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14 April 2023
Everett Man Pleads Guilty to Securities FraudRead the Press Release
BOSTON – An Everett man pleaded guilty on April 12, 2023 to exerting secret control over a Massachusetts-based company, Cannabiz Mobile, Inc., as part of a pump-and-dump securities fraud scheme.
Christopher R. Esposito, 56, pleaded guilty to one count of securities fraud before U.S. District Court Judge Patti B. Saris who scheduled sentencing for July 26, 2023. Esposito was charged in August 2022.
Esposito and a co-conspirator, Anthony Jay Pignatello, worked together between 2012 and 2015 to conceal their control over Cannabiz Mobile, Inc. and to use backdated promissory notes to fraudulently obtain free-trading shares in the company. Among other steps taken to conceal their control, Esposito caused another individual to be installed as the company’s chairman, president, and CEO. In reality, the executive reported to Esposito. Esposito and Pignatello then arranged for a promotional campaign in October 2014 to artificially inflate the value and trading volume of Cannabiz Mobile’s stock so that they could secretly sell their shares. In total, between September 2014 and February 2015, Esposito personally sold over 1.3 million shares fraudulently obtained as part of the scheme.
Pignatello separately pleaded guilty in March 2021 to conspiracy to commit securities fraud for his role in the scheme. He is scheduled to be sentenced on Sept. 12, 2023 before U.S. District Court Judge George A. O’Toole Jr.
The charging statute for securities fraud provides a sentence of up to 20 years in prison, three years of supervised release and a fine of $5 million. The charging statute for conspiracy to commit securities fraud provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss from the offense. 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 Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorney James R. Drabick of Rollins’ Securities, Financial & Cyber Fraud Unit is prosecuting the case.
Essex County Man Convicted of Conspiracy to Commit Wire Fraud and Wire Fraud in Connection with Romance ScamRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was convicted of conspiring to commit wire fraud and wire fraud in connection with an online romance scam, U.S. Attorney Philip R. Sellinger announced today.
Mahmoud Bowler, 40, of Newark, was convicted on April 13, 2023, of one count of conspiracy to commit wire fraud and four counts of wire fraud following a four-day trial before U.S. Circuit Court Judge Joseph A. Greenaway Jr., sitting by designation to hold a District Court within the Circuit.
According to documents filed in this case and the evidence presented at trial:
From February 2015 through June 2019, Bowler and a conspirator participated in an online romance scheme. Bowler’s conspirator created a fraudulent profile on an online dating site and then pretended to strike up a romantic relationship with a woman living in Florida. In the online profile, Bowler’s conspirator falsely represented that he, and a company he owned, had been awarded multimillion-dollar oil contract. After establishing a virtual romantic relationship with the victim, the conspirator repeatedly solicited alleged loans from the victim, claiming that he could not access his own accounts because a foreign government had frozen his assets.
From April 2018 to September 2018, the victim was directed to wire money to Bowler’s bank account on four separate occasions. After receiving the funds, Bowler withdrew a portion of the funds in cash, sent money to other individuals in Ghana through a money remitter, and wired some of the money to family members in Ghana.
The conspiracy to commit wire fraud and the wire fraud counts each carry a maximum penalty of 20 years in prison. The maximum fine for each count is $250,000. Sentencing is scheduled for Aug. 15, 2023.
U.S. Attorney Sellinger credited special agents of the FBI, Newark Division, under the direction of Special Agent in Charge James E. Dennehy; detectives from the New York City Police Department Intelligence and Counterterrorism Unit, under the direction of Chief Thomas Galati; detectives from the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens; and detectives from the Port Authority Police Department, under the direction of Superintendent of Police, Edward Cetnar, with the investigation leading to the conviction.
The government is represented by Assistant U.S. Attorney Thomas S. Kearney of the Special Prosecutions Division and Assistant U.S. Attorney Dong Joo Lee of the Criminal Division.
Daycare CEO Sentenced to Prison, Ordered to Pay $1.3 Million Restitution for Check Kiting Scheme and Unpaid TaxesRead the Press Release
MACON, Ga. – The CEO of a Georgia-based daycare business was sentenced to prison and ordered to pay more than $1.3 million in restitution this week for conducting a check kiting and tax scheme.
Ilene Farley, 62, of Stone Mountain, Georgia, was sentenced to serve 37 months in prison to be followed by three years of supervised release and ordered to pay $514,240.89 in restitution to Bank of America and $844,091.77 in restitution to the IRS by U.S. District Marc T. Treadwell on April 12 after she previously pleaded guilty to bank fraud and failure to pay over trust fund taxes on Nov. 16. 2022. There is no parole in the federal system.
“These type of criminal schemes—whether the harm is directed to individuals or businesses—will not be ignored by this office or our law enforcement partners,” said U.S. Attorney Peter D. Leary. “We will unravel the fraud and hold wrongdoers accountable for their crimes.”
“Ilene Farley believed she had found a shortcut to put money in her pocket, and now she will pay for her criminal behavior,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “Today’s guilty plea reflects the FBI’s commitment to work with our partners to bring fraudsters who steal from banks to justice.”
“Employers have a lawful duty and responsibility to withhold income taxes from their employees’ payroll check; failure to do so negatively impacts the U.S. Government and the employees,” said James E. Dorsey, Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “IRS-Criminal Investigation is committed to finding and holding those employers engaging in employment tax evasion accountable so that American taxpayers who are entitled can enjoy the benefits of Medicare and social security.”
According to court documents, Farley was the President and Chief Executive Officer (CEO) of Tender Years Learning Corporation (TYLC). TYLC operated several daycare centers within the Middle District of Georgia and elsewhere in the state of Georgia and had a registered office at 1010 N. Houston Road, Warner Robins, Georgia. Farley handled its financial affairs. The business had several bank accounts, including with Bank of America and Citizens Trust Bank.
When a customer presents a check for deposit into an account, it can take anywhere from 24 hours to seven days for the check to clear. The time between presentment and clearing of a check is called the “float.” The term “check kiting” refers to a form of check fraud which involves taking advantage of the float—the time between presentment of a check and the actual receipt of funds—to make use of non-existent funds in a checking or other bank account. The purpose of check kiting is to falsely inflate the balance of a checking account to allow written checks that would otherwise bounce to clear.
From April 2018 until July 2019, Farley executed a check kiting scheme using the TYLC bank accounts with Bank of America and Citizens Trust Bank, sending more than $75,000,000 to banks which were unfunded amounts and were the equivalent of obtaining money from banks without secured loans. All told, 19 checks bounced during the scheme in the amount of $2,202,162.41. Bank of America ended up with a loss of $514,240.89.
In addition, Farley was required to collect, account for and pay so-called “trust fund taxes” for TYLC’s employees, which includes Social Security, Medicare and federal income taxes. Employers are required to remit these withheld trust fund taxes to the IRS on a quarterly basis. Between 2015 and 2019, Farley failed to pay the IRS $844,091.77 of the TYLC employees’ trust fund taxes which had been withheld from the employees’ paychecks. Through her guilty plea, Farley admitted that she knowingly carried out a scheme to defraud Bank of America and Citizens Trust Bank; in addition, she admitted that she did not pay her employee trust fund taxes.
The case was investigated by FBI and IRS.
Assistant U.S. Attorney Elizabeth Howard prosecuted the case for the government.
Construction Firm Owner Sentenced for Employment Tax EvasionRead the Press Release
An Iowa man was sentenced today to two years in prison for evading payment of employment taxes owed by his company.
According to court documents and statements made in court, Kevin Alexander of Sioux City owned K&L Construction, Inc. (K&L), a landscaping and construction company. Alexander was responsible for filing quarterly employment tax returns and collecting and paying to the IRS taxes withheld from employees’ wages. Between 2014 and 2017, K&L paid approximately $3.8 million in wages to its employees, of which approximately $1 million in income and Social Security and Medicare taxes was withheld. Alexander did not pay those withholdings over to the IRS. When the IRS attempted to collect K&L’s unpaid employment taxes, Alexander sought to conceal his income by submitting a form to the IRS concealing the full amount of K&L’s available assets.
In addition to the term of imprisonment, U.S. District Chief Judge Leonard T. Strand ordered Alexander to serve two years of supervised release and to pay approximately $1.7 million in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Timothy T. Duax for the Northern District of Iowa made the announcement.
IRS Criminal Investigation investigated the case.
Trial Attorney Meredith Havekost of the Justice Department’s Tax Division and Assistant U.S. Attorney Ron Timmons for the Northern District of Iowa prosecuted the case.
Columbia Man Who Threatened the Use of a Firearm During a Social Media Livestream Sentenced to 51 Months in Federal PrisonRead the Press Release
Columbia, SOUTH CAROLINA — Paul Burton, 27, of Columbia, was sentenced to 51 months in federal prison for Possession of a Firearm by a Felon.
Evidence obtained in the investigation revealed that on February 15, 2022, around 12:30am, Burton posted a livestream video on social media at a Columbia gas station. In the video, Burton bragged about successfully robbing a rival gang member of a gold chain, which he displayed. Additional portions of the livestream show Burton going into the gas station and threatening the rival gang member a second time by displaying the firearm and spitting in his direction in the presence of the store clerk.
Later that same day, the City of Columbia Police Department conducted a traffic stop on a car driven by Burton. Because the car smelled of marijuana, police officers conducted a search and found a loaded pistol. On February 16, 2022, members of the Midlands Gang Task Force interviewed Burton, and he admitted the same pistol in his car was the one he used during the robbery at the gas station.
Federal law prohibits Burton from possessing a firearm or ammunition based on prior convictions for Assault and Battery of a High and Aggravated Nature, Possession of a Weapon During the Commission of a Violent Crime, and Possession with Intent to Distribute Marijuana.
United States District Judge Mary Geiger Lewis sentenced Burton to 51 months in prison, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
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 City of Columbia Police Department, the Richland County Sheriff’s Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Lamar J. Fyall is prosecuting the case.
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Columbia County man sentenced to federal prison for possession of child sexual exploitation materialRead the Press Release
AUGUSTA, GA: A Columbia County man has been sentenced to nearly eight years in prison after pleading guilty to possession of child pornography.
Robert James Thompson, 35, of Grovetown, was sentenced to 90 months in prison after previously pleading guilty to Possession of Child Pornography, said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. U.S. District Court Chief Judge J. Randal Hall also ordered Thompson to pay $8,000 in restitution to victims, to register as a sex offender, and to serve 15 years of supervised release upon completion of his prison term. There is no parole in the federal system.
“The safety of our community demands that predators like Thompson be identified and taken off the streets,” said U.S. Attorney Steinberg. “With our law enforcement partners, we will be diligent in protecting our most vulnerable citizens.”
As described in court documents and testimony, the National Center for Missing and Exploited Children shared a cybertip with the FBI indicating the online presence of multiple electronic images depicting sexual exploitation of children.
FBI agents conducted a search of Thompson’s electronic devices in July 2022 and found dozens of images of child pornography. Thompson was on felony probation for a state burglary conviction at the time of his arrest.
“Child pornography is abuse of society’s most vulnerable population. It is also a second victimization for a child who has already been traumatized,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “The FBI remains committed to protecting our children and is thankful for the law enforcement partnerships that make it possible to stop people like Thompson from victimizing anyone else.”
The case was investigated by the FBI, and prosecuted for the United States by Assistant U.S. Attorney Jeremiah L. Johnson.
Anyone with information on suspected child sexual exploitation can contact the National Center for Missing and Exploited Children at 800-843-5678, or https://report.cybertip.org/.
Colorado Woman and Arizona Man Plead Guilty to Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – JOANNA MANZANO, age 33, a resident of Colorado, and KABIEN CORTES, age 34, a resident of Phoenix, Arizona, pled guilty on April 12, 2023 to superseding bills of information charging them each with one count of conspiracy to distribute and possess with intent to distribute a quantity of a mixture or substance containing a detectable amount of methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1), 841 (b)(1)(C), and 846, announced U.S. Attorney Duane A. Evans.
According to court documents, on March 16, 2020 during a DEA investigation, a drug supplier arranged the delivery of methamphetamine to the New Orleans area. On March 19, 2020, the DEA determined that a driver (MANZANO) was travelling from Phoenix, Arizona to New Orleans with the methamphetamine and would need money for expenses. The DEA also determined that the methamphetamine was in liquid form and that another individual would arrive in New Orleans at a later date to convert the liquid methamphetamine into solid form.
