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11 April 2023
El Paso Woman Pleads Guilty to Wire Fraud, Impersonation of Federal EmployeeRead the Press Release
EL PASO, Texas – An El Paso woman pleaded guilty Monday to 11 counts related to wire fraud and impersonation of a federal employee.
According to court documents, Ana Maria Hernandez, 53, portrayed herself to be a U.S. Citizenship and Immigration Services (CIS) employee and defrauded numerous undocumented noncitizen victims and their family members by falsely representing that she would process their immigration applications for a substantial fee. Hernandez’s victims provided her with the documentation required to file and adjust their immigration status. She was not an employee of CIS and never took any actions to adjust the victims’ status. Investigation revealed that Hernandez had amassed thousands of dollars of unexplained wealth within the 18 months coinciding with her fraudulent activity. Following her arrest on Jan. 23, 2023, the U.S. Attorney’s Office for the Western District of Texas and the Homeland Security Investigations (HSI) El Paso Division began receiving calls from dozens of potential victims in Hernandez’s fraud scheme.
Hernandez pleaded guilty to 10 counts of wire fraud and one count of impersonating an employee of the United States. She faces a maximum penalty of 20 years imprisonment on each wire fraud count and three years on the impersonation count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. A sentencing date has not yet been set.
U.S. Attorney Jaime Esparza of the Western District of Texas and Special Agent in Charge Francisco B. Burrola of the HSI El Paso Division made the announcement.
HSI is investigating the case.
Assistant U.S. Attorney Patricia Aguayo is prosecuting the case.
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East Hartford Man Admits Role in Catalytic Converter Theft RingRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that BRYANT BERMUDEZ, 31, of East Hartford, pleaded guilty yesterday before U.S. District Judge Sarala V. Nagala in Hartford to offenses related to his participation in a stolen catalytic converter trafficking ring.
According to court documents and statements made in court, law enforcement has been investigating the theft of catalytic converters from motor vehicles across Connecticut. A catalytic converter contains precious metals, can easily be removed from its vehicle, and is difficult to trace, making it a desirable target for thieves. The average scrap price for catalytic converters currently varies between $300 and $1,500, depending on the model and type of precious metal component.
In November 2021, Bermudez began working at Downpipe Depot & Recycling LLC (“Downpipe Depot”), which had a warehouse on Park Avenue in East Hartford. At Downpipe Depot, Bermudez and a co-conspirator purchased stolen catalytic converters from a network of thieves, with some of the transactions occurring late at night, and then transported and sold the catalytic converters to recycling businesses in New York and New Jersey. On at least a bi-weekly basis, Bermudez or a co-conspirator transported van loads of catalytic converters to New York or New Jersey. Some of the trips yielded payments in excess of $200,000.
Bermudez pleaded guilty to one count of conspiracy to commit interstate transportation of stolen property, an offense that carries a maximum term of imprisonment of five years, and three counts of interstate transportation of stolen property, an offense that carries a maximum term of imprisonment of 10 years on each count.
Judge Nagala scheduled sentencing for July 12. Bermudez is released on a $150,000 bond pending sentencing.
This investigation is being led by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Internal Revenue Service – Criminal Investigation Division (IRS-CI), and the East Hartford Police Department. The case is being prosecuted by Assistant U.S. Attorneys Lauren C. Clark and A. Reed Durham.
Eagan Man Sentenced to 7.5 Years in Prison for Receiving Child PornographyRead the Press Release
ST. PAUL, Minn. – An Eagan man has been sentenced to 90 months in prison followed by 15 years of supervised release for receipt of child pornography, announced United States Attorney Andrew M. Luger.
According to his guilty plea, Tyler Michael Sauve, 29, admitted to possessing thousands of images and videos depicting prepubescent minors engaging in sexually explicit conduct.
Sauve pleaded guilty on December 15, 2022, to one count of receipt of child pornography. Sauve was sentenced today in U.S. District Court before Judge Eric C. Tostrud.
This case was the result of an investigation conducted by the Minnesota Bureau of Criminal Apprehension (BCA) and the Eagan Police Department.
Assistant U.S. Attorney Manda M. Sertich prosecuted the case.
Dupree Woman Sentenced for LarcenyRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange, U.S. District Court, has sentenced a Dupree, South Dakota, woman convicted of Larceny. The sentencing took place on April 6, 2023.
Sophie Little Wounded, a/k/a Sophie Dupris, age 35, was sentenced to time served from her arrest on October 18, 2022, through May 1, 2023, equal to approximately six months of incarceration, followed by two years of supervised release, and ordered to pay $700 in restitution and a $100 special assessment to the Federal Crime Victims Fund.
Little Wounded was indicted for Larceny by a federal grand jury in November of 2022. She pleaded guilty on January 4, 2023.
Little Wounded took a 2013 Ford Mustang from the driveway of a residence in Sioux Falls on the evening of October 18, 2022, or the early morning hours of October 19, 2022, without the owner’s consent. Little Wounded had been visiting at the owner’s residence prior to the theft. Little Wounded also took $700 in cash belonging to the victim. The vehicle was reported stolen on the morning of October 19, 2022, to the Sioux Falls Police Department. The victim also contacted the Cheyenne River Sioux Tribe Law Enforcement Services, assuming that Little Wounded was headed towards Dupree. At approximately 9:30 a.m. on the morning of October 19, 2022, the Cheyenne River Sioux Tribe Law Enforcement Services recovered the vehicle by performing a traffic stop on Little Wounded a short distance outside of Eagle Butte. The $700 in missing money was not recovered.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services and the Sioux Falls Police Department. Assistant U.S. Attorney Jay Miller prosecuted the case.
Little Wounded was immediately remanded to the custody of the U.S. Marshals Service.
Dubuque Man Responsible for over a Pound of Ice Methamphetamine Sentenced to 95 Months in Federal PrisonRead the Press Release
A man who possessed or distributed over a pound of ice methamphetamine and was found with more than $45,000 of drug proceeds was sentenced today to more than seven years in federal prison.
Matthew Daniel Birch, from Dubuque, Iowa, received the prison term after a September 6, 2022 guilty plea to possession with intent to distribute methamphetamine.
Information disclosed at the sentencing hearing demonstrated that between 2019 and 2021, Birch sold approximately 194 grams of ice methamphetamine in Dubuque. Law enforcement officers seized another 315 grams of ice methamphetamine before Birch had the opportunity to sell it. One on occasion, officers found Birch with over $6,000 of drug proceeds. Later, after Birch attempted to flee from a traffic stop, officers found over $39,000 of drug proceeds. Birch has a history of fleeing from the police. Birch’s criminal history includes several violent convictions, including going armed with intent, false imprisonment in which he hit someone in the face and nose several times, assault with injury, domestic abuse assault causing bodily injury, and harassment in the first degree.
Birch was sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand. Birch was sentenced to 95 months’ imprisonment and must also serve a 4-year term of supervised release after the prison term. There is no parole in the federal system.
Birch is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Special Assistant United States Attorney Devra T. Hake and investigated by the Dubuque Drug Task Force, Dubuque County Sheriff’s Office, and the Dubuque Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-1002.
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Donaldsonville Woman Sentenced to 78 Months in Federal Prison for Pandemic Benefits Fraud SchemeRead the Press Release
United States Attorney Ronald C. Gathe, Jr. announced that Chief Judge Shelly D. Dick sentenced Tynea Lynnshay Gray, age 24, of Donaldsonville, Louisiana to 78 months in federal prison following her conviction for mail fraud. The Court further sentenced Gray to serve three years of supervised release following her term of imprisonment and ordered her to pay $906,534 in restitution.
Between June 2020 and October 2021, Gray submitted fraudulent claims for unemployment insurance benefits in California in her name and in the names of other individuals. Gray also submitted fraudulent claims for Paycheck Protection Program (“PPP”) benefits in the names of fictitious businesses and based on fictitious business profits and losses.
Through her unemployment insurance scheme, Gray falsely claimed that she and others were working in California prior to the coronavirus pandemic and that they lost their employment due to the pandemic. Gray obtained names, birth dates, and Social Security numbers of others and submitted fraudulent claims for unemployment insurance benefits in their names, with and without their knowledge. Gray captured people’s identifying information through social media. Upon submitting the claims and receiving the funds, she either gave a portion of the funds to others or kept all the funds for herself. Through her scheme, Gray obtained hundreds of thousands of dollars in prepaid debit cards in the mail.
Gray also devised a scheme to defraud lenders and the United States, through the Small Business Administration, by filing false and fraudulent applications for PPP funds. In furtherance of the scheme, Gray submitted forged bank statements, false tax documents, and made misrepresentations in her PPP applications.
Gray also falsely reported bank cards stolen or lost so that she would receive new cards with additional pandemic benefit funds. Throughout the course of the fraudulent schemes, Gray caused over $550,000 in prepaid debit cards to be mailed to her addresses, to which she and others were not entitled. Additionally, Gray caused $20,833 to be deposited into her bank account to which she was not entitled.
U.S. Attorney Gathe stated, “At a time when over 1 million U.S. Citizens died from COVID-related issues, Ms. Gray took advantage of the system designed to help American taxpayers in this time of need. The sentencing today shows that these cases will not be tolerated. With the help of federal partners such as the FBI and U. S. Department of Labor-OIG, my office will continue to prosecute these cases and redeem taxpayer money.”
“Ms. Gray chose to con the system during one of the most vulnerable times in U.S. history,” said New Orleans FBI Special Agent in Charge Douglas A. Williams, Jr. “The FBI is committed to aggressively pursuing those who seek to defraud the American taxpayers for their own personal gain. We thank our partners at the United States Attorney’s Office Middle District of Louisiana and the Office of Inspector General at the U.S. Department of Labor for their dedication in pursuing justice in this case.”
“Tynea LynnShay Gray used social media as a catalyst to defraud the California Employment Development Department (CA-EDD) of more than $500K in Pandemic Unemployment Assistance (PUA), both in her name and in the names of others, with and without their consent. The scheme orchestrated by Gray resulted in a tremendous loss of pandemic relief needed by those legitimately unemployed as result of the pandemic. We will continue to work diligently to protect the integrity of the unemployment insurance system and bring those who exploit these benefit programs to justice.” said Special Agent-in-Charge Steven Grell, Central Region, U.S. Department of Labor, Office of Inspector General.
This matter was investigated by the Federal Bureau of Investigation and the U.S. Department of Labor-OIG and was prosecuted by Assistant United States Attorney Edward H. Warner.
Detroit Street Gang Leader Sentenced to Life Imprisonment Following Convictions at Trial for Racketeering and MurderRead the Press Release
DETROIT – A 38-year-old Detroit man was sentenced to life imprisonment today for murder, racketeering, narcotics trafficking, and other gang related crimes, United States Attorney Dawn N. Ison announced today.
Ison was joined in the announcement by James A. Tarasca, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.
Evidence at trial showed that Duane Peterson acted as the leader of “It’s Just Us” (IJU), a violent street gang. At its peak, the gang boasted 40 members. IJU terrorized the Detroit community from 2014 through the beginning of 2019 by engaging in violent acts, obstruction of justice, and witness intimidation. In May 2017, IJU ambushed a 33-year-old Detroit man for allegedly disparaging an IJU associate. Peterson chased the man down and executed him, shooting him in the back of the head while he lay dying on the ground.
In March 2018, Peterson and another IJU member opened fire on a carful of innocent bystanders who happened to be stopped at a red light and saw Peterson beating a female in a liquor store parking lot.
Evidence at trial also showed that Peterson ran a heroin/fentanyl drug conspiracy, with at least fifteen IJU members and associates distributing the deadly drugs in Detroit, Jackson, Flint, Ohio, West Virginia, and Kentucky.
Eight defendants were charged in the case. Seven previously pleaded guilty; only Peterson proceeded to trial.
United States District Judge Robert H. Cleland sentenced Peterson to life imprisonment.
“Thanks to a team effort from multiple federal, state, and local agencies, a violent gang leader has been permanently removed from the streets. Violent gang activity and dangerous narcotics trafficking will not be tolerated in our community,” U.S. Attorney Ison said.
“Duane Peterson was found guilty of committing multiple crimes, including murder, as the leader of the IJU street gang, and for those crimes he will spend the rest of his life in prison,” said James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Field Office. “Violent street gangs like IJU threaten the safety and security of everyone in our community. The FBI, alongside federal, state, and local law enforcement agencies across the country, will continue to target and dismantle gangs that wreak havoc on our neighborhoods.”
This case was investigated by the Federal Bureau of Investigation, with assistance from the Drug Enforcement Agency, Detroit Police Department, Jackson County Sheriff’s Office, and many other state and local agencies in Michigan, Ohio, West Virginia, and Kentucky. The case was prosecuted by Assistant U.S. Attorneys Maggie Smith and Eaton Brown.
