, of Milledgeville, pleaded guilty to one count of the unlawful use of a communications facility and faces a maximum of four years in prison.
The following co-defendants remain at large and are charged with the following crimes:
- Dwight Turner aka “Wight,” 57, of Milledgeville, is charged with one count conspiracy to distribute controlled substances and two counts distribution of methamphetamine and faces a maximum of life in prison;
- Paul Bentley aka “Old School,” 56, of Milledgeville, is charged with one count conspiracy to distribute controlled substances and faces a maximum of life in prison; and
- Noe Canela, 34, of Lilburn, Georgia, is charged with one count conspiracy to distribute controlled substances and faces a maximum of life in prison.
An indictment is merely an accusation of a crime; any and all defendants remain innocent unless proven guilty by a court of law.
Individuals with information regarding the whereabouts of Turner, Canela and Bentley can contact the FBI’s Atlanta Field Office at (770) 216-3000 or submit a tip online at tips.fbi.gov.
This effort is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case is being investigated by DEA, FBI, GBI, Ocmulgee Drug Task Force, Baldwin County Sherriff’s Office, Laurens County Sheriff’s Office, Washington County Sheriff’s Office, Georgia Department of Corrections, Milledgeville Community Supervision Office, Wilkinson County Sheriff’s Office, Jones County Sheriff’s Office, Atlanta-Carolina’s HIDTA Office and Gwinnett Metro Task Force.
Assistant U.S. Attorney Alex Kalim is prosecuting the case.
Lame Deer man admits sexually abusing boy on Northern Cheyenne Indian ReservationRead the Press Release
BILLINGS — A Lame Deer man today admitted to allegations that he sexually abused a minor boy over several years on the Northern Cheyenne Indian Reservation, U.S. Attorney Jesse Laslovich said.
Loy Matthew Bryant, 51, pleaded guilty to sexual abuse of a minor. Bryant faces a maximum of 15 years in prison, a $250,000 fine and not less than five years to a lifetime of supervised release.
U.S. Magistrate Judge Timothy J. Cavan presided. A sentencing date will be set before U.S. District Judge Susan P. Watters. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Bryant was detained pending further proceedings.
In court documents, the government alleged that Bryant engaged in sexual relations with the victim, identified as John Doe, who was between the ages 12 years and 16 years, for several years. In September 2022, John Doe, age 17, disclosed that Bryant started sexually abusing him when he was in about the sixth grade. When interviewed by law enforcement, Bryant admitted to having sexual relations with the victim.
The U.S. Attorney’s Office is prosecuting the case, which was investigated by the FBI.
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Korean National Pleads Guilty to “Bust Out” Bank Fraud Scheme in Sacramento Area and ElsewhereRead the Press Release
SACRAMENTO, Calif. — Hee Soung Oh, 47, a Korean national residing in Southern California, pleaded guilty today to bank fraud and bank fraud conspiracy, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between January 2017 and September 2017, Oh participated in a nationwide check kiting “bust out” scheme in order to obtain cash from banks. The scheme’s participants obtained a real Republic of Korea passport that was altered to bear a new photograph and name, which they used to open bank accounts with a small amount of cash. The accounts were dormant until a time the participants believed the bank would allow the account holder to deposit a check and make withdrawals before the check actually cleared. At that time, the participants wrote checks from a different bank account with non-sufficient funds, deposited those checks into the dormant account, and then withdrew cash from the dormant account before the checks cleared. The participants would access funds by purchasing a money order and then deposit the money order into yet another bank account associated with the scheme.
Oh is associated with opening source accounts or draining victim accounts. These bust-outs resulted in an actual loss of $273,800 to the banks, and a total intended loss of $466,318 based on additional, unsuccessful bust-out attempts.
This case is the product of an investigation by the IRS Criminal Investigation and the Federal Bureau of Investigation. Assistant U.S. Attorney Audrey B. Hemesath is prosecuting the case.
Oh is scheduled to be sentenced on May 18, 2023, by U.S. District Judge Troy L. Nunley. Oh faces a maximum statutory penalty of 30 years. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Korean nationals Jong Eun Lee, 48, and Kyung Min Kong, 55, were sentenced respectively to 22 months and seven years and nine months in prison. Charges are pending against Ki Jang and Bon Soke Hong, who were indicted on Oct. 21, 2021. The charges against them are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Justice Department and European Commission Announces Resumption of U.S. and EU Negotiations on Electronic Evidence in Criminal InvestigationsRead the Press Release
The U.S. Department of Justice and the European Commission today announced the resumption of negotiations on an EU-U.S. agreement to facilitate access to electronic evidence in criminal investigations. Officials from the U.S. Department of Justice, U.S. Department of State, and European Commission plan to meet in Stockholm, Sweden, on March 15 and 16 prior to the EU-U.S. Justice and Home Affairs Senior Officials Meeting taking place in Stockholm on March 16 and 17. Negotiation started in September 2019 but was paused while the European Union finalized the EU e-Evidence legislation.
Justice Department Secures Settlement in Sexual Harassment Lawsuit Against Michigan LandlordRead the Press Release
The Justice Department announced today that it has secured an agreement to resolve a lawsuit alleging that landlord Darrell Jones of Muskegon, Michigan, violated the Fair Housing Act by sexually harassing female tenants. The settlement also resolves claims against Fatima Jones and Jones Investing, LLC, which, along with Jones, owned the properties where the alleged harassment occurred.
“The Fair Housing Act protects the rights of tenants to live in peace and security without the fear that their housing provider will sexually harass them,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department is committed to holding housing providers accountable for their unlawful behavior and seeking relief for survivors.”
“The sexual harassment of tenants is an intolerable abuse of power that violates federal civil rights laws,” said U.S. Attorney Mark A. Totten for the Western District of Michigan. “No one should have to endure harassment and discrimination, especially in their own homes. My office is committed to protecting the rights of vulnerable tenants and will continue to vigorously enforce the Fair Housing Act to combat discrimination and secure justice for victims.”
Under the agreement, which still must be approved by the U.S. District Court for the Western District of Michigan, defendants are required to pay $155,000 to compensate individuals harmed by the harassment and pay a $10,000 civil penalty to the United States. The consent order also requires the defendants to:
- Retain an independent property manager to manage their rental properties for the duration of the order;
- Obtain fair housing training; and
- Implement non-discrimination policies and complaint procedures to prevent sexual harassment at their properties in the future.
The lawsuit, filed in June 2020, alleged that since at least 2008, Jones subjected female tenants to harassment that included making repeated and unwelcome sexual comments, touching tenants’ bodies without their consent, demanding sexual activity in exchange for rent and housing-related benefits and taking adverse actions against tenants who resisted his sexual advances or complained about the harassment.
This case was referred to the Justice Department by the Fair Housing Center of West Michigan and was litigated by attorneys in the department’s Civil Rights Division and the U.S. Attorney’s Office for the Western District of Michigan.
The Justice Department’s Sexual Harassment in Housing Initiative is led by the Civil Rights Division, in coordination with U.S. Attorney’s Offices across the country. The goal of the department’s initiative is to address and raise awareness about sexual harassment by landlords, property managers, maintenance workers, loan officers, or other people who have control over housing. Since launching the initiative in October 2017, the department has filed 28 lawsuits alleging sexual harassment in housing and recovered more than $9.8 million for victims of such harassment.
The Justice Department’s Civil Rights Division enforces the Fair Housing Act, which prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt. Individuals may report sexual harassment or other forms of housing discrimination by calling the Justice Department’s Housing Discrimination Tip Line at 1-833-591-0291, or submitting a report online. Individuals may also report such discrimination by contacting HUD at 1-800-669-9777 or by filing a complaint online
Justice Department Files Statements of Interest in Servicemembers’ Lawsuits Asserting Their Rights Against Major Banks in Federal CourtRead the Press Release
The Justice Department announced today that it filed statements of interest in Espin et al. v. Citibank, N.A. and Padao v. American Express National Bank, two lawsuits currently pending in the U.S. District Court for the Eastern District of North Carolina, to address the right of the nation’s servicemembers to bring and participate in class action litigation under the Servicemembers Civil Relief Act (SCRA) instead of being forced into privatized arbitration proceedings on their own.