The investigation disclosed that MANZANO, accompanied by CORTES, traveled to New Orleans. After MANZANO and CORTES arrived in Louisiana, law enforcement officers identified their vehicle and maintained surveillance on them until they arrived in Metairie. On March 20, 2020, at approximately 11:50 p.m., Louisiana State Troopers conducted a traffic stop of MANZANO and CORTES. After obtaining consent to search the vehicle, troopers noticed that the bed-liner of the truck had been removed and was being held in place by a rubber cord. A continued search of the vehicle resulted in the discovery of approximately 4,576 grams of liquid methamphetamine in the gas tank of the vehicle.
MANZANO and CORTES each face a maximum term of imprisonment of twenty (20) years, a fine of up to $1,000,000.00, a term of supervised release of at least three (3) years, and a mandatory special assessment fee of $100.00.
This case was investigated by the Drug Enforcement Administration and the Louisiana State Police. The prosecution was handled by Assistant United States Attorney André Jones of the Narcotics Unit .
Clinton business owner admits COVID-19 relief loan fraudRead the Press Release
MISSOULA — A Clinton roofing company owner today admitted to allegations that he used a federal business loan of more than $400,000 intended for economic relief caused by the COVID-19 pandemic to instead buy personal items, including an ATV, a Harley-Davidson motorcycle and a camper, U.S. Attorney Jesse Laslovich said.
Damon Alexander Wahl, 46, pleaded guilty to wire fraud and to money laundering. Wahl faces a maximum of 20 years in prison, a $250,000 fine and three years of supervised release. Wahl also admitted to a forfeiture count and agreed to forfeit a 2021 Harley-Davidson motorcycle, a 2018 Hideout camper trailer and a 2013 Polaris RZR all-terrain vehicle.
U.S. District Judge Donald W. Molloy presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. The court set sentencing for July 26. Wahl was released pending further proceedings.
The government alleged in court documents that in July 2021, Wahl, who operates Wahls Roofing LLC in Clinton, received a $405,400 loan from the Small Business Administration’s Economic Injury Disaster Loan program (EIDL), which was authorized by the Coronavirus Aid, Relief and Economic Security Act. EIDL loans were intended to provide economic relief to small businesses and nonprofit organizations that experienced a temporary loss of revenue during the pandemic. Business owners seeking EIDL loans were required to certify under penalty of perjury that they would use the money solely for business operating expenses, such as payroll, rent and mortgage payments, utilities and business debt.
The government further alleged that in his loan application, Wahl wrote that he intended to use the money to finish his shop, buy equipment for the roofing business and pay a second crew. Instead, Wahl used at least $160,000 for personal expenses, including $13,900 for an ATV, more than $21,000 for a new Harley-Davidson motorcycle and $14,700 for a camper. When interviewed about the loan, Wahl said he knew he needed to spend the loan on his business and admitted he did not.
U.S. Attorney Jesse Laslovich and Assistant U.S. Attorney Timothy J. Racicot are prosecuting the case, which was investigated by the FBI and IRS.
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Chelmsford Dentist Pleads Guilty to Medicaid Fraud SchemeRead the Press Release
BOSTON – A Chelmsford dentist pleaded guilty yesterday to engaging in a Medicaid Fraud Scheme.
Scott Cale, 68, pleaded guilty to one count of conspiring to commit health care fraud and one count of health care fraud. U.S. District Court Judge Margaret R. Guzman scheduled sentencing for July 20, 2023. Cale was indicted by a grand jury and arrested in January 2020 along with co-conspirator Anthony DiStefano. Charges against the DiStefano were dismissed.
DiStefano was barred from participating in the MassHealth insurance program because of significant concerns concerning the quality of dental care DiStefano delivered to patients. In order to circumvent his exclusion from the MassHealth provider network, DiStefano recruited Cale to join his practice.
From 2014 to 2018, dental services that DiStefano personally delivered were billed to MassHealth using Cale’s provider identification credentials. Cale then paid DiStefano a share of the money that MassHealth had paid Cale. The purpose of this arrangement was to deceive MassHealth into paying for dental services that were not reimbursable (because MassHealth had terminated DiStefano from the MassHealth program). As a result of this scheme, multiple MassHealth patients were harmed and received dangerously poor care from DiStefano.
The charges of health care fraud and conspiracy to commit health care fraud each provide for a sentence of up to 10 years in prison, one year 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; Andrea Joy Campbell, Attorney General for the Commonwealth of Massachusetts; and Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General, Office of Investigations made the announcement. Assistant U.S. Attorneys Evan Panich and Chris Looney of Rollins’ Healthcare Fraud Unit and Special Assistant U.S. Attorney Kevin Lownds, detailed from Campbell’s office, are prosecuting the case.
Caribou Man Faces up to 10 Years Following Guilty Plea for Illegal Possession of a FirearmRead the Press Release
BANGOR, Maine: A Caribou man pleaded guilty in U.S. District Court in Bangor today to being a felon in possession of a firearm.
According to court records, in May 2021, John Sam, 34, knowingly possessed a firearm during a traffic stop in Caribou. A 2017 Maine conviction for robbery precluded Sam from possessing firearms.
Sam faces up to 10 years in prison and a fine of up to $250,000. He also faces up to three years of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Caribou Police Department investigated the case.
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Career Offender Who Led Authorities on a High-Speed Chase on I-95 Found Guilty of Firearm and Narcotic ChargesRead the Press Release
RALEIGH, N.C. – A federal jury convicted a Wilson-based United Blood Nation gang member on charges of possession of a firearm by a felon, possess with intent to distribute cocaine and cocaine base, and possession of a firearm in furtherance of drug trafficking.
“Vick recklessly led police on a high-speed chase on a busy interstate across multiple counties in Eastern North Carolina,” said U.S. Attorney Michael Easley. “He endangered the lives of law enforcement and other drivers in his efforts to elude capture and continue his criminal activity. Now, he is facing time in a federal prison.”
According to court records and evidence presented at trial, Nazeer Vick, 32, was found in possession of a firearm and marijuana during a traffic stop in Wilson after a K9 unit detected the odor of marijuana. Vick was arrested but quickly bonded out of custody. Nearly six months later, on October 7, 2020, Nash County deputies encountered a car being driven by Vick that was driving erratically on Interstate 95, weaving in and out of traffic and reaching speeds in excess of 130 miles per hour. Vick fled from Nash County, into Wilson County and then into Johnston County where he crashed on I-95 after colliding with a transfer truck. Vick then crawled out of a window of the mangled car with a black bookbag and fled on foot to a nearby motel. Vick was captured by hotel security cameras running around the hotel attempting to open hotel room doors. He threw the bookbag into a trashcan and then hid in an electrical closet where he was later found by law enforcement. Officers recovered the discarded bookbag which contained cocaine, cocaine base, marijuana, various pills, a digital scale, a loaded firearm, and documents associated with Vick. Vick is a validated member of the United Blood Nation street gang and has a lengthy criminal history including voluntary manslaughter, selling heroin, possession with intent to sell or deliver heroin, and possession of a firearm by a felon.
He will face a mandatory minimum of five years and up to life imprisonment when sentenced during the July 24, 2023, term of court.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after U.S. District Judge James C. Dever III accepted the verdict. The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Wilson Police Department, Nash County Sheriff’s Office, Johnston County Sheriff’s Office, Rocky Mount Police Department, and North Carolina State Bureau of Investigation (SBI). investigated the case and Assistant U.S. Attorneys Ashley Foxx and Robert Dodson prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:20-cr-00485-D.
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Canton Man Sentenced for Online Fraud Conspiracy and Obstruction of JusticeRead the Press Release
BOSTON – A Canton man was sentenced yesterday in federal court in Boston for his involvement in romance scams and other online fraud schemes targeting individuals in the United States.
Mark Arome Okuo, 43, was sentenced by District Court Judge Leo T. Sorokin to 55 months in prison and three years of supervised release. Okuo was also ordered to pay restitution of nearly $ 1.1 million. On Jan. 27, 2023, Okuo pleaded guilty to one count of conspiracy to commit wire fraud and bank fraud. Okuo was arrested and charged by criminal complaint in March 2021 and subsequently indicted by a federal grand jury in October 2021.
Okuo participated in a conspiracy involving romance scams and other online frauds designed to deceive victims into sending money to accounts he controlled. Criminals perpetrating romance scams create fictitious profiles on online dating or social media websites, gain the trust of potential victims and then direct those victims to transfer money under false pretenses. To further the conspiracy, Okuo used fake passports in the names of four aliases to open more than a dozen bank accounts in and around Boston to receive the proceeds of the romance scams.
Okuo received approximately $1.1 million of victims’ money in the bank accounts he controlled. He then executed large cash withdrawals from these accounts, generally structured in amounts less than $10,000, in an effort to evade detection. In text messages, Okuo called his victims “mugu,” which is a Nigerian slang word for “fools.”
As the court found at sentencing, Okuo obstructed justice after his arrest in several different ways, including by instructing a potential cooperating witness to lie to law enforcement agents.
United States Attorney Rachael S. Rollins and Michael J. Krol, Acting Special Agent in Charge of Homeland Security Investigations in New England, made the announcement today. Special assistance was provided by the Federal Bureau of Investigation, the United States Marshals Service, and the U.S. Postal Inspection Service. Assistant U.S. Attorney Ian J. Stearns of Rollins’ Securities, Financial & Cyber Fraud Unit prosecuted the case.
California Man Sentenced for Threatening Merriam-Webster with Anti-LGBTQ ViolenceRead the Press Release
BOSTON – A California man was sentenced yesterday in federal court in Springfield, Mass. for making threats to commit anti-LGBTQ violence against Springfield-based dictionary company Merriam-Webster, Inc. and others.
Jeremy David Hanson, 34, of Rossmoor, Calif., was sentenced by U.S. District Court Judge Mark G. Mastroianni to one year and one day in prison and three years of supervised release. In September 2022, Hanson pleaded guilty to one count of interstate communication of threatening communications to commit violence against the employees of Merriam-Webster, and to another count charging the same offense, initially filed in the Eastern District of Texas, targeting the President of the University of North Texas.
As part of his plea agreement, Hanson also admitted to sending threatening communications to various corporations, politicians, and others, including the Walt Disney Co., the Governor of California, the Mayor of New York City, a New York rabbi and professors at Loyola Marymount University. Many of these threatening communications specified the race, gender, gender identity and/or sexual orientation of various persons. Hanson persisted in his communications in spite of repeated interactions with law enforcement officers.
“Hate has no place in Massachusetts. Every person has a right to live their life authentically and without fear. I hope today’s sentence will demonstrate to members of the LGBTQ+ community that this office will hold those who engage in threatening, hateful acts accountable. Mr. Hanson made numerous, anonymous hate-fueled threats of violence to intimidate and instill fear. Hateful and bigoted acts, even if only spoken like those committed by Mr. Hanson, terrorize communities and are destructive to our society,” said United States Attorney Rachael S. Rollins. “Hate motivated acts of any kind will never be tolerated in our Commonwealth and perpetrators – including those who think they can hide behind a keyboard need to know we will find you and prosecute you. Members of the public are strongly encouraged to call the 1-83-END-H8-NOW (1-833-634-8669) line if they have information about concerning or troubling incidents of hate, potential hate crimes or threats.”
“Despite repeated interactions with law enforcement directing Jeremy Hanson to stop his hateful tirades threatening violence, he continued to make them. In doing so, his bias against the LGBTQ+ community instilled real fear and safety concerns, causing Merriam-Webster to close its offices in Springfield and New York City for almost five days,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Today’s sentence cannot undo the damage Hanson did, but it can provide some comfort in knowing that threats to life are not protected free speech but criminal acts, and the FBI and our partners will vigorously pursue those who commit them. If you are a victim or witness to similar conduct, we’d ask you to report it to us by calling 1-800-CALL-FBI or submitting a tip online at tips.fbi.gov.”
Between Oct. 2 and Oct. 8, 2021, Springfield-based Merriam-Webster, Inc. received various threatening messages and comments demonstrating bias against specific gender identities submitted through its website’s “Contact Us” page and in the comments section on its webpages that corresponded to the word entries for “Girl” and “Woman.” Authorities later identified the user as Hanson.
Specifically, on Oct. 2, 2021, Hanson used the handle “@anonYmous” to post the following comment on the dictionary’s website definition of “female.” “It is absolutely sickening that Merriam-Webster now tells blatant lies and promotes anti-science propaganda. There is no such thing as ‘gender identity.’ The imbecile who wrote this entry should be hunted down and shot.” That same day, Hanson also sent threatening messages via the website’s “Contact Us” page.