Denton County Man Sentenced for Threatening Jewish OrganizationRead the Press Release
SHERMAN, Texas – A Denton man has been sentenced to federal prison for violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Anthony Joseph Hammer, 34, pleaded guilty on May 3, 2022, to interstate communication of a threat and was sentenced to 24 months in federal prison today by U.S. District Judge Richard A. Schell.
According to information presented in court, on July 28, 2021, Hammer sent a threatening electronic message to the Anti-Defamation League (ADL), a Jewish civil rights organization based in New York, via the ADL’s website’s contact page. In his message, Hammer stated the following: “Come and find me. Come after me. Come hunt me down. This is me. This is really me. All of my info. I will kill all of you Zionist pigs. 4th reich soon.”
“Threatening to harm others by using phones, computers or mail is a federal crime and taken very seriously,” said U.S. Attorney Brit Featherston. “Hammer believed he could promote his malicious agenda by making threats to kill and to disrupt business activity. That’s why he is going to jail and being punished. Others who do the same will have the same fate.”
“The FBI is tasked with upholding the Constitution to include the right to Free Speech as outlined in the First Amendment. In this case, the direct threats made by the defendant, fell outside of that protected right,” said FBI Dallas Special Agent in Charge Chad Yarborough. “The FBI and our law enforcement partners take all threats seriously and will hold accountable anyone who seeks to intimidate and cause fear simply because they disagree with the views of their fellow citizens.”
An investigation by federal agents revealed that Hammer was already under investigation for threatening calls he made to Pennsylvania Governor Tom Wolf’s office. Hammer made seven calls to Governor Wolf's office requesting to speak to the Governor. When staff members refused to put him through to the Governor, Hammer repeatedly threatened to kill Wolf and his staff members. This conduct was taken into consideration in calculating Hammer’s appropriate sentence in the Eastern District of Texas.
This case was investigated by the FBI and the Pennsylvania Capitol Police and prosecuted by Assistant U.S. Attorney Ryan Locker in the Eastern District of Texas in coordination with Assistant U.S. Attorney Carl Marchioli in the Middle District of Pennsylvania.
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Defendant Charged with Distributing Child Pornography and Sending Death Threats to a MinorRead the Press Release
Christian Brazoban, also known as “Bison,” will be arraigned this afternoon at the federal courthouse in Central Islip on an indictment charging him with distributing child pornography to a minor and sending death threats to a minor. Brazoban was arrested on March 15, 2023 on a complaint charging him with distributing child pornography. He was indicted on March 29, 2023 and has been detained pending trial. Today’s arraignment was be held before United States District Judge Joan M. Azrack.
Breon Peace, United States Attorney for the Eastern District of New York, Ivan J. Arvelo, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), and Patrick J. Ryder, Commissioner, Nassau County Police Department (NCPD), announced the indictment.
“As alleged, the defendant traumatized a child by sending her graphic images of child sexual abuse and then went even further in threatening to kill the child after she told him to stop,” stated United States Attorney Peace. “The defendant’s actions demonstrate the dangers of sextortion directed to children on the Internet. I urge parents and caregivers to talk to their children about the dangers of communicating online with strangers and anyone who may exploit them.”
“HSI New York works tirelessly to protect children from sexual predators that lurk online behind the veil of social media platforms,” said Special Agent in Charge of Homeland Security Investigations New York, Ivan J. Arvelo. “Christian Brazoban is accused of despicable criminal acts that have victimized our most innocent, robbing them of their childhoods and interfering with their emotional and psychological development. HSI will do everything in its power and use every tool at its disposal to track down these heinous criminals and ensure that they are brought to justice. We are appealing to anyone who has awareness about this defendant’s alleged activities or past contacts to come forward. Please reach out to the toll-free Tip Line at 1-866-347-2423 or complete the online tip form. Both are staffed around the clock.”
As set forth in court filings, between approximately March 2021 and March 2023, the victim, a minor who resided in Nassau County, engaged in online communications, including video chats, with Brazoban. On March 3, 2023, Brazoban sent online messages to the victim that contained numerous images of child pornography, including images which depicted the sexual abuse of children between the ages of 3 and 11. When the victim told Brazoban to stop, he sent her additional online messages threatening to kill her and her family. For example, Brazoban wrote: “lil girl shot dead on Long Island”; “I’m thinkin I tie you and just beat you to death with a mallet.”
On March 15, 2023, HSI agents and NCPD officers executed a search warrant at the defendant’s Bronx residence and recovered a cellphone containing images of child pornography and threats that the defendant sent to the minor victim.
Anyone with information about sexual exploitation by Brazoban is asked to contact HSI at https://www.ice.gov/tipline or 1-866-DHS-2-ICE (866-347-2423).
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.
If convicted of the charges, Brazoban faces a mandatory minimum term of 5 years’ imprisonment and up to 20 years in prison.
The government’s case is being prosecuted by Assistant United States Attorney Bradley T. King of the Long Island Criminal Division.
The Defendant:
CHRISTIAN BRAZOBAN, also known as “Bison”
Age: 24
Bronx, New YorkE.D.N.Y. Docket No. 23-CR-138 (JMA)
Champaign, Illinois, Man Sentenced to 72 months in Prison for Possession of a Firearm as a FelonRead the Press Release
URBANA, Ill. – A Champaign, Illinois, man, Prentiss Jackson, 40, of the 3300 block of Stoneway Court, was sentenced on April 10, 2023, to 72 months’ imprisonment, to be followed by a three-year term of supervised release, for possessing a firearm as a felon.
At the sentencing hearing, the government presented evidence that Jackson, a felon on supervised release for a 2010 federal narcotics conviction, possessed a Ruger handgun. Officers from the Urbana Police Department executed a traffic stop on Jackson’s car in June 2022 and eventually asked him to exit the vehicle after he handed an officer marijuana that had been inside it. After exiting the car, Jackson ran from the stop, producing a Ruger handgun during his flight. After he was apprehended, police found MDMA (ecstasy) and a large amount of cash on Jackson’s person.
Also at the hearing, U.S. District Judge Colins S. Bruce found that Jackson possessed the firearm in connection with a felony drug offense. Judge Bruce further ordered that the imposed sentence of 72 months’ imprisonment run consecutive to any sentence Jackson receives for violating his conditions of supervised release in relation to his prior federal narcotics conviction.
Jackson previously entered a guilty plea to the single-count indictment in this case.
Jackson is scheduled to appear in front of U.S. District Judge James E. Shadid on April 13, 2023, at the federal courthouse in Peoria, Illinois, in connection with the supervised release violation. He faces up to an additional five-year term of imprisonment.
The Urbana Police Department investigated the case. Assistant U.S. Attorney William J. Lynch represented the government in the prosecution in cooperation with the Champaign County State’s Attorney’s Office.
California Man Sentenced to 7 Years in Prison for Sex with Missouri TeenRead the Press Release
ST. LOUIS – A man from California admitted traveling to Missouri to have sex with a teenage girl and was sentenced Tuesday to seven years in prison.
Edson S. Ortiz, 30, of Napa County, pleaded guilty at the start of Tuesday’s hearing in U.S. District Court in St. Louis Tuesday to one felony count of traveling with the intent to engage in illicit sexual conduct. He admitted that he began communicating with the Missouri teen over Snapchat and WhatsApp. On Oct. 23, 2020, Ortiz flew from California to St. Louis. The next day, at a hotel in Chesterfield, Ortiz engaged in illegal sex acts with the girl, who was then 16. Ortiz was 27.
He also recorded the sexual contact on his iPhone. That video, as well as pictures, were discovered after a January 2021 search of his home that was triggered when Ortiz uploaded child sexual abuse material to Snapchat.
The case was investigated by the St. Louis County Special Investigations Unit, the Napa County (California) Sheriff’s Office and the FBI. Assistant U.S. Attorney Jillian Anderson 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 the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Browning man admits stabbing man on Blackfeet Indian ReservationRead the Press Release
GREAT FALLS — A Browning man accused of stabbing another man at a party in Browning, on the Blackfeet Indian Reservation, admitted to assault charges today, U.S. Attorney Jesse Laslovich said.
Frank David Francis Boy, 24, pleaded guilty to assault with a dangerous weapon. Boy faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release.
Chief U.S. District Judge Brian M. Morris presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for Sept. 7. Boy was detained pending further proceedings.
The government alleged in court documents that on Sept. 18, 2022, Boy was drinking alcohol with friends in East Glacier. The group decided to go for a drive and ended up at a house party in Browning. The victim, identified as John Doe, who lived at the residence at the time, and Boy arm-wrestled and then got into a wrestling match, which led to a disagreement. Boy and his companions were told to leave, but Boy refused. Boy’s companions pulled Boy from the residence and as they were walking away, Boy turned around and began to engage John Doe. Boy walked toward John Doe, who was backing up, and then stabbed John Doe four or five times in the left shoulder and back area. Another individual captured the assault on video. John Doe was treated for injuries at a hospital in Great Falls.
Assistant U.S. Attorney Kalah A. Paisley is prosecuting the case, which was investigated by the FBI and Blackfeet Law Enforcement Services.
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Brothers Sentenced for $1.6M COVID-19 Fraud SchemeRead the Press Release
Two men were sentenced yesterday for their participation in a COVID-19 fraud scheme, which involved fraudulent applications for $1.6 million in loans through the Paycheck Protection Program (PPP).
Dumarsais Blaise Jr., 45, of Stonecrest, Georgia, was sentenced to two years and three months in prison. His brother, Alexander Blaise, 41, of Plantation, Florida, was sentenced to two years and six months in prison.
According to court documents, Dumarsais Blaise and Alexander Blaise worked together to submit fraudulent PPP applications. Dumarsais Blaise used his expertise as a tax preparer to create fake tax documents that were submitted in support of the fraudulent applications. The conspiracy involved fabricating information about three purported companies, two of which did not exist. For the third company, the brothers falsely inflated the number of employees and payroll costs, claiming the company employed 41 people when in fact it employed only one person.
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 Kyle A. Myles of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG) Atlanta Region, and Special Agent in Charge Jeffery Veltri of the FBI Miami Field Office made the announcement.
The FDIC-OIG and FBI Miami Field Office investigated the case.
Trial Attorney Edward Emokpae of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Kiran Bhat for the Southern District of Florida prosecuted the case.
The Fraud Section leads the Criminal Division’s prosecution of fraud schemes that exploit the PPP. Since the inception of the CARES Act, the Fraud Section has prosecuted over 200 defendants in more than 130 criminal cases and has seized over $78 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at https://www.justice.gov/criminal-fraud/ppp-fraud.
Black Hawk Man Sentenced on Drug and Firearm ChargesRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Jeffrey L. Viken has sentenced a Black Hawk, South Dakota, man convicted of Distribution of a Controlled Substance and Possession of an Unregistered Firearm. The sentencing took place on April 7, 2023.
Gregory Martin, 35, was sentenced to six years in federal prison on each charge, to be served concurrently, followed by five years of supervised release, and ordered to pay a $200 special assessment to the Federal Crime Victims Fund.
Martin was indicted for Distribution of a Controlled Substance and Possession of an Unregistered Firearm by a federal grand jury in March of 2022. He pleaded guilty on December 8, 2022.
In November of 2021, in Box Elder and Black Hawk, Martin knowingly distributed methamphetamine. Additionally, when law enforcement executed a search warrant in December of 2021 at a residence where Martin was staying, he was found in possession of several firearms, including a Mossberg 12-gauge pump-action shotgun with a barrel length of less than 18 inches. The shotgun was not registered to Martin in the National Firearms Registration and Transfer Record as is required by law.
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.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the South Dakota Division of Criminal Investigation, and the Mellette County Sheriff's Office. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Martin was immediately remanded to the custody of the U.S. Marshals Service.
Belmont County sex offender sentenced to 15 years in prison for distributing, receiving child sexual abuse materialRead the Press Release
COLUMBUS, Ohio – A 42-year-old convicted sex offender from Flushing, Ohio, was sentenced in federal court today to 180 months in prison for distributing and receiving child pornography.
Joshua E. Green was also sentenced to serve his time in a prison facility that provides sexual offender treatment and serve 20 years under court supervision after completing his prison sentence.
“Repeat offenders who have shown that they remain a threat to the children around them must be kept away from society for a significant period of time,” said Kenneth L. Parker, United States Attorney for the Southern District of Ohio.
According to court documents, the investigation into Green began when he distributed images of himself to an undercover FBI agent posing as a 12-year-old female. Green admitted that in September 2021, he engaged in conversations through an online messenger app with the purported 12-year-old female and distributed sexually explicit images of himself along with pictures of his face. These images ultimately led to the identification of Green as a registered sex offender.
