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Thursday 23 February 2023
Utah Residents Face Federal Charges After Allegedly Attempting to Forcibly Take an Elderly Man’s VehicleRead the Press Release
Salt Lake City, Utah – A federal grand jury in Salt Lake City, Utah returned an indictment charging an Ogden man and woman with carjacking an SUV that belonged to an elderly citizen.
According to court documents, on January 30, 2023, Elvis Tahirovic, 33, and Brittany Ann Peters, 33, fled from Salt Lake City Police in a reported stolen Mercedes out of South Salt Lake. Salt Lake City Police initiated a high-speed pursuit, that was terminated due to public safety. Utilizing the Department of Public Safety helicopter, Tahirovic and Peters were tracked crossing into Davis, Weber and Box Elder Counties before troopers utilized a “cold spike” to flatten the Mercedes tires in Weber County. According to the complaint, at the intersection of Higley Road, the Mercedes came to an abrupt stop and Peters ran to a Chevrolet Tahoe at a stop sign and opened the driver’s door. Tahirovic also exited the Mercedes and ran to the driver’s door of the Tahoe, and forcibly removed the elderly victim out of his SUV before getting behind the wheel. Peters entered the passenger’s seat of the Tahoe. Tahirovic and Peters were unable to take off in the vehicle because the victim took the keys out of the ignition. Unable to flee, Tahirovic charged for the victim, but authorities arrived and took Tahirovic and Peters into custody.
Tahirovic and Peters are charged with one count of carjacking. The defendants made their initial court appearance on their indictment February 16, 2023, before a U.S. Magistrate Judge at the Orrin G. Hatch United States District Courthouse in Salt Lake City, Utah.
U.S. Attorney Trina A. Higgins for the District of Utah made the announcement.
The case is being investigated jointly by the FBI Salt Lake City Field Office and the Utah Department of Public Safety.
Assistant U.S. Attorney, Carlos Esqueda, for the District of Utah is prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
United States Attorney Roger B. Handberg Announces Implementation of New Voluntary Self-Disclosure PolicyRead the Press Release
Tampa, Florida - United States Attorney Roger B. Handberg announced that the U.S. Attorney’s Office for the Middle District of Florida has implemented the new United States Attorney’s Offices’ Voluntary Self-Disclosure Policy released earlier this week. The policy, which is effective immediately, details the circumstances under which a company will be considered to have made a voluntary self-disclosure (VSD) of misconduct to a United States Attorney’s Office (USAO-MDFL), and provides transparency and predictability to companies and the defense bar concerning the concrete benefits and potential outcomes in cases where companies voluntarily self-disclose misconduct, fully cooperate and timely and appropriately remediate.
The goal of the policy is to standardize how VSDs are defined and credited by USAOs nationwide, and to incentivize companies to maintain effective compliance programs capable of identifying misconduct, to expeditiously and voluntarily disclose and remediate misconduct, and to cooperate fully with the government in corporate criminal investigations. The policy was developed pursuant to the Deputy Attorney General’s September 15, 2022 memorandum, “Further Revisions to Corporate Criminal Enforcement Policies Following Discussions with Corporate Crime Advisory Group” (Monaco Memo), which directed each Department of Justice (DOJ) component that prosecutes corporate crime to review its policies on corporate voluntary self-disclosure and, if there was no formal written policy to incentivize self-disclosure, draft and publicly share such a policy.
“Transparency and accountability are integral to establish public and private trust,” said U.S. Attorney Handberg. “The new Voluntary Self-Disclosure Policy is an important step in encouraging corporate governance. This policy incentivizes corporations to do the right thing by reporting wrongdoing before detected by regulators and law enforcement. We hope that it will have a transformative effect in promoting positive, corporate practices within our district and nationwide.”
Under the new VSD policy, a company is considered to have made a VSD if it becomes aware of misconduct by employees or agents before that misconduct is publicly reported or otherwise known to the DOJ, and discloses all relevant facts known to the company about the misconduct to a USAO in a timely fashion prior to an imminent threat of disclosure or government investigation. A company that voluntarily self-discloses as defined in the policy and fully meets the other requirements of the policy, by—in the absence of any aggravating factor—fully cooperating and timely and appropriately remediating the criminal conduct (including agreeing to pay all disgorgement, forfeiture, and restitution resulting from the misconduct), will receive significant benefits, including that the USAO will not seek a guilty plea; may choose not to impose any criminal penalty, and in any event will not impose a criminal penalty that is greater than 50% below the low end of the United States Sentencing Guidelines (USSG) fine range; and will not seek the imposition of an independent compliance monitor if the company demonstrates that it has implemented and tested an effective compliance program.
The policy identifies three aggravating factors that may warrant a USAO seeking a guilty plea even if the other requirements of the VSD policy are met: (1) if the misconduct poses a grave threat to national security, public health, or the environment; (2) if the misconduct is deeply pervasive throughout the company; or (3) if the misconduct involved current executive management of the company. The presence of an aggravating factor does not necessarily mean that a guilty plea will be required; instead, the USAO will assess the relevant facts and circumstances to determine the appropriate resolution. If a guilty plea is ultimately required, the company will still receive the other benefits under the VSD policy, including that the USAO will recommend a criminal penalty of at least a 50% and up to a 75% reduction off the low end of the USSG fine range, and that the USAO will not require the appointment of a monitor if the company has implemented and tested an effective compliance program.
In cases where a company is being jointly prosecuted by a USAO and another DOJ component, or where the misconduct reported by the company falls within the scope of conduct covered by VSD policies administered by other DOJ components, the USAO will coordinate with, or, if necessary, obtain approval from, the DOJ component responsible for the VSD policy specific to the reported misconduct when considering a potential resolution. Consistent with relevant provisions of the Justice Manual and as allowable under alternate VSD policies, the USAO may choose to apply any provision of an alternate VSD policy in addition to, or in place of, any provision of its policy.
The Attorney General’s Advisory Committee (AGAC), under the leadership of United States Attorney for the Southern District of New York Damian Williams, requested that the White Collar Fraud Subcommittee of the AGAC, under the leadership of United States Attorney for the Eastern District of New York Breon Peace, develop policies in response to the Deputy AG’s memo. The policy announced today was prepared by a Corporate Criminal Enforcement Policy Working Group comprised of U.S. Attorneys from geographically diverse districts, including U.S. Attorney Peace, as well as U.S. Attorney for the Eastern District of Virginia Jessica Aber, U.S. Attorney for the District of Connecticut Vanessa Avery, U.S. Attorney for the District of Hawaii Clare Connors, U.S. Attorney for the Eastern District of North Carolina Michael F. Easley, Jr., U.S. Attorney for the Northern District of California Stephanie Hinds, U.S. Attorney for the Western District of Virginia Christopher Kavanaugh, and U.S. Attorney for the District of New Jersey Philip Sellinger. Assistant U.S. Attorney Amanda Riedel, White Collar Crimes Coordinator for the Executive Office for U.S. Attorneys, also participated in the development of the policy.
Download United States Attorney's Office Voluntary Self-Disclosure PolicyUnited States Attorney Kavanaugh Announces New Voluntary Self-Disclosure PolicyRead the Press Release
CHARLOTTESVILLE, Va. - United States Attorney Christopher R. Kavanaugh announced today that the U.S. Attorney’s Office for the Western District of Virginia has implemented the new United States Attorney’s Offices’ Voluntary Self-Disclosure Policy.
The policy, which is effective immediately, details the circumstances under which a company will be considered to have made a voluntary self-disclosure (VSD) of misconduct to a United States Attorney’s Office (USAO), and provides transparency and predictability to companies and the defense bar concerning the concrete benefits and potential outcomes in cases where companies voluntarily self-disclose misconduct, fully cooperate, and timely and appropriately remediate.
The goal of the policy is to standardize how VSDs are defined and credited by USAOs nationwide, and to incentivize companies to maintain effective compliance programs capable of identifying misconduct, to expeditiously and voluntarily disclose and remediate misconduct, and to cooperate fully with the government in corporate criminal investigations.
The policy was developed pursuant to the Deputy Attorney General’s September 15, 2022 memorandum, “Further Revisions to Corporate Criminal Enforcement Policies Following Discussions with Corporate Crime Advisory Group” (Monaco Memo), which directed each Department of Justice (DOJ) component that prosecutes corporate crime to review its policies on corporate voluntary self-disclosure and, if there was no formal written policy to incentivize self-disclosure, draft and publicly share such a policy.
Under the new VSD policy, a company is considered to have made a VSD if it becomes aware of misconduct by employees or agents before that misconduct is publicly reported or otherwise known to the DOJ, and discloses all relevant facts known to the company about the misconduct to a USAO in a timely fashion prior to an imminent threat of disclosure or government investigation.
A company that voluntarily self-discloses as defined in the policy, and fully meets the other requirements of the policy by—in the absence of any aggravating factor—fully cooperating and timely and appropriately remediating the criminal conduct (including agreeing to pay all disgorgement, forfeiture, and restitution resulting from the misconduct), will receive significant benefits, including that the USAO will not seek a guilty plea, may choose not to impose any criminal penalty, and in any event will not impose a criminal penalty that is greater than 50% below the low end of the United States Sentencing Guidelines (USSG) fine range, and will not seek the imposition of an independent compliance monitor if the company demonstrates that it has implemented and tested an effective compliance program.
The policy identifies three aggravating factors that may warrant a USAO seeking a guilty plea even if the other requirements of the VSD policy are met: (1) if the misconduct poses a grave threat to national security, public health, or the environment, (2) if the misconduct is deeply pervasive throughout the company, or (3) if the misconduct involved current executive management of the company. The presence of an aggravating factor does not necessarily mean that a guilty plea will be required; instead, the USAO will assess the relevant facts and circumstances to determine the appropriate resolution. If a guilty plea is ultimately required, the company will still receive the other benefits under the VSD policy, including that the USAO will recommend a criminal penalty of at least a 50%, and up to a 75%, reduction off the low end of the USSG fine range, and that the USAO will not require the appointment of a monitor if the company has implemented and tested an effective compliance program.
In cases where a company is being jointly prosecuted by a USAO and another DOJ component, or where the misconduct reported by the company falls within the scope of conduct covered by VSD policies administered by other DOJ components, the USAO will coordinate with, or, if necessary, obtain approval from, the DOJ component responsible for the VSD policy specific to the reported misconduct when considering a potential resolution. Consistent with relevant provisions of the Justice Manual and as allowable under alternate VSD policies, the USAO may choose to apply any provision of an alternate VSD policy in addition to, or in place of, any provision of its policy.
“With this new Voluntary Self-Disclosure Policy, there is now a nationwide standard among all United States Attorney’s Offices in determining whether a company has made a voluntary self-disclosure, as well as the specific benefits that a company will receive for doing so,” stated United States Attorney Kavanaugh. “By providing such transparency and clear benefits of early disclosure, this policy will motivate companies to timely report wrongdoing, fully cooperate, and remediate criminal conduct, all while receiving the same treatment across United States Attorney’s Offices.”
The Attorney General’s Advisory Committee (AGAC), under the leadership of United States Attorney for the Southern District of New York Damian Williams, requested that the White Collar Fraud Subcommittee of the AGAC, under the leadership of United States Attorney for the Eastern District of New York Breon Peace, develop policies in response to the Monaco Memo. The policy announced today was prepared by a Corporate Criminal Enforcement Policy Working Group comprised of United States Attorneys from geographically diverse districts, including United States Attorney Peace, as well as United States Attorney for the Eastern District of Virginia Jessica Aber, United States Attorney for the District of Connecticut Vanessa Avery, United States Attorney for the District of Hawaii Clare Connors, United States Attorney for the Eastern District of North Carolina Michael F. Easley, Jr., United States Attorney for the Northern District of California Stephanie Hinds, United States Attorney for the Western District of Virginia Christopher R. Kavanaugh, and United States Attorney for the District of New Jersey Philip Sellinger. Assistant U.S. Attorney Amanda Riedel, White Collar Crimes Coordinator for the Executive Office for United States Attorneys, also participated in the development of the policy.
U.S. Attorney’s Office Staff Emphasize Value of Word Choice to Local StudentsRead the Press Release
MIAMI – Words have the power to uplift or destroy and that was the message staff from the Law Enforcement Coordination and Community Outreach Section of the U.S. Attorney’s Office, Southern District of Florida, recently brought to 7th graders at Charles R. Drew K-8 Center in Miami.
Power of Words focused on the importance of choosing one’s words carefully. The presentation went through real-life scenarios and the impact that using insulting and belittling language can have on people.
“It shows how hurtful words can sometimes lead to threats and assaultive behavior,” said Law Enforcement Coordination and Community Outreach Section Chief J.D. Smith. “The presentation identifies the common warning signs and how to proactively identify potentially harmful interactions between students.”
Law Enforcement Coordination Specialist Mark McKinney conducted the training which involved videos, real cases, and plenty of class participation.
“If you’re choosing bad words, you’re going to get bad results,” said McKinney. “Hurtful words often lead to aggressive behavior. It can lead to suicide and what else? Anyone know?”
The message is that one never knows how deeply hurtful words cut.
“And just because you apologize doesn’t mean the other person will be able to forgive and move on,” said McKinney.
Research shows that early childhood experience may play a part in verbal abuse. Someone who witnesses this behavior at an early age may replicate it later—becoming an abuser for fear of becoming a victim.
“You have to learn to be comfortable with you,” said Latisha Robinson, a civics teacher at Charles R. Drew K-8 Center. “Life will hit you. Life is hard. But that’s reality. You don’t know what the person next to you is going through and the words you choose can make all the difference.”
Kindness was emphasized throughout the training.