On Oct. 8, 2021, Hanson posted another threatening comment on the dictionary’s website and a threatening message via the “Contact Us” page that read: “I am going to shoot up and bomb your offices for lying and creating fake definitions in order to pander to the tranny mafia. Boys aren’t girls, and girls aren’t boys. The only good Marxist is a dead Marxist. I will assassinate your top editor. You sickening, vile tranny freaks.” As a result of the threats, Merriam-Webster temporarily closed its offices in Springfield, Mass. and New York City.
In addition, on March 3, 2022, Hanson sent a threatening email to the President of the University of North Texas. The title of the email read: “You ought to be shot in the head and have your offices set on fire for supporting child genital mutilation and transgenderism.” The body of the email read: “YOU LEFTIST FREAKS are the intolerant ones. Trannies are disgusting PERVERTS. Every single tranny freak should be gassed, along with their supporters. I will personally go to your university and start executing tyrannical leftist students and faculty who oppress conservatives. The only good Democrat is a dead Democrat.”
In August 2022, U.S. Attorney Rollins announced the creation of the “End Hate Now” hotline - 1-83-END-H8-NOW (1-833-634-8669) - for reporting hate-based incidents or potential criminal activity. Massachusetts residents and visitors are encouraged to call the hotline to report concerning or troubling incidents of hate, potential hate crimes, or concerns regarding individuals believed to be espousing the hate-filled views or actions we learn of far too often in the wake of mass shootings and/or acts of hate-based violent extremism. Callers are encouraged to leave their contact information but may remain anonymous. At this time, the hotline is available in English, Spanish, Cantonese and French.
U.S. Attorney Rollins and FBI SAC Bonavolonta made the announcement. Assistant U.S. Attorney Steven H. Breslow of Rollins’ Springfield Branch Office prosecuted the case.
Butler County man charged with distributing child porn via encrypted instant message applicationRead the Press Release
CINCINNATI – A criminal complaint charging David John Frahm, 62, of Trenton, Ohio, with distribution of child pornography alleges that he used an encrypted instant message application to pursue adults with access to minor children for the purposes of engaging in sexual acts and shared sexually explicit images of children.
Court documents allege that Frahm used the app to gain access to chat rooms where people discussed child sexual abuse and shared photos and videos depicting child sexual abuse material. During one of those visits, Frahm allegedly shared three images with an undercover Homeland Security investigator who was in the chat room.
Agents arrested Frahm on April 7. Frahm had his initial appearance before U.S. Magistrate Judge Karen L. Litkovitz on April 10 and was ordered to remain in custody pending trial. Frahm’s case was unsealed today.
Distribution of child pornography is punishable by a range of five years up to 20 years in prison.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Angie Salazar, Special Agent in Charge for Homeland Security Investigations (HSI) Detroit Field Office; and the Lebanon Police Department announced the charge and the arrest. 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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Businessman Charged in Fraud Scheme to Conceal $38M from the IRSRead the Press Release
A federal grand jury in Salt Lake City returned an indictment, unsealed today, charging a California businessman with conspiracy to defraud the IRS, conspiracy to commit money laundering, and money laundering.
According to the indictment, from 2013 to 2020, Grigor Termendjian of Los Angeles conspired to defraud the IRS by concealing $38 million of taxable fraud proceeds, which he and others laundered through international and domestic bank accounts. The funds involved in the money laundering transactions were allegedly proceeds from a scheme orchestrated in Utah by Termendjian’s brother, Levon Termendzhyan, aka Lev Aslan Dermen; Jacob Kingston; and others.
Termendjian allegedly sought with his co-conspirators to disguise control of the $38 million by engaging in financial transactions that had no legitimate business purpose. The indictment charges that they created bogus loan agreements, falsely characterized the transfer of fraud proceeds as share purchases or investments and used shell accounts to conceal and disguise the nature, location, source, ownership, and control of the money. Some of the transactions allegedly involved withdrawing funds to purchase cashier’s checks. On one occasion, Termendjian allegedly withdrew over $41 million to purchase two cashier’s checks that he held for several months outside of the U.S. financial system.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Trina A. Higgins for the District of Utah made the announcement.
IRS Criminal Investigation and the Environmental Protection Agency Criminal Investigation Division are investigating the case.
Senior Litigation Counsel John E. Sullivan and Trial Attorneys Richard M. Rolwing and Erika V. Suhr of the Justice Department’s Tax Division are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Brothers Charged for Stealing Millions of Dollars in COVID-19 Relief FundsRead the Press Release
An indictment was unsealed today charging two Florida men for fraudulently obtaining millions of dollars in COVID-19 pandemic relief loans and advances from the Small Business Administration (SBA) through the Economic Injury Disaster Loan (EIDL) program.
According to court documents, from March 2020 through December 2021, Carl Charles, 43, of Miramar, and his brother, Patrick Charles, 41, of Lake Worth, together with their accomplices, submitted applications to the SBA for nearly $5 million in EIDL loans, making false statements regarding the businesses’ revenues, creation dates, and number of employees. As a result of the false and fraudulent applications, the SBA disbursed over $2.5 million in loan proceeds and advances to the defendants and others.
Carl Charles is charged with four counts of wire fraud and Patrick Charles is charged with three counts of wire fraud. If convicted, they face a maximum penalty of 20 years in prison on each count.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Jeffrey B. Veltri of the FBI Miami Field Office, Special Agent in Charge Mark H. Morini Jr. of the U.S. Treasury Inspector General for Tax Administration (TIGTA) Southern Field Division, and Special Agent in Charge Amaleka McCall-Brathwaite of the U.S. Small Business Administration Office of the Inspector General (SBA-OIG) Investigations Division’s Eastern Region made the announcement.
The FBI, TIGTA, and SBA-OIG are investigating the case.
Trial Attorneys Ariel Glasner and Samad Pardesi of the Criminal Division’s Fraud Section and Assistant U.S. Attorney David Snider for the Southern District of Florida are prosecuting the case.
In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit 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 via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Bowling Green Bank Robber Sentenced to 7-Plus Years in Federal PrisonRead the Press Release
Bowling Green, KY – A Bowling Green man was sentenced yesterday to 87 months in prison followed by a 3-year term of supervised release for committing three bank robberies in the Bowling Green area.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge Jodi Cohen of the FBI Louisville Field Office, and Chief Michael Delaney of the Bowling Green Police Department made the announcement.
According to court documents, Manuel G. Quiros, 60, committed three bank robberies in 2021. Quiros used a fake bomb during one robbery, brandished a handgun during another robbery, and threatened to use a gun during the third robbery. No one was injured during the robberies.
In addition to the 87-month prison sentence, the Court ordered Quiros to pay $88,810 in restitution to the banks. There is no parole in the federal system.
The case was investigated by the FBI’s Bowling Green Resident Agency and the Bowling Green Police Department.
Assistant U.S. Attorney Mark J. Yurchisin II, of the U.S. Attorney’s Bowling Green Branch Office, prosecuted the case.
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Andrew Stephen Couch Sentencing to 60 Years for Production of Child PornographyRead the Press Release
KNOXVILLE, Tenn. – On April 13, 2023, Andrew Stephen Couch, 37, currently of Knoxville, Tennessee, was sentenced to 720 months’ imprisonment by the Honorable Katherine A. Crytzer, in the United States District Court for the Eastern District of Tennessee at Knoxville.
As part of the plea agreement filed with the court, Couch agreed to plead guilty to an indictment charging him with two counts of production of child pornography in violation of 18 U.S.C. § 2251(a). After his release from imprisonment, he will be on lifetime supervised release. Couch will be required to register with state sex offender registries and comply with special sex offender conditions during his supervised release.
According to the filed plea agreement, in December 2019, after receiving a report that Couch was distributing child pornography, a search warrant was conducted at Couch’s home. Couch’s cellular phone was seized and forensically examined. Located on the cellular phone were multiple videos of child pornography produced by Couch wherein he was engaged in sexually explicit acts with a four-and-a-half-year-old female who was visiting Couch’s home. Also on the cellular phone were thousands of other images and videos of child pornography of unidentified children.
The criminal indictment was the result of an investigation by the Knoxville Police Department, Internet Crimes Against Children Unit and the U.S. Department of Homeland Security, Homeland Security Investigations.
Assistant United States Attorney Jennifer Kolman represented the United States.
This case was brought as part of Project Safe Childhood (PSC), 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, PSC 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 PSC, please visit www.justice.gov/psc.
For more information about internet safety education, please visit www.justice.gov/psc/resources.html and click on the tab "resources.”
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Air National Guardsman Charged in Murder-For-Hire SchemeRead the Press Release
NASHVILLE – A Hermitage, Tennessee, man is facing federal charges after meeting with an undercover FBI agent to culminate a deal to murder an individual for payment, announced U.S. Attorney Henry C. Leventis.
Josiah Ernesto Garcia, 21, was charged yesterday in a criminal complaint with the use of interstate facilities in the commission of murder-for-hire.
According to the complaint, Garcia needed money to support his family and in mid-February began searching online for contract mercenary jobs and came across the website www.rentahitman.com. Originally created in 2005 to advertise a cyber security startup company, the company failed and over the next decade it received many inquiries about murder-for-hire services. The website’s administrator then converted the website to a parody site that contains false testimonials from those who have purported to use hit man services, and an intake form where people can request services. The website also has an option for someone to apply to work as a hired killer.
Garcia submitted an employment inquiry indicating that he was interested in obtaining employment as a hit man. Garcia followed up on this initial request and submitted other identification documents and a resume, indicating he was an expert marksman and employed in the Air National Guard since July 2021. The resume also indicated that Garcia was nicknamed “Reaper” which was earned from military experience and marksmanship. Garcia continued to follow up with the website administrator indicating that he wanted to go to work as soon as possible.
An FBI undercover agent then began communicating with Garcia who subsequently agreed to kill an individual for $5,000. On Wednesday, Garcia met the undercover agent at a park in Hendersonville, Tennessee, and was provided with a target packet of a fictional individual, which included photographs and other information about the individual to be killed, and a down payment of $2,500. After agreeing to the terms of the murder arrangement, Garcia asked the agent if he needed to provide a photograph of the dead body. Garcia was then arrested by FBI agents, who in a subsequent search of his home, recovered an AR style rifle.
If convicted, Garcia faces up to 10 years in prison.
This case is being investigated by the FBI. Assistant U.S. Attorney Brooke K. Schiferle is prosecuting the case.
The charge is merely an accusation. The defendant is presumed innocent until proven guilty in a court of law.
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2 Central Ohio men charged with armed robbery of mail carrierRead the Press Release
COLUMBUS, Ohio – Two local men were arrested by federal agents on allegations they robbed a mail carrier at gunpoint 10 days ago.
Mahad S. Jama, 21, of Westerville, and Da’mon D. May, 18, of Columbus, appeared in federal court today at 1:30pm before U.S. Magistrate Judge Kimberly A. Jolson.
According to the criminal complaints, on April 4 at 3:20pm, Jama and May robbed at gunpoint a USPS letter carrier who was sitting in his work vehicle on Sawmill Road in Dublin.
“We continue to investigate a network of individuals involved in robbing or stealing U.S. Postal Service keys for the purposes of accessing mail collection boxes to steal checks,” said U.S. Attorney Kenneth L. Parker. “As today’s charges show, our law enforcement agencies will work swiftly to identify those allegedly involved in this brazen conduct. We will not tolerate violence in any form, including against Postal workers who are simply trying to fulfill such an important role in serving the community.”
Jama allegedly approached the USPS vehicle, brandished a handgun that May provided him, and demanded the carrier’s U.S. Postal Service key.
Postal Inspectors executed searches at Jama’s and May’s residences yesterday. May was in possession of a firearm and the USPS key. Jama was found to have checks in names other than his own both on his person and in his home.
Aggravated robbery of a Postal employee is a federal crime punishable by up to 25 years in prison.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; and Lesley C. Allison, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Pittsburgh Division; announced the charges. Assistant United States Attorney Noah R. Litton 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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13 April 2023
Wyoming felon sentenced to prison for possessing unregistered sawed-off shotgunRead the Press Release
BILLINGS — A Wyoming man who admitted to possessing an unregistered sawed-off shotgun after an attempted traffic stop and chase on the Northern Cheyenne Indian Reservation was sentenced today to two and one-half years in prison, to be followed by three years of supervised release, U.S. Attorney Jesse Laslovich said.
Tyler Dale Medicine Horse, 38, of Gillette, Wyoming, pleaded guilty in December 2022 to felon in possession of a firearm and possession of an unregistered firearm.
U.S. District Judge Susan P. Watters presided.