Further investigation revealed that Green had also distributed child sexual abuse material in January 2022 and February 2022 via the mobile application Kik.
A search warrant was executed at Green’s residence and numerous digital media devices were seized which contained additional evidence of his child exploitation activities.
Green pleaded guilty on Dec. 1, 2022, to distributing and receiving child pornography after being convicted of an offense relating to the sexual abuse of a minor. His prior conviction stemmed from a 2014 case in Belmont County Common Pleas Court in which he pleaded guilty to unlawful sexual conduct with a minor and pandering obscenity involving a minor.
Court documents also say that the National Center for Missing and Exploited Children (NCMEC) received tips from Kik messenger regarding Green’s online child exploitation activities.
Parker was joined by J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Angie Salazar, Special Agent in Charge for Homeland Security Investigations (HSI) Detroit Field Office; and Belmont County Sheriff David M. Lucas in announcing the sentence imposed today by U.S. District Judge Sarah D. Morrison. Assistant United States Attorneys Emily Czerniejewski and S. Courter Shimeall are representing the United States in this case.
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Bvi Man Sentenced to 70 Months Incarceration on Cocaine Smuggling ConvictionRead the Press Release
St. Croix, VI – United States Attorney Delia L. Smith announced today that Sean John, 35 of Tortola, BVI, was sentenced to 70 months of imprisonment by District Court Judge Wilma A. Lewis on his conviction of conspiracy to possess with intent to distribute cocaine while on board a vessel subject to the jurisdiction of the United States. Judge Lewis also sentenced John to two years of supervised release and a special assessment of $100.00.
According to court documents, on January 9, 2022, Customs and Border Protection Air and Marine agents detected a vessel with bales of suspected cocaine in plain view on the deck of the vessel. The vessel was traveling on the northeast side of St. Croix heading north towards the British Virgin Islands. Upon further investigation, agents encountered a 32-foot Manta low-profile vessel with twin 300 HP outboard engines located at approximately 19 nautical miles northeast of St. Croix in international waters in an area known by law enforcement for drug trafficking. The vessel was dead in the water and displayed no indicia of nationality, flag nor registration, and was determined to be a vessel without nationality, thus subject to the jurisdiction of the United States. Onboard the vessel, agents discovered 21 bales wrapped in plastic and encased in rope four. Drug Enforcement Administration laboratory analysis later confirmed that the 21 bales recovered from the vessel contained approximately 567 kilograms of cocaine hydrochloride. Also onboard the vessel were defendants Shannon John, Sean John, Emmanuel Tolentino-Lebron and Augusto Rodriguez-Molina, all of whom pleaded guilty to the cocaine conspiracy charge.
This case was investigated by the United States Coast Guard, Homeland Security Investigation, Customs and Border Protection and Drug Enforcement Administration and is being prosecuted by Assistant United States Attorney Melissa P. Ortiz. This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Artistas Asesinos Cartel leader sentenced to 27 years for drug traffickingRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, and Gregory M. Millard, Special Agent in Charge for the DEA El Paso Division, announced today that Jorge Marquez was sentenced to over 27 years in prison. Marquez, 43, of Chaparral, New Mexico, pleaded guilty on May 17, 2022, to one count of conspiracy to distribute methamphetamine, one count of distributing 5 grams or more of methamphetamine, and six counts of distributing 50 grams and more of methamphetamine. On April 4, 2023, Marquez was sentenced to 327 months in prison. Upon his release from prison, Marquez will be subject to 5 years of supervised release.
The case against Marquez was part of a five-year investigation into a transnational criminal organization known as the Artistas Asesinos, or Doble A Cartel, which dually operates as a drug trafficking organization and the enforcement arm of the Sinaloa Cartel in Ciudad Juarez, Mexico, and Southern New Mexico. Between 2017 and 2021, Marquez personally delivered, attempted to deliver, or directed others to deliver more than three pounds of methamphetamine to undercover law enforcement agents. In so doing, Marquez recruited couriers and distributors in the United States to include his codefendants in the case – Samantha Bailon, Vanessa Bailon, Jasmine Barradas, and Veronica Rivera – and coordinated the logistics of the Artistas Asesinos drug trafficking activity while in and out of custody in Mexico. Marquez was ultimately arrested on February 24, 2021, when he and a passenger presented in a vehicle at the United States Border Patrol checkpoint south of Alamogordo, New Mexico, and was found in possession of 105.1 grams of methamphetamine concealed in the dashboard of the vehicle.
“This is a fine example of how our agents in collaboration with our law enforcement partners work diligently to keep our community safe from dangerous drugs,” said Miguel Dominguez, Chief of Police for the Las Cruces Police Department. “It proves how critical our law enforcement partnerships are, we will continue to work together to hold drug trafficking organizations accountable for their actions.”
"Illegal drug activity brings danger to our communities—it will not be tolerated,” said Raul Bujanda, FBI Special Agent in Charge. “Collaborative law enforcement efforts will continue to identify and disrupt drug trafficking organizations bringing violence to our streets. Investigations like this prove the essential value of strong law enforcement partnerships and working together to meet a common goal.”
“This case demonstrates the lengths the Sinaloa Cartel will go to bring their poison into our communities,” said Greg Millard, Special Agent in Charge of the DEA’s El Paso Division. “But any person or organization affiliating themselves with Sinaloa will discover the men and women of the DEA will also go to great lengths to bring them to justice.”
“The Sinaloa Cartel uses gangs like Artistas Asesinos to push their drugs, collect their debts, and inflict their violence,” said U.S. Attorney Alexander M.M. Uballez. “Local, state, and federal law enforcement, working shoulder-to-shoulder, will proactively target and bring to justice groups who profit off of the addiction, suffering, and misery of others.”
The investigation of the Artistas Asesinos was led by the Las Cruces/Doña Ana County Metro Narcotics Agency. Metro Narcotics is the leading task force combating drug trafficking in Doña Ana County, New Mexico. Metro Narcotics operates as a joint agency composed of investigators from the Las Cruces Police Department, the Doña Ana County Sheriff's Office, and New Mexico State Police. Metro Narcotics was also supported in the investigation by agents from the Las Cruces Resident Agency of the FBI Albuquerque Field Office and the Drug Enforcement Administration’s Las Cruces District Office. Assistant United States Attorneys Selesia L. Winston and Matthew Ramirez are prosecuting the case.
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Arnold, PA Man Sentenced to 20 Years in Prison for Possessing FentanylRead the Press Release
Editor's Note: An updated outcome to this matter as a result of post-trial litigation can be viewed here.
PITTSBURGH - A Westmoreland County resident has been sentenced in federal court to 20 years of imprisonment on his conviction of Possession with the Intent to Distribute 400 Grams or More of Fentanyl, Acting United States Attorney Troy Rivetti announced today.
United States District Judge W. Scott Hardy imposed the sentence on Kevin Watson, age 33, of Arnold, Pennsylvania.
According to information presented to the court, Watson was pulled over by the Pennsylvania State Police for traffic violations. Watson had been smoking marijuana and had a young child in the back seat of his vehicle. When the Pennsylvania State Police asked him to get out of his vehicle, Watson sped away from the traffic stop and led the Pennsylvania State Police on a high-speed chase that reached speeds of 115 miles per hour on Route 28. Eventually, Watson crashed and fled on foot. The child was not seriously injured. Later, the Pennsylvania State Police obtained a search warrant for the vehicle, which revealed more than $100,000 of fentanyl in the trunk of the vehicle. Watson has an extensive criminal history that includes, among other convictions, three previous drug trafficking convictions, and he was on parole at the time of this offense.
Also, as part of the sentencing proceeding, the government informed Judge Hardy that Watson, one of his brothers, and a third individual were implicated in a scheme to murder a witness who had testified against another brother. On May 14, 2009, Luzay Watson shot and killed Davon Young, and on June 4, 2009, Luzay Watson was arrested for that offense. On July 24, 2009, there was a preliminary hearing involving the homicide charge against Luzay Watson in which Monique Gray testified.
In the aftermath of the preliminary hearing, Luzay Watson engaged in a series of telephone calls from jail with Kevin Watson. The jail recorded those telephone calls. During those calls, Luzay Watson encouraged Kevin Watson to kill Gray. In recorded conversations in July and August of 2009, Luzay Watson angrily and bitterly complained to the Kevin Watson and Luzay Watson’s then girlfriend, Chrissy Stubbs, that nothing was being done about eliminating the witnesses in his case. However, he was repeatedly assured by Kevin Watson and Stubbs that the matter would be taken care of. In one conversation, Stubbs informed Luzay Watson that Charles Cabiness was “posted up” on the Cresswell Street home of Monique Gray's sister, Donneika Gray, to await an opportunity to kill Monique Gray when Monique Gray visited Donneika Gray's home. In the late morning of August 22, 2009, Charles Cabiness shot and killed Monique Gray while she was outside of Donneika Gray's house, in the company of multiple neighbors and young children.
Prior to imposing sentence, Judge Hardy granted a ten-year reduction from the advisory Sentencing Guideline range, which called for a sentence of 30 years to life imprisonment.
Assistant United States Attorney Brendan T. Conway and former Assistant United States Attorney Brian Czarnecki prosecuted this case on behalf of the government.
Acting United States Attorney Rivetti commended the Pennsylvania State Police and the Drug Enforcement Administration for the investigation leading to the successful prosecution of Watson.
10 April 2023
Yuma Contractor Sentenced to 87 Months for Insurance FraudRead the Press Release
PHOENIX, Ariz. – Isrrael Millan, III, 43, of Yuma, Arizona, was sentenced last week by United States District Judge Roslyn O. Silver to 87 months in prison. Millan also was ordered to pay $391,279.45 in restitution to the victim insurance companies. Millan was found guilty by a jury on December 13, 2022, of Conspiracy, Wire and Mail Fraud, and Money Laundering.
Millan’s conviction was related to several insurance fraud schemes that took place between 2018 and 2020 in Yuma, Arizona. The schemes included staging vehicle accidents, as well as deliberately flooding residences, and then submitting fraudulent claims to insurance companies. One of the incidents occurred in the early morning of June 2, 2019, when two individuals Millan recruited deliberately crashed a U-Haul moving truck into the Sunshine Market and Liquors Convenience Store in Yuma. Millan worked as a general contractor and made fraudulent claims related to the damage caused by some of these incidents in an effort to collect insurance proceeds.
The Federal Bureau of Investigation conducted the investigation in this case. Assistant U.S. Attorneys Raymond K. Woo and Aron Ketchel, Phoenix, handled the prosecution.
CASE NUMBER: CR-20-00713-PHX-ROS
RELEASE NUMBER: 2023-052_Millan# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Woman Sentenced to 48 Months in Prison for Conspiring to Violate U.S. Sanctions Against IranRead the Press Release
A California woman was sentenced on April 7 to four years in prison followed by three years of supervised release for conspiring to violate the International Emergency Economic Powers Act (IEEPA) by providing services, including financial services, to Iran and the Government of Iran, in violation of U.S. sanctions against Iran, and for structuring.
According to court documents, Niloufar Bahadorifar, aka Nellie Bahadorifar, 48, of Irvine, pleaded guilty on Dec. 15, 2022, before U.S. District Judge Ronnie Abrams, who imposed the sentence.
“The Government of Iran has shown that it will take extreme measures to silence dissidents and critics around the world exercising their lawful rights, including through the use of violence on U.S. soil,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “We hold accountable an individual who violated U.S. sanctions by providing financial assistance that ultimately supported a failed kidnapping plot directed by the Iranian government, underscoring the Department’s commitment to bringing to justice those who criminally aid the Iranian regime.”
“Niloufar Bahadorifar provided financial support to a brazen plot intended to kidnap an Iranian human rights activist living in the United States whom the Iranian Government has sought to silence for years,” said U.S. Attorney Damian Williams for the Southern District of New York. “Efforts by malign foreign governments to stifle free speech and peaceful protest by means of intimidation or repression cannot be tolerated. The right to free speech is a core fundamental principle of American ideals, and this office is proud to protect that right with every means at our disposal.”
“Simply put, the defendant provided assistance to individuals who tried to help kidnap a journalist living in New York, who has criticized the regime in Teheran,” said Assistant Director Alan E. Kohler Jr. of the FBI’s Counterintelligence Division. “This case demonstrates that the government of Iran will continue to target dissidents and reach beyond their borders, violating U.S sanctions and national security, but more importantly threaten the personal safety of individuals living in our country. The FBI will continue to shield those who are targeted and aggressively pursue anyone who attempts to circumvent our laws and will leverage all our authorities to protect the right to free speech.”