“Be kind to everybody and be mindful of what is going on around you,” said McKinney. “Be aware of how to speak to someone who may be having a bad day. This will help you avoid negative responses.”
The training was valuable to Robinson because it gave her students a different perspective.
“This exercise gives our students that third lens to show them that they do use those words,” she said. “The message is to switch up, change, and make a difference.”
Law Enforcement Coordination Specialist Mark McKinney goes over a Power of Words presentation with a group of 7th graders at Charles R. Drew K-8 Center in Miami. The goal was to show students how hurtful words can escalate into violence and ways to identify potentially harmful student interactions.
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U.S. Attorney’s Office Concludes Investigation into Fatal Shooting Outside Wharf RestaurantRead the Press Release
WASHINGTON - The U.S. Attorney’s Office for the District of Columbia announced today that there is insufficient evidence to pursue federal criminal civil rights or District of Columbia charges against a commander from the Metropolitan Police Department who was involved in the July 2022 fatal shooting of Lazarus Wilson, outside a restaurant in the Wharf neighborhood in Southwest Washington, D.C.
The U.S. Attorney’s Office and the MPD Internal Affairs Division conducted a comprehensive review of the incident, which included a review of law enforcement and civilian eyewitness accounts, surveillance video, BWC footage, physical evidence, recorded radio communications, forensic reports, the autopsy report, and reports from the Metropolitan Police Department.
According to the evidence, after 9 p.m. on Saturday, July 16, 2022, MPD Commander Jason Bagshaw of the Special Operations Division was dining with his wife, an MPD investigator, at a restaurant located in the Wharf neighborhood in Southwest D.C. Although Commander Bagshaw was off duty, he was equipped with his Glock 17 service pistol. Commander Bagshaw and his wife observed a commotion from the area of the restaurant facing Wharf Street SW and the Potomac River. Patrons and employees of the restaurant began crouching down and crawling away. Commander Bagshaw and his wife walked towards the direction of the commotion.
When Commander Bagshaw and his wife exited the restaurant, they observed Lazarus Wilson pointing a firearm at another individual in what appeared to be a robbery attempt. The firearm was later recovered at the scene. A friend of Mr. Wilson was also present on the scene. Commander Bagshaw retrieved his Glock 17 service pistol from its holster, pointed it in the direction of Mr. Wilson and stated, “MPD, drop the gun!” However, Mr. Wilson did not comply, and Commander Bagshaw discharged one round striking Mr. Wilson in the left cheek. Mr. Wilson was transported by DCFEMS to George Washington University Hospital, where he was pronounced dead later that evening.
After a careful, thorough, and independent review of the evidence, federal prosecutors found insufficient evidence to prove beyond a reasonable doubt that Commander Bagshaw used excessive force under the circumstances.
Use-of-force investigations generally
The U.S. Attorney’s Office reviews all police-involved fatalities to determine whether sufficient evidence exists to conclude that any officers violated either federal criminal civil rights laws or District of Columbia law. To prove civil rights violations, prosecutors must typically be able to prove that the involved officers willfully used more force than was reasonably necessary. Proving “willfulness” is a heavy burden. Prosecutors must not only prove that the force used was excessive, but must also prove, beyond a reasonable doubt, that the officer acted with the deliberate and specific intent to do something the law forbids.
The U.S. Attorney’s Office remains committed to investigating allegations of excessive force by law enforcement officers and will continue to devote the resources necessary to ensure that all allegations of serious civil rights violations are investigated fully and completely. The Metropolitan Police Department’s Internal Affairs Division investigates all police-involved fatalities in the District of Columbia.
U.S. Attorney Zachary A. Myers Announces Implementation of New Voluntary Self-Disclosure PolicyRead the Press Release
Zachary A. Myers, United States Attorney for the Southern District of Indiana, announced that the Southern District of Indiana has implemented the new United States Attorney’s Offices’ Voluntary Self-Disclosure Policy released yesterday. The policy, which is effective immediately, details the circumstances under which a company will be considered to have made a voluntary self-disclosure (VSD) of misconduct to a United States Attorney’s Office (USAO), and provides transparency and predictability to companies and the defense bar concerning the concrete benefits and potential outcomes in cases where companies voluntarily self-disclose misconduct, fully cooperate and timely and appropriately remediate.
“Accountability for businesses and individual wrongdoers are important priorities in our efforts to combat corporate crime,” said U.S. Attorney Myers. “Businesses in America benefit greatly from the protections and opportunities afforded by our rule of law--and must abide by it. This new national Voluntary Self-Disclosure Policy for all U.S. Attorney’s Offices provides more predictable outcomes and incentivizes companies to do the right thing when wrongdoing is uncovered. Companies and their counsel should take note: honest businesses that voluntarily self-disclose criminal activity when it is discovered, fully cooperate with investigations and prosecutions, and remediate their criminal conduct, will fare far better than those that do not.”
The goal of the policy is to standardize how VSDs are defined and credited by USAOs nationwide, and to incentivize companies to maintain effective compliance programs capable of identifying misconduct, to expeditiously and voluntarily disclose and remediate misconduct, and to cooperate fully with the government in corporate criminal investigations. The policy was developed pursuant to the Deputy Attorney General’s September 15, 2022 memorandum, “Further Revisions to Corporate Criminal Enforcement Policies Following Discussions with Corporate Crime Advisory Group” (Monaco Memo), which directed each Department of Justice (DOJ) component that prosecutes corporate crime to review its policies on corporate voluntary self-disclosure and, if there was no formal written policy to incentivize self-disclosure, draft and publicly share such a policy.
Under the new VSD policy, a company is considered to have made a VSD if it becomes aware of misconduct by employees or agents before that misconduct is publicly reported or otherwise known to the DOJ, and discloses all relevant facts known to the company about the misconduct to a USAO in a timely fashion prior to an imminent threat of disclosure or government investigation. A company that voluntarily self-discloses as defined in the policy and fully meets the other requirements of the policy, by—in the absence of any aggravating factor—fully cooperating and timely and appropriately remediating the criminal conduct (including agreeing to pay all disgorgement, forfeiture, and restitution resulting from the misconduct), will receive significant benefits, including that the USAO will not seek a corporate guilty plea; may choose not to impose any criminal penalty, and in any event will not impose a criminal penalty that is greater than 50% below the low end of the United States Sentencing Guidelines (USSG) fine range; and will not seek the imposition of an independent compliance monitor if the company demonstrates that it has implemented and tested an effective compliance program.
The policy identifies three aggravating factors that may warrant a USAO seeking a corporate guilty plea even if the other requirements of the VSD policy are met: (1) if the misconduct poses a grave threat to national security, public health, or the environment; (2) if the misconduct is deeply pervasive throughout the company; or (3) if the misconduct involved current executive management of the company. The presence of an aggravating factor does not necessarily mean that a guilty plea will be required; instead, the USAO will assess the relevant facts and circumstances to determine the appropriate resolution. If a guilty plea is ultimately required, the company will still receive the other benefits under the VSD policy, including that the USAO will recommend a criminal penalty of at least a 50% and up to a 75% reduction off the low end of the USSG fine range, and that the USAO will not require the appointment of a monitor if the company has implemented and tested an effective compliance program.
In cases where a company is being jointly prosecuted by a USAO and another DOJ component, or where the misconduct reported by the company falls within the scope of conduct covered by VSD policies administered by other DOJ components, the USAO will coordinate with, or, if necessary, obtain approval from, the DOJ component responsible for the VSD policy specific to the reported misconduct when considering a potential resolution. Consistent with relevant provisions of the Justice Manual and as allowable under alternate VSD policies, the USAO may choose to apply any provision of an alternate VSD policy in addition to, or in place of, any provision of its policy.
The Attorney General’s Advisory Committee (AGAC), under the leadership of United States Attorney for the Southern District of New York Damian Williams, requested that the White Collar Fraud Subcommittee of the AGAC, under the leadership of United States Attorney for the Eastern District of New York Breon Peace, develop policies in response to the Deputy AG’s memo. U.S. Attorney Myers sits on the Attorney General’s Advisory Committee’s White Collar Crime subcommittee.
The policy announced today was prepared by a Corporate Criminal Enforcement Policy Working Group comprised of U.S. Attorneys from geographically diverse districts, including U.S. Attorney Peace, as well as U.S. Attorney for the Eastern District of Virginia Jessica Aber, U.S. Attorney for the District of Connecticut Vanessa Avery, U.S. Attorney for the District of Hawaii Clare Connors, U.S. Attorney for the Eastern District of North Carolina Michael F. Easley, Jr., U.S. Attorney for the Northern District of California Stephanie Hinds, U.S. Attorney for the Western District of Virginia Christopher Kavanaugh, and U.S. Attorney for the District of New Jersey Philip Sellinger. Assistant U.S. Attorney Amanda Riedel, White Collar Crimes Coordinator for the Executive Office for U.S. Attorneys, also participated in the development of the policy.
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U.S. Attorney Josh Hurwit Announces Implementation of New Voluntary Self-Disclosure PolicyRead the Press Release
BOISE – U.S. Attorney Josh Hurwit announced that the U.S. Attorney’s Office for the District of Idaho has implemented the new United States Attorney’s Offices’ Voluntary Self-Disclosure Policy released this week. The policy, which is effective immediately, details the circumstances under which a company will be considered to have made a voluntary self-disclosure (VSD) of misconduct to a United States Attorney’s Office (USAO), and provides transparency and predictability to companies and the defense bar concerning the concrete benefits and potential outcomes in cases where companies voluntarily self-disclose misconduct, fully cooperate and timely, and appropriately remediate wrongdoing and misconduct. The policy provides potential benefits only to companies. It does not apply to individuals.
The goal of the policy is to standardize how VSDs are defined and credited by USAOs nationwide, and to incentivize companies to maintain effective compliance programs capable of identifying misconduct, to expeditiously and voluntarily disclose and remediate misconduct, and to cooperate fully with the government in corporate criminal investigations. The policy was developed pursuant to the Deputy Attorney General’s September 15, 2022 memorandum, “Further Revisions to Corporate Criminal Enforcement Policies Following Discussions with Corporate Crime Advisory Group” (Monaco Memo), which directed each Department of Justice (DOJ) component that prosecutes corporate crime to review its policies on corporate voluntary self-disclosure and, if there was no formal written policy to incentivize self-disclosure, draft and publicly share such a policy.
Under the new VSD policy, a company is considered to have made a VSD if it becomes aware of misconduct by employees or agents before that misconduct is publicly reported or otherwise known to the DOJ, and discloses all relevant facts known to the company about the misconduct to a USAO in a timely fashion prior to an imminent threat of disclosure or government investigation. A company that voluntarily self-discloses as defined in the policy and fully meets the other requirements of the policy, by—in the absence of any aggravating factor—fully cooperating and timely and appropriately remediating the criminal conduct (including agreeing to pay all disgorgement, forfeiture, and restitution resulting from the misconduct), will receive significant benefits, including that the USAO will not seek a guilty plea against the company; may choose not to impose any criminal penalty, and in any event will not impose a criminal penalty against the company that is greater than 50% below the low end of the United States Sentencing Guidelines fine range; and will not seek the imposition of an independent compliance monitor if the company demonstrates that it has implemented and tested an effective compliance program.
The policy identifies three aggravating factors that may cause a USAO to seek a guilty plea against a company even if the other requirements of the VSD policy are met: (1) if the misconduct poses a grave threat to national security, public health, or the environment; (2) if the misconduct is deeply pervasive throughout the company; or (3) if the misconduct involved current executive management of the company. The presence of an aggravating factor does not necessarily mean that a guilty plea will be required; instead, the USAO will assess the relevant facts and circumstances of each case to determine the appropriate resolution. If a guilty plea is ultimately required, the company will still receive the other benefits under the VSD policy, including that the USAO will recommend a criminal penalty of at least a 50% and up to a 75% reduction off the low end of the United States Sentencing Guidelines fine range, and that the USAO will not require the appointment of a monitor if the company has implemented and tested an effective compliance program.
In cases where a company is being jointly prosecuted by a USAO and another DOJ component, or where the misconduct reported by the company falls within the scope of conduct covered by VSD policies administered by other DOJ components, the USAO will coordinate with, or, if necessary, obtain approval from, the DOJ component responsible for the VSD policy specific to the reported misconduct when considering a potential resolution. Consistent with relevant provisions of the Justice Manual, and as allowable under alternate VSD policies, the USAO may choose to apply any provision of an alternate VSD policy in addition to, or in place of, any provision of its policy.
The Attorney General’s Advisory Committee (AGAC), under the leadership of United States Attorney for the Southern District of New York Damian Williams, requested that the White Collar Fraud Subcommittee of the AGAC, under the leadership of United States Attorney for the Eastern District of New York Breon Peace, develop policies in response to the Deputy AG’s memo. The policy announced today was prepared by a Corporate Criminal Enforcement Policy Working Group comprised of U.S. Attorneys from geographically diverse districts, including U.S. Attorney Peace, as well as U.S. Attorney for the Eastern District of Virginia Jessica Aber, U.S. Attorney for the District of Connecticut Vanessa Avery, U.S. Attorney for the District of Hawaii Clare Connors, U.S. Attorney for the Eastern District of North Carolina Michael F. Easley, Jr., U.S. Attorney for the Northern District of California Stephanie Hinds, U.S. Attorney for the Western District of Virginia Christopher Kavanaugh, and U.S. Attorney for the District of New Jersey Philip Sellinger. Assistant U.S. Attorney Amanda Riedel, White Collar Crimes Coordinator for the Executive Office for U.S. Attorneys, also participated in the development of the policy.
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Tyler Orvis Indicted for Federal Drug CrimesRead the Press Release
Burlington, Vermont - The Office of the United States Attorney for the District of Vermont stated that on February 21, 2023, Tyler Orvis, 40, of Milton, Vermont, was arrested in connection with an indictment charging violations of the federal Controlled Substances Act for drug trafficking and related activity.