The SCRA provides special legal protections to servicemembers to enable them to focus on their jobs defending the nation. For example, it allows servicemembers to reduce the interest rates on certain loans to 6% while on active duty. In Espin and Padao, the plaintiffs allege that Citibank and American Express, respectively, violated the SCRA by imposing interest rates in excess of 6% on qualified servicemembers.
The plaintiffs are seeking to bring class actions against the banks on behalf of themselves and other servicemembers who may have been affected. In response, Citibank and American Express are seeking to have the cases dismissed and to require every servicemember to bring their own individual claim in private arbitration. The department’s statements of interest urge the court to deny the defendants’ motions and to allow the plaintiffs’ SCRA class claims to proceed.
“The Justice Department is committed to robust enforcement of the Servicemembers Civil Relief Act, both through actions brought by the Attorney General and through servicemembers seeking to vindicate their own rights and the rights of others in federal court,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division.
“Our troops put their lives on the line to secure our freedom, and they should be able to effectively vindicate their rights,” said U.S. Attorney Michael Easley for the Eastern District of North Carolina. “Our troops fight for our freedom abroad, and we will zealously fight for their rights here at home. Limiting the rights of members of our military is unacceptable, especially in North Carolina, one of the most military-friendly states in the nation. We stand with our troops and insist that they be treated with the respect they deserve.”
The department’s statements of interest address specific language in the SCRA that permits plaintiffs in a civil action to be a representative party on behalf of members of a class or be a member of a class despite any previous agreement to the contrary. As explained in the statements of interest, this provision allows servicemembers to participate in class actions in federal court alleging SCRA violations even where, as in Espin and Padao, defendants seek to enforce an agreement requiring individual arbitration. The motions to compel arbitration in both cases are currently pending before the court.
Since 2011, the department has obtained over $481 million in monetary relief for over 123,000 servicemembers through its enforcement of the SCRA. For more information about the department’s enforcement efforts under the SCRA and other laws that protect the rights of servicemembers, please visit www.servicemembers.gov.
Servicemembers and their dependents who believe that their rights under the SCRA have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations may be found at http://legalassistance.law.af.mil.
Houston Area Man Sentenced for Selling, Mailing Counterfeit Native American GoodsRead the Press Release
SAN ANTONIO – A Kingwood man was sentenced in federal court in San Antonio Tuesday to five years of probation for mail fraud and misrepresentation of Indian Goods under the Indian Arts and Crafts Act.
According to court documents, Kevin Charles Kowalis, 60, fraudulently marketed and sold jewelry online that he described as “Native American Indian Handmade,” “genuine Indian handcrafted,” “Zuni,” and “Navajo.” He had received the counterfeit jewelry from a manufacturer in the Philippines unaffiliated with any federally recognized Native American tribe. Kowalis fulfilled an order of the jewelry to a San Antonio-based customer, mailing several packages through the U.S. Postal Service. In addition to the five-year probation sentence, Kowalis was ordered to forfeit his inventory and pay restitution to a victimized artist.
“Fraud can come in many forms but always carries the intent to deceive a victim,” said U.S. Attorney Jaime Esparza of the Western District of Texas. “Offenders like this defendant victimize both our cherished Native American community and consumers who believe they’re collecting authentic pieces of Native American culture. We will not stand idle while someone takes advantage of our citizens and our federal resources.”
“This sentencing is important in the fight to end this type of fraud. Our dedicated team of special agents works on behalf of the Department of the Interior and the Indian Arts and Crafts Board to protect American Indian and Alaska Native artists and the consumers who purchase authentic Native American art and craftwork,” said Assistant Director Edward J. Grace of the U.S Fish and Wildlife Service’s (USFWS) Office of Law Enforcement. "We thank our partners at the U.S. Department of Justice for their assistance with this investigation."
“For those selling counterfeit Indian art and craftwork it is important to know that wherever you are we will diligently work to find and prosecute you under the Indian Arts and Crafts Act,” said Director Meridith Stanton of the U.S. Department of the Interior’s Indian Arts and Crafts Board. “This case provides a vivid demonstration of that commitment.”
The USFWS Office of Law Enforcement investigated the case with the assistance of the U.S. Department of the Interior’s Indian Arts and Crafts Board.
Assistant U.S. Attorney William Calve prosecuted the case.
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Guatemalan Man Sentenced to over Four Years in Prison for Fentanyl TraffickingRead the Press Release
SACRAMENTO, Calif. — Jairo Leonidas Raymundo-Cua, 33, of Guatemala, was sentenced today to four years and three months in prison for conspiring to distribute fentanyl, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on multiple occasions in February 2022, Raymundo-Cua distributed powder fentanyl and counterfeit oxycodone M-30 pills containing fentanyl to an undercover officer on behalf of the leader of the conspiracy, Carlos Calel. When law enforcement officers executed a search warrant at Raymundo-Cua’s Sacramento residence in March 2022, they found over 20,000 M-30 pills containing fentanyl and over a kilogram of fentanyl-laced heroin in Raymundo-Cua’s backpack, along with a fraudulent green card in Raymundo-Cua’s name.
This case was the product of an investigation by Homeland Security Investigations, the Drug Enforcement Administration, and the Tri-County Drug Enforcement Team. Assistant U.S. Attorney David W. Spencer prosecuted the case.
Carlos Calel pleaded guilty to conspiracy to distribute fentanyl on Oct. 27, 2022. Calel is scheduled to be sentenced on May 11, 2023, by U.S. District Judge Troy L. Nunley. Calel faces a maximum statutory penalty of 40 years in prison and a $5 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Fort Wayne Man Sentenced to 90 Months in PrisonRead the Press Release
FORT WAYNE – Airon L. Mitchell, age 24, of Fort Wayne, was sentenced before United States District Court Judge Holly A. Brady after pleading guilty to possession with intent to distribute a controlled substance and possession of a firearm in furtherance of a drug trafficking crime, announced United States Attorney Clifford D. Johnson.
Mitchell was sentenced to 90 months in prison followed by 3 years of supervised release.
According to documents in this case, in August 2021, Fort Wayne Police Officers were looking for Mitchell who had an outstanding warrant for his arrest. Officers observed Mitchell get into a vehicle while holding a bag which he dropped in the center console. The bag contained 195 blue fentanyl pills. A search warrant for his residence resulted in the recovery of 193.8 grams of marijuana, a digital scale, a loaded 9mm handgun as well as a loaded 50 round drum magazine. Mitchell is a convicted felon and prohibited from possessing the firearm or ammunition.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Fort Wayne Police Department and the Indiana State Police Laboratory Division. This case was prosecuted by Assistant United States Attorney Stacey R. Speith.
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 Schenectady-Area Teacher Sentenced to 19 Years in Prison for Sexually Exploiting a MinorRead the Press Release
ALBANY, NEW YORK – Kristin Blair Hiltunen, age 37, of Amsterdam, New York, was sentenced today to 228 months in prison for sexually exploiting a minor. United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.
As part of her guilty plea, Hiltunen admitted that between April 2021 and August 2021, she engaged in a sexual relationship with a minor victim who was under 16 years of age. During this period of time, Hiltunen exchanged thousands of messages with the victim over a social media application through which she persuaded, induced, and enticed the victim to take sexually explicit images of themselves and send the images to Hiltunen. Hiltunen further engaged in livestreamed video chats with the victim during which they engaged in sexual acts.
United States District Judge Glenn T. Suddaby also imposed a 20-year term of supervised release to begin after Hiltunen is released from prison. Hiltunen will be required to register as a sex offender as a result of this conviction.