The government alleged in court documents that in November 2021, Bureau of Indian Affairs officers attempted a traffic stop of a van driven by Medicine Horse because of reports that the van was speeding toward Lame Deer, on the Northern Cheyenne Indian Reservation. A BIA officer attempted to stop the van, which was speeding and swerving, but Medicine Horse fled. After a brief chase, Medicine Horse crashed. A blood draw determined that Medicine Horse had alcohol and methamphetamine in his blood. During a search of the van, officers recovered a sawed-off shotgun, with a barrel length of 6.5 inches and an overall length of 18 inches. Medicine Horse also was prohibited from possessing firearms because of a previous federal felony conviction for sexual abuse of a minor.
Assistant U.S. Attorney Lori Harper Suek prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and BIA.
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Westport Investment Advisor Sentenced to Prison for Tax OffenseRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that THOMAS PACILIO, 64, of Westport, was sentenced today by U.S. District Judge Sarala V. Nagala in Hartford to six months of imprisonment, followed by one year of supervised release, for a federal tax offense. Judge Nagala also ordered Pacilio to pay a $50,000 fine.
According to court documents and statements made in court, in 2011, Pacilio and his partner started Clapboard Hill Advisors LLC, a financial services business headquartered in Westport. In 2013, Pacilio created Alcamo Holding Corporation Inc. (“Alcamo”), an 1120S corporation, and transferred his Clapboard Hill Advisors partnership interest to Alcamo. In 2014, Pacilio, through Alcamo, and his partner, through a separate 1120S corporation, sold Clapboard Hill Advisors to McGladrey Wealth Management LLC (“McGladrey”). Under the sale agreement, McGladrey agreed to make a lump sum payment at closing. Thereafter, Pacilio was to become an employee of McGladrey for three years subject to a non-competition provision. In addition to being paid a salary by McGladrey, if Pacilio remained an employee, Pacilio would receive a $350,000 payment on each anniversary of the sale for three years. He would also receive a portion of McGladrey’s annual gross revenue of up to $150,000 for the first year, $350,000 for the second year, and $450,000 for the third year.
On January 5, 2023, Pacilio pleaded guilty to one count of filing a false tax return and admitted that, for the 2015 through 2018 tax years, he filed individual income tax returns that omitted installment payments related to the sale of Clapboard Hill Advisors to McGladrey. In total, he omitted approximately $1,476,425 that should have been reported either as ordinary income or as capital gains, which resulted in a tax loss of $286,328 to the IRS.
Pacilio has paid the taxes he owed.
Pacilio who is released on a $350,000 bond, is required to report to prison on June 12.
This investigation was conducted by the Internal Revenue Service, Criminal Investigation Division. The case was prosecuted by Assistant U.S. Attorney Heather L. Cherry.
Waterloo Opioid Dealer Sent Back to Federal Prison for Twenty YearsRead the Press Release
A Waterloo man that distributed fentanyl and heroin was sentenced April 12, 2023, to twenty years in federal prison.
Damien L. Cobbins, age 43, from Waterloo, Iowa, received the prison term after a November 30, 2022 guilty plea to one count of possession with intent to distribute a controlled substance after a prior conviction for a serious drug felony.
In a plea agreement, Cobbins admitted that on May 10, 2022, and May 17, 2022, he distributed fentanyl to another person in Waterloo. On May 19, 2022, law enforcement stopped Cobbins’s vehicle, and they recovered over $2,200 from Cobbins, which Cobbins admitted were proceeds from the sale of fentanyl and heroin. Cobbins continued to distribute fentanyl and heroin. On August 18, 2022, law enforcement again stopped Cobbins’s vehicle, and they recovered over $2,700, which Cobbins admitted were proceeds from the sale of fentanyl and heroin. Cobbins was arrested and, during a search at the Waterloo Police Department, officers seized over 60 grams of a fentanyl, heroin, and metonitazene mixture from Cobbins’s person.
Information disclosed at sentencing showed that Cobbins had four previous convictions for distributing controlled substances, including a prior federal conviction in the United States District Court for the Western District of Wisconsin.
Cobbins was sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand. Cobbins was sentenced to 240 months’ imprisonment, and he must also serve an eight‑year term of supervised release after the prison term. There is no parole in the federal system.
Cobbins is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Dillan Edwards and investigated by the Tri-County Drug Enforcement Task Force consisting of the Waterloo Police Department, Cedar Falls Police Department, Black Hawk County Sheriff’s Department, Evansdale Police Department, Waverly Police Department, Hudson Police Department, La Porte City Police Department, and the Bremer County Sheriff’s Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-02048-LTS.
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Walter Pierluisi Isern, Eduardo Pierluisi Isern, and American Management and Administration Corporation Pleaded Guilty to Federal Program Theft in Excess of $3.7 Million and Agreed to a Restitution Order for All Illegal ProceedsRead the Press Release
SAN JUAN, Puerto Rico –Walter Pierluisi Isern, Eduardo Pierluisi Isern, and American Management and Administration Corporation (AMAC) pleaded guilty today to one count of Theft of Federal Program Funds in relation to the misappropriation of operational funds provided by the United States Department of Housing and Urban Development (HUD) for the administration of public housing projects (PHPs) in Puerto Rico.
According to court documents, the defendants admitted to knowingly and intentionally stealing money from HUD federal assistance programs from 2014 to August 2022 for their own use and the use of others. The total amount of theft was approximately $3,712,000.00.
Given its fiduciary responsibility to manage millions in HUD funds and to operate over 5,000 housing units in 12 municipalities, AMAC was specifically prohibited from contracting with any company affiliated to AMAC or its officers. Walter Pierluisi Isern was the president and Eduardo Pierluisi Isern supervised the repair and maintenance work at the PHPs for AMAC during the duration of the fraudulent scheme.
The defendants admitted in their plea agreements that despite AMAC’s fiduciary obligations, Walter Pierluisi Isern and Eduardo Pierluisi Isern used their executive positions within AMAC to operate a fraudulent schemed designed to circumvent that prohibition. In furtherance of that scheme, they illegally caused operational funds from the federal assistance programs to be routed via corporations and subcontractors that they controlled, all to personally enrich themselves. The defendants further admitted that they caused AMCA to submit false certifications to HUD assuring that no conflict of interest existed between AMAC and the companies hired to provide operational services in violation of federal law.
As detailed in the proceedings, Walter Pierluisi Isern created contracts for FiveStar Pest Control, Inc. (FiveStar) and CoolBreeze Air Conditioning, Inc. (CoolBreeze) to provide services to PHPs under AMAC’s management. He then caused multiple payments to be made by FiveStar and CoolBreeze to funnel money to Docu‑Wharehouse, Pier Property, and XY Enterprises, subcontractors which were controlled and owned by Walter Pierluisi Isern. Through this scheme, Walter Pierluisi Isern illegally obtained approximately $2,035,498.86 in HUD funding that was earmarked for PHP operational expenses.
The admissions included the recognition that Eduardo Pierluisi Isern caused checks from FiveStar and CoolBreez to be issued to the names of others, which he then cashed and deposited into his personal bank account for his personal use and benefit. Through this scheme, Eduardo Pierluisi Isern illegally obtained approximately $363,202.28 in HUD funding that was earmarked for PHP operational expenses.
AMAC, through its executives and officials, admitted to illegally diverting a total of $3,712,000 in HUD funding that was earmarked for PHP operational expenses.
The defendants have agreed to the entry of a restitution order in the favor of the United States in the amount of $3,712,000, equivalent to the amount of federal funds illegally obtained through the fraudulent scheme. The agreement to this restitution award is in addition to an agreement that the United States may also recommend a term of imprisonment as punishment for these crimes for Walter Pierluisi Isern and Eduardo Pierluisi Isern, which term of imprisonment shall be decided by the presiding judge at sentencing.
“As today’s convictions demonstrate, those who attempt to defraud the U.S. government will be held accountable,” said W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. “The defendants and their company harmed the integrity of a program designed to help underprivileged homeowners. Today’s plea agreement sends a clear message that any time U.S. dollars are misused and regardless of who steals taxpayer moneys, we will work tirelessly to pursue justice.”
“HUD programs are vital to the well-being of many low-income families in our communities and provide critical resources for those who need them the most,” said HUD OIG Special Agent in Charge, Jerome Winkle. “HUD OIG is committed to working with Federal prosecutors and law enforcement partners to aggressively pursue those who engage in activities that threaten the integrity of HUD programs.”
“Our call to action remains the same and we will investigate every allegation of public corruption to its last consequences,” said Special Agent in Charge of the FBI for Puerto Rico and the USVI, Joseph González. “I want to make clear we are not on any political side. The FBI is on the American people’s side and on the Constitution’s side. We will continue to work these cases, as we always have.”
The defendants are scheduled to be sentenced on July 11 and face a maximum sentence of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The United States Department of Housing and Urban Development Office of Inspector General investigated this case with the assistance of the Federal Bureau of Investigation.
Assistant U.S. Attorney Marie Christine Amy is prosecuting the case.
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Utah Gymnastics Coach Arrested on Child Exploitation ChargesRead the Press Release
Salt Lake City, Utah – A federal grand jury in Salt Lake City returned an indictment yesterday charging a Utah gymnastics coach and owner of USA Gymnastics World with child exploitation offenses.
According to the complaint, agents with Homeland Security Investigations arrested Adam Richard Jacobs, 33, of Woods Cross, Utah, last week. As stated in the court documents, an employee twice found a device in a unisex restroom at USA Gymnastics World. The employee discovered the device was a hidden camera with a micro-SD card and contacted police. A subsequent law enforcement investigation recovered approximately 120 video files of individuals ranging in age from toddler to adult using the restroom at USA Gymnastics World, and videos depicting the lascivious display of children’s genitalia. Additionally, approximately 40 videos show Jacobs setting up the cameras in his home and at USA Gymnastics World. Due to the volume of evidence, the investigation is ongoing.
Jacobs is charged by indictment with transportation of a minor with intent to engage in criminal sexual activity, production of child pornography, and possession of child pornography. The defendant is scheduled for his initial court appearance April 14, 2023, at 9:00 a.m. in courtroom 8.4 before a U.S. Magistrate Judge at the Orrin G. Hatch United States District Courthouse in Salt Lake City, Utah.
U.S. Attorney, Trina A. Higgins, of the District of Utah made the announcement.
The case is being investigated by Homeland Security Investigations (HSI) with assistance from Woods Cross Police Department, the Utah Attorney General’s Office Internet Crimes Against Children Task Force, Kaysville Police Department, Clearfield Police Department, the United States Secret Service, and the Davis County Attorney’s Office.Special Assistant U.S. Attorney, Carl Hollan and Assistant U.S. Attorney, Carol A. Dain, of the District of Utah prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and 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.
United States Attorney expands civil rights efforts in 2023Read the Press Release
WHEELING, WEST VIRGINIA – Civil rights enforcement and education will be expanded in West Virginia in 2023, to include proactive efforts to ensure that people with disabilities have a full and equal opportunity to vote.
United States Attorney William Ihlenfeld announced that his office has developed a formal plan pursuant to the Americans with Disabilities Act (ADA) to ensure that public entities don’t discriminate against voters based upon disability. The ADA applies to all aspects of voting, to include registration, site selection, and the casting of ballots, whether on Election Day or during early voting.
“Voting is a hallmark of our democracy, and we want to make sure that no one is denied this fundamental right due to a disability,” said U.S. Attorney Ihlenfeld.
Ihlenfeld also announced that his office will host four community events this year to raise awareness about federal civil rights, with a special focus on the ADA, the Fair Housing Act, hate crimes, and environmental justice. These educational sessions will be held in Hancock, Ohio, Hampshire, and Harrison counties, with the first event scheduled for April 20, 2023, at 9 a.m. at the Millsop Community Center in Weirton.
Assistant U.S. Attorney Carly Nogay is the District’s Civil Rights Coordinator and is leading the community outreach efforts. Assistant U.S. Attorneys Chris Prezioso, Jarod Douglas, and Max Nogay are also assisting with the initiative.
To learn more about the district’s civil rights work, or to report a civil rights violation, go to https://www.justice.gov/usao-ndwv/civil-rights-program.
Two Former LASD Deputies Charged with Violating the Civil Rights of 23-Year-Old Skateboarder Who Was Falsely ImprisonedRead the Press Release
LOS ANGELES – Two former Los Angeles County Sheriff’s Department deputies are scheduled to be arraigned this afternoon on federal charges alleging they violated the civil rights of a young man at a skatepark by falsely imprisoning him and then obstructing justice to cover up the illegal detention.
Miguel Angel Vega, 32, and Christopher Blair Hernandez, 37, both of whom were deputies assigned to LASD’s Compton Station, surrendered this morning to federal authorities after being named in a five-count indictment returned by a federal grand jury on March 21.