According to court records, between October 2022 and December 30, 2022, Orvis conspired with others to distribute cocaine and fentanyl in Vermont. On December 29, 2022, the Milton Police Department and the Drug Enforcement Administration executed a state search warrant at Orvis’ residence in Milton, Vermont. Inside of the house, investigators found thousands of glassine bags intended for the packaging of controlled substances, and various additional items used to manufacture and distribute controlled substances.
The case is being investigated by the Drug Enforcement Administration, Milton Police Department, Lamoille County Sheriff’s Office, Chittenden County State’s Attorney’s Office, and the Essex Police Department.
The defendant made his initial appearance on February 23, 2023, before U.S. Magistrate Judge Kevin J. Doyle, and is being held in the custody of the U.S. Marshals Service pending further proceedings.
If convicted, Orvis faces up to twenty years of imprisonment on each charge. The actual sentence, however, would be determined by the District Court with guidance from the advisory Federal Sentencing Guidelines. The United States Attorney emphasizes that the charges contained in the indictment are merely accusations and that the defendant is presumed innocent unless and until he is proven guilty.
The United States is represented in this matter by Assistant U.S. Attorney Zachary B. Stendig. Tyler Orvis is represented by Mark Kaplan, Esq.
Two Previously Deported Men Charged with Illegal ReentryRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that two previously deported men were indicted separately by a federal grand jury for illegal reentry into the United States.
According to United States Attorney Gerard M. Karam, Sandrino Trifu, age 24, of Croaova, Romania, was indicted by a federal grand jury with illegal reentry into the United States by a previously removed alien. The indictment alleges that Trifu was previously removed from the United States on July 10, 2019, through Chicago, Illinois, and it is alleged that he reentered the United States without first obtaining legal permission to do so. The indictment also alleges that on February 6, 2023, Trifu was encountered in Adams County, Pennsylvania.
The maximum penalty under federal law for this offense is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. The case was investigated by U.S. Immigration Customs and Enforcement (ICE).
Refugio Pimentel-Garcia, age 28, of Puruándiro, Mexico, was indicted by a federal grand jury with illegal reentry into the United States by a previously removed alien. The indictment alleges that Pimentel-Garcia was previously removed from the United States on October 12, 2016, through Brownsville, Texas, and it is alleged that he reentered the United States without first obtaining legal permission to do so. The indictment also alleges that on January 27, 2023, Pimentel-Garcia was encountered in Dauphin County, Pennsylvania
The maximum penalty under federal law for this offense is 2 years of imprisonment, a term of supervised release following imprisonment, and a fine. The case was investigated by U.S. Immigration Customs and Enforcement (ICE) and the Pennsylvania State Police.
Assistant U.S. Attorney Jaime M. Keating is prosecuting both cases.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Two MS-13 Members Sentenced to Life in Prison for Their Roles in MurdersRead the Press Release
Two members of La Mara Salvatrucha (MS-13) were sentenced to life in prison for Racketeer Influenced and Corrupt Organizations (RICO) Act conspiracy and murder in aid of racketeering.
According to court documents, Luis Flores-Reyes, aka Maloso, aka Lobo, 41, of Arlington, Virginia, and Jairo Jacome, aka Abuelo, 40, of Langley Park, Maryland, were members of MS-13, an international criminal organization and one of the largest street gangs in the United States. MS-13 is organized into a series of sub-units or “cliques” that operate in specific geographic locations. Flores-Reyes was a leader within the powerful Sailors Clique, which held territory in Maryland, Virginia, New York, New Jersey, Texas, and El Salvador. Jacome was the highest-ranking member in a local clique called Langley Park Salvatruchas (LPS). Together, the two MS-13 cliques, including Flores-Reyes and Jacome, ran a protection scheme in and around Langley Park, extorting local businesses by charging them “rent” for the privilege of operating in MS-13 “territory.” The gang also trafficked in illegal drugs, including heroin, marijuana, and cocaine. A large share of the proceeds of the gang’s illegal activities were sent to gang leadership in El Salvador to further promote the gang’s illicit activities, using structured transactions and intermediaries to avoid law enforcement scrutiny.
Flores-Reyes and Jacome participated in at least four murders during the period of the conspiracy, mostly of victims they believed to be gang rivals.
Among the most important rules of MS-13 is the prohibition against talking to law enforcement, embodied by the maxim ver, oir, y callar – see, hear, and say nothing. The gang enforced this rule by placing a “green light” – an order to kill – on any member of MS-13 who was thought to be informing on the gang. On December 4, 2016, Jacome directed and participated in taking a 14 year-old boy from Langley Park to a wooded area outside Germantown, Maryland, and murdering him by repeated blows with a machete because Jacome suspected that the victim had provided information to the police about the gang. Jacome fled the murder scene in fear of being discovered by police but returned the next morning to bury the body. The victim was a missing person until his skeletal remains were recovered by law enforcement on June 6, 2018.
In March 2017, a member of the Sailors Clique, who in an effort to hide from law enforcement was living in the Lynchburg, Virginia-area, had a dispute with a local high school student over marijuana. In response, Flores-Reyes authorized that a squad of MS-13 members drive to Lynchburg and murder the high school student. The gang members kidnapped the student from his front lawn and cut his hand off before killing him. After the murder, Flores-Reyes helped to hide and protect the killers from law enforcement.
In September 2022, Flores-Reyes, Jacome, and a third MS-13 member, Brayan Contreras-Avalos, were each convicted of racketeering conspiracy. Flores-Reyes and Jacome were additionally convicted of murder in aid of racketeering and extortion conspiracy, and Flores-Reyes and Contreras-Avalos were convicted of conspiracy to distribute controlled substances. Contreras-Avalos was sentenced to life in prison on Jan. 13.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division and U.S. Attorney Erek L. Barron for the District of Maryland made the announcement.
The FBI Washington Field Office, HSI Baltimore, DEA New York Field Division, DEA Baltimore District Office, Prince George’s County Police Department, Montgomery County Police Department, Virginia State Police, Lynchburg Police Department, Prince William County Police Department, and Bedford County Sheriff’s Office investigated the case. The Nassau County District Attorney’s Office also provided valuable assistance.
Trial Attorney Alexander Gottfried of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Timothy Hagan and Christopher Sarma for the District of Maryland prosecuted the case.
Two Individuals and a Healthcare Management Company Indicted for Bankruptcy Fraud, Money Laundering, PPP Fraud, and Bank FraudRead the Press Release
SAN JUAN, Puerto Rico – Ivelisse Rivera-Padilla and Carla Carrillo-Torres, and the company VIP Healthcare Solutions, Inc. (“VIP Healthcare”) were indicted by a federal Grand Jury in relation to bankruptcy fraud, a money laundering scheme, PPP fraud, and bank fraud announced W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico.
Ivelisse Rivera-Padilla, the President of VIP Healthcare, was indicted in a bankruptcy fraud scheme for making materially false representations from March 2017 to May 2022 in order to defraud during her bankruptcy proceeding, In re: Ivelisse Rivera Padilla, Case No. 17-01782, all in violation of 18 U.S.C. § 157. Additionally, she is charged with 10 counts of concealment of assets during her bankruptcy proceedings in violation of 18 U.S.C. § 152(1), and 3 counts of making false statements in relation to such bankruptcy proceedings, in violation of 18 U.S.C. § 152(3).
The indictment alleges that during the bankruptcy proceedings, Ivelisse Rivera-Padilla concealed property and income and failed to disclose to the trustee charged with control of the debtor’s property and from the creditors and the United States Trustee all of the bankruptcy estate during the course of her bankruptcy proceedings, including, but not limited to the creation, operation, ownership, and control of VIP Healthcare.
On or about June 23, 2017, Rivera-Padilla incorporated VIP Healthcare, and on or about June 30, 2017, signed a contract between VIP Healthcare and the Municipality of Cataño to manage and administer the “Job Andujar” Diagnostic and Treatment Center. The contract awarded VIP Healthcare $1,134,000.00 paid via monthly installments of $189,000.00. Between 2017 and 2022, additional contracts were executed between VIP Healthcare and the Municipality of Cataño in excess of $9,000,000.00. Rivera-Padilla accessed, controlled, and used over $1,000,000.00 of these proceeds from VIP Healthcare’s bank accounts for her personal use and benefit without disclosing such income during her bankruptcy proceedings.
The indictment further alleges that Rivera-Padilla concealed the purchase of an apartment located at Condominium Golf & Playa, Cabo Rojo, Puerto Rico, for $270,000.00, and a 2,159.5152 square-meter plot of land located at Rainforest and Sea View Resort in Luquillo, Puerto Rico, for $275,000.00. Rivera-Padilla also concealed the creation and interest in another corporate entity known as Farmacia Libertad, as well as income from a rental property business through AirBnB.
Defendants Rivera-Padilla, Carrillo-Torres, and VIP Healthcare are facing 28 counts of money laundering based on individual transactions made using funds concealed during the bankruptcy proceedings. These transactions were made to purchase multiple properties and real estate for Rivera-Padilla and Carrillo-Torres.
Additionally, Carrillo-Torres and VIP Healthcare are charged with making false statements in relation to a $249,755.35 Paycheck Protection Program (PPP) Loan.
If convicted, Carla Carrillo-Torres may be sentenced to a maximum term of imprisonment of 30 years and a fine of $1,000,000.00 for violations of 18 U.S.C. §§ 1014 and 1344 (Bank Fraud). For each count of money laundering under 18 U.S.C § 1957, Rivera-Padilla and Carrillo-Torres face up to 10 years of imprisonment. In addition, Rivera-Padilla also faces up to 5 years of imprisonment for each count under 18 U.S.C §§157 and 152 (Bankruptcy Fraud). VIP Healthcare faces monetary fines, among other penalties, for each count of conviction.
“The defendants used bankruptcy proceedings to defraud the United States Trustee Program and creditors. They also illegally used COVID relief funds to benefit themselves,” said U.S. Attorney Muldrow. “The U.S. Attorney’s Office remains vigilant in the effort to enforce bankruptcy laws and punish those who illegally diverted and used critical COVID funds for their own personal gain.”
“Together with U.S. Attorney Muldrow and our law enforcement partners, we will continue to pursue fraud and abuse in bankruptcy cases,” stated Mary Ida Townson, U.S. Trustee for Georgia, Florida, Puerto Rico, and Virgin Islands (Region 21). “I am thankful for the appointment by the U.S. Attorney of two Special Assistant U.S. Attorneys from our San Juan office for the prosecution of those who engage in fraudulent conduct in bankruptcy cases.” The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws.
“During the regular course of an investigation, the FBI gives individuals involved in criminal activity, numerous opportunities to do the right thing. Such was the case with these two subjects,” said Joseph González, Special Agent in Charge of the FBI San Juan Field Office. “The FBI message has been clear from day one. Come to us before we come to you. We are committed to investigating every violation to its last consequence.”
This case is being prosecuted by Special Assistant U.S. Attorney José Capó Iriarte and Special Assistant U.S. Attorney José C. Díaz Vega from the Office of the U.S. Trustee.
The case was investigated by the Federal Bureau of Investigation (FBI) and is a continuation of the investigation involving municipal contracts awarded in the Municipality of Cataño, which has resulted in the conviction of multiple contractors and public officials. See United States v. Félix Delgado-Montalvo, 21-463 (RAM); United States v. Oscar Santamaria-Torres, 21-464 (RAM); and United States v. Raymond Rodríguez, 21-465 (RAM); United States v. Pedro Marrero-Miranda, 22-251 (RAM); United States v. Mario Villegas-Vargas, 21-468(FAB); and United States v. Jose Bou-Santiago, 22-379(ADC).
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Toledo Man Sentenced to More Than 23 Years in Prison for Role in Drug Trafficking Conspiracy and Illegal Possession of FirearmRead the Press Release
TOLEDO – A Toledo man was sentenced to spend more than 23 years – or 280 months – in prison by U.S. District Judge Jack Zouhary on Feb. 8, 2023, after he pleaded guilty to multiple charges stemming from his role in a Toledo-area drug trafficking conspiracy.
Jackie Green, 53, pleaded guilty in July 2022 to conspiracy to possess with intent to distribute controlled substances, distribution of controlled substances, and being a felon in possession of a firearm.
According to court documents, beginning in December 2019, Green and more than 20 other co-conspirators conspired together to traffic large amounts of fentanyl, crack cocaine, and cocaine in the Toledo area. Court documents say that Green received large amounts of drugs from various suppliers and then further distributed those drugs to others.
Court records show that members of the conspiracy used cell phones and code words to conceal their activity and multiple residences in the Toledo area to store, break down, package, and distribute their narcotics and proceeds. Furthermore, court documents state that Green used various vehicles to transport and deliver the narcotics that he sold.
In September 2020, Green was found by law enforcement authorities to be in possession of a firearm. Green was prohibited from possessing a firearm due to multiple previous drug trafficking convictions in the Lucas County Court of Common Pleas.
On December 16, 2020, federal, state, county, and local law enforcement authorities participated in a wide-ranging takedown operation of 24 individuals involved in the drug trafficking conspiracy.
This effort was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case was investigated by the FBI Safe Streets Task Force, Toledo Metro Drug Task Force, and the Northwest Ohio Interdiction Task Force.
The FBI Safe Streets is comprised of the FBI, Toledo Police Department, Sylvania Township Police Department, and the Oregon Police Department. The Toledo Metro Drug Task Force is comprised of the FBI, Toledo Police Department, Bureau of Criminal Investigations, Lucas County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). The Northwest Ohio Interdiction Task Force is comprised of the FBI, Toledo Police Department, and the Lucas and Wood County Sheriff’s Offices.