This case was investigated by the FBI and its Child Exploitation Task Force, which includes members of the Rotterdam Police Department, as well as the New York State Police. This case was prosecuted by Assistant United States Attorney Rachel L. Williams as part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Former Rensselaer County Correctional Officer Sentenced for Sexual Abuse of InmateRead the Press Release
ALBANY, NEW YORK – Sean Morrissey, age 51, of Waterford, New York, a former Rensselaer County Correctional Officer, was sentenced today for sexually abusing an inmate in his custody at the Rensselaer County Correctional Facility (“RCCF”). United States District Judge Glenn T. Suddaby ordered Morrissey to serve 3 years of probation, to include 6 weekends in jail, and to pay a $2,000 fine.
United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.
Morrissey previously pled guilty to a one-count indictment charging abusive sexual contact of a ward. Morrissey admitted that during a two-week period between September 7, 2018 and September 21, 2018, while he was a correctional officer at RCCF, he knowingly rubbed the genitalia of a female federal inmate, while he was the sole corrections officer in charge of her all-female housing unit.
The FBI and the Rensselaer County Sheriff’s Office investigated this case. Assistant U.S. Attorney Benjamin S. Clark prosecuted this case.
Former Raleigh County Housing Director Pleads Guilty to Federal Fraud CrimeRead the Press Release
BECKLEY, W.Va. Laquenta Lowe, 45, of Beckley, pleaded guilty today to conversion of public money exceeding $1,000. Lowe admitted to stealing at least $7,978.91 in federal funds while employed by the Raleigh County Housing Authority (RCHA).
According to court documents and statements made in court, Lowe was chief financial officer and accountant for the RCHA from July 1, 2018 through May 31, 2019. Lowe was executive director of the RCHA from June 1, 2019, through April 30, 2021. During this time, RCHA administered programs that used federal funds including the Section 8 income-based rent subsidy program. RCHA kept the federal funds it received from the United States Department and Urban Development (HUD) in RCHA’s primary operating account at a West Virginia bank.
Lowe used her positions at RCHA to steal at least $7,978.91 in federal funds that HUD had disbursed to RCHA and knowingly converted the funds to her personal use and without authorization. Lowe admitted to receiving at least $6,728.82 of that amount in overtime compensation that she should not have received. Lowe further admitted to receiving at least $660.68 in travel-related expenses reimbursements that she should not have received for RCHA-related travel. Lowe also admitted to using a RCHA credit card issued to her to purchase a $199.99 smart watch for her personal use and without authorization.
Lowe is scheduled to be sentenced on June 23, 2023, and faces a maximum penalty of 10 years in prison, three years of supervised release, and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the United States Department of Housing and Urban Development-Office of Inspector General (HUD-OIG), the Federal Bureau of Investigation (FBI), and the West Virginia State Auditor’s Office (WVSAO) Public Integrity and Fraud Unit (PIFU).
United States District Judge Frank W. Volk presided over the hearing. Assistant United States Attorneys Ryan Blackwell and Kristin Scott are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:23-cr-7.
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Former New Yorker Sentenced to Three Years in Prison for Defrauding Purchasers of Cryptocurrency-Mining Computers and Miner-Hosting ServicesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that CHET STOJANOVICH, a/k/a “Chester J. Stojanovich,” was sentenced today to three years in prison. STOJANOVICH was sentenced for defrauding more than a dozen victims of more than $2 million through fraudulent misrepresentations that he would provide his customers with specialized cryptocurrency-mining computers (“Miners”) and Miner-hosting services that would provide the victims with a lucrative stream of “hash power” convertible into cryptocurrency. Instead, STOJANOVICH misappropriated his victims’ money and failed to provide them with the Miners and Miner-hosting services they had purchased from him. Stojanovich previously pled guilty on November 29, 2022, to one count of wire fraud and was sentenced today before United States District Judge Denise Cote.
U.S. Attorney Damian Williams said: “Chet Stojanovich took advantage of a flashy new trend in the financial sector to swindle his victims into sending him more than $2 million dollars in exchange for cryptocurrency-related technology and equipment that these victims never received. This case serves as another reminder that even new financial frontiers are fraught with old-fashioned fraud, but our career prosecutors and law enforcement partners are ever as prepared to root out these schemes.”
According to the Indictment, statements made in court, and other publicly filed documents in this case:
From at least 2019, until his arrest in April 2022, STOJANOVICH controlled various companies, including Chet Mining Co. LLC (“Chet Mining”). Starting in approximately March 2019, STOJANOVICH engaged in a scheme to defraud people who were seeking to purchase Miners and Miner-hosting services through which they expected to obtain “hash power” convertible into cryptocurrency and money. STOJANOVICH defrauded these victims by falsely telling them that: he would purchase, and had purchased, Miners on their behalf; and he would provide them with Miner-hosting services and had already obtained such Miner-hosting services for them.
In total, STOJANOVICH fraudulently induced more than a dozen customer-victims to pay a total of more than $2 million to STOJANOVICH and his companies, ostensibly in return for Miners and Miner-hosting services. Despite fraudulent representations to the contrary, STOJANOVICH: (i) failed to provide many of the Miners that he told customers he had acquired; (ii) failed to provide the Miner-hosting services and cryptocurrency hash power that he represented he would provide; (iii) employed deceptive practices to create the illusion that such Miners had been acquired and were being used to provide hash power to those customers; and (iv) misappropriated his customers’ funds and spent the funds on unrelated and personal expenditures, including chartered air flights, hotel rooms, limousines, and private parties.
Eventually, at least six of STOJANOVICH’s victims sought to hold him accountable for his fraud by suing him in a civil case, Holmes et al. v. Chet Mining, Chet Stojanovich, et ano., Case No. 20 Civ. 4448 (LJL) (S.D.N.Y.). STOJANOVICH sought to obstruct their efforts by lying under oath at a deposition, and lying to the presiding district judge, about the existence and location of electronic evidence in the case.
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In addition to his prison sentence, STOJANOVICH, 38, previously of New York, New York, but residing in California since his release on bail in this case, was sentenced today to three years of supervised release, forfeiture of $2,158,927, and restitution to his victims in the amount of $2,108,927.
Mr. Williams praised the outstanding work of the Federal Bureau of Investigation in the investigation of this case
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney David Raymond Lewis is in charge of the prosecution.
Former Louisiana Resident Charged with Cares Act FraudRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that BRANDI WEBER, age 28, formerly of New Orleans, LA and now residing in California, was charged on March 1. 2023 in a one-count bill of information with making false statements related to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) pursuant to Title 18, United States Code, Section 1001.
On March 27, 2020, The CARES Act established several new temporary programs and provided for the expansion of others to address the COVID-19 pandemic. Among these programs, the Paycheck Protection Program (PPP) authorized forgivable loans backed by the U.S. Small Business Administration (SBA) to small businesses to retain workers and maintain payroll, make mortgage interest payments, lease payments, and utility payments. The PPP allows the interest and principal on the PPP loan to be forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses at least a certain percentage of the PPP loan proceeds on payroll expenses.
According to the charging documents, WEBER made false statements to an approved lender on or about April 2, 2021, for the purpose of fraudulently obtaining a PPP loan, which she later received in the amount of approximately $10,302.00. WEBER stated in her PPP application that she was a self-employed esthetician impacted by the pandemic when, in truth, she had no such business in 2020.
WEBER faces a sentence of up to five years in prison, up to $250,000 in fines, and up to three years of supervised release for the false statements count. There is also a $100 mandatory special assessment fee due after conviction. U.S. Attorney Evans reiterated that a bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans reiterated that the bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
For more information on the Department of Justice’s response to the pandemic, please visit https://www.justice.gov/coronavirus. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
U.S. Attorney Evans praised the work of the Amtrak Office of Inspector General – Criminal Investigations in investigating this matter. Assistant U.S. Attorney Edward J. Rivera of the Financial Crimes Unit is in charge of the prosecution.
brandi_weber_boi_redacted_sanitized.pdfFlorida Man Who Victimized Underage Girls Online Going to Prison for 29 Years for Producing Child PornographyRead the Press Release
BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Andrew Lynch a/k/a Gregory O’Neil, 33, of Crystal River, Florida, who was convicted of production of child pornography, was sentenced to serve 29 years in prison and 20 years supervised release by U.S. District Judge John L. Sinatra, Jr.