That indictment, which was unsealed this morning, charges both defendants with conspiracy, deprivation of rights under color of law, witness tampering, and falsification of records. Vega alone is charged with an additional count of falsification of records.
According to the indictment, Vega and Hernandez were on patrol on April 13, 2020, when they unlawfully detained and falsely imprisoned the then-23-year-old victim in the back of their patrol vehicle. The victim remained confined in the back of the vehicle during a subsequent chase, which ended when Vega crashed, injuring the victim. The indictment further alleges that the defendants obstructed justice in multiple ways to conceal and cover up their unlawful detention and false imprisonment of the victim.
“The indictment alleges that these two deputies violated a young person’s constitutional rights by willfully and illegally detaining him without just cause,” said United States Attorney Martin Estrada. “Officers who abuse their power must be held accountable, and my Office is committed to prosecuting violations of civil rights by those who violate their oaths and victimize those who they were sworn to protect.”
“Officers of the law are sworn to protect the communities they serve, not to create crimes and victimize residents,” said Donald Alway, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “The civil rights violations alleged in the indictment – including false imprisonment, falsification of records and witness tampering – corrode trust in law enforcement and undermine efforts by the vast majority of law enforcement professionals who serve their communities honorably.”
The incident started at Wilson Park in Compton, where the victim – identified in court documents as “J.A.” – was in an enclosed skatepark when the deputies arrived and contacted two young African-American males outside the skatepark. After J.A. yelled at the deputies to stop bothering the young males, one or both defendants pulled J.A. through an opening in the skatepark fence and confined J.A. in the back of the patrol vehicle, according to the indictment.
“Vega and Hernandez did not handcuff J.A., did not secure J.A.’s seatbelt, did not tell J.A. that J.A. was under arrest, and did not inform J.A. of J.A.’s rights at any time,” the indictment alleges.
According to the indictment, after leaving the park, Vega, who was driving the LASD patrol vehicle with Hernandez in the front passenger seat and J.A. confined in the backseat, allegedly told J.A. that the deputies were going to set up J.A. and drop J.A. in gang territory, and Hernandez added that J.A. would be beaten.
Not far from the skatepark and while J.A. was still confined in the back of the patrol vehicle, Vega began pursuing a young male on a bicycle down an alley, where Vega crashed into a wall and another vehicle, causing J.A. to sustain a cut above his right eye. Following the collision, Vega removed J.A. from the patrol vehicle and told him to “get the [expletive] out of here,” or words to that effect, according to the indictment. J.A. then walked to a nearby residence that was unknown to J.A. to seek assistance.
According to the indictment, after the traffic collision, Vega reported over LASD radio that a person purportedly with a gun, whom Vega described as wearing clothes similar to J.A.’s clothing that day, had fled through the alley near 130th Street and Mona Boulevard. The indictment alleges that, even though Vega also reported the traffic collision, neither Vega during the radio calls, nor Vega or Hernandez during a subsequent conversation with their supervisor, disclosed that J.A. had been in the patrol vehicle during the collision in the alley.
It was only after J.A. had been independently detained on a neighboring street by other LASD deputies as the purported gun suspect that Vega informed his supervising sergeant that J.A. had been in Vega’s LASD patrol vehicle during the crash, falsely reporting to his supervisor that J.A. had been detained because he was suspected of being under the influence of a controlled substance, according to the indictment.
J.A. was transported to the hospital to receive treatment for the injury he sustained from the collision, and the indictment alleges that Hernandez directed a deputy at the hospital to issue J.A. a citation for being under the influence of methamphetamine.
The allegations stemming from the April 13, 2020 incident form the basis of the conspiracy, deprivation of civil rights, and witness tampering charges in the indictment. The falsification of records charges pertain to two incident reports prepared and filed with LASD in mid-April 2020.
The first report, which Vega prepared with Hernandez’s assistance, allegedly falsely stated that J.A. exhibited symptoms of a person under the influence of a stimulant; that J.A. had threatened to harm people in the skatepark, as well as Vega and Hernandez; that a crowd of people were moving toward the LASD patrol vehicle as the defendants drove away after unlawfully detaining J.A; and that, following the crash in the alley, Vega checked J.A. for injuries and J.A. was placed in another patrol vehicle of an assisting LASD unit until paramedics arrived.
Vega prepared a second report, according to the indictment, in which he falsely claimed to have transferred J.A. to the second patrol vehicle.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
The conspiracy count alleged in the indictment carries a statutory maximum penalty of five years in federal prison, while the civil rights offense carries a maximum sentence of 10 years. The offenses of witness tampering and falsification of records each carry a statutory maximum sentence of 20 years.
The FBI is conducting the investigation into this matter. The LASD’s Internal Criminal Investigations Bureau and Internal Affairs Bureau provided substantial assistance.
Assistant United States Attorneys J. Jamari Buxton and Brian R. Faerstein of the Public Corruption and Civil Rights Section are prosecuting this case.
Two Foreign Nationals Suspected of Being Part of a Large Drug Trafficking Organization Supplying Drugs Throughout Utah Have Been Arrested and ChargedRead the Press Release
Salt Lake City, Utah – A federal grand jury in Utah returned an indictment Wednesday charging two foreign nationals with possession and distribution of narcotics, including cocaine and heroin.
According to the complaint and law enforcement affidavit, on March 30, 2023, Gildardo Ramirez Garcia, 40, and Luis Felipe Felix-Campos, 31, were served a search warrant at each of their residences in Salt Lake County, Utah. The Wasatch Metro Drug Task Force (WMDTF) consisting of the FBI and Davis Metro Narcotic Strike Force (DMNSF), is conducting a criminal investigation into Garcia and Felix-Campos, and other co-conspirators of a drug trafficking organization believed to be facilitating the distribution of large quantities of narcotics throughout Utah. As a result of the investigation, heroin and cocaine were recovered. Felix-Campos later admitted the cocaine in his residence belonged to him.
In the indictment, Garcia is charged with possession of heroin with the intent to distribute and possession of cocaine with the intent to distribute. Felix-Campos is charged with possession of cocaine with intent to distribute and reentry of a previously removed alien. The defendants are scheduled for their initial court appearance April 13, 2023, in courtroom 8.4 before a U.S. Magistrate Judge at the Orrin G. Hatch United States District Courthouse in Salt Lake City, Utah. Felix-Campos is scheduled for 2:30 p.m. and Garcia is scheduled for 3:00 p.m.
U.S. Attorney Trina A. Higgins for the District of Utah made the announcement.
The case is being investigated by the FBI Wasatch Metro Drug Task Force.
Assistant U.S. Attorney, Stephen L. Nelson, of the District of Utah is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Tompkins County Man Sentenced to 84 Months in Prison for Receipt and Distribution of Child PornographyRead the Press Release
SYRACUSE, NEW YORK – Timothy Buckley, age 55, of Groton, New York, was sentenced today to serve 84 months in federal prison for receiving and distributing child pornography announced 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).
As part of his previously entered guilty plea, Buckley admitted that in January of 2021, he received child pornography from another user on a social networking application. Buckley also admitted that in August of 2021, he distributed images of child pornography to an undercover law enforcement officer via the same social networking application.
United States District Judge David N. Hurd also sentenced Buckley to 15 years of supervised release, to begin following his term of imprisonment. Buckley will also be required to register as a sex offender upon his release from prison.
This case was investigated by the FBI Mid-State Child Exploitation Task Force, comprised of FBI Special Agents and Investigators of the New York State Police, Bureau of Criminal Investigation (BCI). The case was prosecuted by Assistant U.S. Attorney Adrian LaRochelle as a 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.
Three Romanians Plead Guilty in St. Louis; Admit Nationwide FraudRead the Press Release
ST. LOUIS – Three Romanian citizens have pleaded guilty to federal charges in St. Louis and admitted running a “short-change fraud” in stores across the country.
Loredana Angel, 34, pleaded guilty in U.S. District Court Thursday to felony charges of conspiracy to commit wire fraud and illegal reentry of an alien. Daniel Rostas, 30, pleaded guilty Wednesday and Legenda Rostas, 28, pleaded guilty March 1 to the same charges. Loredana Angel and Legenda Rostas told authorities that they are sisters and that the Rostas are married.
All three admitted engaging in sleight of hand to defraud Target stores since 2017 while buying various denominations of Visa gift cards. When purchasing the cards, they would display the full purchase price in cash, then fold over a portion and keep it while handing the rest to store employees. They would target younger or less experienced employees and wire the money they made to family in Romania.
Target records show Legenda Rostas was involved in $224,666 in fraud at stores throughout the country, her plea agreement says. Angel admitted involvement in about $83,865 in fraud. Records show Daniel Rostas wired about $62,534 to Romania and elsewhere.
All three also admitted entering the country illegally. Angel was removed from the United States on June 24, 2019. Daniel Rostas was removed twice, on Nov. 13, 2019 and Oct. 14, 2020. Legenda Rostas was removed on Dec. 28, 2020.
Arnold, Missouri police were initially alerted to Daniel Rostas on Oct. 14, 2022 by a Home Depot loss prevention officer. Officers later questioned Angel and Legenda Rostas. All three gave fake names and false identification to police. They were traveling with multiple license plates in their minivan, and police also found cash, gift cards and Western Union receipts. All three agreed as part of their plea to forfeit the 2017 Chrysler Pacifica, $10,567 in cash and $11,300 in prepaid Visa gift cards.
Legenda Rostas is scheduled to be sentenced May 31 and the co-defendants on July 24. The conspiracy charge carries a potential penalty of up to 20 years in prison. The reentry charge carries a maximum penalty of two years in prison.
The case was investigated by the Arnold Police Department and Homeland Security Investigations.
Three Nigerian Nationals Facing Federal Charges Related to a Fraud Scheme with Losses of More Than $6 MillionRead the Press Release
Greenbelt, Maryland – The first of three defendants, Kosi Goodness Simon-Ebo, age 29, has been extradited from Canada to the United States to face a federal indictment, and is scheduled to have his initial appearance on Friday, April 14, 2023, at 3:30 p.m. in U.S. District Court in Greenbelt before U.S. Magistrate Judge Amjel Quereshi. A federal grand jury returned an indictment charging Simon-Ebo, James Junior Aliyu, a/k/a “Old Soldier,” and “Ghost,” age 28 and Henry Onyedikachi Echefu, age 31, all Nigerian citizens residing in South Africa, with conspiracy to commit wire fraud and money laundering and for wire fraud and money laundering charges related to a business email compromise (“BEC”) scheme with losses of more than $6 million. The indictment was returned on June 24, 2019, and unsealed on July 6, 2022, upon the defendants’ arrests outside the United States.
The indictment was announced by Erek L. Barron, United States Attorney for the District of Maryland; Special Agent in Charge James C. Harris of Homeland Security Investigations (HSI) Baltimore; and Special Agent in Charge Matthew R. Stohler of the U.S. Secret Service - Washington Field Office.
According to the seven-count indictment, from February 2016 until at least July 2017, the defendants conspired with others to perpetrate a BEC scheme. Specifically, the indictment alleges that the defendants and their co-conspirators, including co-conspirators residing in Maryland, gained unauthorized access to email accounts associated with individuals and businesses targeted by the conspirators. The co-conspirators then allegedly sent false wiring instructions to the victims’ email accounts from “spoofed” emails, which are emails with forged sender addresses, to deceive the victims into sending money to bank accounts controlled by perpetrators of the scheme, called “drop accounts.”
The indictment also alleges that the defendants conspired to commit money laundering by disbursing the fraudulently obtained funds in the drop accounts to other accounts by initiating account transfers, withdrawing cash, obtaining cashier’s checks and by writing checks to other individuals and entities, to hide the true ownership and the source of those assets. For example, defendant Aliyu is alleged to have made a $350,000 wire transfer from one of the drop accounts in Maryland to an account he controlled in South Africa, knowing that the funds were the proceeds of a crime and that the transaction was designed to conceal the nature, source and ownership of those funds. Finally, the defendants are charged with wire fraud, related to the BEC scheme. Specifically, Simon-Ebo is charged in three wire fraud counts involving $6,343,533.10 in victim funds being wired to accounts controlled by conspirators.
If convicted, the defendants each face a maximum sentence of 20 years in federal prison for the wire fraud conspiracy, for the money laundering conspiracy, and for each count of wire fraud. If convicted, Aliyu also faces a maximum of 20 years in federal prison for money laundering. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Erek L. Barron commended HSI’s Mid-Atlantic El Dorado Task Force and the U.S. Secret Service for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Kelly O. Hayes, who is prosecuting the federal 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 and https://www.justice.gov/usao-md/community-outreach.