This case was prosecuted by Assistant U.S. Attorneys Alissa M. Sterling, Robert N. Melching, and Sara A. Al-Sorghali.
Three of the Highest-Ranking MS-13 Leaders in the World Arrested on Terrorism and Racketeering ChargesRead the Press Release
Earlier today, in federal court in Central Islip, a four-count indictment was unsealed charging 13 of the highest-ranking MS-13 leaders in the world with directing the transnational criminal organization’s criminal activities in the United States, El Salvador, Mexico, and elsewhere, over the past two decades. Specifically, the defendants are charged with racketeering conspiracy, conspiracy to provide or conceal material support to terrorists, and narco-terrorism conspiracy. Four of the defendants are also charged with alien smuggling conspiracy which resulted in death.
On February 22, 2023, Vladimir Antonio Arevalo-Chavez, also known as “Vampiro de Monserrat Criminales” (Arevalo-Chavez), Walter Yovani Hernandez-Rivera, also known as “Baxter de Park View” and “Bastard de Park View” (Hernandez-Rivera), and Marlon Antonio Menjivar-Portillo, also known as “Rojo de Park View” (Menjivar-Portillo), were located by Mexican authorities and expelled from Mexico via the United States. When Arevalo-Chavez, Hernandez-Rivera, and Menjivar-Portillo arrived at George Bush Intercontinental Airport in Houston, Texas, they were placed under arrest by the Federal Bureau of Investigation (FBI) and Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). Earlier this afternoon, the defendants had initial appearances in the Southern District of Texas, pending removal to the Eastern District of New York.
Four co-defendants, Jose Wilfredo Ayala-Alcantara, also known as “Indio de Hollywood,” Jorge Alexander De La Cruz, also known as “Cruger de Peatonales,” Juan Antonio Martinez-Abrego, also known as “Mary Jane de Hollywood,” and Francisco Javier Roman-Bardales, also known as “Veterano de Tribus,” remain at large. Members of the public with information concerning their whereabouts are strongly encouraged to contact the FBI’s toll-free MS-13 tip line, 1-866-STP-MS13 (1-866-787-6713), or HSI’s tip line at (866) 347-2423 or https://www.ice.gov/webform/ice-tip-form. Together, FBI and HSI have offered a $20,000 reward for information leading to the arrest and conviction of the four fugitives.
Six other co-defendants, Edwin Ernesto Cedillos-Rodriguez, also known as “Renuente de Abriles Dangers,” Carlos Tiberio Ramirez-Valladares, also known as “Snayder de Pasadena,” Dany Fredy Ramos-Mejia, also known as “Cisco de Teclas,” Dany Balmore Romero-Garcia, also known as “Big Boy de Normandies,” “Dig Boy de Normandies,” and “D Boy de Normandies,” Ruben Antonio Rosa-Lovo, also known as “Chivo de Centrales,” and Miguel Angel Serrano-Medina, also known as “Cabro de Park View,” are believed to be in custody in El Salvador. The United States will explore options for their extradition with the government of El Salvador.
Merrick B. Garland, United States Attorney General; Breon Peace, United States Attorney for the Eastern District of New York (EDNY); Christopher A. Wray, Director, FBI; Deputy Director and Senior Official Performing the Duties of the Director Tae D. Johnson, Homeland Security Investigations; and John J. Durham, Director of Joint Task Force Vulcan (JTFV), announced the indictment and arrests.
“Today’s action makes clear that there is no hiding place, anywhere in the world, for the leaders of violent gangs that terrorize American communities,” said Attorney General Merrick B. Garland. “The Justice Department will continue to use the full force of our law enforcement authorities to disrupt and dismantle MS-13 and other transnational criminal organizations and hold their leaders accountable.”
“The relentless efforts of our Office and law enforcement partners are systematically dismantling the MS-13 from the bottom to the very top, and we will not stop until this transnational criminal organization and its leaders are held accountable for the extreme violence they have inflicted on our district, the United States, and the countries where this scourge is based,” stated United States Attorney Peace. “Geographic borders will not shield violent actors from American justice.”
“Today’s indictment demonstrates the Department of Justice’s ongoing commitment to hold MS-13’s highest ranking leaders responsible for the terrorism and violence that they have unleased on communities from Long Island to El Salvador and elsewhere,” said JTFV Director Durham. “Only by combating MS-13’s command and control structure, and bringing the transnational criminal organization’s highest-ranking leaders to justice in the United States will we be able to break the persistent cycles of violence that have plagued our communities.”
“The FBI will continue to vigorously investigate and hold transnational organized groups like MS-13 and their leaders accountable for the continued violent and terrorist criminal activities they orchestrate,” said FBI Director Christopher Wray. “Today’s indictment demonstrates the FBI’s reach and commitment to seeking justice against those individuals who jeopardize American lives and liberty. We will never stop working in coordination with our international partners to protect our respective citizens from MS-13 and other gangs wherever they are.”
"As a member of Joint Task Force Vulcan, U.S. Immigration and Customs Enforcements’ Homeland Security Investigations is committed to protecting national security and the communities we serve against transnational criminal organizations,” said Deputy Director and Senior Official Performing the Duties of the Director Tae D. Johnson of U.S. Immigration and Customs Enforcement. “With our broad legal authorities and ability to investigate a wide spectrum of crimes, our HSI special agents will continue to maximize global efforts that detect, deter, disrupt, and dismantle criminal syndicates, like MS-13, and those who propagate associated illicit operations."
As set forth in court filings, the 13 defendants are part of MS-13’s command and control structure, consisting of the Ranfla Nacional, Ranfla en Las Calles, and Ranfla en Los Penales, and play significant leadership roles in the organization’s operations in El Salvador, Mexico, the United States and throughout the world. In the related case of United States v. Henriquez, et al., a grand jury in the Eastern District of New York previously indicted 14 members of the Ranfla Nacional, who functioned as MS-13’s “Board of Directors.” Formal extradition packages were submitted by the United States for 12 of those defendants, who either are or were in El Salvador custody, and remain pending. The two other defendants, Fredy Ivan Jandres-Parad, also known as “Lucky de Park View” and “Lacky de Park View,” and Cesar Humberto Lopez-Larios, also known as “El Grenas de Stoners” and “Oso de Stoners,” still are fugitives.
As further alleged, the defendants have engaged in a litany of violent terrorist activities aimed at influencing the government of El Salvador (GOES). The defendants have used terrorist violence to obtain benefits and concessions from the GOES and to target GOES law enforcement and military officials. They have also used improvised explosive devices and grenades and operated military-style training camps for firearms and explosives. The defendants have actively engaged in public displays of violence to threaten and intimidate civilian populations, to obtain and control territory and to manipulate the electoral process in El Salvador. Several of these defendants have played prominent roles in MS-13’s past and current negotiations with the GOES.
Further, these defendants authorized and directed violence in the United States, Mexico, and elsewhere as part of a concerted effort to expand MS-13’s influence and territorial control. As the leaders of the MS-13 transnational criminal organization, these defendants were an integral part of the leadership chain responsible for supervising MS-13 cliques in the United States that engaged in extreme violence, including numerous murders, attempted murders, assaults, and related offenses. For example, this Office’s Long Island Criminal Division has prosecuted hundreds of MS-13 leaders, members, and associates for carrying out more than 65 murders in the Eastern District of New York between 2009 and the present.
Several of these defendants, including Arevalo-Chavez, Hernandez-Rivera, and Menjivar-Portillo, coordinated MS-13’s expansion into Mexico (the Mexico Program), at the direction of the Ranfla Nacional, which was a coordinated effort to maintain MS-13’s continuity of operations in response to law enforcement pressure previously exerted by the United States and GOES. Additionally, the Mexico Program included forging alliances with Mexican cartels and engaged in narcotics trafficking, immigrant smuggling and extortion, kidnappings, and weapons trafficking. As alleged in the indictment, the MS-13’s Mexico Program murdered some migrants bound for the United States, including suspected members of the rival 18th Street gang and MS-13 members attempting to flee MS-13 in El Salvador without permission. Finally, drug trafficking was an important part of MS-13’s money-making operation, especially in Mexico, and the defendants used MS-13’s large membership in the United States to generate financial support for MS-13’s terrorist activities in El Salvador.
Since its creation in August 2019, JTFV has successfully implemented a whole-of-government approach to combatting MS-13, including increasing coordination and collaboration with foreign law enforcement partners, including El Salvador, Mexico, Honduras, and Guatemala. JTFV has also identified and targeted for prosecution the MS-13 programs, cliques and individuals that have had the most violent impact in the United States and it has coordinated significant MS-13 indictments in U.S. Attorney’s Offices across the country, including the first use of national security charges against MS-13 leaders.
JTFV has been comprised of members from U.S. Attorney’s Offices across the country, including the EDNY; the District of New Jersey; the Northern District of Ohio; the District of Utah; the District of Massachusetts; the Eastern District of Texas; the Southern District of New York; the Eastern District of Virginia; the Southern District of Florida; the Southern District of California; the District of Nevada; the District of Alaska; and the District of Columbia, as well as the Department of Justice’s National Security Division and the Criminal Division. In addition, all Department of Justice law enforcement agencies are involved in the effort, including the FBI; the U.S. Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Marshals Service; and the U.S. Bureau of Prisons. In addition, HSI also plays a critical role in JTFV.
U.S. Attorney Peace expressed his sincere thanks to the FBI’s Salt Lake City, Sacramento, Los Angeles, Newark and Houston Field Offices, with critical support provided by the Criminal Investigative Division’s Safe Streets Gang Unit, and HSI’s National Gangs and Violent Crime Unit, who spearheaded this investigation. Additionally, FBI Legal Attaché in Mexico City, HSI Mexico, and the United States Customs and Border Protection Officers and Area Port Director Shawn Polley at the George Bush Intercontinental Airport in Houston provided critical support in connection with the arrests as well as the U.S. Attorney's Office for the Southern District of Texas for handling the initial appearance.
Further, U.S. Attorney Peace recognized the numerous Department of Justice components that contributed to this indictment, including: the National Security Division’s Counterterrorism Section; the Organized Crime Drug Enforcement Task Forces Executive Office; the Office of International Affairs; and the Criminal Division’s Office of Overseas Prosecutorial Development, Assistance and Training and Organized Crime and Gangs Section. In addition, the Department of State, Bureau of International Narcotics and Law Enforcement Affairs, and the United States Agency for International Development, Office of Inspector General have provided critical support for JTFV’s mission.
The charges announced today are allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. If convicted, the defendants face a maximum sentence of life in prison, and the four defendants charged with alien smuggling conspiracy, which resulted in death, also are eligible for the death penalty.
The government’s case is being prosecuted by Assistant U.S. Attorneys James Donnelly, Matthew Shepherd and Stewart Young from JTFV, with assistance from Assistant U.S. Attorneys Paul G. Scotti, Justina L. Geraci and Megan E. Farrell from the Office’s Long Island Criminal Division.
Defendants in U.S. Custody:
VLADIMIR ANTONIO AREVALO-CHAVEZ (also known as “Vampiro de Monserrat Criminales”)
Age: 47WALTER YOVANI HERNANDEZ-RIVERA (also known as “Baxter de Park View” and “Bastard de Park View”)
Age: 29MARLON ANTONIO MENJIVAR-PORTILLO (also known as “Rojo de Park View”)
Age: 47Fugitive Defendants:
JOSE WILFREDO AYALA-ALCANTARA (also known as “Indio de Hollywood”)
Age: 55JORGE ALEXANDER DE LA CRUZ (also known as “Cruger de Peatonales”)
Age: 45JUAN ANTONIO MARTINEZ-ABREGO (also known as “Mary Jane de Hollywood”)
Age: 42FRANCISCO JAVIER ROMAN-BARDALES (also known as “Veterano de Tribus”)
Age: 45Defendants Believed to be in El Salvador Custody:
EDWIN ERNESTO CEDILLOS-RODRIGUEZ (also known as “Renuente de Abriles Dangers”)
Age: 35CARLOS TIBERIO RAMIREZ-VALLADARES (also known as “Snayder de Pasadena”)
DANY FREDY RAMOS-MEJIA (also known as “Cisco de Teclas”)
Age: 44DANY BALMORE ROMERO-GARCIA (also known as “Big Boy de Normandies,” “Dig Boy de Normandies,” and “D Boy de Normandies”)
Age: 48RUBEN ANTONIO ROSA-LOVO (also known as “Chivo de Centrales”)
Age: 52MIGUEL ANGEL SERRANO-MEDINA (also known as “Cabro de Park View”)
Age: 47E.D.N.Y. Docket No.: 22-CR-429 (JMA)
Three High-Ranking MS-13 Leaders Arrested on Terrorism and Racketeering ChargesRead the Press Release
WASHINGTON – A four-count indictment was unsealed today in federal court in Central Islip, a charging 13 of the highest-ranking MS-13 leaders in the world with directing the transnational criminal organization’s criminal activities in the United States, El Salvador, Mexico, and elsewhere, over the past two decades. Specifically, the defendants are charged with racketeering conspiracy, conspiracy to provide or conceal material support to terrorists, and narco-terrorism Conspiracy. Four of the defendants are indicted for Alien Smuggling Conspiracy.
On Feb. 22, Vladimir Antonio Arevalo-Chavez, aka Vampiro de Monserrat Criminales (Arevalo-Chavez), Walter Yovani Hernandez-Rivera, aka Baxter de Park View and Bastard de Park View (Hernandez-Rivera), and Marlon Antonio Menjivar-Portillo, aka Rojo de Park View (Menjivar-Portillo), were located by Mexican authorities and expelled from Mexico via the United States. When Arevalo-Chavez, Hernandez-Rivera, and Menjivar-Portillo arrived at George Bush Intercontinental Airport in Houston, they were placed under arrest by the FBI and Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). Earlier today, the defendants had their initial appearances in the Southern District of Texas, pending removal to the Eastern District of New York..