According to the indictment and other documents in the public record, as well as statements made in public court proceedings:
For years, the Government of Iran has targeted a prominent Iranian dissident living in New York City (the Victim). The Victim is a journalist, author and human rights activist who has publicized the Government of Iran’s human rights abuses and suppression of political expression. Beginning in at least 2020, Iranian intelligence officials and assets, including co-defendant Mahmoud Khazein, plotted to kidnap the Victim from within the United States for rendition to Iran in an effort to silence the Victim’s criticism of the regime. As part of that plot, on multiple occasions in 2020 and 2021, agents of the Government of Iran procured the services of private investigators to surveil, photograph, and video record the Victim and the Victim’s household members. These agents of the Government of Iran, including Khazein, procured the surveillance by misrepresenting their identities and the purpose of the surveillance to the investigators and laundered money into the United States from Iran in order to pay for the surveillance, photos and video recordings of the Victim.
Beginning in approximately 2015, Bahadorifar, a U.S. citizen residing in California and originally from Iran, provided financial and other services, including access to the U.S. financial system and U.S. financial institutions, to Iranian residents and entities, including to Khazein. Bahadorifar, who is not charged with participating in the kidnapping conspiracy, provided financial services that ultimately supported the plot. Among other things, Bahadorifar caused a payment to be made to a private investigator for surveillance of the Victim on behalf of Khazein. Bahadorifar’s payment obscured the origin of those who had hired the private investigator, who surveilled the Victim without knowing it was on behalf of Iranian intelligence services. At no time did Bahadorifar obtain permission from OFAC to provide services to Iran.
Beginning in approximately 2019, Bahadorifar also structured cash deposits totaling hundreds of thousands of dollars. In total, Bahadorifar structured at least approximately $476,100 in more than 120 individual deposits. All but two of the deposits were less than $10,000.
The FBI New York Field Office Counterintelligence-Cyber Division and the New York FBI Iran Threat Task Force investigated the case, with valuable assistance provided by the New York City Police Department (NYPD) and the NYPD Intelligence Bureau, the FBI Los Angeles Field Office and the Justice Department’s National Security Division.
Assistant U.S. Attorneys Michael D. Lockard, Jacob H. Gutwillig and Matthew J.C. Hellman for the Southern District of New York and Trial Attorney Christopher M. Rigali of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
Vernon Man Charged with Possessing Child Sexual Abuse MaterialRead the Press Release
Burlington, Vermont – The Office of the United States Attorney for the District of Vermont announced that Glen Buehler, 67, of Vernon, Vermont, is scheduled to appear this afternoon before United States Magistrate Judge Kevin J. Doyle after his arrest for Possession of Child Sexual Abuse Materials (CSAM).
According to court records, on February 2, 2023, a Portsmouth, New Hampshire Police Detective was conducting an online investigation of the BitTorrent network, looking for individuals sharing CSAM. A BitTorrent user was identified as sharing likely CSAM files, and a download of some of those files occurred the evening of February 2, 2023. After the source of the files was determined to likely be in Vermont, the New Hampshire Internet Crimes Against Children (ICAC) Task Force coordinated with Homeland Security Investigations (HSI) in Derby, Vermont. HSI’s investigation revealed the source of the files downloaded from BitTorrent to likely be Buehler’s residence in Vernon, Vermont. A federal search warrant was executed on April 3, 2023, resulting in the seizure of a number of electronic devices. A preliminary forensic examination by HSI revealed that a Motorola cellphone contained multiple files of suspected CSAM. On April 7, 2023, Buehler was charged by criminal complaint. Buehler self-surrendered to law enforcement this morning.
The United States Attorney’s Office emphasizes that a criminal complaint contains allegations only and that Buehler remains presumed innocent until and unless he is convicted of a crime. Buehler faces a maximum sentence of 10 years of imprisonment. The actual sentence would be determined with reference to the United States Sentencing Guidelines.
United States Attorney Nikolas P. Kerest commended the investigatory efforts of agents of Homeland Security Investigations, the Portsmouth, New Hampshire Police Department, the New Hampshire ICAC, the Vermont ICAC, and the detectives of the Vermont Attorney General’s Office’s Criminal Division. He also thanked the Vermont State Police and Brattleboro Police Department for their assistance.
The prosecutor is Assistant United States Attorney Jonathan A. Ophardt. Buehler is represented by the Office of the Federal Public Defender.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 Child Exploitation Obscenity Section, Criminal Division (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Vermont Man Pleads Guilty to Drug TraffickingRead the Press Release
CONCORD – A Vershire, Vermont man pleaded guilty today in federal court to possessing methamphetamine and cocaine with intent to distribute in New Hampshire, U.S. Attorney Jane E. Young announces.
Damien Rousseau, 31, pleaded guilty to unlawful possession with the intent to distribute methamphetamine and cocaine. U.S. District Court Judge Landya McCafferty scheduled sentencing for July 24, 2023. Rousseau was charged on August 15, 2022.
On May 11, 2022, Dartmouth Hitchcock Medical Center security personnel determined that Rousseau was in a patient’s room while in possession of a bag that contained a small quantity of narcotics and a drug ledger. The Lebanon Police Department responded and observed that Rousseau’s BMW vehicle, in the medical center’s parking-lot, had methamphetamine and drug paraphernalia. A drug detecting canine also alerted the presence of narcotics in the vehicle. The defendant was arrested and released on bail. The following day, May 12, 2022, the Lebanon Police Department observed Rousseau trespassing in their secure-impound lot. After finding him hidden in the BMW, officers arrested him and executed a search warrant on the vehicle. Law Enforcement seized approximately 436 grams of methamphetamine, 98.66 grams of cocaine, 10.5 grams of fentanyl, three loaded firearms, assorted loose ammunition, $2,179 in U.S currency, and 20 assorted silver and gold-colored coins.
The charging statute provides a sentence of no greater than 20 years in prison, 3 years of supervised release, a fine of $1,000,000. 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.
The United States Drug Trafficking Administration led the investigation. Valuable assistance was provided by Bureau of Alcohol, Tobacco, Firearms and Explosives, the Lebanon Police Department, and the Vermont State Police. Assistant U.S. Attorney Jennifer C. Davis is prosecuting the case.
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Two Former Eastern Kentucky Correctional Supervisors Plead Guilty to Roles in the Assault of a Restrained Inmate and Cover-UpRead the Press Release
A former member of Eastern Kentucky Correctional Complex’s (EKCC) internal affairs department pleaded guilty to one count of deprivation of an inmate’s civil rights, and a former EKCC sergeant pleaded guilty to three counts of obstruction of justice for attempting to cover up their roles in the assault of a restrained inmate.
In their plea agreements, James D. Benish, 36, and Randy L. Nickell, 54, acknowledged that on July 24, 2018, they witnessed fellow EKCC correctional officers assault a non-violent inmate who was lying face-down, wearing handcuffs and leg shackles, and isolated in a prison shower cell. Benish admitted that he was present in the shower during the assault, and he further acknowledged that he violated the inmate’s civil rights by failing to intervene and protect the inmate despite having the means and opportunity to do so. Nickell, who stood outside of the shower while the assault occurred, admitted that he falsified records by omitting the assault from his occurrence report, and that he later lied to the supervisor assigned to investigate the incident, as well as to a Kentucky State Police (KSP) detective.
Two other former officers have pleaded guilty in related cases. On Aug. 29, 2022, former EKCC officer Jeffery Havens pleaded guilty to one count of deprivation of civil rights based on his assault of the inmate. On July 11, 2022, former EKCC officer Derek Mays pleaded guilty to four counts of obstruction of justice based on his efforts to cover up the same assault.
Benish and Nickell are scheduled to be sentenced on Dec. 11. Benish faces a maximum sentence of up to 10 years in prison. Nickell faces a maximum of 20 years in prison for each charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Carlton S. Shier IV for the Eastern District of Kentucky, Special Agent in Charge Jodi Cohen of the FBI Louisville Field Office and Colonel Phillip Burnett Jr. Commissioner of Kentucky State Police (KSP) made the announcement.
The FBI Louisville Field Office, KSP and the Kentucky Justice and Public Safety Cabinet investigated the case.
Assistant U.S. Attorneys Zach Dembo and Mary Melton for the Eastern District of Kentucky and Trial Attorney Thomas Johnson of the Civil Rights Division’s Criminal Section prosecuted the case.
Texas Man Sentenced to over 11 years in Prison for Possession with Intent to Distribute MethamphetamineRead the Press Release
Gulfport, Miss. – A Texas man was sentenced to 135 months in federal prison for possession with intent to distribute methamphetamine, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Brad L. Byerley of the Drug Enforcement Administration.
Miguel Mendoza, 33, of Elgin, Texas, was sentenced on April 6, 2023, in U.S. District Court in Gulfport.
According to court records, on Monday, October 17, 2022, Harrison County Sheriff’s Office conducted a traffic stop on Interstate 10 East in Pass Christian, Mississippi. Mendoza was the driver and sole occupant of the vehicle. An extensive search of the vehicle revealed a pressure activated access panel for two improvised compartments on each side of the vehicle’s drive shaft. The driver side compartment contained (2) cellophane wrapped packages containing 2.5 kilograms of cocaine. The passenger side compartment contained (2) plastic and aluminum foil wrapped packages containing 1 kilogram of methamphetamine. Tools were located inside the vehicle that were readily available to raise the vehicle and gain access to the compartment.
Mendoza was indicted by a federal grand jury and he pled guilty on January 17, 2023 to possession with intent to distribute methamphetamine.
The case was investigated by the Drug Enforcement Administration.
The case was prosecuted by Assistant U.S. Attorney Erica Rose.
Ten-Time Convicted Felon Sentenced to More Than Eight Years in Federal Prison for Possessing AmmunitionRead the Press Release
Tampa, Florida – U.S. District Judge Charlene E. Honeywell has sentenced Jesus Rivas (29, Tampa) to eight years and four months in federal prison for unlawful possession of ammunition by a convicted felon. Rivas had pleaded guilty on November 4, 2022.
According to court documents, On November 22, 2021, just after midnight, Tampa Police Department (TPD) officers observed a silver Infiniti use the shoulder of the road to illegally pass another car. The officers activated their police emergency lights to initiate a traffic stop and Infiniti pulled over to the side of the road. As officers approached the car on foot, the Infiniti fled from the scene and the officers radioed out a description of the car and the events that had just occurred. Another TPD officer was in the area, heard the radio call, and observed two men walking away from a silver Infiniti that was had just been parked. The officer looked inside the silver Infiniti and saw a firearm poking out from under the driver’s seat and radioed his findings. The officers from the earlier traffic stop responded to the scene and saw the two men walking, approached them. Rivas was one of the two men. During an interview with the officers, Rivas admitted that he had been driving the silver Infiniti and that he had fled from the scene.
During a search of the silver vehicle, officers located a ghost gun—a firearm that is assembled from different parts of firearms—loaded with 22 rounds of Blazer ammunition under the driver’s seat. After collecting a DNA sample from Rivas and the swabbing the found gun for a comparable, forensic testing determined that the samples matched. As a previously convicted felon, Rivas is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tampa Police Department. It was prosecuted by Assistant United States Attorney Charlie D. Connally.
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.
Tech Company CEO Sentenced to 42 Months in Connection with Fraud Against His Former EmployerRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that SUNI MUNSHANI, the former Chief Executive Officer of a Connecticut-based technology company (the “Victim Company”), was sentenced to 42 months in prison for his participation in a scheme to defraud the Victim Company of millions of dollars. The sentence was imposed by U.S. District Judge Jed S. Rakoff.
U.S. Attorney Damian Williams said: “Suni Munshani believed that he could ransack a company that had put its trust in him. He lied for years — even impersonating his deceased uncle — to steal from an organization he was supposed to lead. His sentence shows once again that crime doesn’t pay, and that this Office will bring to justice those who flout the law, even if they have the top job.”
According to public court filings and statements made in Court:
Between 2011 and 2019, SUNI MUNSHANI was the CEO of the Victim Company, which provided data security services to its clients. Within six months of his appointment as CEO, MUNSHANI and others began an approximately eight-year scheme to defraud the Victim Company. During the scheme, MUNSHANI, among other things, created an email account in the name of his deceased uncle but controlled by MUNSHANI. MUNSHANI, posing as the uncle, used that email account to correspond with the Victim Company and to obtain payments from the Victim Company totaling at least approximately $3 million dollars for services that were never provided. These purported services were falsely represented to have been rendered by the uncle as well as others, including a marketing executive who had met MUNSHANI in social settings but had never worked for MUNSHANI or the Victim Company and had no idea his identity was being used by MUNSHANI. MUNSHANI also caused the Victim Company to issue a $3.5 million check for a purported tax liability, which check MUNSHANI then deposited into an unauthorized bank account created by MUNSHANI in the name of the Victim Company.