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Three Members of Caribbean Arms Trafficking Ring Plead GuiltyRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that Tevin OBrian Oliver (30, Homestead), Jameal Kaia Phillip (30, Trinidad and Tobago), and Edward Soloman King III (31, Tampa) have pleaded guilty to federal charges. Oliver and Phillip pleaded to conspiracy to smuggle goods from the United States, and King pleaded guilty to disposing of a firearm to an alien who had been admitted to the United States under a nonimmigrant visa. Oliver and Phillip each face a maximum penalty of 5 years in federal prison. King faces a maximum penalty of 15 years in federal prison. The defendants also agreed to forfeit various firearms, ammunition, and related items, which facilitated the offenses.
According to the plea agreements, Oliver, Phillip, and King were part of a ring that unlawfully exported firearms, firearms components (including upper/lower receivers and gun parts kits), and related items from Florida to Trinidad and Tobago between 2019 and 2022. Oliver and Phillip are both nationals of Trinidad. The firearms, which included pistols and long rifles, and related equipment were concealed within boxing/fight equipment, speakers, and other household items to avoid detection by law enforcement and customs authorities. King helped Phillip and Oliver acquire and transfer firearms in the Tampa area. Conspirators also acquired firearms from different sellers through straw purchases, falsely representing the identities of the actual purchasers and recipients of the firearms, as well as their ultimate destination.
On or about April 7, 2021, Oliver shipped a package concealing and containing various firearms and related equipment, including a Taurus G2C 9mm pistol, a SAR Arms SAR-9 9mm pistol, a Taurus G3 9mm pistol, and a Ruger Security-9 9mm pistol, from Miami to Trinidad and Tobago. Authorities in Trinidad seized those firearms and other related items at Piarco International Airport on or about April 22, 2021.
This case was investigated by Homeland Security Investigations (HSI), including HSI’s Attaché (Caribbean), and the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the Trinidad and Tobago Ministry of National Security (Transnational Organized Crime Unit) and Trinidad and Tobago Police Service (Special Investigations Unit), U.S. Citizenship and Immigration Services, the Florida Department of Law Enforcement, U.S. Customs and Border Protection and the Justice Department’s Office of International Affairs. It is being prosecuted by Assistant United States Attorney Patrick Scruggs.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. 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.
Statement from Attorney General Merrick B. Garland on Alliance for Hippocratic Medicine v. FDA Appeals DecisionRead the Press Release
The Justice Department today issued the following statement from Attorney General Merrick B. Garland following the Fifth Circuit Court of Appeals’ decision in Alliance for Hippocratic Medicine v. FDA:
“The Justice Department strongly disagrees with the Fifth Circuit’s decision in Alliance for Hippocratic Medicine v. FDA to deny in part our request for a stay pending appeal. We will be seeking emergency relief from the Supreme Court to defend the FDA’s scientific judgment and protect Americans’ access to safe and effective reproductive care.”
Six Indicted in Alleged Drone Prison Smuggling SchemeRead the Press Release
KANSAS CITY, KAN.– A federal grand jury in Kansas City returned an indictment charging six people with conspiring to smuggle contraband into a federal prison in Kansas.
Dale Gaver III, 35, Dale Gaver II, 54, Joshua Hamilton, 37, and Rex Hill, 33, all of Omaha, Nebraska, are charged with one count of conspiracy to provide and possess contraband in prison. Additionally, Melvin Edwards, 44, and Tamarae Hollman, 36, of Riverside, California, are charged with one count of conspiracy to provide and possess contraband in prison.
According to court documents, between August 2020 and May 2021, Edwards, Gaver II, Gaver III, Hamilton, Hill, and Hollman are accused of conspiring to smuggle prohibited items into Leavenworth Penitentiary by allegedly using a drone to drop contraband such as cellular phones, K2 (synthetic cannabinoid), marijuana, and tobacco into the yard.
Hill is also charged with one count of attempting to provide prison contraband. Gaver III, an inmate at Leavenworth Penitentiary during the conspiracy time frame, is also charged with one count of attempted possession of prison contraband and one count of possession of prison contraband.
The Federal Bureau of Investigation (FBI) is investigating the case.
Assistant U.S. Attorney Michelle McFarlane is prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Sauk Rapids Man Sentenced to Five Years in Federal Prison for Unlicensed Manufacturing, Selling Ghost GunsRead the Press Release
ST. PAUL, Minn. – A Sauk Rapids man has been sentenced to the statutory maximum 60 months in prison, followed by three years of supervised release, for unlicensed manufacturing and selling ghost guns, announced U.S. Attorney Andrew M. Luger.
“Jay Olson was manufacturing and trafficking untraceable, unmarked firearms and accessories, including a fully automatic machinegun and a silencer. The proliferation of these ghost guns and machinegun conversion devices presents a serious threat to the safety of our communities,” said U.S. Attorney Andrew Luger. “To underscore the significance of his crimes, Mr. Olson has been handed the statutory maximum prison term.”
“A case like this demonstrates the immense value of collaborative law enforcement efforts in curbing gun violence in our communities,” said Hennepin County Sheriff Dawanna Witt. “I’m proud of the efforts of our West Metro Drug Taskforce and our Violent Offender Taskforce, who partnered with ATF and Stearns County Sheriff’s Office on this investigation. I would like to thank the U.S Attorney’s Office for our continued partnership as we all work to reduce violent crime in our communities.”
“Firearms trafficking puts dangerous weapons in the hands of violent criminals and will absolutely not be tolerated,” said ATF Special Agent in Charge William McCrary, of the St. Paul Field Division. “We are pleased with the outcome of this case and are grateful to work beside law enforcement partners like Sheriff Witt who make the reduction of gun violence a top priority.”
According to court documents, between the fall of 2021 through April 2022, Jay James Olson, 22, willfully engaged in the business of manufacturing firearms for profit, despite the fact that he is not and has never been a federally licensed manufacturer of firearms. In the spring of 2022, Olson offered to sell numerous unserialized firearms, commonly referred to as “ghost guns,” and various firearms-related accessories, including a silencer, a machinegun conversion device, carbine conversion kits, and multiple high-capacity magazines, to an individual for $20,000. Unbeknownst to Olson, the individual was working with law enforcement as a confidential source. During their conversations, Olson touted the illicit benefits of unserialized firearms and told the confidential source that the price for each firearm would be going up because of the federal government’s then-recent initiative targeting ghost guns.
On April 26, 2022, at a residence in Waite Park, Olson sold the confidential source 16 ghost guns, nine high-capacity magazines, one silencer, a machinegun conversion device, and other firearms accessories. Immediately after the transaction, law enforcement arrested Olson and executed a search warrant at the residence. During the search, investigators recovered various firearm assembly kits, unserialized lower receivers, and multiple miscellaneous firearms parts and accessories. On May 4, 2022, investigators executed a search warrant at Olson’s Sauk Rapids residence, and recovered from the basement manufacturing tools, various firearm assembly kits, and a Glock firearm assembly diagram. The investigation revealed that Olson was trafficking these firearms and offering to sell them to others whom he knew or had reason to know were otherwise prohibited from possessing firearms or intended to use them for unlawful purposes.
Olson plead guilty on September 28, 2022, before U.S. District Judge Eric C. Tostrud to one count of willfully engaging in the business of manufacturing firearms without a license. During Olson’s sentencing hearing yesterday, Judge Eric C. Tostrud said Olson’s actions posed a “grave danger” to the public.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Hennepin County Sheriff’s Office, the Hennepin County Violent Offender Task Force, and the Stearns County Sheriff’s Office.
Assistant U.S. Attorney Benjamin Bejar prosecuted the case.
Rochester Man Pleads Guilty to Receipt of Child PornographyRead the Press Release
BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Nathan Follett, 36, of Rochester, NY, pleaded guilty before Chief U.S. District Judge Elizabeth A. Wolford to receipt of child pornography, which carries a mandatory minimum penalty of five years in prison, a maximum of 20 years and a $250,000 fine.
Assistant U.S. Attorney Meghan K. McGuire, who is handling the case, stated that between February 2016, and December 16, 2021, Follett used Instagram, Kik, and Snapchat to engage in sexually explicit communications with 11 minor victims, knowing each victim was under the age of 18. During these conversations, Follett coerced the minor victims to produce images and videos of themselves engaged in sexually explicit conduct and send those images and videos to him via Instagram, Kik, and Snapchat.
The plea is the result of an investigation by the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter, the Federal Bureau of Investigation Child Exploitation Human Trafficking Task Force, under the direction of Special Agent-in-Charge Matthew Miraglia, and the New York State Police, under the direction of Major Brian Ratajczak.
Sentencing is scheduled for August 23, 2023, at 1:00 p.m. before Judge Wolford.
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Readout of United States Attorney Kevin Ritz’s Roundtable Discussions throughout West TennesseeRead the Press Release
Jackson, TN – This week, United States Attorney Kevin G. Ritz traveled to multiple counties and state Judicial Districts in West Tennessee to host a series of roundtable discussions with law enforcement, local prosecutors, and community stakeholders. These visits focused on the 24th, 26th, and 27th Judicial Districts in West Tennessee. Roundtable participants had an open dialogue with the U.S. Attorney, addressing their issues and concerns, and learned more about the Department’s priorities.
On Monday, U.S. Attorney Ritz met in Camden with partners and stakeholders in Benton, Carroll, Decatur, Hardin, and Henry Counties in the 24th Judicial District to address issues and community concerns.
On Tuesday morning, WBBJ-TV reporter Ryan Hodges interviewed U.S. Attorney Ritz about the mission of the roundtable discussions, his priorities, and violent crime issues. As U.S. Attorney said during the interview, “in Memphis, Jackson, and all of West Tennessee, communities are reeling from gun violence and violent crime. Addressing this violence is a top priority. We focus our efforts on the most significant drivers of violence.”
Tuesday afternoon, U.S. Attorney Ritz met in Martin with officials from Obion and Weakley Counties in the 27th Judicial District.
The district-wide visit concluded on Wednesday, when U.S. Attorney Ritz facilitated a roundtable discussion in the 26th Judicial District with officials from Chester, Henderson, and Madison Counties. He also addressed members of the Jackson Rotary Club as their keynote speaker.
Below are photos from these events. U.S. Attorney Ritz will continue to schedule roundtable discussions with stakeholders throughout the Western District of Tennessee.
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For more information, please contact Public Information Officer Cherri Green at (901) 544-4231 or [email protected]. Follow @ WDTNNews on Twitter for office news and updates.
United States Attorney Kevin Ritz in Benton County, Tennessee to host inaugural series of roundtable discussions. United States Attorney Ritz interviewed by WBBJ-TV Reporter Ryan Hodges. U.S. Attorney Ritz, along with AUSA Vic Ivy and District Attorney General Jody Pickens, facilitated roundtable discussion with law enforcement from the 26th Judicial District. U.S. Attorney Ritz addressed the members of the Jackson Rotary Club.Readout of Director Rachel Rossi of the Office for Access to Justice’s Participation in the 2023 American Bar Association Public Defense SummitRead the Press Release
Director Rachel Rossi of the Office for Access to Justice provided remarks today at the American Bar Association’s 2023 Public Defense Summit and named Nikhil Ramnaney as the Office for Access to Justice Senior Counsel, who will serve in a position dedicated to support for state and local public defense. Mr. Ramnaney brings over a decade of experience as a former county public defender and expert on public defense policy, and most recently served in the Justice Department’s Civil Rights Division.
In March, the Office for Access to Justice was joined by Justice Department senior officials to launch a National Public Defense Day Tour in celebration of the 60th anniversary of Gideon v. Wainwright, which held that criminal defendants are entitled to counsel. The Tour included stops in Miami; Tulsa, Oklahoma; the Muscogee (Creek) Nation; Nashville, Tennessee; Las Vegas; and Des Moines, Iowa, where Director Rossi was joined by Associate Attorney General Vanita Gupta. At the Des Moines listening session with local leaders, Associate Attorney General Gupta announced the creation of this new attorney position in ATJ dedicated to supporting, collaborating with and engaging the state and local public defense community.
Readout of Attorney General Merrick B. Garland and Deputy Attorney General Lisa O. Monaco Meeting with Security Cabinet of the Government of MexicoRead the Press Release
Earlier today, following a bilateral meeting between the United States and Mexico at the White House, Attorney General Merrick B. Garland and Deputy Attorney General Lisa O. Monaco hosted a luncheon with U.S. and Mexican government officials focused on our partnership in fighting fentanyl and firearms trafficking. The Mexican delegation was led by Secretary for Security and Citizen Protection Rosa Icela Rodriguez, who was recently appointed as the chair of a presidential commission to combat illicit trafficking in synthetic drugs, firearms, and ammunition. Officials discussed law enforcement efforts in the fight against fentanyl trafficking and the illegal firearms smuggling that strengthens the cartels. They also noted the substantial progress that has been made on both issues through bilateral cooperation.