Four co-defendants, Jose Wilfredo Ayala-Alcantara, aka Indio de Hollywood, Jorge Alexander De La Cruz, aka Cruger de Peatonales, Juan Antonio Martinez-Abrego, aka Mary Jane de Hollywood, and Francisco Javier Roman-Bardales, also known as Veterano de Tribus, remain at large.
“Today’s action makes clear that there is no hiding place, anywhere in the world, for the leaders of violent gangs that terrorize American communities,” said Attorney General Merrick B. Garland. “The Justice Department will continue to use the full force of our law enforcement authorities to disrupt and dismantle MS-13 and other transnational criminal organizations and hold their leaders accountable.”
“The FBI will continue to vigorously investigate and hold transnational organized groups like MS-13 and their leaders accountable for the continued violent and terrorist criminal activities they orchestrate,” said FBI Director Christopher Wray. “Today’s indictment demonstrates the FBI’s reach and commitment to seeking justice against those individuals who jeopardize American lives and liberty. We will never stop working in coordination with our international partners to protect our respective citizens from MS-13 and other gangs wherever they are.”
“The relentless and heroic efforts of law enforcement here and in Central America are systemically dismantling the MS-13 the very top to bottom, and we will not stop until this transnational gang and it’s leaders are held accountable for the extreme violence they have inflicted on our district, the United States and the countries where this scourge is based,” said U.S. Attorney Breon Peace for the Eastern District of New York.
“As a member of Joint Task Force Vulcan, U.S. Immigration and Customs Enforcements’ Homeland Security Investigations is committed to protecting national security and the communities we serve against transnational criminal organizations,” said Deputy Director and Senior Official Performing the Duties of the Director Tae D. Johnson of U.S. Immigration and Customs Enforcement. “With our broad legal authorities and ability to investigate a wide spectrum of crimes, our HSI special agents will continue to maximize global efforts that detect, deter, disrupt, and dismantle criminal syndicates, like MS-13, and those who propagate associated illicit operations.”
Members of the public with information concerning their whereabouts are strongly encouraged to contact the FBI’s toll-free MS-13 tip line, 1-866-STP-MS13 (1-866-787-6713), or HSI’s at (866) 347-2423 or https://www.ice.gov/webform/ice-tip-form. Together, FBI and HSI have offered a $20,000 reward for information leading to the arrest and conviction of the four fugitives.
Six other co-defendants, Edwin Ernesto Cedillos-Rodriguez, aka Renuente de Abriles Dangers, Carlos Tiberio Ramirez-Valladares, aka Snayder de Pasadena, Dany Fredy Ramos-Mejia, aka Cisco de Teclas, Dany Balmore Romero-Garcia, aka Big Boy de Normandies, Dig Boy de Normandies, and D Boy de Normandies, Ruben Antonio Rosa-Lovo, aka Chivo de Centrales, and Miguel Angel Serrano-Medina, aka Cabro de Park View,”are believed to be in custody in El Salvador. The United States will explore options for their extradition with the government of El Salvador.
As set forth in court filings, the 13 defendants are part of MS-13’s command and control structure, consisting of the Ranfla Nacional, Ranfla en Las Calles, and Ranfla en Los Penales, and play significant leadership roles in the organization’s operations in El Salvador, Mexico, the United States, and throughout the world. In the related case of United States v. Henriquez, et al., a grand jury in the Eastern District of New York previously indicted 14 members of the Ranfla Nacional, who functioned as MS-13’s “Board of Directors.” Formal extradition packages were submitted by the United States for 12 of those defendants, who either are or were in El Salvador custody, remain pending.
As further alleged, the defendants have engaged in a litany of violent terrorist activities aimed at influencing the government of El Salvador (GOES) policy and to obtain benefits and concessions from the GOES; targeting GOES law enforcement and military officials; employing terrorist tactics such as the use of Improvised Explosive Devices (“IEDs”) and grenades; operating military-style training camps for firearms and explosives; using public displays of violence to intimidate civilian populations; using violence to obtain and control territory; and manipulating the electoral process in El Salvador. Several of these defendants have played prominent roles in MS-13’s past and current negotiations with the GOES.
Further, these defendants authorized and directed violence in the United States, Mexico, and elsewhere as part of a concerted effort to expand MS-13’s influence and territorial control. As the leaders of the MS-13 transnational criminal organization, these defendants were an integral part of the leadership chain responsible for supervising MS-13 cliques in the United States that engaged in extreme violence, including countless murders, attempted murders, assaults, and related offenses. For example, the U.S. Attorney’s Office for the Eastern District of New York’s (EDNY) has prosecuted hundreds of MS-13 leaders, members and associates for carrying out with more than 65 murders in the Eastern District of New York between 2009 and the present.
Several of these defendants, including Arevalo-Chavez, Hernandez-Rivera, and Menjivar-Portillo, coordinated MS-13’s expansion into Mexico (the Mexico Program), at the direction of the Ranfla Nacional, which was a coordinated effort to maintain MS-13’s continuity of operations in response to law enforcement pressure previously exerted by the United States and GOES. Additionally, the Mexico Program included forging alliances with Mexican cartels and engaged in narcotics trafficking, immigrant smuggling and extortion, kidnappings, and weapons trafficking. As alleged in the indictment, the MS-13’s Mexico Program murdered some migrants bound for the United States, including suspected members of the rival 18th Street gang and MS-13 members attempting to flee MS-13 in El Salvador without permission. Finally, drug trafficking was an important part of MS-13’s money-making operation, especially in Mexico, and the defendants used MS-13’s large membership in the United States generate financial support for MS-13’s terrorist activities in El Salvador.
Since its creation in August 2019, JTFV has successfully implemented a whole-of-government approach to combatting MS-13, including increasing coordination and collaboration with foreign law enforcement partners, including El Salvador, Mexico, Honduras, and Guatemala; designating priority MS-13 programs, cliques, and leaders, who have the most impact on the United States, for targeted prosecutions; and coordinating significant MS-13 indictments in U.S. Attorney’s Offices across the country, including the first use of national security charges against MS-13 leaders.
JTFV has been comprised of members from U.S. Attorney’s Offices across the country, including the EDNY; the District of New Jersey; the Northern District of Ohio; the District of Utah; the District of Massachusetts; the Eastern District of Texas; the Southern District of New York; the Eastern District of Virginia; the Southern District of Florida; the Southern District of California; the District of Nevada; the District of Alaska; and the District of Columbia, as well as the Department of Justice’s National Security Division and the Criminal Division. In addition, all Department of Justice law enforcement agencies are involved in the effort, including the FBI; the DEA; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Marshals Service; and the U.S. Bureau of Prisons. In addition, HSI also plays a critical role in JTFV.
The FBI Salt Lake City, Sacramento, Los Angeles, Newark and Houston Field Offices investigated the case, with critical support provided by the FBI Criminal Investigative Division’s Safe Streets Gang Unit and HSI’s National Gangs and Violent Crime Unit, who spearheaded this investigation. Additionally, FBI Mexico, HSI Mexico, and the U.S. Customs and Border Protection Officers and Area Port Director Shawn Polley at the George Bush Intercontinental Airport in Houston provided critical support in connection with the arrests.
Assistant U.S. Attorneys Paul G. Scotti, Justina L. Geraci, and Megan E. Farrell for Eastern District of New York, and U.S. Attorneys James Donnelly, Matthew Shepherd and Stewart Young for JTFV prosecuted the case.
Texas Resident Sentenced to More than 20 Years in Prison on Gun and Drug ChargesRead the Press Release
BIRMINGHAM, Ala. – A federal judge yesterday sentenced a Texas man on gun and drug charges, announced U.S. Attorney Prim F. Escalona and U.S. Immigration and Customs Enforcement Homeland Security Investigations Special Agent in Charge Katrina W. Berger.
U.S. District Court Judge Annemarie Axon sentenced Aaron Martinez, 33, of Houston, Texas, to 248 months in prison. Martinez pleaded guilty in October 2022 to possession with intent to distribute cocaine and methamphetamine, possessing a firearm in furtherance of a drug trafficking crime, and being a felon in possession of a firearm.
According to the plea agreement, on February 17, 2021, a police officer with the Leeds Police Department conducted a traffic stop at Buc-ee’s located in Leeds on a vehicle driven by Martinez. The traffic stop resulted in the officer recovering 3.5 kilograms of methamphetamine, 1 kilogram of cocaine, and two firearms. Martinez was travelling from Houston to Atlanta. Martinez has a lengthy criminal history including Aggravated Assault with a Deadly Weapon and Burglary of Habitation, and is associated with a gang in Houston, Texas.
HSI investigated the case along with the Leeds Police Department. Assistant U.S. Attorney Brittany Byrd prosecuted the case.
Susquehanna County Man Pleads Guilty to Methamphetamine TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Clifford Johnson, age 58, of Franklin Township, Pennsylvania, pleaded guilty on February 21, 2023, before US. District Court Judge Robert D. Mariani, to the charges of distribution of methamphetamine and conspiracy to distribute methamphetamine.
According to United States Attorney Gerard M. Karam, Johnson admitted to distributing and conspiring with others to distribute between 500 and 1500 grams of crystal methamphetamine in the Susquehanna County area between August 2019 and April 2020.
The charges resulted from an investigation conducted by the Drug Enforcement Administration (DEA) and the Pennsylvania State Police. Assistant United States Attorney Robert J. O’Hara is prosecuting the case.
This case is also 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.
Under federal law, the drug trafficking offenses carry a maximum possible penalty of up to twenty years in prison, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
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Story County Man Sentenced for Possession of Child PornographyRead the Press Release
Des Moines, IA – A Nevada, Iowa man was sentenced today to 121 months in prison following his guilty plea for possession of child pornography.
According to court documents, on or about December 21, 2021, William Ryan Buttermore, age 24, knowingly possessed visual depictions of child pornography, including 44 images and four videos, some of which depicted infants and other minors younger than 12 years old. Buttermore downloaded the material from the internet. In addition, Buttermore used an account on Kik Messenger to transport child pornography to others and to encourage others to produce child pornography and engage in sex acts with children. Following his prison term, Buttermore 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 Story County Sheriff’s 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.
St. Louis Man Indicted on Drug and Gun ChargesRead the Press Release
ST. LOUIS – A man from St. Louis, Missouri accused of involvement in a convenience store shootout was indicted Wednesday on drug and gun charges.
Kennis Body, 25, was indicted on a drug conspiracy count, one count of possession with the intent to distribute controlled substances and one count of possession of one or more firearms in furtherance of a drug trafficking crime.
A criminal complaint and a motion seeking to have Body held in jail until trial accuse him of wielding an AR-15-style rifle during a shootout inside a St. Louis convenience store on January 9. After an altercation, people inside the store drew handguns and appeared to fire them out of the store. Body then walked in with the rifle and fired multiple rounds into the store, the complaint and detention motion say.
During Body’s January 31 arrest, police, U.S. Marshals and Drug Enforcement Administration agents found the loaded AR-style rifle and about 670 capsules containing suspected fentanyl, the motions say. Body was on probation at the time of the arrest and the shooting.
The drug charges each carry a penalty of up to 20 years in prison, a $1 million fine or both. The firearm charge carries a sentence of five years to life in prison, a $250,000 fine, or both.
Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The case was investigated by the St. Louis Metropolitan Police Department and the Drug Enforcement Administration. Assistant U.S. Attorney Geoffrey Ogden is prosecuting the case.
South Carolina Methamphetamine Trafficker Sentenced to More Than 12 Years in Federal PrisonRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Frank D. Whitney sentenced Brandon Eugene Massey, 38, of Blacksburg, S.C., to 151 months in prison, for conspiracy to distribute and to possess with intent to distribute methamphetamine, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Judge Whitney also imposed five years of supervised release following incarceration.
According to filed documents and information introduced at the sentencing hearing, between 2019 and 2020, Massey was responsible for trafficking one and a half kilograms of methamphetamine, including 150 grams of ultra-high purity methamphetamine, that was seized from his co-conspirators. Court documents show that Massey was responsible for supplying the methamphetamine to individuals who then distributed it in Gaston and Mecklenburg Counties and elsewhere. According to court records, prior to being sentenced, Massey fled from prosecution and was arrested in Myrtle Beach, S.C.
This effort is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation, which to date has led to the federal prosecution of more than 60 individuals for drug trafficking. Law enforcement have also seized more than 49 kilograms of methamphetamine, 29 kilograms of fentanyl, 27 kilograms of cocaine, 3.5 kilograms of heroin, 70 firearms, more than $385,000 in cash, and over $800,000 in other property.
OCDETF identifies, disrupts, and dismantles criminal organizations using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/ocdetf.
In making today’s announcement, U.S. Attorney King commended the Drug Enforcement Administration, Homeland Security Investigations, the Charlotte Mecklenburg Police Department, the Gastonia Police Department, and the Huntersville Police Department for their coordination and investigation of the case.
Assistant United States Attorney Steven R. Kaufman, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
St. Croix Man Sentenced 150 Months Incarceration on Home Invasion and Carjacking ConvictionRead the Press Release
St. Croix, VI – United States Attorney Delia L. Smith announced that Joel G. Rivera, 37, of St. Croix, was sentenced by District Court Judge Wilma A. Lewis to 150 months incarceration for his conviction on Carjacking and Using a Firearm During a Violent Crime, followed by three years of supervised release, a fine of $1,000.00, a special assessment of $200.00, and $1,600.00 restitution.