Assistant U.S. Attorneys Aaron J. Mango and Caitlin M. Higgins, who handled the case, stated that between April and May, 2018, Lynch a resident of the State of Florida, communicated with minor females located in the Western District of New York with the intent to have the victims produce child pornography for him. Specifically, Lynch communicated with five victims, ranging in age from 13 to 17 years old, via Facebook Messenger. As a result of Lynch’s threats and coercion, the victims sent Lynch numerous images and videos of themselves engaged in sexually explicit conduct, and also engaged in video chats with Lynch during which they engaged in sexually explicit conduct. During some of the communications, Lynch posted child pornographic images of the victims to Facebook in an effort to coerce them into sending more sexually explicit images and videos.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia and the Citrus County, Florida, Sheriff’s Office, under the direction of Sheriff Mike Prendergast.
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Federal Public Official Sentenced for Accepting BribesRead the Press Release
NORFOLK, Va. – A former General Services Administration (GSA) Official was sentenced yesterday to 30 months in prison for accepting bribes in exchange for directing government procurement contracts to government contractors.
According to court documents, Charles W. Jones, 59, was employed as a Supervisory Construction Control Representative with the GSA in Richmond. He had responsibility for the management and oversight of construction and renovation projects at certain federal buildings throughout the Norfolk, Richmond, and Alexandria areas. Beginning in approximately December of 2015 and continuing through August 2019, Jones received bribes totaling $411,192 from Daniel Crowe, in exchange for awarding them federal construction projects to his companies. In October of 2019, Jones received a cash payment from Jennifer Strickland, the President of SDC Contracting LLC, in exchange for awarding a contract valued at approximately $1,369,501.
Crowe and Strickland have previously pleaded guilty and have been sentenced to related charges.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Carol Fortine Ochoa, Inspector General, General Services Administration (GSA); Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office; Christopher Dillard, Special Agent in Charge for the Department of Defense, Office of Inspector General, Defense Criminal Investigative Service (DCIS); and Michael Butler, Acting Special Agent in Charge of the Naval Criminal Investigative Service (NCIS) Economic Crimes Field Office, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen.
The General Services Administration (GSA) Office of Inspector General provided significant assistance in this case.
Assistant U.S. Attorney Matthew Heck 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. 2:22-cr-66.
Federal Jury Convicts Ardmore Man of Multiple Charges Associated with the Assault and Sexual Exploitation of A Minor in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that Geovanta Ty'Kearon Lee, age 21, of Ardmore, Oklahoma, was found guilty by a federal jury on charges of (1) Cyberstalking, (2) Assault with a Dangerous Weapon with Intent to Do Bodily Harm in Indian Country, (3) Use, Carry, Brandish, and Discharge of a Firearm During and in Relation to a Crime of Violence, (4) Receipt of Material Involving the Sexual Exploitation of a Minor, and (5) Possession of Material Involving the Sexual Exploitation of a Minor in Indian Country. The jury trial began on Monday, February 27, 2023, and concluded on Wednesday, March 1, 2023.
During the trial, the United States presented evidence that on February 23, 2022, in Ardmore, Lee followed a vehicle driven by the victim. When the victim stopped, Lee exited his vehicle holding a firearm. Lee discharged the firearm when the victim began to drive away, striking the trunk on the driver’s side. The bullet was stopped by an amplifier in the trunk. Lee fled the scene after the shooting. In the month after the assault, Lee engaged in a course of conduct, using Facebook and phone calls, to intimidate and harass the victim. Phones recovered from the Defendant’s bedroom were searched as part of the investigation and contained evidence the Defendant received and possessed a video depicting sexual exploitation of a minor.
The United States Attorney’s Office for the Eastern District of Oklahoma prosecuted the case because the Defendant is a member of a federally-recognized Indian tribe and the crimes occurred in Carter County, within the boundaries of the Chickasaw Nation Reservation and within the Eastern District of Oklahoma.
The guilty verdicts were the result of investigations by the Ardmore Police Department, Chickasaw Lighthorse Police Department, and the Federal Bureau of Investigation.
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma in Muskogee, presided over the trial and ordered the completion of a presentence report. Sentencing will be scheduled following completion of the report. Lee was remanded to the custody of the United States Marshal pending the imposition of sentencing.
Assistant United States Attorney Patrick Flanigan and Special Assistant United States Attorney Dwight Artis represented the United States.
Federal Judge Sentences Rockford Man to More Than Five Years in Prison for Illegally Possessing Firearm in RockfordRead the Press Release
ROCKFORD — A federal judge has sentenced a Rockford man to five years and four months in federal prison for illegally possessing a firearm in Rockford, to be followed by three years of supervised release.
U.S. District Judge Iain D. Johnston sentenced JAVIN MASON, 32, to more than five years in prison today. Mason pleaded guilty in November 2022 to a charge of illegal firearms possession. As a previously convicted felon, Mason was prohibited by federal law from possessing firearms. Mason admitted in a plea agreement to possessing firearms that he knew were stolen, and selling them to another individual.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Christopher C. Amon, Acting Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives, and Carla Redd, Chief of the Rockford Police Department. The government was represented by Assistant U.S. Attorney Jessica Maveus.
Holding illegal firearm possessors accountable through federal prosecution is a centerpiece of Project Safe Neighborhoods (PSN) – the Department of Justice’s violent crime reduction strategy. In the Northern District of Illinois, U.S. Attorney Lausch and law enforcement partners have deployed the PSN program to attack a broad range of violent crime issues facing the district, particularly firearm offenses.
Federal Court Bars Three Florida Tax Return Preparer and a Business from Preparing Tax Returns and Orders Them to Disgorge Ill-Gotten GainsRead the Press Release
A federal court in Miami, Florida, has entered permanent injunctions against Rudy Aly, Rhonda Hudge, Cindy Odige, and TUPS Tax, LLC, barring them from preparing federal tax returns for others and owning or operating a tax preparation business. Aly was enjoined after failing to respond to the United States’ complaint. Hudge, Odige, and TUPS Tax consented to their injunctions.
The court also ordered that Aly disgorge $406,071.43, representing the proceeds that he received for preparing false or fraudulent tax returns from 2018 to 2020. The court also ordered Hudge to disgorge $15,562.75, and Odige and TUPS Tax to disgorge $48,000 based on their settlement agreements with the United States.
In the complaint, the United States alleged that Aly and Hudge prepared tax returns that included fraudulent claims for the Earned Income Tax Credit (EITC), often based on fabricated business income or expenses or bogus household help income. The complaint also alleges that Aly and Hudge prepared tax returns that falsely claimed credits for residential solar energy improvements and education expenses. Odige signed and filed fraudulent returns prepared by Aly, the complaint alleges.
As part of their settlements, Hudge and Odige did not admit to the allegations in the complaint but agreed to injunctions and to pay disgorgement.
Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
As the 2023 tax season continues, taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS offers tips on how to accurately file returns and how to choose a tax return preparer, as well as steps taxpayers can take to get a jumpstart on filing.
Taxpayers seeking assistance can access the IRS’s free directory of federal tax preparers. The IRS also has programs offering free basic return preparation for qualifying seniors and individuals with low to moderate income). In addition, IRS Free File, a public-private partnership, offers free online tax preparation and filing options on IRS partner websites for individuals whose adjusted gross income is under $72,000. For individuals whose income is over that threshold, IRS Free File offers electronical federal tax forms that can be filled out and filed online for free.
In the past decade, the Department of Justice Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Evansville Man Sentenced to 25 Years in Federal Prison After Recording his Sexual Abuse of a Seven-Year-Old GirlRead the Press Release
EVANSVILLE- Shane C. Collins, 34, of Warrick County, Indiana was sentenced to 25 years in federal prison after pleading guilty to producing child sexual abuse material.