Both delegations pledged to increase information-sharing and cooperation on criminal investigations and prosecutions focusing on disrupting the entire fentanyl supply chain, beginning with interdiction of precursor shipments from China and other countries, through takedowns of illegal laboratories, to arrests of members of distribution networks, to targeting money laundering facilitators.
Attorney General Garland expressed his deep appreciation for all the sacrifices the Mexican military and law enforcement have made – including facing violence and death to fight the cartels. Deputy Attorney General Monaco thanked the Government of Mexico for their recent high number of extraditions to the United States.
The Mexican delegation also included Secretary of Foreign Affairs Marcelo Ebrard Casaubon, Attorney General Alejandro Gertz Manero, Secretary of Defense General Luis Cresencio Sandoval González, Secretary of the Navy Admiral José Rafael Ojeda Durán, Secretary of Health Jorge Alcocer Varela, and Ambassador to the United States Esteban Moctezuma Barragán.
Attorney General Garland and Deputy Attorney General Monaco were joined by U.S. colleagues, including Homeland Security Advisor Dr. Elizabeth Sherwood-Randall, who is leading the interagency efforts against fentanyl; U.S. Ambassador to Mexico Ken Salazar; Deputy Secretary of Homeland Security John Tien; Director of ONDCP Dr. Rahul Gupta; and State Department Assistant Secretary for International Narcotics and Law Enforcement Affairs Todd Robinson.
Both delegations agreed to further bilateral working groups focusing on the disruption of precursor chemicals shipments and illicit firearms smuggling.
Attorney General Merrick B. Garland and Deputy Attorney General Lisa O. Monaco with U.S. and Mexican government officialsRGV area home health care company owner sent to prisonRead the Press Release
McALLEN, Texas ‐ An owner of a Rio Grande Valley area home health company has been ordered to prison for his conviction of conspiracy to commit health care fraud, announced U.S. Attorney Alamdar S. Hamdani.
Miguel Angel Contreras, 44, McAllen, pleaded guilty April 14, 2016.
Today, U.S. District Judge Micaela Alvarez ordered Contreras to serve a 45-month sentence to be immediately followed by one year of supervised release. Contreras was also ordered to pay $1,037,353.78 in restitution. In handing down the sentence, Judge Alvarez noted the lengthy duration of the fraud and the multiple ways in which the fraud was committed.
Contreras was an owner and administrator for Sambritt Home Health LLC. As part of his plea, he admitted he submitted false and fraudulent claims to Medicare for reimbursement of home health services that were not provided, that a physician had not authorized and/or were not medically necessary.
The false and fraudulent claims Contreras submitted to Medicare totaled $724,056.02. As a result of the false and fraudulent claims, Medicare paid approximately $1,037,353.78.
Contreras further admitted he paid illegal kickbacks in exchange for patient information, including patient Medicare numbers. He and/or his co-conspirators would then use the fraudulently obtained Medicare numbers to submit claims to Medicare in order to receive reimbursements.
As part of his plea, Contreras admitted he forged and/or caused others to forge the signatures of physicians on the referral forms or 485 forms, knowing the physicians did not authorize the need for home health services and/or that the beneficiaries did not need or qualify for home health services. Contreras directed employees to create “ghost notes” for patient files which were intended and calculated to make the fraudulent claims submitted to Medicare appear legitimate. Contreras also admitted he directed employees and/or co-conspirators to bill Medicare for home health services with 485 forms which were missing physician signatures.
Contreras was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The Department of Health and Human Services‐Office of Inspector General, the FBI, and the Texas Health and Human Services Commission-Office of Inspector General conducted the investigation. Assistant U.S. Attorney Michael Day is prosecuting the case.
Previously Convicted Methamphetamine and Fentanyl Dealer Is Sentenced to 12+ Years in PrisonRead the Press Release
ASHEVILLE, N.C. – Today, United States District Judge Martin Reidinger sentenced Daniel Ryan Robinson, 43, of Arden, N.C., to 151 months in prison followed by five years of supervised release for dealing methamphetamine and fentanyl, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Bennie Mims, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Sheriff Lowell S. Griffin of the Henderson County Sheriff’s Office join U.S. Attorney King in making today’s announcement.
According to court filings and court proceedings, on October 31, 2022, Robinson pleaded guilty to possession with intent to distribute fentanyl and methamphetamine. Court records show that, between August 2019 and November 2019, Robinson was found to be in possession of more than 280 grams of methamphetamine and 35 grams of fentanyl. Over the course of the investigation, law enforcement also recovered from Robinson’s residence and vehicle two firearms and ammunition. In 2013, Robinson was convicted of conspiracy to possess with intent to distribute heroin.
Robinson is currently in federal custody and will be transferred to the custody of the federal Bureau of Prison upon designation of a federal facility.
In making today’s announcement, U.S. Attorney King thanked the ATF and the Henderson County Sheriff’s Office for their investigation of the case. The U.S. Attorney’s Office in Asheville handled the prosecution.
Philadelphia Man Sentenced to 15 Years in Prison for Conspiring to Distribute Narcotics and Money LaunderingRead the Press Release
JOHNSTOWN, Pa. – A former resident of Philadelphia, PA, has been sentenced in federal court to a total of 180 months in prison followed by 5 years of supervised release on his convictions of conspiring to distribute methamphetamine, cocaine base, fentanyl, and heroin, as well as conspiring to commit money laundering, Acting United States Attorney Troy Rivetti announced today.
Senior United States District Judge Kim R. Gibson imposed the sentence on James Edwards, age 53, of Philadelphia, Pennsylvania.
According to information presented to the court, on or about July 5, 2018, to on or about May 5, 2020, Edwards did conspire to distribute and possess with intent to distribute 50 grams or more of methamphetamine, 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine, 28 grams or more of a mixture and substance containing a detectable amount of cocaine base, 40 grams or more of a mixture and substance containing a detectable amount of fentanyl, and a quantity of heroin, as well as, conspired to commit money laundering, in the Western District of Pennsylvania. Further, Edwards distributed 50 grams or more of methamphetamine in the Eastern District of Pennsylvania.
Assistant United States Attorney Arnold P. Bernard, Jr. prosecuted this case on behalf of the government.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The OCDETF led the prosecution of Edwards. The task force is headed by the Federal Bureau of Investigation, Laurel Highlands Resident Agency and is comprised of members drawn from the FBI Safe Streets Task Force, Homeland Security Investigations, Bureau of Alcohol, Tobacco, and Firearms, the Pennsylvania State Police, and the Indiana Borough Police Department.
North Carolina Man Pleads Guilty to Attempting to Possess with Intent to Distribute FentanylRead the Press Release
JOHNSTOWN, Pa. – A former resident of Goldsboro, NC pleaded guilty in federal court to a charge of violating federal narcotics laws, Acting United States Attorney Troy Rivetti announced today.
Charles Triplin, age 45, of Goldsboro, NC, pleaded guilty to Count One of the Indictment, before United States District Judge Stephanie L. Haines.
In connection with the guilty plea, on or about June 21, 2021, Triplin attempted to possess with intent to distribute a quantity of a mixture and substance containing a detectable amount of fentanyl.
Judge Haines scheduled sentencing for August 29, 2023. The law provides for a maximum total sentence of 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Maureen Sheehan-Balchon is prosecuting this case on behalf of the government.
The United States Postal Inspection Service, Department of Homeland Security Investigations, and the FBI Safe Streets Task Force conducted the investigation that led to the successful prosecution of Triplin.
New York Litigation Funder Convicted in Trip-And-Fall Fraud Scheme Sentenced to 36 Months in PrisonRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that ADRIAN ALEXANDER, a New York litigation funder, was sentenced today to 36 months in prison for his participation in a scheme to obtain large insurance settlements and lawsuit recoveries from fraudulent trip-and-fall accidents. ALEXANDER is the 11th defendant to plead guilty or be convicted at trial for his participation in this fraud scheme and the fifth defendant to be sentenced. Defendants Ryan Rainford, Bryan Duncan and Robert Locust, who recruited patients into the scheme and were convicted at trial in May 2019, were previously sentenced on January 7, 2020, July 27, 2020, and July 9, 2021, respectively. Defendant Sady Ribeiro, a surgeon who participated in the scheme, was previously sentenced on March 23, 2023. U.S. District Judge Sidney H. Stein imposed all sentences.
U.S. Attorney Damian Williams said: “Adrian Alexander knowingly exploited some of the most vulnerable members of society – many of whom were poor, drug addicts, or homeless – in order to enrich himself and his investors. Today’s sentence should serve as a warning to unscrupulous litigation funders that, together with our law enforcement partners, we will hold accountable those who engage in unlawful practices and prey on litigants without the means to avail themselves of the judicial process.”
According to the Indictment, the Superseding Information, evidence presented in court, and statements made in court:
ALEXANDER, among others, was involved in an extensive fraud scheme through which fraud scheme participants defrauded businesses and insurance companies by staging trip-and-fall accidents and filing fraudulent lawsuits arising from those staged trip-and-fall accidents.
The fraud scheme participants recruited individuals (the “Patients”) to stage or falsely claim to have suffered trip-and-fall accidents at particular locations throughout the New York City area (the “Accident Sites”). In the course of the fraud scheme, scheme participants recruited more than 400 Patients. Members of the fraud scheme often recruited Patients who were extremely poor. For example, it was common for Patients to ask for food when they would appear for their intake meetings with the lawyers. Many of the Patients did not have sufficient clothing to keep them warm during the winter and had poor-quality shoes. Members of the fraud scheme also recruited Patients who were drug addicts, and it was common for scheme participants to recruit Patients from homeless shelters in New York City.
In the beginning, scheme participants would instruct Patients to claim they had tripped and fallen at a particular location, when in fact, the Patients had suffered no such accidents. Eventually, at the direction of the lawyers who filed fraudulent lawsuits on behalf of the Patients, scheme participants began to instruct Patients to stage trip-and-fall accidents, i.e., to go to a location and deliberately fall. Common Accident Sites used during the fraud scheme included cellar doors, cracks in concrete sidewalks, and purported “potholes.”
After the staged trip-and-fall accidents, Patients were referred to specific attorneys who would file personal injury lawsuits (the “Fraudulent Lawsuits”) against the owners of the Accident Sites and/or insurance companies of the owners of the accident sites (the “Victims”). The Fraudulent Lawsuits did not disclose that the Patients had deliberately fallen at the Accident Sites or, in some cases, had not fallen at all. During the course of the fraud scheme, the defendants, together with others known and unknown, attempted to defraud the Victims of more than $31,000,000.
The Patients were also instructed to receive ongoing chiropractic and medical treatment from certain chiropractors and doctors, including Ribeiro. The fraud scheme participants advised the Patients that if they intended to continue with their lawsuits, they were required to undergo surgery, which was critical to boosting the value of any potential settlement. Fraud scheme participants, including ALEXANDER, looked for doctors who were willing to perform surgeries, even when others would not. For example, in a May 2015 email, after one doctor informed ALEXANDER that a particular patient was “not . . . a surgical candidate,” ALEXANDER directed a Patient recruiter and case manager to “[t]ake him to [another doctor]—Nothing is done until its done.”
As an incentive to getting surgery, the recruited Patients were offered a payment, in the form of loans, typically between $1,000 and $1,500 after they completed surgery (“Post-Surgery Loans”). Patients generally were told to undergo two surgeries.
The Patients’ legal and medical fees were usually paid for by litigation funding companies (the “Funding Companies”), including a funding company owned by ALEXANDER, even if the Patient maintained medical coverage through an insurance company or a government-subsidized program. The Funding Companies also paid the fraud scheme organizers and participants referral fees, typically $1,000 to $2,500, for each Patient who signed a funding agreement. In an April 2015 email about a particular Patient’s staged accident, Alexander wrote to two of the recruiters and case managers, “I am sure you realize I want to do these deals; I am just trying to see how we can, without getting in trouble.”
In exchange for funding Patients’ medical and legal costs, the Funding Companies charged the Patients high interest rates, sometimes up to 50% on medical loans and up to 100% on personal loans. The interest rates were so high that oftentimes the majority of the proceeds that were awarded in the Fraudulent Lawsuits were paid to the Funding Companies, lawyers, doctors, and others, with the Patients receiving a much smaller percentage of the remaining recovery.