According to court documents, in the early morning hours of September 10, 2017, Rivera, along with two assailants, broke into a couple’s home in Estate Rust Op Twist while brandishing a firearm. The group physically assaulted the male victim by punching him in the head and threatened to kill the couple while demanding money. Thereafter, at gunpoint, Rivera and his assailants forced the couple into the rear passenger seat of their Toyota Tacoma pick-up truck and drove to the shoreline location where the male victim had left his wallet. After retrieving the wallet, Rivera and his assailants fled in the Toyota Tacoma pick-up truck and a Jeep Wrangler. In addition to the vehicles, Rivera stole $200.00 cash, two iPhones valued at $600 each and an iPad valued at $200.00.
This case was investigated by the Virgin Islands Police Department and the Federal Bureau of Investigations and prosecuted by Assistant United States Attorney Daniel H. Huston. This case is part of the Department of Justice’s Project Safe Neighborhoods Initiative. Project Safe Neighborhoods is a nationwide initiative that brings together federal, state, local and tribal law enforcement officials, prosecutors, and community leaders to identify the most pressing violent crime problems in a community and develop comprehensive solutions to address them. For more information on the Department of Justice’s Project Safe Neighborhoods, please see: https://www.justice.gov/psn.
Roseville Man Sentenced to 8 Years in Prison for Distribution and Possession of Child PornographyRead the Press Release
SACRAMENTO, Calif. — Randy Edward Martin, 40, of Roseville, was sentenced today to eight years and one month in prison for distribution of child pornography, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between July 6, 2020, and Sept. 14, 2020, Martin distributed child pornography using the Kik Messenger app. Martin used a smartphone, the internet, and Kik Messenger to distribute videos depicting minors engaging in sexually explicit conduct to a person in Oregon.
“Today’s sentence ensures that this defendant will stay far away from minors for a long time,” said U.S. Attorney Talbert. “But cellphones and messaging apps have increased the ability of predators to sexually abuse children. We need parents, educators, and other responsible community members to be aware of the danger and join the law enforcement effort to protect innocent children from predators who try to exploit them.”
“Safeguarding children from being victimized by predators is a top priority for Homeland Security Investigations,” said HSI San Francisco (NorCal) Special Agent in Charge Tatum King. “HSI appreciates the assistance from the National Center for Missing and Exploited Children, Sacramento County Probation, and the Roseville Police Department on this investigation; and appreciates the prosecution by the U.S. Attorney’s Office. HSI also reminds parents and caregivers of the dangers children face on the internet and encourages close oversight and vigilance when online.”
This case was the product of an investigation by Homeland Security Investigations. Assistant U.S. Attorneys Audrey B. Hemesath and Denise N. Yasinow prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by 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.
Rodeo and NRG Park resolve ADA violationsRead the Press Release
HOUSTON – The U.S. Attorney’s Office for the Southern District of Texas (SDTX) has completed the investigation into the Houston Livestock Show and Rodeo (HLSR) and NRG Park, announced U.S. Attorney Alamdar S. Hamdani.
The investigation announced in 2022 was conducted under the Americans with Disabilities Act of 1990 (ADA) and expanded to include NRG Stadium, NRG Center, NRG Arena and NRG Park Outdoor areas. It evaluated the accessibility for disabled individuals attending the Rodeo and using the NRG complex.
“HLSR did the right thing and made its facilities accessible to the entire community, including those with disabilities” said Hamdani. “With the cooperation of the HLSR and NRG Park, and after my office’s investigation, all individuals in the district will have a chance to enjoy the Rodeo.”
Title III of the ADA prohibits private places of public accommodation from discriminating against individuals with disabilities. The matter stemmed from complaints that the HLSR violated the ADA. Among the allegations were lack of accessible parking, accessible seating, accessible facilities and accessible routes.
SDTX’s investigation found significant barriers to accessibility.
However, the HLSR and NRG Park cooperated fully with the investigation. After the barriers were brought to their attention, officials worked diligently and expeditiously to correct all major violations before the start of the 2023 Rodeo.
Several areas are now ADA compliant - parking, many bathrooms and toilet areas, temporary ramps and handrails and several permanent countertops within NRG Park.
The number of accessible porta-potties, accessible dining areas and accessible seating has increased, accessible paths and surfaces were revamped and obstructions were either modified or removed. They also added a new stair lift in NRG Arena and attendants to assist with self-service kiosks in NRG Stadium.
NRG Stadium also revised their elevator policy during the Rodeo to improve accessibility for individuals with disabilities.
Additionally, NRG Park has revised its parking policies to provide improved access to NRG Park events including increased available accessible parking spaces and accessible drop-off points as well as modified placard requirements and improved traffic flow for those areas. They also added the Orange Lot Shuttle along Circle Drive.
The SDTX is committed to vigorously enforcing the ADA and welcomes public comments or complaints. To file a comment or complaint, or to learn more about the ADA, individuals can contact the U.S. Attorney's Office for the Southern District of Texas at (713) 567-9140 or via email.
Assistant U.S. Attorney (AUSA) Elizabeth Karpati and former Executive AUSA Keith Wyatt handled the matter.
Robert Kelly Sentenced to 20 YearsRead the Press Release
CHICAGO — Recording artist ROBERT SYLVESTER KELLY, also known as “R. Kelly,” was sentenced earlier today by United States District Judge Harry D. Leinenweber to 20 years in federal prison, with one year to run consecutive to the 30-year sentence previously imposed in the Eastern District of New York.
On September 14, 2022 after a four-week trial a federal jury in Chicago convicted Kelly on three counts of producing child pornography and three counts of enticing a minor to engage in sexual activity. The trial revealed that Kelly enticed multiple underage girls to engage in sexual activity, and that he continued to abuse his victims for years, at times recording some of the abuse on videotape. Kelly met the victims in the late 1990s and engaged in sex acts with them beginning when they were as young as 14, 15, and 16 years old.
On multiple occasions over several years Kelly took steps to cover up his abuse and silence his victims.
The sentence is announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; R. Sean Fitzgerald, Special Agent-in-Charge of Homeland Security Investigations in Chicago; and Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago. Substantial assistance was provided by the Cook County State’s Attorney’s Office and the Chicago Police Department. Assistant U.S. Attorneys Jeannice W. Appenteng, Elizabeth R. Pozolo, Jason A. Julien, and Brian F. Williamson represented the government.
“With today’s sentence, a sexual predator is being held accountable for the years of abuse he inflicted on minor victims,” said U.S. Attorney John R. Lausch. “Kelly used his celebrity and wealth to attract and victimize young girls, and to obstruct prior criminal proceedings intended to end his despicable conduct. We commend the courage and the strength of the victims who came forward in this case to expose Kelly’s crimes. Our office will never cease seeking justice for victims of child sexual abuse, and the public can take comfort knowing that Kelly will never again be in a position to exploit young girls.”
“Robert Kelly used his power and fame for evil when he exploited children for his own gratification,” said Sean Fitzgerald, special agent in charge of HSI Chicago. “We are confident that Kelly’s sentence will empower victims who are facing similar circumstances to come forward knowing they will be supported. HSI, alongside its partners from the U.S. Attorney’s Office, the Chicago Police Department, and IRS Criminal Investigation, will do everything in our power to ensure perpetrators like Kelly face justice.”
If you believe you are a victim of sexual exploitation, you are encouraged to contact HSI’s confidential tip line by calling 1-866-DHS-2-ICE (1-866-347-2423) or by logging on to https://www.ice.gov/webform/hsi-tip-form. The service is available 24 hours a day, seven days a week.
Ringleader of Multi-State Gun Trafficking Scheme Sentenced to More Than 10 Years in PrisonRead the Press Release
NEW BERN, N.C. – The ringleader of a multi-state gun trafficking scheme was sentenced today to 127 months in prison for illegally trafficking more than 100 guns bought by straw purchasers in Eastern North Carolina. Jacintre Holley of Middletown, Connecticut, pled guilty to engaging in the business of dealing firearms without a license, possession with intent to distribute cocaine, and possession of a firearm in furtherance of the drug trafficking crime. Holley, 26, pled guilty on July 7, 2022.
“Dangerous felons who are blocked from legally buying guns are turning to gun traffickers and straw purchasers in North Carolina to supply them with the tools to kill,” said U.S. Attorney Michael Easley. “The criminal conduct in this case put guns bought in Eastern North Carolina in the hands of a killer in Connecticut – within 6 days. This case shows exactly why Attorney General Garland and ATF Director Dettelbach have made stopping gun trafficking a top priority. We and the ATF are relentlessly pursuing violent felons and the gunrunners and straw purchasers who arm them.”
“A federal firearms license is required for anyone engaged in the business of selling firearms,” said Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Bennie Mims. “Individuals selling without a license often means firearms end up in the wrong hands. By identifying and apprehending those involved in illegal firearms sales, we disrupt the firearms trafficking networks and better protect our communities.”
According to documents and other information presented in court, Holley bought over 100 firearms from straw purchasers in North Carolina—including at least 37 from codefendant Keshawn Squire and another 34 from codefendants Jasnika Craig and Shyheim Williams. Craig and Williams were romantic partners living together in Williamston, North Carolina. Ten of these firearms were recovered in separate investigations in Connecticut and New Jersey, including a murder investigation and several drug investigations.
This gun trafficking investigation began when the Middletown, Connecticut Police Department recovered a Taurus 9mm pistol used in a murder. A trace of the gun’s serial number showed that Keshawn Squire purchased the firearm in North Carolina on May 10, 2021, only six days before the murder. Trace records for Squire further showed that he had purchased at least 16 firearms in the five months between December 13, 2020, and May 29, 2021, suggesting potential gun trafficking.
Surveillance video from Smokin' Barrel Gun and Ammo in Raleigh, where Squire had purchased the Taurus, showed that he made a phone call from the store parking lot immediately after buying the firearm. Call records revealed that he called a Connecticut phone number. By comparing phone records and data from a mobile payment application, investigators were able to link the Connecticut phone number to defendant Jacintre Holley. Records also revealed that Squire and Holley had as a mutual contact a phone number associated with codefendants Jasnika Craig and Shyheim Williams.
Trace records for Craig showed that she made over 20 firearm purchases in North Carolina since 2020. Law enforcement recovered one of those guns at a crime scene in Connecticut within five days of its purchase. Investigators obtained video surveillance from Academy Sports in Greenville for purchases by Craig on May 11 and 14, 2021. The May 14 footage shows Craig and Williams arrive in the same car. Williams then went alone into the store for 25 minutes while Craig waited in the car. Then Craig entered and immediately bought two pistols.
On July 8, 2021, the North Carolina Department of Public Safety conducted a probation search at Williams’ and Craig’s Williamston home. Williams was on state probation for a driving while impaired conviction. Officers found seven firearms hidden in the home.
Craig agreed to a recorded interview and admitted to selling firearms. She said she sold firearms for a significant premium over market price and had purchased them from various locations including Academy Sports. Williams identified the guns she should buy and set up the deals, which took place in Craig’s car in their driveway. She admitted that almost all firearms went to Holley, who she estimated had come from Connecticut every two weeks since December 2020 to buy around seven firearms each time. In total, Craig estimated that she had sold around 100 firearms to Holley.
Also on July 8, 2021, law enforcement executed a search warrant for Squire’s telephone and interviewed Squire at his home. Squire admitted to selling multiple firearms to Holley in at least three meetings beginning in March 2021. He said he did this as a business and sold the firearms for significantly higher than the purchase price.
On July 31, 2021, the Greenville Police Department located Holley driving on University Suites Drive and conducted a traffic stop based on an outstanding warrant. Officers searched the car and found a Glock 19 pistol with an extended magazine in a bookbag in the front seat. The pistol had been modified to function as a fully automatic machine gun. In an iPhone box within the same bag, officers found 109 grams of cocaine, a digital scale with white residue, a Glock magazine, over $13,000, and a key to a room at a Quality Inn. Officers obtained and executed a search warrant for the hotel room, where they found a Glock .40 caliber pistol. A trace of Glock .40 revealed that Jasnika Craig had purchased it.
Investigators interviewed Holley after his arrest. He confirmed that he had bought firearms from Squire and Williams multiple times over the previous several months and sold those firearms in Connecticut. He admitted to possessing the Glock from the hotel room, claimed that he carried the automatic Glock machine gun in his car for protection, admitted buying the cocaine while in North Carolina. He acknowledged sometimes receiving cocaine as payment in firearm transactions.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) field offices in Raleigh, NC, New Haven, CT and Hartford, CT investigated the case, with assistance from the Middletown, CT Police Department, the Martin County, NC Sheriff’s Office, the NC Department of Probation Services and the Williamston, NC and Greenville, NC Police Departments. Assistant U.S. Attorney Jake D. Pugh prosecuted the case.
The court previously sentenced Squire and Craig after they each pled guilty to one count of making a false statement during the purchase of a firearm. On February 14, 2023, Craig received a 24-month sentence for that offense, and Squire received an 18-month sentence the same day. Shyheim Williams was arrested federally on February 9, 2023, and his arraignment is set for the April 11, 2023, term of court.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 4:22-cr-0019-FL.
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Richmond Woman Sentenced to Six Years in Federal Prison for Armed Trafficking of Fentanyl and MethamphetamineRead the Press Release
INDIANAPOLIS- Amber Bailey, 41, of Richmond, Indiana, was sentenced to six years in federal prison after pleading guilty to possession with intent to distribute a controlled substance.
According to court documents, in September of 2020, the FBI began investigating Bailey after she distributed 25 grams of a fentanyl mixture and 9 grams of methamphetamine to another individual. On October 8, 2020, Bailey helped an accomplice distribute 54 grams of methamphetamine and 6 grams of a fentanyl mixture to the same individual.