In addition, MUNSHANI defrauded the Victim Company through fraudulent licensing and reseller agreements between the Victim Company and two other companies (the “Licensing Company” and the “Reseller Company,” respectively). Among other things, MUNSHANI instructed another individual to set up the Reseller Company “in the same way as [the Licensing Company],” and then helped create and submit fraudulent invoices from the Reseller Company to the Victim Company.
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In addition to his prison term, MUNSHANI, 61, of Easton, Connecticut, was sentenced to three years of supervised release. The Court reserved decision on the amount of restitution.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation’s New York Office.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Timothy V. Capozzi and Steven J. Kochevar are in charge of the prosecution.
Superseding Indictment Charges Additional Defendant with Federal Racketeering Offenses and Murder of Chicago RapperRead the Press Release
CHICAGO — A federal superseding indictment unsealed today charges a sixth alleged member or associate of the O-Block street gang with participating in a criminal organization that murdered a Chicago rapper and violently protected the gang and its territories on the South Side of Chicago.
The original indictment alleges that the O-Block gang publicly claimed responsibility for acts of violence in Chicago and used social media and music to increase their criminal enterprise. The O-Block gang allegedly engaged in numerous acts of violence, including the murder of Carlton Weekly, a Chicago rapper also known as “FBG Duck,” on Aug. 4, 2020.
RALPH TURPIN, also known as “Tall” and “Teezy”, 33, of Chicago has been added to the case, charged with one count of committing murder in aid of racketeering and one count of conspiracy to commit murder in aid of racketeering. Turpin’s initial appearance occurred today before Magistrate Judge Sunil R. Harjani. Turpin is currently in federal custody and a detention hearing has been set for April 12, 2023.
Charged in the original indictment in October of 2021, for committing murder in aid of racketeering and conspiracy to commit murder in aid of racketeering, are Chicago residents CHARLES LIGGINS, also known as “C Murda,” 30; KENNETH ROBERSON, also known as “Kenny” and “Kenny Mac,” 28; TACARLOS OFFERD, also known as “Los,” 30; CHRISTOPHER THOMAS, also known as “C Thang,” 22; and MARCUS SMART, also known as “Muwop,” 22. The indictment also charges the original defendants with federal firearm violations and assaults in aid of racketeering.
The indictment was announced by Morris Pasqual, Acting United States Attorney for] the Northern District of Illinois; Robert W. Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the Federal Bureau of Investigation; and Eric Carter, Interim Superintendent of the Chicago Police Department. Substantial assistance in the investigation was provided by the Cook County State’s Attorney’s Office. The government is represented by Assistant U.S. Attorneys Jason A. Julien, Albert Berry III, and Ann Marie Ursini.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. The murder count in the indictment carries a mandatory minimum sentence of life in federal prison and a maximum potential sentence of the death penalty. One of the firearm counts is also punishable by a maximum potential sentence of the death penalty, while the other firearm count is punishable by a mandatory minimum of ten years and a maximum of life. The assault counts are each punishable by a maximum of twenty years. If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
St. Louis Man Caught with Two Guns After Dangerous High-Speed Chase Sentenced to 8 Years in PrisonRead the Press Release
ST. LOUIS – A man caught by St. Louis police with two guns in a stolen vehicle after a police chase ended in a crash was sentenced Monday to eight years in federal prison.
Eric Davis, 31, of St. Louis, pleaded guilty in December in front of U.S. District Judge John A. Ross to one felony count of being a felon in possession of a firearm. He admitted that he was driving a stolen 2016 Jeep Cherokee on May 4, 2021 when he was spotted by officers with the St. Louis Metropolitan Police Department. Police tried to stop the Jeep in a parking lot, but Davis accelerated recklessly and sped away. Officers then successfully deployed a spike strip, but it did not stop Davis. After he ran a red light at the intersection of Kingshighway Boulevard and Dr. Martin Luther King Drive, the Jeep collided with another vehicle, disabling it. The driver of that other vehicle sustained a head injury and required medical assistance.
Police found a Glock .357-caliber pistol and a stolen American Tactical Omni Hybrid AR-style pistol, both with large-capacity magazines, in Davis’ car. Davis admitted possessing the weapons and admitted that he told his girlfriend, who was also in the vehicle, to hide a baggie containing prescription pills including oxycodone. Davis has several prior felony convictions and had bench warrants for his arrest at the time of the crash.
The case was investigated by the St. Louis Metropolitan Police Department and the Missouri Department of Public Safety. Assistant U.S. Attorney Zachary Bluestone prosecuted the case.
Southern Ohio woman sentenced to prison for embezzling $700k from employerRead the Press Release
CINCINNATI – A Sardinia, Ohio, woman was sentenced in U.S. District Court today to serve 28 months in prison for stealing more than $700,000 from the family-owned business for which she worked. She was also sentenced to pay restitution to the company.
Tina Coday-Townes, 49, pleaded guilty on October 20, 2022, to wire fraud.
According to court documents, Coday-Townes previously served as the office manager for a business in Clermont County. In that role, she was responsible for accounts payable and bookkeeping, including inputting and sending data to a third-party payroll company.
The defendant admitted that from 2013 until 2019, she wrote checks using an employers’ signature stamp to pay off her personal credit cards. Coday-Townes made false entries into the accounting database, indicating the checks were to vendors rather than to her personal credit cards.
In addition, Coday-Townes entered overtime hours for herself, even though she was ineligible for overtime as a salaried employee.
Her sentence calls for her to pay $697,000 in restitution to her former employer, $11,500 to the State of Ohio for fraudulently paid unemployment benefits, and $35,000 to West American Insurance Company.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, and J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the sentence imposed today by Senior U.S. District Judge Michael R. Barrett. Assistant United States Attorney Ashley N. Brucato is representing the United States in this case.
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Schuylkill County Man Pleads Guilty to Methamphetamine and Fentanyl TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that John Bartel, age 63, of Pottsville, Pennsylvania, pleaded guilty on April 6, 2023, before U.S. District Court Judge Malachy Mannion, to the charge of possession with intent to distribute methamphetamine and fentanyl.
According to United States Attorney Gerard M. Karam, Bartel admitted to possessing methamphetamine and fentanyl for further distribution. The charge stems from an investigation in which the Pennsylvania State Police made a traffic stop of a vehicle Bartel was driving on August 3, 2022, in Pottsville, and seized approximately 55 grams of methamphetamine, 1,371 packets of fentanyl and $1,974 in U.S. currency. Bartel was the sole occupant of the vehicle.
The charge against the defendant resulted from an investigation conducted by the Pennsylvania State Police and the Federal Bureau of Investigation’s Safe Streets Task Force. Assistant United States Attorney Robert J. O’Hara 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.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state, and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
The maximum sentence under federal law is up to twenty years in prison, a term of supervised release and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
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Romanian National Indicted for Stealing Donation Checks from Numerous Florida ChurchesRead the Press Release
Orlando, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging Ionut Vaduva (34, Orlando) with 11 counts of bank fraud and 2 counts of aggravated identity theft. If convicted, Vaduva faces up to 30 years in federal prison on each bank fraud count, a consecutive minimum mandatory penalty of 2 years’ imprisonment for each aggravated identity theft count, and payment of restitution to the victims he defrauded.
According to the indictment, Vaduva obtained donation checks made payable to various religious institutions by stealing them from mail receptacles at churches located throughout the Middle District of Florida and elsewhere. Vaduva then deposited the stolen checks, using ATM machines, into various bank accounts that he controlled. In total, Vaduva deposited more than $150,000 in stolen donation checks into his accounts.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the United States Postal Service – Office of Inspector General, with the assistance from the Florida Department of Law Enforcement and the Seminole County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Shannon Laurie.
Download IndictmentReadout of U.S. Attorney General Merrick B. Garland’s Meeting with Singapore Attorney General Lucien WongRead the Press Release
U.S. Attorney General Merrick B. Garland met Monday in Washington, D.C., with Attorney General of the Republic of Singapore Lucien Wong.
The leaders discussed the importance of cooperation in international criminal investigations and prosecutions, and on extradition and mutual legal assistance matters, in order to combat cybercrime, cryptocurrency crimes, financial fraud, money laundering, and drug trafficking.
In the meeting, Attorney General Garland thanked Attorney General Wong for the Singapore Attorney General’s Chambers assistance with the investigation of the global bribery and $4.5 billion embezzlement and money laundering scheme involving the Malaysian sovereign wealth fund 1Malaysia Development Berhad (1MDB) and for their recent excellent assistance with extraditions in other cases.
Attorney General Garland reaffirmed our increasingly close and outstanding bilateral relationship over the past decade with Singaporean law enforcement and the Singapore Attorney General’s Chambers.
“The Justice Department’s international law enforcement partnerships are integral to our efforts to uphold the rule of law and keep our country safe,” said Attorney General Merrick B. Garland. “The Department is grateful for its relationship with our Singaporean law enforcement partners and looks forward to continuing our work together to combat transnational threats.”
Also attending the meeting were U.S. Ambassador to Singapore Jonathan Kaplan, Singapore Ambassador to the United States Ashok Kumar Mirpuri, Singapore Deputy Attorney General Ang Cheng Hock, Chief Prosecutor Tan Kiat Pheng, Deputy Public Prosecutor Ryan Lim, Deputy Assistant Attorney General and Counselor for International Affairs Bruce C. Swartz, and Justice Department Attaché for Maritime Southeast Asia Scott Simeon.
Following both Attorneys General meeting, the delegation from Singapore met with Deputy Assistant Attorney General Richard Downing, the Criminal Division’s Computer Crime and Intellectual Property Section, the National Cryptocurrency Enforcement Team, and the FBI to discuss cybercrime, cryptocurrency and blockchain technology issues. They also met with the Justice Department’s Office of International Affairs and the Criminal Division’s Money Laundering and Asset Recovery Section.
U.S. Attorney General Merrick B. Garland with Attorney General of the Republic of Singapore Lucien WongPrison escapee sentenced to 10 years for being a felon in possession of a firearm, a charge resulting from shooting of Farmington Police OfficerRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Brendan Iber, Special Agent in Charge of the Phoenix Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), announced today that Elias Buck was sentenced to the statutory maximum of 10 years in prison. Buck, 24, of Aztec, New Mexico, pleaded guilty on Dec. 8, 2022, to being a felon in possession of a firearm and ammunition.
According to the plea agreement and other court records, on Jan. 7, 2022, police officers in Farmington responded to a report that the male driver of a black Cadillac was possibly driving under the influence. An officer located the vehicle in the drive-thru line of a Starbucks and waited for it to exit. Once it did, the officer initiated their lights and sirens and attempted to stop the Cadillac, but the driver fled at a high rate of speed. Another officer located the Cadillac a short time later in the Carl’s Junior parking lot and learned from witnesses that two individuals fled from the vehicle on foot. A third officer who was nearby decided to check a large dirt lot in the area the witness had indicated that individuals fled. He parked his vehicle and walked towards an opening in the corner of the lot, where he observed two individuals walking towards him. The officer contacted the individuals and recognized Buck from the escape flyer circulated after Buck escaped from a Durango jail the week prior despite his attempt to disguise himself by wearing a wig. The officer asked Buck and the other individual to sit down, at which time Buck pulled a pistol from his pocket, pointed it towards the officer’s face, and pulled the trigger.
The firearm’s muzzle was approximately one foot from the officer’s face when Buck pulled the trigger. The officer raised his arm to shield his face and the bullet passed through his arm. Buck shot him a second time in the elbow. The officer retreated to put some space between him and Buck and heard Buck fire two more rounds at him before fleeing. Since the shooting, the officer has returned work, however he has not regained full range of motion in his arm.
Buck was arrested on Jan. 14, 2022, in Phoenix, Arizona after he was recognized by a security guard at a local convenience store.
During sentencing proceedings, Farmington Police Chief Steve Hebbe addressed the Court, saying “…the long-term impact of this event was significant, and not just [to the] Farmington PD, but to the City of Farmington and to the entire San Juan County. It's a remote county, pretty close-knit. We had not had an officer shot in the line of duty in over 30 years, and that means every officer on my agency had never lived through an officer-involved shooting, had never experienced it. It was -- It was a shocking event for our agency.”
Chief Hebbe continued by addressing Judge Kea W. Riggs directly, saying “. . . today is singular for you in that you have a chance to say, as a federal judge, the pinnacle of the criminal justice system, to say in no uncertain terms that assaults on our criminal justice system, assaults on our police officers is absolutely not tolerable; that whatever the vitriol, whatever the second-guessing, whatever the climate has been over the last few years, that does not excuse, it does not belittle, it does not minimize the impact of a crime like this.”