According to court documents, on March 7, 2021, Collins recorded a video of himself engaging in a sex act with a seven-year-old girl. Between March 17 and March 19, 2021, Collins took additional sexually explicit pictures of the child. Collins saved the recordings of his sexual abuse of the child using an internet cloud-based data storage application.
“Every child deserves to grow up safe, loved, and free from sexual abuse. Sexual predators like this defendant inflict lifelong trauma on vulnerable victims to satisfy their own criminal lusts,” said Zachary A. Myers, United States Attorney for the Southern District of Indiana. “Every day he is in federal prison is another day we can be certain he will not harm a child. I commend the work of the FBI and the Warrick County Sheriff’s Office for ensuring that the public and the victim are protected from any further abuses by this dangerous pedophile.”
“I want to commend both the efforts of the Warrick County Sheriff’s Office and the FBI to put this perpetrator behind bars. These criminal acts are not only horrendous in nature, but knowing this individual participated in taking advantage of a child in our community is very concerning,” said Sheriff Michael Wilder of the Warrick County Sheriff’s Office. “This sentence is an example of great teamwork among local and federal agencies.”
“No amount of time in federal prison seems adequate for those who sexually exploit children, but this sentence clearly demonstrates the commitment of the FBI and our law enforcement partners to identify these predators and ensure they can never victimize innocent children again,” said FBI Indianapolis Special Agent in Charge, Herbert J Stapleton.
The FBI investigated this case with valuable assistance provided by the Warrick County Sheriff’s Office. The sentence was imposed by U.S. District Court Judge, Richard L. Young. Judge Young also ordered that Collins be supervised by the U.S. Probation Office for LIFE following his release from federal prison. Collins must also register as a sex offender wherever he lives, works, or goes to school, as required by law.
U.S. Attorney Myers thanked Assistant United States Attorney, Todd Shellenbarger who prosecuted this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc
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Ericsson to Plead Guilty and Pay over $206M Following Breach of 2019 FCPA Deferred Prosecution AgreementRead the Press Release
Telefonaktiebolaget LM Ericsson (Ericsson), a multinational telecommunications company headquartered in Stockholm, Sweden, has agreed to plead guilty and pay a criminal penalty of more than $206 million after breaching a 2019 Deferred Prosecution Agreement (DPA).
Ericsson breached the DPA by violating the agreement’s cooperation and disclosure provisions. Based on the same underlying criminal conduct that gave rise to the DPA, Ericsson will plead guilty to engaging in a long-running scheme to violate the Foreign Corrupt Practices Act (FCPA) by paying bribes, falsifying books and records, and failing to implement reasonable internal accounting controls in multiple countries around the world.
“When the department afforded Ericsson the opportunity to enter into a DPA to resolve an investigation into serious FCPA violations, the company agreed to comply with all provisions of that agreement,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “Instead of honoring that commitment, Ericsson repeatedly failed to fully cooperate and failed to disclose evidence and allegations of misconduct in breach of the agreement. As a result of these broken promises, Ericsson must plead guilty to two criminal offenses and pay an additional fine. Companies should be on notice that we will closely scrutinize their compliance with all terms of corporate resolution agreements and that there will be serious consequences for those that fail to honor their commitments.”
According to court documents, beginning in 2000 and continuing until 2016, Ericsson used third-party agents and consultants to make bribe payments to government officials and to manage off-the-books slush funds in Djibouti, China, Vietnam, Indonesia, and Kuwait. These agents were often engaged through sham contracts and paid pursuant to false invoices, and the payments to them were improperly accounted for in Ericsson’s books and records. In 2019, Ericsson resolved this criminal conduct by entering a DPA with the department in connection with a two-count criminal information filed in the Southern District of New York. As part of the DPA, Ericsson paid a total criminal penalty of over $520 million and agreed to the imposition of an independent compliance monitor for three years. An Ericsson subsidiary, Ericsson Egypt Ltd, also pleaded guilty to a one-count criminal information charging conspiracy to violate the anti-bribery provisions of the FCPA.
Following the 2019 resolution, Ericsson breached the DPA by failing to truthfully disclose all factual information and evidence related to the Djibouti scheme, the China scheme, and other potential violations of the FCPA’s anti-bribery or accounting provisions. Ericsson also failed to promptly report and disclose evidence and allegations of conduct related to its business activities in Iraq that may constitute a violation of the FCPA. These disclosure failures prevented the United States from bringing charges against certain individuals and taking key investigative steps.
“Ericsson engaged in significant FCPA violations and made an agreement with the Department of Justice to clean up its act,” said U.S. Attorney Damian Williams for the Southern District of New York. “The company’s breach of its obligations under the DPA indicate that Ericsson did not learn its lesson, and it is now facing a steep price for its continued missteps. As Ericsson’s anticipated guilty plea makes abundantly clear, the Southern District of New York will hold to account companies that fail to live up to obligations to root out and voluntarily report their misconduct to the Department of Justice.”
“Today’s more than $200 million criminal penalty against Ericsson underscores the significant consequences that result when a DPA is breached,” said Chief James C. Lee of the IRS Criminal Investigation (IRS-CI). “Ericsson’s multiple cooperation and disclosure failures led to this breach, resulting in the company having to plead guilty and pay additional penalties.”
Under the terms of the plea agreement, which must be accepted by the court, Ericsson agreed to plead guilty to the original charges deferred by the 2019 DPA: one count of conspiracy to violate the anti-bribery provisions of the FCPA and one count of conspiracy to violate the internal controls and books and records provisions of the FCPA. Ericsson will also be required to serve a term of probation through June 2024 and has agreed to a one-year extension of the independent compliance monitor. The plea agreement also requires Ericsson to pay an additional criminal penalty of $206,728,848 – which includes the elimination of any cooperation credit originally awarded pursuant to the DPA.
The IRS-CI investigated the case.
Trial Attorney Michael Culhane Harper of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys David Abramowicz and Juliana Murray for the Southern District of New York are prosecuting the case.
The 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.
Ericsson to Plead Guilty and Pay over $206 Million Following Breach of 2019 FCPA Deferred Prosecution AgreementRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Kenneth A. Polite, Jr., the Assistant Attorney General of the Justice Department’s Criminal Division, and James C. Lee, the Chief of the Internal Revenue Service - Criminal Investigation (“IRS-CI”), announced that TELEFONAKTIEBOLAGET LM ERICSSON (“ERICSSON”), a multinational telecommunications company headquartered in Stockholm, Sweden, has agreed to plead guilty and pay a criminal penalty of more than $206 million after breaching a 2019 Deferred Prosecution Agreement (“DPA”).
ERICSSON breached the DPA by violating the agreement’s cooperation and disclosure provisions. Based on the same underlying criminal conduct that gave rise to the DPA, ERICSSON will plead guilty to engaging in a long-running scheme to violate the Foreign Corrupt Practices Act (“FCPA”) by paying bribes, falsifying books and records, and failing to implement reasonable internal accounting controls in multiple countries around the world.
U.S. Attorney Damian Williams said: “Ericsson engaged in significant FCPA violations and made an agreement with the Department of Justice to clean up its act. The company’s breach of its obligations under the DPA indicate that Ericsson did not learn its lesson, and it is now facing a steep price for its continued missteps. As Ericsson’s anticipated guilty plea makes abundantly clear, the Southern District of New York will hold to account companies that fail to live up to obligations to root out and voluntarily report their misconduct to the Department of Justice.”
Assistant Attorney General Kenneth A. Polite, Jr. said: “When the Department afforded Ericsson the opportunity to enter into a DPA to resolve an investigation into serious FCPA violations, the company agreed to comply with all provisions of that agreement. Instead of honoring that commitment, Ericsson repeatedly failed to fully cooperate and failed to disclose evidence and allegations of misconduct in breach of the agreement. As a result of these broken promises, Ericsson must plead guilty to two criminal offenses and pay an additional fine. Companies should be on notice that we will closely scrutinize their compliance with all terms of corporate resolution agreements and that there will be serious consequences for those that fail to honor their commitments.”