On November 5, 2020, FBI investigators served a search warrant at Bailey’s Richmond residence. During the course of the search, investigators found 6 grams of a fentanyl mixture, a 9mm handgun and ammunition, $500 in cash, and lactose, a known cutting agent for dilution of controlled substances.
“The increase in fentanyl overdoses in our neighborhoods is a crisis—drug poisonings are now the leading cause of death for Americans 18 to 45 years old. The defendant had a direct hand in pushing this poison into our community,” said Zachary A. Myers, United States Attorney for the Southern District of Indiana. “Armed fentanyl traffickers are a top priority of the U.S. Attorney’s Office. With our federal, state, and local partners, we are committed to dismantling these operations and ensuring that those responsible are held accountable.”
“Fentanyl has become a serious and life-threatening problem in Indiana,” said Herbert J. Stapleton, Special Agent in Charge for the FBI’s Indianapolis Office. “The FBI will join with all our federal, state, and local partners as often as possible to stop the flow of fentanyl into our communities.”
The Federal Bureau of Investigation investigated this case, with valuable assistance provided by the Wayne County Drug Task Force. The sentence was imposed by U.S. District Court Judge James P. Hanlon. Judge Hanlon also ordered that Bailey be supervised by the U.S. Probation Office for 3 years following her release from federal prison.
U.S. Attorney Myers thanked Assistant United States Attorney Jayson W. McGrath, who prosecuted this case.
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Rhode Island Man Arrested and Charged with Laundering More than $35 Million in Fraud Proceeds and Obstruction of JusticeRead the Press Release
BOSTON – A Rhode Island man was arrested today and charged in federal court in Boston in connection with allegedly using his accounting and “virtual CFO” business to launder tens of millions of dollars in proceeds from internet fraud schemes.
Craig Clayton, 73, of Cranston, R.I., was charged with one count of conspiracy to commit money laundering and one count of obstruction of justice. He will appear in federal court in Boston today at 2 p.m. before U.S. Chief Magistrate Judge M. Page Kelley.
According to the charging documents, from 2019 to present, Clayton and others used his accounting and “virtual CFO” business, Rochart Consulting, as a front to launder the proceeds of internet fraud schemes. As part of the alleged conspiracy, Clayton founded dozens of shell companies in the United States and used those shell companies to open business bank accounts in Rhode Island and Massachusetts, through which he laundered the criminal proceeds for his clients in exchange for fees. In total, since 2019, it is alleged that Clayton opened approximately 80 bank accounts purportedly on behalf of 65 different companies.
It is alleged that, in communications with one of his Rochart business associates, Clayton stated that they were “money mules complicit in their [Rochart’s clients’] offenses.” In encrypted communications with one of his clients, Clayton allegedly expressed concern that his phone was “tapped” by law enforcement and sought to obtain “dirt” on a victim who had reported the fraud scheme in order to “distract the police.” In recorded conversations with an undercover law enforcement agent posing as a potential Rochart client, Clayton allegedly stated that several of his clients were “fugitives from justice.” It is further alleged that, when banks and law enforcement began to investigate Rochart, Clayton falsely told investigators and bank personnel that his shell companies were legitimate businesses, among other things. After he became aware that a federal grand jury was investigating him, Clayton allegedly attempted to obstruct the ongoing investigation by making several false statements to federal agents during an interview.
In addition to today’s arrest, five seizure warrants were executed on Rochart bank accounts holding several hundred thousand dollars of alleged money laundering proceeds and a Mercedes-Benz sport utility vehicle that Clayton purchased.
The charge of conspiracy to commit money laundering provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $500,000 or twice the value of the proceeds, whichever is greater. The charge of obstruction of justice provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.United States Attorney Rachael S. Rollins; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in New England; Joleen D. Simpson, Special Agent in Charge of Internal Revenue Service, Criminal Investigation, Boston Field Office; and Darnell Edwards, Acting Inspector in Charge of the U.S. Postal Inspection Service, Boston Division made the announcement today. Assistant United States Attorneys Ian J. Stearns of Rollins’ Securities, Financial & Cyber Fraud Unit and Alexandra Amrhein of Rollins’ Asset Recovery Unit are prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Redmond man pleads guilty to conspiring to defraud COVID-19 Payroll Protection ProgramRead the Press Release
Seattle – A 62-year-old Seattle man pleaded guilty today in U.S. District Court in Seattle to conspiring to defraud the federal Paycheck Protection Program (PPP) of $646,000 in COVID-19 relief funds, announced U.S. Attorney Nick Brown. Joseph M. Freeman used the names of two companies he registered to try to obtain forgivable Paycheck Protection Loans to protect the salaries of non-existent employees. After detecting the fraud, federal investigators froze approximately $220,000 that remained in Freeman’s bank account and returned it to the Small Business Administration. Freemen will be sentenced for the fraud conspiracy on May 16, 2023.
According to the plea agreement, in May 2020, Freeman and his coconspirators used information about a company he formed in 2004 to claim $500,000 in PPP funds. Freeman claimed Special Delivery LLC had 15 employees and a payroll of $200,000 per month, when in fact it had no employees other than Freeman. Freeman used fake Internal Revenue Forms to make it appear the company had employees and sought $500,000 in PPP funds. On May 20, 2020, the loan proceeds were wired to Freeman’s bank. After receiving the funds, Freeman created an account with a payroll service to disburse the funds to individuals who were not employees of the company.
On June 15, 2020, Freeman and his coconspirators submitted a second fake application. Freeman claimed New Jack Trucking LLC had 10 employees and a monthly payroll of $58,400. Freeman and his associates claimed the business had been in operation in February 2020 even though the entity never had any genuine business activity. The coconspirators used fake IRS forms and a falsified bank statement to make it appear New Jack Trucking had employees. On June 16, 2020, Freeman and his coconspirators obtained $146,000 for that fraudulent application.
Freeman supplied some of the loan proceeds to his coconspirators and used some of the funds for his own benefit. In July 2020, after federal investigators detected the fraud and notified Freeman’s bank, approximately $220,000 of the loan proceeds were frozen and returned to the Small Business Administration. The net loss from the scheme is $426,666.
Conspiracy to Commit Theft of Government Funds is punishable by up to five years in prison and a fine of $250,000 or twice the gross monetary gain to the defendant or the gross monetary loss to the victims of the offense. Prosecutors have agreed to recommend no more than two years in prison for Freeman.
This case was investigated by the U.S Treasury Inspector General for Tax Administration (TIGTA).
The case is being prosecuted by Assistant United States Attorney Cindy Chang.
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 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 via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Raleigh County Man Sentenced to 30 Years in Prison for Child Pornography CrimeRead the Press Release
BECKLEY, W.Va. – Thomas John Mills, 37, of Beckley, was sentenced today to 30 years in prison, to be followed by a lifetime of supervised release, for production of child pornography. Following his release from prison, Mills must register as a sex offender.
According to court documents and statements made in court, Mills admitted to coercing a 15-year-old minor female to engage in sexually explicit conduct, including masturbation and the lascivious exhibition of her genitals, between March and October 2020 for the purpose of creating images and videos of this conduct. Mills had the minor take pictures and videos to send to him and also had her participate in live video chats where he told her to engage in sexually explicit conduct.
The court described the case as “one of the worst set of circumstances” it has seen.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Raleigh County Sheriff’s Office and the Federal Bureau of Investigation (FBI) Violent Crimes Against Children Task Force.
United States District Judge Frank W. Volk imposed the sentence. Assistant United States Attorney Jennifer Rada Herrald prosecuted the case.
These cases were prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:21-cr-96.
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Portland Fentanyl Dealer Charged in Federal CourtRead the Press Release
PORTLAND, Ore.—A local man caught dealing counterfeit prescription pills and powdered fentanyl in downtown Portland was charged today in federal court.
Yexon Efrain Mendez-Zuniga, 19, of Beaverton, Oregon, has been charged by criminal complaint with possessing with intent to distribute fentanyl, unlawfully possessing a firearm, and possessing a firearm in furtherance of a drug trafficking crime.
According to court documents, on February 22, 2023, officers from the Portland Police Bureau were conducting surveillance in downtown Portland where numerous open-air drug transactions had been observed and reported. At approximately 10:40am, a PPB officer observed Mendez-Zuniga conduct a suspected hand-to-hand drug transaction near the intersection of SW 4th Avenue and SW Washington Street. Within a matter of minutes, officers observed Mendez-Zuniga conduct several additional transactions. They also observed Mendez-Zuniga using a handheld radio, appearing to communicate with other accomplices in the area.
Shortly thereafter, two officers approached Mendez-Zuniga near Director’s Park on SW Yamhill Street and directed him to stop. Mendez-Zuniga initially ran from the officers, but was soon arrested without incident. The officers searched Mendez-Zuniga’s person and located two clear baggies containing approximately 250 blue M30 pills and a chunk of suspected fentanyl powder, a loaded 9mm handgun, and a large fold of cash.
In an interview with officers, Mendez-Zuniga claimed he started dealing drugs one week prior to earn more money than he did in his previous job as a roofer. He admitted to selling approximately 300 M30 pills daily for $2 a piece and small quantities of powdered fentanyl he would pinch off a larger piece he had purchased from another dealer. He further told officers that he possessed the firearm for his own protection while dealing drugs. Investigators estimate Mendez-Zuniga has sold as many as 2,100 counterfeit pills containing fentanyl in Portland in the last week.
Mendez-Zuniga is expected to make his first appearance in federal court this week.
This case was investigated by the Portland Police Bureau’s Narcotics and Organized Crime Unit (NOC) and Neighborhood Response Team (NRT) with assistance from Homeland Security Investigations (HSI). It is being prosecuted by Scott M. Kerin, Assistant U.S. Attorney for the District of Oregon.
A criminal complaint is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Philadelphia Man Sentenced to 20 Years in Prison for Role in Murder for HireRead the Press Release
NEWARK, N.J. – A Philadelphia man was sentenced today to 240 months in prison for conspiring with Sean Caddle and a longtime accomplice to murder one of Caddle’s associates, U.S. Attorney Philip R. Sellinger announced.
Bomani Africa, 62, of Philadelphia, Pennsylvania, previously pleaded guilty before U.S. District Judge John Michael Vazquez to an information charging him with one count of conspiracy to commit murder for hire. Judge Vazquez imposed the sentence today in Newark federal court.
Caddle pleaded guilty on Jan. 25, 2022, before Judge Vazquez, to his role in the murder scheme and is scheduled to be sentenced on March 22, 2023.
According to documents filed in this case and statements made in court:
In April of 2014, Caddle solicited another conspirator, George Bratsenis, 74, of Monroe, Connecticut, to commit a murder on Caddle’s behalf in exchange for thousands of dollars. Bratsenis then recruited Africa, a longtime accomplice, to join the plot. After Bratsenis confirmed his and Africa’s interest in the job, Caddle told Bratsenis that the target was a longtime associate who had worked for Caddle on various political campaigns.
On May 22, 2014, Africa and Bratsenis traveled from out of state to the victim’s apartment in Jersey City. After entering the apartment, Africa and Bratsenis stabbed the victim to death and then Bratsenis set fire to the victim’s apartment.
After Caddle learned that the victim had been murdered, the following day, he met Bratsenis in the parking lot of a diner in Elizabeth, New Jersey. Caddle paid Bratsenis thousands of dollars in exchange for the murder, and Bratsenis shared a portion of those proceeds with Africa.
In addition to the prison term, Judge Vazquez sentenced Africa to five years of supervised release.
Bratsenis pleaded guilty to his role in the conspiracy on March 24, 2022, and is scheduled to be sentenced on March 29, 2023.
U.S. Attorney Philip R. Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to today’s sentencing. He also thanked the Hudson County Prosecutor’s Office for its assistance.
The government is represented by Executive Assistant U.S. Attorney Lee M. Cortes Jr. and Sean Farrell, Chief of the New York Office of the U.S. Department of Justice, Antitrust Division.
Parma Man Sentenced to Prison for Conspiracy to Commit Arson During May 30, 2020, Demonstrations and Unrest in Downtown ClevelandRead the Press Release
CLEVELAND – A Parma man was sentenced today to 24 months in prison by U.S. District Judge Donald C. Nugent after he pleaded guilty to conspiracy to commit arson related to the destruction of a parking booth during the May 30, 2020, demonstrations and civil unrest in downtown Cleveland.
According to court documents, on May 30, 2020, Seth Calig, 51, and other co-conspirators set fire to the Shaia & PPR parking booth on West 3rd Street. Court documents state that during demonstrations and civil unrest in downtown Cleveland, Calig and others gathered around the parking booth, ignited a roll of paper towels and cardboard with a lighter, and placed it inside the booth. As a result of their actions, court documents state that Calig and the others caused significant physical damage to the parking booth.
In addition to the prison sentence, Judge Nugent ordered Calig to pay $220 dollars in restitution and recommended he undergo 500 hours of a residential drug abuse program.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Cleveland Division of Police. This case was prosecuted by Assistant U.S. Attorney Kelly L. Galvin.
Pair Accused of Two St. Louis CarjackingsRead the Press Release
ST. LOUIS – A man and a woman have been indicted and accused of two armed carjackings in St. Louis, Missouri last May.
Jermanine Smith, 48, of St. Louis, and Bianka North, 27, of Illinois, were each indicted by a federal grand jury Wednesday on two counts of carjacking and two counts of possession of a firearm in furtherance of a crime of violence.
The indictment accuses them of stealing a 2006 Pontiac G6 at gunpoint on May 14, 2022 and a 2009 Toyota Scion the next day.
A criminal complaint filed February 16 says the pair feigned vehicle problems in North Riverfront Park in St. Louis to lure the owner of the G6 out of the car. A female carjacker then pointed a gun at the victim and stole the car.