At the time of sentencing, United States District Court Judge Kea W. Riggs addressed Buck, saying “You do not have the right to change anyone else's life or alter -- you altered this man's life for the rest of his life. You altered his family's life. It is a ripple effect. It's a ripple effect through his family, on the Department, and through that community . . . I'm thankful that our officer is alive and able to continue to work, but you're lucky that you're alive and here, and you need to think about that.”
“We owe a special debt of gratitude to those who put their lives on the line to keep our communities safe,” said U.S. Attorney Alexander M.M. Uballez. “Just as federal, state, and local law enforcement officers walk our streets daily to protect us from harm, we will relentlessly seek justice when harm comes to them.”
“There is no place in our society for those who use firearms for violent, criminal purposes,” said Brendan Iber, Special Agent in Charge of ATF’s Phoenix Field Division. “ATF will continue to work with our law enforcement partners at the federal, state, and local levels to bring those individuals to justice.”
At the time of the offense, Buck had a prior conviction for attempted possession of dangerous drugs for sale. As a convicted felon, Buck could not legally possess a firearm or ammunition.
Upon his release from prison, Buck will be subject to three years of supervised release.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case with assistance from the Farmington Police Department and San Juan County Sheriff’s Office. Assistant United States Attorney Letitia Carroll Simms is prosecuting the case.
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Pierce County motocross coach and sponsor arrested for production of child pornographyRead the Press Release
Tacoma – A 32-year-old Tacoma man was arrested and charged with production of child pornography, announced U.S. Attorney Nick Brown. Bryant Keith McCullough was arrested today, April 10, 2023, after an investigation conducted by the Tacoma Police Department and the Federal Bureau of Investigation. McCullough is accused of enticing and coercing minors to engage in sexually explicit conduct for the purpose of producing child pornography. McCullough made his initial appearance today in U.S. District Court in Tacoma.
According to the criminal complaint filed in the case, the Tacoma Police Department received information from a concerned parent about an image that was shared in a group chat of Pierce County motocross parents regarding an explicit Snapchat message apparently sent by McCullough to a minor motocross racer whom he was sponsoring.
Law enforcement executed a search warrant at McCullough’s Tacoma residence last month and seized several devices, including a GoPro camera. Police found numerous sexually explicit images and videos of minors on the seized GoPro. Several of the GoPro videos found by law enforcement show McCullough filming a cellphone on which he is viewing sexually explicit images and videos of young males sent to him through Snapchat.
At least one victim confirmed to law enforcement that they had sent McCullough sexually explicit images and videos, at the motocross coach’s request. The victim acknowledged sending the images with the promise that they would receive money, clothing, alcohol, marijuana, and/or preferential treatment regarding motocross coaching.
McCullough came into federal custody today and will remain detained at the Federal Detention Center at SeaTac pending further hearings.
Production of child pornography is punishable by a mandatory minimum of 15 years in prison and a maximum of 30 years in prison.
The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the Tacoma Police Department and the FBI. If you have any information regarding this case, you can submit a tip to tips.fbi.gov.
The case is being prosecuted by Assistant United States Attorney Matt Hampton.
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 United States Attorneys’ 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 www.justice.gov/psc
Oklahoma Resident Pleads Guilty to Advertising and Distributing Images of Child Sexual AbuseRead the Press Release
FRESNO, Calif. — Austen Peppers, 34, of Lawton, Oklahoma, pleaded guilty today to one count each of advertising and distributing child pornography, U.S. Attorney Phillip A. Talbert announced.
According to court documents, law enforcement investigators identified Peppers as someone who sold and offered to sell images of minors being sexually abused. Peppers conducted transactions on the dark web using platforms and applications that he believed were secure and protected him from law enforcement scrutiny.
This case is the product of an investigation by the Homeland Security Investigations offices in Fresno, Chicago, and Oklahoma as well as the Royal Canadian Mounted Police with assistance from the Oklahoma Highway Patrol Tactical Team. Assistant U.S. Attorney David Gappa is prosecuting the case with Trial Attorney James Burke IV of the Department of Justice Child Exploitation and Obscenity Section.
Peppers has been in custody since his initial appearance in this case on Nov. 14, 2019. He is scheduled to be sentenced on July 17, 2023, by U.S. District Judge Ana de Alba. Peppers faces potential punishments for each of the two counts including a mandatory minimum term of 15 years in prison and up to 30 years in prison, a fine of $250,000, a lifetime term of supervised release, forfeiture of property, and possible restitution to victims. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
O.C. Tax Preparer Pleads Guilty to Conspiring with Social Worker to Perpetrate Fraud Schemes that Caused $3.8 Million in LossesRead the Press Release
SANTA ANA, California – An Orange County tax preparer pleaded guilty today to a federal criminal charge for participating in schemes that caused nearly $3.8 million in losses to the United States government, including one orchestrated by a corrupt social worker who stole his clients’ identities to fraudulently obtain tax refunds, welfare benefits and credit cards.
Anton Nguyen, 54, of Fountain Valley, pleaded guilty to one count of conspiracy to defraud the United States.
According to his plea agreement, Nguyen operated a Westminster-based tax preparation company called Century Tax & Travel. From 2012 to June 2019, Nguyen and his co-conspirators filed hundreds of tax returns using personal identifying information (PII) belonging to other individuals without their permission to generate fraudulent tax refund payments from the United States.
One of Nguyen’s co-conspirators was John Tran, who is believed to be either 57 or 61 years old, of Fountain Valley, an Orange County Social Services Agency case worker from July 1994 to October 2018, who stole the Social Security numbers and other personal identifying information (PII) from his clients – many of them recent immigrants.
Tran and his co-conspirators used this stolen information to fraudulently obtain money from the federal government, the State of California, the County of Orange, and financial institutions. Nguyen used the stolen identities that Tran provided to create fraudulent Forms 1099-MISC that falsely showed payments made to the identity theft victims by companies, including those controlled by Tran and other accomplices.
Nguyen prepared and filed federal income tax returns using the Tran-provided stolen identities. Nguyen then used the purported payments on the fraudulent Forms 1099 as income to the identify theft victims, making them appear to qualify for tax credits, including the Earned Income Tax Credit and the Child Tax Credit.
In turn, the reported payments to the identity theft victims were used by Nguyen’s clients to offset business revenues and reduce the taxes they owed by making it appear that the identity theft victims worked for them. In exchange for the fabrication of the Forms 1099, Nguyen’s clients paid him a fee.
In total, Nguyen and his co-conspirators defrauded the United States out of at least $3,773,282.
United States District Judge James V. Selna scheduled a July 24 sentencing hearing, at which time Nguyen will face a statutory maximum sentence of five years in federal prison.
Federal prosecutors have secured a total of seven guilty pleas to criminal charges connected to this scheme.
Tran pleaded guilty in November 2019 to conspiracy to defraud the United States, mail fraud and aggravated identity theft. Tran is scheduled to be sentenced on June 5, at which time he will face a statutory maximum sentence of 72 years in federal prison and a mandatory minimum sentence of two years in federal prison.
Chau Nguyen, 69, of Garden Grove; Sophie Thuy Nguyen, 48, of Westminster; Kevin Le, 57, of Anaheim Hills; Van Quach, 43, of Monterey Park; and Peter Duc Nguyen, 63, of Garden Grove, each have pleaded guilty to evasion of assessment of taxes and are scheduled to be sentenced later this year, at which time they will each face a statutory maximum sentence of five years in federal prison.
Thomas Nguyen, 62, of Santa Ana, pleaded guilty in June 2021 to one count of tax evasion. He was fined $30,000 and ordered to pay $133,796 in restitution.
Rosemary Pham, 65, of Midway City, the owner and operator of Victory Tax Service in Westminster, has pleaded not guilty to one count of conspiracy to defraud the United States and 10 counts of aiding and advising the filing of false tax returns. Her trial date is scheduled for August 15.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
IRS Criminal Investigation, with assistance from the Orange County District Attorney’s Office, investigated this matter.
Assistant United States Attorney Bradley E. Marrett of the Santa Ana Branch Office is prosecuting this case.
Northwood Man Sentenced for Defrauding U.S. TaxpayersRead the Press Release
CONCORD – A Northwood man was sentenced today in federal court for attempting to fraudulently obtain over $6 million in CARES Act funds from the United States government, U.S. Attorney Jane E. Young announces.
Joshua Leavitt, 41, was sentenced by U.S. District Court Judge Paul J. Barbadoro to 28 months in prison and 2 years of supervised release. Leavitt was also ordered to pay $873,475.50 in restitution. On September 27, 2022, Leavitt plead guilty to bank fraud and wire fraud. His co-defendant, Pierre Rogers, was sentenced on February 3, 2023, to 41 months in federal prison for conspiracy to commit wire fraud and bank fraud.
“Leavitt’s conduct in this case was egregious,” said U.S. Attorney Jane E. Young. “Leavitt and Rogers attempted to steal a combined $6.2 million dollars, which ultimately denied legitimate businesses nearly a million dollars in emergency pandemic relief funds. I thank our law enforcement partners for their outstanding work in unraveling the largest CARES Act fraud case in the District of New Hampshire to date.”
Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act to help businesses and individuals adversely affected by the COVID pandemic. The CARES Act created the Paycheck Protection Program (PPP), which offered low-interest loans to employers. Private lenders could participate in the PPP program. If borrowers used the PPP loans for payroll and other approved expenses as intended, they could apply for loan forgiveness. The CARES Act also expanded the Small Business Administration’s Economic Injury Disaster Loan (EIDL) program. As with PPP loans, EIDL loans were intended for payroll and other business expenses, such as rent and mortgage.
Leavitt applied for 35 PPP and EIDL loans for seven different companies, including Dark Matter Associates, a company that was allegedly dedicated to “COVID-19 Disaster Relief Loan Acquisition and Management.” Other companies Leavitt submitted fraudulent applications for included Demeter Group and the wine company Puro Trader, also known as Yahyn. Leavitt attempted to obtain a total of $6,019,725.50, of which he received $873,475.50.
Leavitt and his co-defendant, Pierre Rogers, inflated the companies’ revenues and number of employees on the applications. Leavitt also generated false supporting documents, including tax filings purportedly filed with the IRS. For example, in a PPP application for Puro Trader, Leavitt submitted a fake tax return claiming the company’s payroll was over $1 million in 2020, but no such return was ever filed with the IRS. Similarly, in a PPP application for a company called Monticello Transnational, Leavitt submitted a fake tax return claiming the company paid employees almost $340,000 in the fourth quarter of 2020. The company’s payroll was only $9,000 during that period.
The U.S. Treasury Inspector General for Tax Administration and the U.S. Secret Service led the investigation. Valuable assistance was provided by the U.S. Postal Inspection Service. Assistant U.S. Attorney Alexander S. Chen prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit: https://www.justice.gov/coronavirus
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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New Orleans Man Sentenced for Using Stolen Identity at Local StoresRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that COREY THOMAS, age 49, from New Orleans, was sentenced to home detention for committing wire fraud, stemming from fraudulent charges made in someone else’s name at local stores.
According to court documents, THOMAS used a victim’s personal identifying information to make fraudulent charges at Best Buy and several Lowe’s Home Improvement locations in New Orleans and surrounding parishes. THOMAS attempted the purchases on behalf of other actual customers, offering to charge the goods on a store credit card in exchange for a cash payment that was less than the purchase price. Under the terms of the plea agreement, THOMAS agreed to repay a total of $77,781.98 to Synchrony Bank, which issued the Lowe’s credit cards that THOMAS used in his scheme.
Judge Ivan L.R. Lemelle sentenced THOMAS to five years of probation, beginning with an eight-month term of home detention, as well as restitution of $77,781.98, 100 hours of community service, and a mandatory $100 special assessment fee.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation. Assistant United States Attorney Nicholas D. Moses, Health Care Fraud Coordinator, is in charge of the prosecution.
Muscatine County Man Sentenced to Twenty Years in Prison for Attempted Sexual Exploitation of a ChildRead the Press Release
Des Moines, IA – A Muscatine County man was sentenced Friday, April 7, 2023, to twenty years in prison following his guilty plea for Attempted Sexual Exploitation of a Child.