IRS-CI Chief James C. Lee said: “Today’s more than $200 million criminal penalty against Ericsson underscores the significant consequences that result when a DPA is breached. Ericsson’s multiple cooperation and disclosure failures led to this breach, resulting in the company having to plead guilty and pay additional penalties.”
According to court documents:
Beginning in 2000 and continuing until 2016, ERICSSON used third-party agents and consultants to make bribe payments to government officials and to manage off-the-books slush funds in Djibouti, China, Vietnam, Indonesia, and Kuwait. These agents were often engaged through sham contracts and paid pursuant to false invoices, and the payments to the agents were improperly accounted for in ERICSSON’s books and records. In 2019, ERICSSON resolved this criminal conduct by entering a DPA with the Department in connection with a two-count criminal information filed in the Southern District of New York. As part of the DPA, ERICSSON paid a total criminal penalty of over $520 million and agreed to the imposition of an independent compliance monitor for three years. An ERICSSON subsidiary, Ericsson Egypt Ltd, also pled guilty to a one-count criminal information charging conspiracy to violate the anti-bribery provisions of the FCPA.
Following the 2019 resolution, ERICSSON breached the DPA by failing to truthfully disclose all factual information and evidence related to the Djibouti scheme, the China scheme, and other potential violations of the FCPA’s anti-bribery or accounting provisions. ERICSSON also failed to promptly report and disclose evidence and allegations of conduct related to its business activities in Iraq that may constitute a violation of the FCPA. These disclosure failures prevented the United States from bringing charges against certain individuals and taking key investigative steps.
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Under the terms of the plea agreement, which must be accepted by the court, ERICSSON agreed to plead guilty to the original charges deferred by the 2019 DPA: one count of conspiracy to violate the anti-bribery provisions of the FCPA and one count of conspiracy to violate the internal controls and books and records provisions of the FCPA. ERICSSON will also be required to serve a term of probation through June 2024 and has agreed to a one-year extension of the independent compliance monitor. The plea agreement also requires ERICSSON to pay an additional criminal penalty of $206,728,848 – which includes the elimination of any cooperation credit originally awarded pursuant to the DPA.
Mr. Williams praised the efforts of the IRS-CI, which conducted the investigation in this case.
The case is being handled by the Office’s Complex Frauds and Cybercrime Unit and the Justice Department’s Fraud Section. Assistant U.S. Attorneys David Abramowicz and Juliana Murray and Trial Attorney Michael Culhane Harper are in charge of the prosecution.
East Boston Man Indicted for Child Pornography OffensesRead the Press Release
BOSTON – An East Boston man was indicted by a federal grand jury today for possessing and distributing child sexual abuse material (CSAM).
Cristopher Vladimir Pineda Martinez, 23, was indicted on one count of possession of child pornography and one count of distribution of child pornography. Pineda was arrested and charged by criminal complaint in January 2023.
According to the charging documents, law enforcement identified Pineda as member of several private large-scale group chats involved in the distribution of CSAM on an online chat platform. It is alleged that on Dec. 12, 2022, Pineda distributed eight videos depicting CSAM in three online chat groups. It is further alleged that an additional 54 videos of CSAM, involving children as young as six years old, were found on Pineda’s personal cell phone.
The charge of possession of child pornography provides for a sentence of up to 20 years in prison, at least five years and up to a lifetime of supervised release and a fine of up to $250,000. The charge of distribution of child pornography provides for a mandatory minimum sentence of five years and up to 20 years in prison, a mandatory minimum of five years and up to a lifetime of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins and Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in New England made the announcement today. Valuable assistance was provided by the United States Postal Inspection Service and Immigration and Customs Enforcement, Enforcement and Removal Operations. Assistant U.S. Attorney Meghan C. Cleary of Rollins’ Major Crimes Unit is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Drug Trafficking Organizer Sentenced to 20 Years in PrisonRead the Press Release
SAN DIEGO – Terrance Deandre Ellison was sentenced in federal court today to 20 years in prison for drug-trafficking crimes, including importation of methamphetamine and conspiring with others to import methamphetamine from Mexico into the United States.
During a week-long jury trial in May 2022, prosecutors proved that Ellison was a drug trafficker who recruited, organized, and operated a network of drug importers in connection with his methamphetamine distribution activities in San Diego County and elsewhere between March 2020 and May 2020. The jury found that Ellison used drug-addicted people to travel to Mexico and smuggle methamphetamine across the border as “body carriers” in exchange for cash payment or drugs after delivery of the methamphetamine to Ellison in the United States.
At Ellison’s behest, the “body carriers” concealed methamphetamine either inside their bodies or strapped to the outside. At trial, prosecutors proved that, on several occasions, Ellison went to Mexico, met with “body carriers” at a hotel or other location, purchased methamphetamine from drug suppliers in Mexico, packaged the methamphetamine for concealment, and directed the individuals how to conceal and cross the drugs into the United States. Once the “body carriers” crossed the border without getting caught, they would meet Ellison and travel to other locations to remove the drugs from their bodies. The “body carriers” then provided the drugs to Ellison.
After several of his “body carriers” were arrested, Ellison choseto import the drugs himself. In May 2020, Ellison concealed the drugs inside a natural void behind the glove compartment of his rental car and entered the United States at the Otay Mesa, California Port of Entry. However, he was caught at the border and officers found the methamphetamine packages concealed inside.
At trial, prosecutors presented incriminating evidence, including voluntary statements made by Ellison during an interview with investigators; text messages from his cellular phone; and border crossing records of Ellison with his “body carriers.” The jury deliberated and found Ellison guilty of four counts, including conspiracy to possess methamphetamine with the intent to distribute, possession of methamphetamine with the intent to distribute, conspiracy to import methamphetamine, and importation of methamphetamine.
At today’s sentencing hearing, U.S. District Judge William Q. Hayes found that Ellison had an aggravating role in the offenses because he was a leader and organizer, and the offenses were otherwise extensive. Judge Hayes also found that Ellison had obstructed justice when he testified at trial because Ellison gave false testimony on material matters with willful intent. In balancing the aggravating and mitigating factors, Judge Hayes concluded that a sentence of 20 years was sufficient but not greater than necessary. Judge Hayes also placed Ellison on a 10-year term of supervised release, which will commence after Ellison has served his prison sentence.
“This sentence sends a message to any drug trafficker operating drug importation and distribution networks in this district that you will receive a significant sentence for directing those who import dangerous narcotics,” said U.S. Attorney Randy S. Grossman.
Grossman thanked the prosecution team and Homeland Security Investigations for their excellent work on this case.
“HSI will direct its full range of investigative authorities towards those who smuggle deadly drugs across the border and into our communities,” said Chad Plantz, special agent in charge of HSI San Diego. “This significant sentence demonstrates the U.S. government’s resolve with holding drug traffickers accountable for their actions.”
DEFENDANT Case Number 20cr1788-WQH
Terrance Deandre Ellison Age: 43 San Diego, CA
SUMMARY OF CHARGES
Conspiracy to Possess Methamphetamine with Intent to Distribute – Title 21, U.S.C., Sections 841(a)(1) and 846
Possession of Methamphetamine with Intent to Distribute – Title 21, U.S.C., Section 841(a)(1)
Conspiracy to Import Methamphetamine - Title 21, U.S.C., Sections 952, 960, and 963
Importation of Methamphetamine - Title 21, U.S.C., Sections 952 and 960
Maximum penalty as to each charge: Life in prison and $10 million fine
AGENCY
Homeland Security Investigations
Douglas Man Sentenced to 24 Months for Aiding and Abetting and Making False Statements in Connection with the Purchase of FirearmsRead the Press Release
TUCSON, Ariz. – Kevin Durazo, 23, of Douglas, Arizona, was sentenced last week by United States District Judge John C. Hinderaker to 24 months in prison, followed by 36 months of supervised release. Durazo pleaded guilty to one count of Aiding and Abetting Making False Statements in Connection with Acquisition of a Firearm and one count of Making False Statements in Connection with Acquisition of a Firearm.