In addition to the high-interest rates charged by the Funding Companies, ALEXANDER also profited from the Fraud Scheme through an MRI facility that he owned and operated (“MRI Facility-1”). ALEXANDER pushed the case managers to send Patients to MRI Facility-1, which routinely prepared MRI reports that were “positive” for medical conditions justifying surgery, even though the Patients had not sustained any injuries. ALEXANDER received $1,000 per MRI that MRI Facility-1 prepared as part of the scheme.
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In addition to the prison term, ALEXANDER, 76, of New York, New York, was sentenced to three years of supervised release. ALEXANDER was further ordered to pay $659,011 in forfeiture. Restitution will be determined by the Court within 90 days.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation. Mr. Williams also thanked the National Insurance Crime Bureau for their assistance in the investigation.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Nicholas Chiuchiolo, Nicholas Folly, Danielle Kudla, and Alexandra Rothman are in charge of the prosecution.
New Britain Man Sentenced to 9 Years in Federal Prison for Fentanyl Distribution and Firearm Possession OffensesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that RAFAEL MARTINEZ, 31, of New Britain, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 108 months of imprisonment, followed by four years of supervised release for fentanyl distribution and firearm possession offenses.
According to court documents and statements made in court, in 2022, the Drug Enforcement Administration’s Hartford Task Force identified Martinez as a large-scale distributor of fentanyl. The investigation revealed that Martinez used an apartment on Sargeant Street in Hartford to store and process fentanyl for distribution, and he also distributed the drug from his residence on Hayes Street in New Britain.
On August 3, 2022, investigators executed a court-authorized search warrant at Martinez’s New Britain residence and encountered Martinez, who they observed throwing a white powder substance from the living room window. A search of the residence revealed approximately 3,000 wax folds of fentanyl, additional loose quantities of fentanyl and crack cocaine, narcotics paraphernalia, two handguns, ammunition, and $28,777 in cash. Investigators subsequently recovered another approximately 200 grams of fentanyl, as well as items used to process and package narcotics, that Martinez had thrown from the window.
Martinez’s criminal history includes state felony convictions for narcotics offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Martinez has been detained since August 3, 2022. On January 25, 2023, he pleaded guilty to possession with intent to distribute 40 grams or more of fentanyl, and possession of a firearm by a felon.
This investigation was conducted by the DEA’s Hartford Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The Task Force includes personnel from the DEA Hartford Resident Office, the Connecticut State Police, and the Bristol, Hartford, East Hartford, Enfield, Manchester, New Britain, Rocky Hill, Wethersfield, Windsor Locks and Willimantic Police Departments.
This case was prosecuted by Assistant U.S. Attorney Geoffrey M. Stone through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Navy Hospital Employee Pleads Guilty to Stalking Military Service MemberRead the Press Release
NEWS RELEASE SUMMARY – April 13, 2023
SAN DIEGO – Jonathan Sandoval, a former contract employee at a San Diego Navy hospital, pleaded guilty in federal court today to stalking his former co-worker who is a United States military service member.
According to his plea agreement, Sandoval intentionally harassed and intimated the military service member through several unwanted acts. On March 8, 2022, Sandoval rifled through the victim’s office and belongings while disregarding her requests to stop. On that same day, while in her office, Sandoval displayed a knife to the victim. Sandoval also sent the victim messages through internet messaging platforms even after the victim told him to stop sending her messages.
Sandoval admitted that he installed a hidden camera in the victim’s office without her knowledge and recorded video of the victim undressing and changing clothes in her office. And then, on March 15, 2022, Sandoval emailed the victim nude images he had taken without her knowledge and wrote in the email: “This is you naked. I’ll make sure and send all your videos of you changing. Have fun at work.”
“Stalking, harassing and surveilling someone with a secret camera is an extreme violation of privacy that causes severe distress in victims,” said U.S. Attorney Randy Grossman. “The U.S. Attorney’s Office is committed to protecting victims of stalking and holding perpetrators accountable for malicious activity over the internet and in person.” Grossman thanked the prosecution team and Naval Criminal Investigative Service for their excellent work on this case.
“Mr. Sandoval deserves to be held fully accountable for his reprehensible actions to harass, surveil, and intimidate a service member,” said Special Agent in Charge Joshua Flowers of the NCIS Southwest Field Office. “NCIS and our law enforcement partners remain committed to fully investigating and rooting out criminality within the ranks that threatens the safety of the Department of the Navy family.”
If you or someone you know has experienced cyberstalking by an active duty service member, please contact the following anonymous tip lines: https://www.ncis.navy.mil/Resources/NCIS-Tips/
(Navyand Marines), https://www.cid.army.mil/report-a-crime.html (Army), and https://www.osi.af.mil/Submit-a-Tip/ (Air Force), or call the Department of Defense Hotline at (800) 424-9098. Victims of cyberstalking by non-active-duty members should contact local law enforcement or the FBI field office.
DEFENDANTS Case Number 23cr00178-RSH
Jonathan Sandoval Age: 30 Calexico, CA
SUMMARY OF CHARGES
Stalking – Title 18, U.S.C., Section 2261A(2)(B)
Maximum penalty: Five years in prison and $250,000 fine
AGENCY
Naval Criminal Investigative Service
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Montana Woman Sentenced to Federal Prison for Stealing $134,000 from Her Elderly Mother-in-law and Father-in-lawRead the Press Release
BISMARCK – United States Attorney Mac Schneider announced that on April 13, 2023, U.S. District Court Judge Daniel L. Hovland sentenced Carol Ann Feist, age 57, from Whitehall, Montana, to serve 65 months in federal prison, 3 years of supervised release, and payment of $134,000.00 in restitution after she pleaded guilty for committing Bank Fraud and Aggravated Identity Theft against her elderly mother-in-law and father-in-law. As part of this sentence, Judge Hovland imposed a $134,000.00 money judgment against Feist.
On October 26, 2021, Feist called a customer service representative at a US Bank, located in Bismarck, North Dakota, and pretended to be her elderly mother-in-law. Feist fraudulently provided US Bank Representatives with her mother-in-law’s personal identifying information and deceitfully initiated a $134,000.00 wire transfer from her mother-in-law and father-in-law’s US Bank checking account to a title company located in Helena, Montana. The $134,000.00 transaction represented the life savings of Feist’s mother-in-law and father-in-law, and Feist initiated this wire transfer without her mother-in-law or father-in-law’s knowledge or permission. Thereafter, Feist utilized the $134,000.00 wire transfer as a down payment on a home she purchased in Whitehall, Montana.
Prior to Feist stealing $134,000 from her mother-in-law, she also fraudulently impersonated her father-in-law by listing him as a co-borrower on the Whitehall, Montana property. Specifically, during the purchase of the property, Feist presented real estate closing documents which contained both her father-in-law’s forged signature and a fraudulent State of North Dakota notary stamp. Feist conducted the transactions without her father-in-law’s knowledge or permission. During the timeframe of Feist’s criminal actions, her father-in-law was in hospice care and has since passed away.
“Financial abuse of the elderly is a serious crime,” Schneider said. “Whether it is foreign-based scammers or a family member, federal law sets forth serious penalties for those who defraud senior citizens. Today’s strong sentence is a credit to our career prosecutors and partners in law enforcement.”
This case was investigated by the Federal Bureau of Investigation, the Bismarck Police Department, and the Jefferson County (Montana) Sherriff’s Office. Assistant U.S. Attorney Jonathan J. O’Konek prosecuted this case.
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Monmouth County Man Charged with Tax EvasionRead the Press Release
TRENTON, N.J. – A Monmouth County, New Jersey, man was arrested today for tax evasion, U.S. Attorney Philip R. Sellinger announced.
Raymond J. Salani Jr., 67, of Morganville, New Jersey, is charged by an indictment unsealed today with two counts of tax evasion. He appeared this afternoon for an initial appearance before U.S. Magistrate Judge Tonianne J. Bongiovanni in Trenton federal court and was released on $50,000 unsecured bond.
According to documents filed in this case and statements made in court:
Salani was the president and owner of Medical Nutrition Inc., located in West Long Branch, New Jersey, which purportedly provided management services to Lifestyles Medical LLC, a medical practice also controlled by Salani and located in the same office as Medical Nutrition. Salani, who was not a licensed physician, was prohibited under New Jersey law from owning a medical practice and employing licensed healthcare professionals. To conceal his ownership and control of Lifestyles Medical, Salani employed a licensed physician to work at Lifestyles Medical on a part-time basis and act as nominee owner of Lifestyles Medical. However, at all relevant times, Salani acted as the true owner of Lifestyles Medical, managed the day-to-day operations of Lifestyles Medical, and exercised control over the financial accounts of both Lifestyles Medical and Medical Nutrition.
Between January 2016 and May 2017, Salani attempted to conceal his income from the IRS and evade the assessment of federal income taxes by transferring income earned by Lifestyles Medical into the business bank account for Medical Nutrition, purportedly as payments to Medical Nutrition for management services rendered to Lifestyles Medical. From there, Salani used the funds from Medical Nutrition’s business bank account to pay for personal expenses, including mortgage payments on his personal residence, payments to pay down balances on a personal credit card account in his spouse’s name, and payments for a personal vehicle leased by Salani. Federal law required Salani to report the income he received from Medical Nutrition to the IRS on his personal income tax returns for tax years 2016 and 2017. Salani failed to file a personal income tax return for tax year 2016 and failed to report any of the income he received through Medical Nutrition on his personal income tax return for tax year 2017. Salani failed to report $232,739 of taxable income that he received through Medical Nutrition in tax years 2016 and 2017, resulting in the evasion of $87,635 in tax due and owing.
Each count of tax evasion carries a maximum potential penalty of five years in prison and a maximum fine of $250,000.
U.S. Attorney Sellinger credited special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy L. Tomlins in Newark; and special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the charges. He also thanked investigators of the State of New Jersey Division of Consumer Affairs, under the direction of Attorney General Matthew J. Platkin, and detectives of the Monmouth County Prosecutor’s Office, under the direction of Prosecutor Raymond S. Santiago, for their assistance.
The government is represented by Assistant U.S. Attorney Ian D. Brater of the U.S. Attorney’s Office Criminal Division in Trenton.
The charges and allegations contained in the indictment are merely accusations and the defendant is presumed innocent unless and until proven guilty.
salani.indictment.pdfMobile Man Sentenced to 20 Years in Prison for Drug and Firearm OffensesRead the Press Release
MOBILE, AL – A Mobile, Alabama man has been sentenced to 20 years in prison for being a felon in possession of a firearm and for possession of methamphetamine with intent to distribute.
According to court documents, in March 2021, Joseph Gray unlawfully possessed a firearm after being previously convicted of three robbery offenses. In a separate offense, committed in April 2021, Gray attempted to deliver methamphetamine, other drugs, and various items of contraband to Fountain Correctional Facility in Atmore, Alabama. Gray entered guilty pleas to both offenses and received concurrent 20 year sentences for both offenses. Once released, Gray will serve an eight-year term of supervised release.
U.S. Attorney Sean Costello of the Southern District of Alabama and the Department of Homeland Security Investigations made the announcement.
Department of Homeland Security Investigations, the Mobile Police Department, and the Alabama Department of Corrections investigated the cases.
Assistant U.S. Attorneys Beth Stepan, Kacey Chappelear, and Scott Gray prosecuted the case on behalf of the United States.
Missouri Man Admits Machine Gun Sales ConspiracyRead the Press Release
CAPE GIRARDEAU – A man from Stoddard County, Missouri on Thursday admitted being involved in a conspiracy to sell devices that convert AR-15-style rifles into fully-automatic weapons.
Edward Hardin, 41, pleaded guilty in front of U.S. District Judge Stephen N. Limbaugh, Jr. to a charge of conspiracy to distribute machine guns. Sidney Brianne Scowden, of Stoddard County, pleaded guilty in February to the conspiracy charge and three counts of transferring a machine gun.
Both admitted that Scowden sent a Snapchat message to a confidential informant for the Bureau of Alcohol, Tobacco, Firearms and Explosives on Aug. 3, 2022 offering to a sell a “lightning link,” or device that converts a semi-automatic AR-style weapon into a fully-automatic weapon. Scowden said she was selling the link on behalf of someone else.
Eight days later, Scowden sold three of the devices for $1,500 to the informant, saying her source bought a link for $10,000 and made copies. Scowden sold three more devices on Sept. 19, 2022 and another on Oct. 19, 2022. Investigators were able to determine that Hardin was Scowden’s source.
Scowden is scheduled to be sentenced May 9. Hardin is set to be sentenced July 13.
The conspiracy charge carries a penalty of up to five years in prison. The transfer charge carries a maximum penalty of 10 years in prison. Both carry a possible fine of up to $250,000.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Timothy Willis prosecuted the case.