According to court documents, from February 2022 to September 2022, David Franklin Duncan III, 33, used cellphones and Facebook to communicate with a person he believed to be a fifteen-year-old child. During the conversations, Duncan attempted to employ, use, persuade, entice, or coerce the person he believed to be a child to capture and send Duncan images and videos of the child engaged in sexually explicit conduct, to travel to Duncan’s location or meet him at an agreed location for the purpose of engaging in sexually explicit conduct, and to engage in commercial sex acts. Duncan also sent images and videos of his penis and of him masturbating. Unbeknownst to Duncan, the person he was communicating with was an undercover law enforcement officer.
Following his prison term, Duncan must also serve a ten-year term of supervised release. There is no parole in the federal system.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Altoona Police Department, in conjunction with the Iowa Crimes Against Children Task Force, investigated the case. Assistant United States Attorney Kyle Essley prosecuted the case.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorney’s Offices and the Department of Justice’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Michigan City Man Sentenced to 180 Months in PrisonRead the Press Release
SOUTH BEND – Earl Rauschenberg, 46 years old, of Michigan City, Indiana, was sentenced by United States District Court Judge Robert L. Miller, Jr. after pleading guilty to transportation of child pornography, announced United States Attorney Clifford D. Johnson.
Rauschenberg was sentenced to 180 months in prison followed by 7 years of supervised release.
According to documents in the case, in July 2020, Rauschenberg uploaded to the internet a video depicting child pornography. A year earlier, July 2019, Rauschenberg had been released from prison following his conviction for possession of child pornography.
This case was investigated by the U.S. Department of Homeland Security, Homeland Security Investigations with the assistance of the Indiana State Police and the Michigan City Police Department. This case was prosecuted by Assistant United States Attorneys John M. Maciejczyk.
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Man Sentenced to Federal Prison for Voluntary Manslaughter on the Umatilla Indian ReservationRead the Press Release
PORTLAND, Ore.— A 23-year-old resident of the Umatilla Indian Reservation was sentenced to federal prison today for repeatedly striking a fellow resident of the reservation with his fists, causing the person’s death.
Tom Redhawk Tias was sentenced to 48 months in federal prison and three years’ supervised release.
According to court documents, on January 26, 2021, Tias contacted law enforcement to report an unresponsive adult. Officers responded to the scene on the reservation and located the victim who was deceased. Multiple witnesses interviewed by officers said that Tias said he hit the victim. Tias told police that he and the victim fought after the victim struck Tias with a branch. Tias admitted to law enforcement that he continued striking the victim after the victim fell to the ground.
On February 10, 2021, Tias was charged by criminal complaint with voluntary manslaughter. Later, on March 16, 2021, a federal grand jury in Portland indicted Tias on the same charge. On December 14, 2022, he pleaded guilty.
This case was investigated by the FBI and Umatilla Tribal Police Department. It was prosecuted by Pamela Paaso, Assistant U.S. Attorney for the District of Oregon.
Malcolm Torres pleads guilty to second degree murderRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced today that Malcom Torres pleaded guilty to second degree murder. Torres, 29, of Española, New Mexico, will remain in custody pending sentencing, which has not been scheduled.
According to the plea agreement and other court records, on Sept. 7, 2019, Torres was home with his five-year-old stepdaughter, identified as Jane Doe, and eighteen-month-old son. Torres was heavily intoxicated and not fit to supervise the children. While in Torres’ care, Jane Doe sustained blunt-force trauma to her head, torso, and extremities. Torres became aware of Jane Doe’s injuries while she was still alive but failed to seek or provide necessary medical care. Torres claims he was too drunk to remember how he injured Jane Doe.
On the afternoon of Sept. 8, 2019, Jane Doe’s grandparents returned to the home and were informed by Torres that Jane Doe had been missing since that morning. Jane Doe’s grandmother immediately alerted Doe’s mother, who contacted law enforcement.
On Sept. 11, 2019, law enforcement located Jane Doe’s body in the Rio Grande River on the Santa Clara Pueblo. The resulting investigation revealed that Torres had driven to the area 5.5 miles from his home and left her body there on Sept. 8. Over the course of interviews with the Rio Arriba County Sheriff’s Office and the New Mexico State Police, Torres provided law enforcement with numerous conflicting statements, delaying the recovery of her body, and lengthening the wide-spread and vigorous efforts of law enforcement and the Santa Clara Pueblo community to locate her.
"This conviction demonstrates the continuing commitment of federal, state, local and tribal law enforcement officials to work together to combat violent crime on Native American tribal lands,” said Raul Bujanda, FBI Special Agent in Charge. “The senseless murder of a 5-year-old child is a tragic occurrence, and I’m glad the collaborative effort put forth by all involved agencies has resulted in this conviction. The murder allegation in this complaint reveal an indifference to human life that will not be tolerated."
“As a crimes against children prosecutor myself, and a father of three, the loss of young life strikes at my core,” said U.S. Attorney Alexander M.M. Uballez. “I mourn with you. While a guilty plea does not bring back the life that was taken, we hope it brings closure to Jane Doe’s family and confidence that justice will find those who harm the most vulnerable.”
Torres faces a minimum of 30 years and up to life in prison. Upon his release from prison, Torres will be subject to five years of supervised release.
The Santa Fe Resident Agency of the FBI investigated this case with assistance from the Espanola Police Department, Santa Clara Pueblo Tribal Police Department, Rio Arriba County Sheriff’s Office, New Mexico State Police, Bureau of Indian Affairs, Albuquerque Police Department Open Space Search and Rescue Team, Espanola Fire Department and Ohkay Owingeh Pueblo Tribal Police Department. Assistant United States Attorney Jack Burkhead, Brittany DuChaussee and Zachary Jones are prosecuting the case.
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Laser Strikes on Kern County Sheriff Helicopter Lead to Prison SentenceRead the Press Release
FRESNO, Calif. — Richard Earl Francis, 51, of Bakersfield, was sentenced today to one month in prison in addition to the 71 days already served to be followed by 11 months home detention and 36 months of supervised release for knowingly aiming the beam of a laser pointer at a Kern County Sheriff’s Office helicopter, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on July 28, 2022, while the sheriff’s helicopter was patrolling the Oildale area of Bakersfield, Francis shined a bright green laser into the cockpit of the aircraft four times. One of the airmen experienced temporary loss of vision in his right eye as a result of the laser. On Dec. 13, 2022, Francis pleaded guilty to knowingly aiming a laser at an aircraft.
In 2022, the Federal Aviation Administration (FAA) received 9,457 reports of laser strikes. In 2022, there were, on average, three laser strike incidents reported every month in Bakersfield. Noting the hazards of lasers in navigable airspace, the FAA advises that, when aimed at an aircraft, lasers can cause visual interference and incapacitate pilots. Such incidents can occur anywhere but have been reported most frequently in the Western Pacific and Southern regions of the United States. See “Laser Hazards in Navigable Airspace.”
This case was the product of an investigation by the FBI, the Kern County Sheriff’s Office, and the Bakersfield Police Department. Assistant U.S. Attorney Karen Escobar prosecuted the case.
Larsen & Toubro Technology Services Pays $9,928,000 to Resolve False Claims Act AllegationsRead the Press Release
COLUMBIA, SOUTH CAROLINA — L&T Technology Services, LTD (“LTTS”), a company based in India, with U.S. offices in Edison New Jersey, has agreed to pay $9,928,000 to resolve allegations that between 2014 and 2019, LTTS underpaid visa fees owed to the United States by acquiring inexpensive B-1 visas, rather than more expensive H-1B visas, in alleged violation of the False Claims Act.
LTTS provides services and personnel to companies in the United States. Most of the personnel are foreign nationals, who are required to have visas in order to lawfully enter or remain in the United States.
B-1 visas generally do not permit visa holders to perform paid labor while in the United States. During the time period in question, fees for B-1 visas were between approximately $200 to $300, and there was no limit on the number of B-1 visas that could be issued.
Although H-1B visas permit foreign nationals to perform paid labor while in this country, the visa fees for such work visas were between approximately $4,000 to $6,000. Additionally, such visas are more difficult to obtain, because they are limited by an annual cap of 65,000, to foreign nationals with the equivalent of a bachelor’s degree in an occupation requiring highly specialized knowledge; plus an additional 20,000 H-1B visas annually to those in such occupations with a master’s degree or its equivalent.
The investigation leading to this settlement was initiated through the filing of a whistleblower (qui tam) complaint in the United States District Court in Charleston, South Carolina, captioned United States ex rel. Michael Harmon v. L&T Technology Services, et. al., Civ. No. 2:16-cv-01114-BHH (D.S.C.). By law, Mr. Harmon will receive a percentage of the recovery.
“The U.S. Attorney’s Office will hold accountable those who skirt this country’s visa requirements,” said U.S. Attorney for the District of South Carolina Adair F. Boroughs. “Our immigration laws are intended to protect American jobs for American workers, and we will continue to work with our law enforcement partners to ensure companies securing work visas for foreign nationals strictly comply with those laws.”
“This settlement sends a clear message to those who seek to defraud the U.S. government and exploit our nation’s laws, that you will be found and held accountable,” said Ronnie Martinez, Special Agent In Charge of HSI Charlotte, covering North and South Carolina. “Protecting the integrity of the nation’s immigration and labor laws from those looking to exploit them is of vital importance and HSI prioritizes this mission.”
“This settlement is a success in deterring companies in seeking to evade and violate the laws and regulations governing the non-immigrant visa programs managed by the Department of State and Department of Homeland Security,” said Chris Hileman, Special Agent in Charge, Department of State, Office of Inspector General. “It has been and always will be our pleasure to work with the U.S. Attorney’s Office and our law enforcement partners to protect our immigration laws, the U.S. workers and our economy and hold those accountable who exploit them.”
“When companies apply for work visas, they must follow the rules and pay appropriate fees, just like workers. We will continue to work with our law enforcement partners to vigorously pursue those who circumvent worker visa programs,” said Mathew Broadhurst, Special Agent in Charge, Southeast Region, U.S. Department of Labor, Office of Inspector General.”
“We are pleased at the outcome of this case,” said Karen L. Brown Cleveland, Special Agent in Charge of the Washington Field Office of the U.S. Department of State's Diplomatic Security Service (DSS). “The Diplomatic Security Service values our partnership with the U.S. Attorney’s Office and other law enforcement agencies around the world to prevent and jointly combat U.S. passport and visa fraud. Deterring, detecting, and investigating U.S. passport and visa fraud is essential to safeguarding our national security.”
The case was investigated by Homeland Security Investigations, the USCIS Nebraska Service Center Fraud Detection Unit, the U.S. Department of State’s Office of Inspector General, the U.S. Department of Labor’s Office of Inspector General, and the U.S. Department of State’s Diplomatic Security Service.
The case was handled by Assistant United States Attorneys Stan Ragsdale, Beth Warren, and Brook Andrews of the U.S. Attorney’s Office for the District of South Carolina.
The claims resolved by the settlement are allegations only, and there has been no determination of liability. LTTS has denied liability, is cooperating with the United States in this matter, and has taken significant steps to ensure compliance with U.S. visa laws.
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Justice Department Secures Agreement with Florida Restaurant Franchisee to Resolve Immigration-Related Discrimination ClaimsRead the Press Release
The Justice Department announced today that it has secured a settlement agreement with Florida-based Destin Wings LLC, doing business as Hooters of Destin (Destin Wings). The settlement resolves the department’s determination that Destin Wings violated the Immigration and Nationality Act (INA) by discriminating against a non-U.S. citizen when checking her permission to work in the United States.
“While employers are legally obligated to verify every new hire’s permission to work in the United States, they cannot discriminate based on the employee’s citizenship status or national origin in the process,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Civil Rights Division will continue to vigorously combat unlawful discrimination in the workplace and dismantle unnecessary obstacles to work.”
The department’s investigation began when a worker, a non-U.S. citizen, complained that Destin Wings refused to accept her valid documentation proving her permission to work and demanded additional documentation. Although she had permission to work in the United States, she was not able to obtain one of the documents that Destin Wings required because of her citizenship status. The INA’s anti-discrimination provision prohibits employers from asking for specific documents, or more documents than necessary, because of a worker’s citizenship, immigration status or national origin. Employers must allow workers to present whatever acceptable documentation the workers choose and cannot reject valid documentation that reasonably appears to be genuine.
The settlement requires Destin Wings to pay a civil penalty to the United States, provide backpay to the worker who complained to the department, train staff on the INA’s anti-discrimination provision and be subject to departmental monitoring for a period of three years.
The Civil Rights Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute prohibits discrimination based on citizenship status and national origin in hiring, firing or recruitment or referral for a fee, unfair documentary practices, retaliation and intimidation.
Find more information on how employers can avoid discrimination when verifying permission to work on IER’s website. Learn more about how IER protects workers’ rights in this video. For more information about protections against employment discrimination under immigration laws, call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar; email [email protected]; or visit IER’s English and Spanish websites. Subscribe to GovDelivery to receive updates from IER.