On October 5, 2021, Kevin Durazo and co-defendant, Mario Edoardo Ramirez Chavez, 22, of Mexico, traveled to Tucson from Douglas, Arizona, for the purpose of purchasing firearms. Durazo provided money to the co-defendant to purchase a 7.62x51mm (.308 WIN) caliber rifle from a licensed firearms dealer for Durazo. The co-defendant purchased the rifle after filling out required paperwork indicating he was the actual buyer of the rifle, when in fact he was acquiring it at the request and direction of Durazo. Durazo then purchased a 9mm pistol from another licensed firearms dealer. Durazo filled out the required paperwork and stated that he was purchasing the firearm for himself, when in fact he was acquiring it for another individual. The two men were subsequently arrested by Homeland Security Investigations (HSI) at the Douglas Port of Entry in their attempt to smuggle the 9mm pistol into Mexico.
Chavez, Durazo’s co-defendant, pleaded guilty to Smuggling Goods from the United States and Making False Statements in Connection with the Purchase of Firearms. Chavez was sentenced by Judge Hinderaker on October 7, 2022, to 16 months in prison, followed by three years of supervised release.
HSI conducted the investigation in this case. Assistant United States Attorney Adam D. Rossi, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-21-02855-TUC-JCH
RELEASE NUMBER: 2023-026_Durazo# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Detroit Man Pleads Guilty to Three Violent CarjackingsRead the Press Release
DETROIT – A Detroit man pleaded guilty today to committing two attempted carjackings and one completed carjacking— including one where he fired an assault rifle at a teenaged victim.
United States Attorney Dawn N. Ison announced the plea today and was joined in the announcement by James A. Tarasca, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.
According to court records, Gregory Horsley, 20, of Detroit, Michigan, committed the carjackings on May 14, 2021, in Beverly Hills, Michigan. During each offense, Horsley targeted strangers who were inside their vehicles near the intersection of Thirteen Mile Road and Evergreen. In the first carjacking, Horsley approached the 16-year-old victim as he was seated in his car. Horsley pulled out a loaded assault rifle and pointed it at the driver. As the teenager drove off, Horsley fired his weapon, striking the vehicle.
Horsley next approached a vehicle driven by a woman. Horsley brandished his firearm and ordered her out of the car. The victim fled the driver’s seat and Horsley entered her car. But he could not drive away because the victim had the key fob in her pocket.
Horsley exited that vehicle and approached a third driver. Horsley pointed his firearm at the male driver and ordered him out of the car. The driver complied. Horsley then took the keys and drove off in the car. The carjacked vehicle was found a few days later. Horsley was identified by surveillance video and taken into custody at his home in Detroit.
Horsley faces a mandatory minimum sentence of 7 years in prison with a maximum possible sentence of life in prison on the charge of brandishing a firearm while committing a carjacking. For the carjacking charges, Horsley faces a maximum of fifteen years in prison.
“Carjacking is one of the most serious violations of public safety, making people feel vulnerable in their own cars and neighborhoods,” stated U.S. Attorney Ison. “We will seek significant federal penalties against those who prey on motorists in our communities.”,”
"Armed carjacking poses an unacceptable danger to public safety and creates a climate of fear for residents in our community,” said James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Field Office. “This case was investigated by the FBI Oakland County Gang and Violent Crime Task Force and serves as an example of the collaboration between federal, state, and local law enforcement agencies, to bring violent criminals to justice. The FBI, along with the Beverly Hills Police, Southfield, and Detroit Police Departments, remains committed to rooting out those who victimize our neighborhoods with violence.”
Sentencing is set for July 13, 2023.
The case was investigated by the FBI Oakland County Gang and Violent Crime Task Force, the Beverly Hills Police Department, the Southfield Police Department, the Detroit Police Department, and handled by Assistant United States Attorneys Jeanine Brunson and Michael Taylor.
Departments of Justice, Commerce and Treasury Issue Joint Compliance Note on Russia-Related Sanctions Evasion and Export ControlsRead the Press Release
The U.S. Department of Commerce’s Bureau of Industry and Security (BIS), the Department of the Treasury’s Office of Foreign Asset Control (OFAC), and the Department of Justice today issued a joint compliance note on the use of third-party intermediaries or transshipment points to evade Russian- and Belarussian-related sanctions and export controls. Today’s note marks the first collective effort by the three agencies to inform the private sector about enforcement trends and provide guidance to the business community on compliance with U.S. sanctions and export laws. The three agencies will issue these advisories on an ongoing basis.
“Ever since Russia’s unprovoked invasion of Ukraine, the Department of Justice’s priority has been the robust enforcement of U.S. export and sanctions laws and cracking down on efforts to evade those laws,” said Assistant Attorney General for National Security Matthew G. Olsen. “Companies are our first line of defense, and today’s joint compliance note will inform the private sector about enforcement trends and convey the Department’s expectations as to national-security related corporate compliance. We are proud to partner with BIS and OFAC on this important effort.”
“Those who attempt to prop up Putin’s war machine by evading our export controls and sanctions will be held accountable,” said Assistant Secretary of Commerce for Export Enforcement Matthew S. Axelrod. “As this first-ever joint compliance note makes clear, it is incumbent upon industry to maintain effective, risk-based compliance programs. BIS, in coordination with our partners, including at OFAC and the Department of Justice, will continue to use all tools at our disposal to prevent bad actors from circumventing the comprehensive export controls put in place to deter Russian aggression.”
“Our economic tools are constraining Russia – so much so that the Kremlin has tasked their intelligence services with finding ways to get around international sanctions and export controls,” said OFAC Director Andrea M. Gacki. “The private sector is an essential partner in ensuring that we cut off Russia from accessing much-needed equipment to continue their unjust war against Ukraine. By issuing a joint alert, our enforcement agencies are illustrating the importance of a risk-based approach that protects the international financial system from abuse by Russia.”
The compliance note highlights one of the most common tactics used to evade Russia-related sanctions and export controls: the use of third-party intermediaries or transshipment points to circumvent restrictions, disguise the involvement of Specially Designated Nationals (SDNs) or parties on the Entity List in transactions, and obscure the true identities of end users. The note provides warning signs on what to look for if a company suspects that a customer is using a third-party intermediary to evade sanctions or export controls as well as recent examples of tactics allegedly used by defendants to evade detection while attempting to flout the controls. Further, the compliance note provides guidance to companies on how to maintain an effective, risk-based sanctions and export compliance program.
Since Feb. 24, 2022, BIS has implemented a series of stringent export controls that restrict Russia’s access to the technologies and other items that it needs to sustain its illegal war in Ukraine. These controls target Russia’s defense, aerospace, and maritime sectors, and have been expanded to Russia’s oil refining, industrial, and commercial sectors, as well as to luxury goods used by Russian elites. BIS’s controls have also been applied to Belarus for its substantial enabling of Russia’s invasion. Additional information on BIS’s actions is available online at: bis.doc.gov/index.php/policy-guidance/country-guidance/russia-belarus.
OFAC will continue to use, its broad targeting authorities against non-U.S. persons that provide ammunition or other support to the Russian Federation’s military-industrial complex, as well as to private military companies or paramilitary groups participating in or otherwise supporting the Russian Federation’s unlawful and unjustified attack on Ukraine. OFAC will continue to target Russia’s efforts to resupply its weapons and sustain its war of aggression against Ukraine, including any foreign persons who assist the Russian Federation in those efforts. Additionally, OFAC will continue to impose civil monetary penalties against U.S. persons who violate OFAC sanctions to benefit Russia, and against non-U.S. persons who cause U.S. persons to violate the Russia sanctions programs.
The Justice Department’s enforcement of these new measures has been led by 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 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 full compliance note is available here.