Applicants or employees who believe they were subjected to discrimination based on their citizenship, immigration status or national origin in hiring, firing or recruitment or referral for a fee; or discrimination in the employment eligibility verification process (Form I-9 and E-Verify) based on their citizenship, immigration status or national origin; or retaliation can file a charge or contact IER’s worker hotline for assistance.
Justice Department Announces Total Distribution of over $6B to Victims of State Sponsored TerrorismRead the Press Release
The U.S. Victims of State Sponsored Terrorism Fund (the Fund) today notified a group of eligible claimants of upcoming payments totaling approximately $2.7 billion that the Fund will begin issuing in the coming weeks. The Fund will issue these payments to 5,361 victims of the Sept. 11, 2001 (9/11) terrorist attacks and certain spouses and children of the victims of those attacks. These payments will bring the total compensation paid by the Fund to victims of international terrorism and their families to more than $6 billion.
“The Fund has collected more than $2 billion in deposits from forfeiture proceeds, penalties, and fines arising from violations of the International Emergency Economic Powers Act or the Trading with the Enemy Act,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “This tremendous effort epitomizes our unwavering commitment to the investigation and prosecution of individuals and entities that do business with state sponsors of terrorism. One of the primary goals of the department’s Asset Forfeiture Program is to use forfeited assets to compensate victims. In line with that goal, a significant amount of the Fund’s deposits to date are the result of criminal and civil forfeitures.”
The Fund was established by Congress in 2015 and is administered by the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS), under the leadership of Special Master Mary Patrice Brown. The Fund has paid more than $3.3 billion to victims in four rounds of distributions. The payments announced today are in addition to these distributions. The number of eligible claimants has grown from over 2,000 in 2017 to over 15,500 today. Of those, 12,117 claimants are 9/11 victims and their family members, while another 3,652 claimants have claims related to other acts of international state-sponsored terrorism.
Apart from an initial appropriation of $1.025 billion from Congress and additional Congressional appropriations for 9/11 victims and victims of certain other terrorist attacks, funds available for payment from the Fund resulted from Department of Justice prosecutions and cases and other U.S. government enforcement actions. Congress required the deposit into the Fund of certain forfeiture proceeds, penalties, and fines from civil and criminal matters involving prohibited transactions with state sponsors of terrorism. The department has identified more than 125 qualifying matters for deposit into the Fund. The payments announced today come from the Congressional appropriation for 9/11 victims.
“We know that no amount of compensation could ever repair what was lost for those devastated by acts of international terrorism, and that so many victims and their families have waited years and sometimes decades for compensation,” said Special Master Brown. “The dedicated team at the department remains steadfast in its goal of providing compensation to these victims and in its pursuit to deliver them some semblance of justice. Victims and their family members can be assured that their claims will be processed promptly, fairly, and transparently.”
Since establishing the Fund in 2015, Congress has amended its governing statute several times, including updating the eligibility of certain groups of international state-sponsored terrorism victims – such as certain 9/11 victims – to receive payments from the Fund. Following direction from Congress, in 2021, the Government Accountability Office (GAO) calculated lump-sum catch-up payments to certain 9/11 victims and certain spouses and children of 9/11 victims, based on the Fund’s payments to other 9/11-related victims. This GAO report estimated the total lump-sum catch-up payments at approximately $2.7 billion. Most recently, in 2022, Congress appropriated funds for the Fund to issue these lump-sum catch-up payments, leading to the payments the Fund announced today.
In the same legislation, Congress also appropriated an additional $3 billion to a reserve fund from which the Fund will issue lump-sum catch-up payments to certain victims of the 1983 barracks bombings in Beirut, Lebanon, and the 1996 bombing of the Khobar Towers housing complex in Khobar, Saudi Arabia. As with the payments for certain 9/11 victims announced today, GAO will calculate these lump-sum catch-up payments through a process that provides for public comment. Thereafter, the Fund will issue the payments and any amounts remaining in the reserve fund will be made available for distribution pursuant to the statute.
The Fund continues to accept applications and to collect deposits for future payments as authorized by its governing statute. More information about the Fund’s compensation to victims of state sponsored terrorism is available on the Fund’s website at www.usvsst.com, such as application materials, frequently asked questions (FAQs), and publications including Federal Register notices and reports to Congress. Further questions may be directed to MLARS.
Illegal alien sentenced to life in prison for murdering whistleblower in labor conspiracyRead the Press Release
BRUNSWICK, GA.: An illegal alien who participated a multi-million-dollar scheme to fraudulently employ undocumented workers, then murdered a whistleblower who attempted to expose the scheme, has been sentenced to life in prison.
Juan Rangel-Rubio, 46, of Rincon, a citizen of Mexico, was sentenced to life in prison for his role in the 2017 execution-style murder of Eliud Montoya, a United States citizen who reported Rangel-Rubio’s illegal activities to the federal government, said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. U.S. District Court Judge Lisa Godbey Wood also ordered Rangel-Rubio to pay $1,351,217.05 in restitution.
“Eliud Montoya was murdered for doing the right thing and revealing Juan Rangel-Rubio’s scheme to profit off his use of undocumented workers,” said U.S. Attorney Steinberg. “As a result of the diligent efforts of our law enforcement partners, Juan Rangel-Rubio will be held accountable for his despicable crimes.”
In October 2022, Rangel-Rubio was found guilty after a five-day trial in U.S. District Court of Conspiracy to Retaliate Against a Witness; Conspiracy to Kill a Witness; Conspiracy to Conceal, Harbor and Shield Illegal Aliens; and Money Laundering Conspiracy.
Two co-defendants are serving prison terms for their roles in the conspiracy. Rangel-Rubio’s brother, Pablo Rangel-Rubio, 53, of Rincon, was sentenced to 584 months in prison after pleading guilty to Conspiracy to Conceal, Harbor and Shield Illegal Aliens; Money Laundering Conspiracy; three counts of Money Laundering Transactions Over $10,000; and Aiding and Abetting Retaliation Against a Witness. Higinio Perez-Bravo, 52, of Savannah, was sentenced to 240 months in prison after pleading guilty to Conspiracy to Commit Murder for Hire. Both men are citizens of Mexico illegally present in the United States and will be subject to deportation after completing their prison terms. There is no parole in the federal system.
Four other defendants were sentenced to prison terms of up to 24 months for charges related to the investigation, including conspiracy and illegal firearms possession.
As reflected in court records and evidence presented at trial, Pablo Rangel-Rubio worked as a supervisor at Wolf Tree, a contract company that performed tree-cutting services on utility rights-of-way. He and his brother hired illegal aliens to work for the company, then routed the workers paychecks to their own bank accounts where they skimmed a portion of the pay for themselves. They also created fake employee accounts and directed that pay to themselves. As a result of this scheme, the conspirators netted more than $3.5 million.
Montoya saw his colleagues being mistreated and complained to the company and to the U.S. Equal Employment Opportunity Commission. After Montoya blew the whistle on the scheme, Pablo Rangel-Rubio arranged for Montoya’s murder by paying Perez-Bravo for the use of his vehicles and to act as the getaway driver when Juan Rangel-Rubio shot Montoya to death outside Montoya’s home.
“This sentence means that the consequences of Rangel-Rubio’s actions have caught up with him and he will no longer be able to hurt anyone,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “I am proud of the work that our great law enforcement partners did to successfully close this case and the great work that they do to protect our communities.”
The investigation was led by Homeland Security Investigations (HSI) with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the FBI, the U.S. Marshals Service, the Georgia Bureau of Investigation (GBI), the Garden City Police Department, the Effingham County Sheriff’s Office, and the Chatham County Sheriff’s Office, and prosecuted for the United States by Southern District of Georgia Assistant U.S. Attorneys, including Tania D. Groover.
Huntington Man Sentenced to Prison for Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – Van Lee Harrell, 35, of Huntington, was sentenced today to seven years in prison, to be followed by three years of supervised release, for possession with intent to distribute cocaine base, also known as “crack.”
According to court documents and statements made in court, on December 12, 2018, law enforcement officers executed a search warrant at a Marshall Avenue residence in Huntington where Harrell was living. Officers found approximately 8.6 grams of crack, three firearms, ammunition and digital scales in Harrell’s bedroom. Harrell admitted to possessing the crack and further admitted that he had been distributing drugs.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Huntington Violent Crime and Drug Task Force, and the Huntington Police Department.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Ryan A. Keefe prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:22-cr-148.
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Heroin Dealer Who Absconded Prior to Sentencing in 2018 and Was Recently Found in Jamaica Sentenced to over 10 Years in PrisonRead the Press Release
LOS ANGELES – A former chef who pleaded guilty in 2018 to a heroin trafficking offense – and was a fugitive for more than four years before being arrested in Jamaica earlier this year – was sentenced today to 121 months in federal prison.
Devon Bennett, 54, who resided in Hawthorne when he absconded prior to a sentencing hearing in September 2018, was sentenced this morning by United States District Judge Dale S. Fischer. After his release from prison, Bennett will be subject to a five-year period of supervised release.
Following Bennett’s flight from justice, Judge Fischer imposed a sentence that was 51 months longer than the 70 months prosecutors had initially recommended in 2018.
Bennett pleaded guilty in May 2018 to one count of possession with intent to distribute heroin, admitting that he and others used his apartment to package and ship heroin and other drugs through the U.S. Mail.
While free on a $50,000 bond and shortly before his original sentencing hearing in September 2018, Bennett fled. Judge Fischer issued an arrest warrant and, soon after, an order forfeiting his bond. Bennett’s third-party surety has since paid the United States more than $40,000 as a result of Bennett’s decision to flee from justice.
In early February, law enforcement authorities in Jamaica located and arrested Bennett at the request of the United States. Bennett consented to extradition and was subsequently surrendered to the United States on March 8.
The United States Postal Inspection Service investigated this matter, with the assistance of the Drug Enforcement Administration and the Los Angeles Police Department.
The United States Marshals Service, the Jamaica Fugitive Apprehension Team, the Jamaica Constabulary Force – Counterterrorism and Organized Crime Branch, and the Justice Department’s Office of International Affairs provided substantial assistance in securing Bennett’s arrest and return to Los Angeles.
Assistant United States Attorney Benedetto L. Balding of the International Narcotics, Money Laundering, and Racketeering Section prosecuted this case. Assistant United States Attorney Robert I. Lester of the Asset Forfeiture and Recovery Section handled the bond forfeiture.
Green Cove Springs Man Sentenced to More Than Six Years for Distributing Child Sex Abuse MaterialRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard has sentenced Ethan Rabin Coleman (33, Green Cove Springs) to six years and eight months in federal prison for distributing videos of children being sexually abused. The court also ordered Coleman serve a five-year term of supervised release and pay $31,000 to victims of his offenses. Coleman entered a guilty plea October 20, 2022.
According to court documents, Homeland Security Investigations (HSI) agents in Jacksonville received information from the National Center for Missing and Exploited Children (NCMEC) that four files depicting child sexual abuse had been uploaded over the internet on January 6, 2021. The report indicated that the upload of the files came from an account with the username of “bige1131990,” an associated email address, and an IP (Internet Protocol) address that traced back to an address in Green Cove Springs. After reviewing the files and upon further investigation, HSI agents and the Clay County Sheriff’s Office executed a federal search warrant at the residence on November 9, 2021. During the execution of the search warrant, agents encountered Coleman, who exited the residence holding a phone in his hand. An onsite preview of the phone yielded numerous files depicting the sexual abuse of children, including one of the files identified in the reported uploads.
During an interview with law enforcement, Coleman admitted that the associated email address belonged to him and acknowledged that he “got banned for some reason” from a social media account reported by NCMEC. At first, Coleman denied sending any child sexual abuse files over the social media application. When asked again, he acknowledged such files were shared in a group to which he belonged. Further, Coleman admitted to viewing the files on multiple occasions, downloading files showing children being sexually abused from a file-sharing application onto his phone, sharing images with others, and acknowledged knowing the individuals depicted being sexually abused were young, including a file depicting the sexual assault of a toddler. When asked why he thought it was wrong, Coleman stated, “Because they’re little kids.”
“This predator, knowing it was images of children being sexually abused, decided to feed his perversion by collecting, viewing, and sharing the digital files many times over with others on the internet,” said Homeland Security Investigations (HSI) Assistant Special Agent in Charge K. Jim Phillips. “Thanks to our partnership with the Clay County Sheriff’s Office and the efforts of the National Center for Missing and Exploited Children, we have pulled another predator offline and stopped him from his continued victimization of children.”
This case was investigated by Homeland Security Investigations (HSI) and the Clay County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Kelly S. Karase.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.