Comptroller of a Non-Profit Corporation in Aguada, PR Sentenced to Two Years in Prison for Fraud SchemeRead the Press Release
SAN JUAN, Puerto Rico – Margarita Botti-Nieves was sentenced by United States District Court Senior Judge Francisco A. Besosa to serve 24 months in prison followed by a supervised release term of three years, announced United States Attorney W. Stephen Muldrow. On October 11, 2022, Botti-Nieves was indicted and pleaded guilty to misappropriation of funds, tax evasion, and obstruction of a tax investigation.
Defendant Margarita Botti-Nieves was an employee, accountant, and agent of Programa de Apoyo y Enlace Comunitario, Inc. (“PAEC”). PAEC was a non-profit corporation organized in Puerto Rico which received and administered benefits under various Federal programs involving grants, contracts, and Federal assistance. According to court documents, from in or about September 2016 and continuing until June 2019, the defendant did willfully evade the payment of a substantial portion of the employment taxes owed by PAEC to the United States of America, by committing the following affirmative acts among others:
a. Caused submission of false statements to the IRS;
b. Provided false information and fraudulent documentation to PAEC for purported payments to the IRS which were never made;
c. Caused the preparation of false tax documents that misreported PAEC employees’ tax witholdings;
d. Caused funds to be transferred from PAEC bank account to different accounts defendant controlled in order to divert funds to be used for personal expenses.
e. Caused the tax returns to be filed with the IRS in an attempt to evade and defeat the payment of employment taxes due and owing by PAEC to the United States.
“Convictions such as this send a loud and clear message that those who defy our nation’s tax laws will be investigated and prosecuted to the fullest extent of the law,” said U.S. Attorney Muldrow.
“The Treasury Inspector General for Tax Administration will continue to aggressively pursue those who attempt to defraud the Federal tax system and undermine the integrity of the Internal Revenue Service,” stated J. Russell George, Treasury Inspector General of Tax Administration. “We appreciate the efforts of our law enforcement partners and the United States Attorney’s Office to ensure this criminal activity is held to account.”
Assistant U.S. Attorney María L. Montañez prosecuted the case. The case was investigated by the Treasury Inspector General for Tax Administration; the Internal Revenue Service, Office of Criminal Investigations; United States Department of Health & Human Services Office of Inspector General; AmeriCorps-The Corporation for National and Community Service; Department of Justice Office of Inspector General.
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Columbia Man Sentenced to a Total of 10 Years in Federal Prison on Firearm and Drug ChargesRead the Press Release
COLUMBIA, SOUTH CAROLINA — Dakota F. Brown, 36, of Columbia, was sentenced to a total of 120 months in federal prison after pleading guilty to being a felon in possession of a firearm and ammunition and possession with intent to distribute a quantity of heroin and fentanyl, a quantity of methamphetamine, and a quantity of amphetamine while on federal supervision.
Evidence presented to the court showed that on January 4, 2021, a Richland County Sheriff’s Department deputy conducted a traffic stop of Brown’s vehicle following a traffic violation. Brown, the driver, exited the vehicle and removed a fanny pack from across his chest, laying it in the driver’s seat before walking back to talk to the deputy. After deputies smelled marijuana, the vehicle was searched. The search revealed a loaded 9mm firearm, heroin, fentanyl, methamphetamine, and amphetamine within the fanny pack that Brown previously removed from his person. After waiving his Miranda rights, Brown admitted that the items were his and that he had bought the gun off the street in December.
A ballistics analysis through the National Integrated Ballistic Information Network (NIBIN) linked the firearm to shell casings recovered from December 2020 shooting in Richland County. Local authorities have arrested another individual for that shooting and have no evidence linking Brown to the incident. NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
Brown, who has been in custody since his January 2021 arrest, is prohibited from possessing firearms and ammunition based upon his prior felony state convictions, which include strong arm robbery, possession of crack cocaine, criminal domestic violence of a high and aggravated nature, and possession with intent to distribute marijuana. Additionally, at the time of this incident, Brown was on federal supervised release after serving a 108-month sentence from a 2011 federal conviction for being a felon in possession of a firearm.
United States District Court Judge Sherri A. Lydon sentenced Brown to 96 months in prison, to be served consecutive to the 24-month sentence he received for violating his terms of supervised release. After completing his 120-month sentence, Brown will be on supervised release for 6 years.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Richland County Sheriff’s Department. Assistant U.S. Attorney Stacey D. Haynes prosecuted the case.
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Cincinnati man charged with sex trafficking missing teenRead the Press Release
CINCINNATI – A Cincinnati man was arrested and charged federally with sex trafficking and exploiting teenage girls from Indiana.
Payton Jamar Brown, 26, is charged with sex trafficking and sexually exploiting children.
According to the complaint, in October 2022, investigators received a report from the Safe Harbor/Human Trafficking Coordinator at the Hamilton County Juvenile Court regarding a potential victim.
The victim and another juvenile female had been missing from separate cities in Indiana. Both of the16-year-olds were recovered from Brown’s residence on Niagara Street in Cincinnati.
It is alleged that Brown met the first minor victim on an online dating app, 3Fun.
Brown allegedly posted photos of the teenager to a website from June to October 2022 to advertise for sexual encounters. According to an affidavit filed in support of a criminal complaint, the victim had sex with numerous men for money, which was then given to Brown.
Additionally, Brown filmed sexual encounters with the teenager which they then attempted to sell to other individuals.
Brown also allegedly picked up the second minor in Indianapolis and brought her to his residence in Cincinnati.
Brown appeared in federal court in Cincinnati yesterday and has been ordered to remain in custody pending trial.
Sex trafficking a minor carries a mandatory minimum sentence of 10 years and up to life in prison. Sexually exploiting children is punishable by a range of 15 to 30 years in prison.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Colerain Township Police Chief Edwin C. Cordie III; and members of the Regional Electronics and Computer Investigations (RECI) task force announced the charges. Assistant United States Attorney Kyle J. Healey is representing the United States in this case.
A criminal complaint merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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Charlotte Business Owners Plead Guilty to Selling Fraudulently Obtained New iPhones OverseasRead the Press Release
CHARLOTTE, N.C. – Two Charlotte business owners, Hamzeh Jamal Alasfar, 31, and Tayseer Issam Alkhayyat, 35, both of Charlotte, pleaded guilty today in federal court before Judge Kenneth D. Bell to charges related to selling and shipping fraudulently obtained and stolen new Apple iPhones to an international buyer, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Jason Byrnes, Special Agent in Charge of the United States Secret Service, Charlotte Field Office, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD) join U.S. Attorney King in making today’s announcement.
According to the factual basis filed in the case, as early as 2013 and continuing through at least 2019, Alasfar and Alkhayyat engaged in a scheme to purchase stolen and fraudulently obtained new Apple iPhones and other electronic devices, and sell and ship the devices to buyers located in other states and foreign countries, including the United Arab Emirates and Hong Kong.
Filed court documents show that Alasfar and Alkhayyat owned multiple businesses located in Charlotte, including Cellport International Inc. (Cellport) and D Town Wireless (D Town), which were used in the scheme. Between January 2019 and January 2020, the defendants sold and shipped through Cellport more than 20,000 new iPhones for more than $20 million.
Alasfar and Alkhayyat each pleaded guilty to one count of interstate and foreign transportation of stolen property, which carries a maximum prison sentence of 10 years and a $250,000 fine per count. Alasfar and Alkhayyat remain on release pending their sentencing hearings, which will be scheduled in federal court in Charlotte.
This case was the result of the investigative efforts of CMPD and the Secret Service, which have established a fully integrated partnership to combat organized criminal groups operating in Charlotte. Through this partnership, this unit has successfully leveraged local and federal resources, personnel, expertise and authorities to identify and combat the criminals and criminal organizations that have the largest negative impact on the community.
Assistant U.S. Attorneys William T. Bozin and Michael E. Savage of the U.S. Attorney’s Office in Charlotte are prosecuting the case.