The Scion was carjacked in the 1600 block of South 9th Street in St. Louis just after midnight on May 15. The criminal complaint says the G6 was used in the carjacking, the Scion was taken to Smith’s block and Smith tried to use Cash App on the Scion victim’s mobile phone to transfer money to himself.
Surveillance video at an apartment complex showed someone matching Smith’s description accessing the Scion and the G6, the complaint says.
The carjacking charge carries a penalty of up to 15 years in prison, a $250,000 fine or both. The firearm charge carries a mandatory minimum of 7 years in prison consecutive to any other charge.
Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The case was investigated by the St. Louis Metropolitan Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Jennifer Szczucinski is prosecuting the case.
Ozy Media and Its Founder Carlos Watson Indicted in a Years-Long Multi-Million Dollar Fraud SchemeRead the Press Release
Updated Press Release
An indictment was unsealed this morning in federal court in Brooklyn charging OZY Media Inc. (Ozy), a media and entertainment company headquartered in Mountain View, California, and its founder and Chief Executive Officer, Carlos Watson, with conspiracy to commit securities fraud and conspiracy to commit wire fraud in connection with a scheme to defraud Ozy’s investors and lenders by making material misrepresentations about Ozy’s financial and business assets. Watson is also charged with aggravated identity theft for his role in the impersonation of multiple media company executives in communications with Ozy’s lenders and prospective investors in furtherance of the fraud schemes.
Watson was arrested this morning and will be arraigned later today before United States Magistrate Judge Cheryl L. Pollak. If convicted, Watson faces a mandatory minimum sentence of two years’ imprisonment and a maximum sentence of 37 years’ imprisonment.
Watson’s co-conspirators Samir Rao, Ozy’s Chief Operating Officer, and Suzee Han, Ozy’s Chief of Staff from June 2019 to October 2021, previously pleaded guilty to charges relating to their roles in the scheme. The U.S. Securities and Exchange Commission (SEC) is taking concurrent enforcement action.
Breon Peace, United States Attorney for the Eastern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the arrest and indictment.
“As the indictment today alleges, Watson repeatedly attempted to entice both investors and lenders through a series of deliberate deceptions and fabrications. The FBI and our partners in law enforcement will hold any individual willing to defraud investors and financial institutions accountable in the criminal justice system,” stated Assistant Director-in-Charge Driscoll.
The Scheme
As alleged in the indictment and court documents, Ozy is a media and entertainment company whose businesses include digital newsletters, television production, podcasts, and live events, the most prominent of which is a live festival known as “Ozy Fest.” Watson founded Ozy in 2012 and has served as the company’s Chief Executive Officer since its inception.
Between approximately 2018 and 2021, Watson and his co-conspirators, including Rao and Han, orchestrated a scheme to defraud investors in and lenders to Ozy of tens of millions of dollars through fraudulent misrepresentations and omissions about key aspects of Ozy’s business, including Ozy’s financial results, debts, and audience size. In addition, Watson and his co-conspirators lied to prospective investors about who else might be investing in Ozy, the existence and size of acquisition offers received by Ozy, the existence and timing of “Series C” and “Series D” financing rounds by Ozy, and the existence and terms of Ozy’s business contracts — going so far as to direct Ozy employees to create fake contracts with forged signatures to provide in due diligence. On multiple occasions, when faced with questions from lenders or potential investors, Watson and his co-conspirators assumed the identities of and impersonated actual media company executives to cover up their prior fraudulent misrepresentations.
Forged Cable Television Contract and Impersonation of Media Executive
In December 2019, Watson and his co-conspirators attempted to induce a bank to lend Ozy money based on misrepresentations and omissions about Ozy’s business. Watson and his co-conspirators sought to secure the loan with anticipated revenues from a second season of an Ozy television show. However, the contract between Ozy and the show’s cable network for the second season of the show was still under negotiation. To induce the bank to make the loan sooner, Watson directed Ozy’s then-Chief Financial Officer (CFO) to send the bank a fake signed contract between Ozy and the cable network purporting to be for the second season. When the then-CFO refused, Rao, with Watson’s approval, sent the fake contract — which contained terms favorable to Ozy and a forged signature — to the bank, copying the then-CFO. Later that day, the then-CFO emailed Watson and Rao to say that she was resigning effective immediately. She explained, “this . . . is illegal. This is fraud. This is forging someone’s signature with the intent of getting an advance from a publicly traded bank.” She continued, “To be crystal clear, what you see as a measured risk — I see as a felony.”
In subsequent months, Watson and his co-conspirators continued to attempt to induce the bank to lend Ozy several million dollars based on misrepresentations and omissions, including regarding the expected revenue from the second season of the Ozy television show. During these discussions, the bank requested to speak to a representative of the cable network. To conceal the lies about Ozy’s relationship with the cable network and the status and terms of their agreement, Rao, with Watson’s approval, created a fake email address in the name of an actual executive of the cable network, which Rao used to impersonate the executive and communicate with the bank about the potential loan.
Attempted Fraudulent Investment and Impersonation of Another Media Executive
From approximately November 2020 through February 2021, Watson and his co-conspirators attempted to induce a financial institution to invest up to $45 million in Ozy by means of material misrepresentations and omissions regarding Ozy’s historical and projected financial results, debts, and business relationships. Had the full $45 million investment occurred as intended, $6 million of the $45 million would have been paid to Watson personally.
As part of its due diligence process, the financial institution asked Watson and Rao to arrange a meeting with someone from a well-known online video service that Watson and his co-conspirators claimed had paid Ozy nearly $6 million in licensing revenue for “The Carlos Watson Show.” This was another misrepresentation — Ozy was never paid by this online video service for Ozy content. Because Ozy did not in fact have any business relationship with the online video service, Watson and Rao agreed that Rao would impersonate a media executive at the online video service in communications with the financial institution. On or about January 28, 2021, Rao, with Watson’s agreement, created a fake email address in the name of the media executive, which he used to correspond with representatives of the financial institution.
On or about February 2, 2021, Rao had a call with employees of the financial institution during which he impersonated a media executive from the online video service using a voice alteration application that he downloaded onto his cellular telephone to mask his voice during the call. During the call, Watson was in the same room as Rao, and texted Rao instructions about what to say and what not to say on the call. Shortly after the call, one of the employees of the financial institution contacted the actual media executive of the online video service, who confirmed that he had not been on the call and that the online video service had no role in the production of The Carlos Watson Show. When members of the financial institution later spoke with Watson, he falsely claimed that Rao had acted alone and as a result of a mental breakdown.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Jonathan Siegel, Dylan A. Stern, and Gillian Kassner are in charge of the prosecution, with assistance from Paralegal Specialist Jake Menz.
The Defendants:
CARLOS WATSON
Age: 53
Mountain View, CaliforniaOZY MEDIA, INC.
Mountain View, CaliforniaE.D.N.Y. Docket No. 23-CR-82 (EK)
Omaha Man Sentenced to 180 Months for Firearms and Methamphetamine ChargesRead the Press Release
United States Attorney Steven A. Russell announced that Raymond McGaugh, 31, of Omaha, Nebraska, was sentenced in federal court in Omaha on February 22, 2023, for Possession with Intent to Distribute Methamphetamine and Possession of Firearms in Furtherance of Drug Trafficking. United States District Brian C. Buescher sentenced McGaugh to 180 months’ imprisonment. There is no parole in the federal system. He was also ordered to serve five years of supervised release after his release from prison.
On June 27, 2021, law enforcement initiated a traffic stop on a black Dodge Charger for failing to have license plates. McGaugh was the driver and sole occupant of the vehicle. Officers smelled marijuana emanating from the vehicle and searched the vehicle. Officers located a backpack on the passenger seat that contained 365 grams of actual methamphetamine along with two loaded handguns. One of the firearms was reported stolen.
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 Omaha Police Department.
Newtown Contractor Pleads Guilty to Tax EvasionRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and Joleen D. Simpson, Special Agent in Charge of IRS Criminal Investigation in New England, today announced that THOMAS R. SAINT, 67, of Newtown, waived his right to be indicted and pleaded guilty yesterday in Bridgeport federal court to one count of tax evasion.
According to court documents and statements made in court, Saint is the sole owner of Tom Saint Painting and Remodeling LLC, a Schedule C business engaged in painting and home renovation services. From 2013 through 2019, Saint attempted to evade the assessment of federal taxes by cashing business checks instead of depositing them into his business’s bank account, depositing cash and business checks into his personal bank account, and failing to inform his tax preparer of this conduct, which resulted in the filing of false returns with the IRS that substantially understated his gross receipts and income.
For the 2013 through 2019 tax years, Saint failed to report a total of $2,163,645 in gross receipts, resulting in a tax loss to the government of $791,500. Saint has agreed to cooperate with the IRS to pay all outstanding taxes, interest and penalties.
Tax evasion carries a maximum term of imprisonment of five years. Saint in scheduled to be sentenced by U.S. District Judge Michael P. Shea on May 22 in Hartford.
Saint is released on a $100,000 bond pending sentencing.
This investigation has been conducted by the Internal Revenue Service, Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Susan Wines.
New Orleans Man Sentenced for Theft and Sale of Motor Vehicle from Mississippi Car DealershipRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that JONATHAN BUSH (“BUSH”), age 35, was sentenced on February 16, 2023, for conspiring to transport and sell stolen vehicles in violation of Title 18, United States Code, Section 371.
According to court documents, BUSH and his co-conspirators stole cars from car dealerships and rental car facilities in Louisiana, Mississippi, Alabama, and George. After the cars were stolen, BUSH and his co-conspirators would retitle the cars under fraudulent Vehicle Identification Numbers (VINS) with the Louisiana Office of Motor Vehicles. After the cars were retitled and cloned with fraudulent VINS, the defendants would then resell the cars to buyers in the New Orleans metro area at discounted prices.
U.S. District Court Judge Nanette Jolivette Brown sentenced BUSH to serve (60) months in prison, to be followed by three (3) years of supervised release and imposed a $100 mandatory special assessment fee. The Court also set a restitution hearing in this matter for April 20, 2023.
U.S. Attorney Evans praised the work of the Department of Homeland Security, the Louisiana State Police, the D’Iberville Police Department, and the New Orleans Police Department in investigating this matter. Assistant U.S. Attorneys Spiro G. Latsis and Jon Maestri of the General Crimes Unit are in charge of the prosecution.
New Jersey Doctor Admits Buying and Selling Oncology Medication for ProfitRead the Press Release
NEWARK, N.J. – A New Jersey doctor today admitted using his medical license – and allowing other to use his medical license – to purchase prescription oncology medications under false pretenses for the purpose of selling them for profit, U.S. Attorney Philip R. Sellinger announced.
Joel Lerner, 62, of Warren, New Jersey, a board-certified podiatrist and operator of a medical supply group purchasing organization, pleaded guilty by videoconference before U.S. District Judge Susan D. Wigenton to an information charging him with unlawfully selling prescription cancer medication, which had been previously purchased using his medical license and under the representation that such medication was to be used to treat his patients.
According to documents filed in this case and statements made in court:
While working in his medical practice’s offices in various locations in New Jersey, Lerner was recruited by an individual who owned a pharmacy and also owned and operated two businesses that were wholesale distributors of prescription drugs. At the request of this individual and others working with him, and in return for commissions and discounts on other medical supplies purchased by Lerner for his group purchasing organization, Lerner used his medical license – and allowed others to use it – to purchase expensive prescription drugs, primarily, cold-chain biologic infusion medications that typically are used to treat cancers, macular degeneration, and autoimmune diseases. By recruiting and using Lerner and his medical license to purchase the drugs, these individuals were able to obtain prescription drugs from the pharmaceutical manufacturers’ authorized distributors that they would not otherwise have been permitted to purchase. They were then able to sell them at a profit through their two businesses.
In purchasing the drugs, Lerner and the two individuals made numerous false and misleading representations to the pharmaceutical manufacturers and authorized distributors, including that Lerner purchased the drugs to use to treat his patients, and that the drugs would not be resold or redistributed. In actuality, none of the drugs were administered to Lerner’s patients, but were ultimately sold to customers of the two businesses for a profit. In an effort to obscure the fact that he was illegally buying and selling prescription drugs purchased under his medical license, Lerner sold and transferred the prescription drugs in the name of his group purchasing organization. The scheme ran from December 2014 through November 2018, during which more than $1.2 million in prescription drugs were purchased in Lerner’s name and using his medical license.
The sale of prescription drugs purchased by a healthcare entity is punishable by a maximum of three years in prison and a $10,000 fine. In his plea agreement, Lerner also agreed to make restitution for the full amount of any loss resulting from his offense. Sentencing is scheduled for July 18, 2023.
U.S. Attorney Sellinger credited special agents of the U.S. Food and Drug Administration’s Office of Criminal Investigations New York Field Office, under the direction of Special Agent in Charge Fernando P. McMillan; and special agents of U.S. Attorney’s Office, under the direction of Special Agent in Charge Thomas Mahoney, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Diana Vondra Carrig and Sara A. Aliabadi of the U.S Attorney’s Office in Camden.
New Bedford Man Sentenced to 10 Years in Prison for Possessing Fentanyl Intended for DistributionRead the Press Release
BOSTON – A New Bedford man was sentenced today in federal court in Boston for possessing fentanyl, heroin, and cocaine for distribution.
Ramon Serrano, 44, was sentenced by U.S. District Court Judge Denise J. Casper to 10 years in prison and five years of supervised release. In September 2022, Serrano pleaded guilty to possession with intent to distribute 400 grams or more of fentanyl, cocaine, and heroin.
In February 2019, parole officers visited Serrano’s apartment while he was on probation for a heroin trafficking conviction. Inside the residence, officers observed a large amount of cash in plain view, a large bag a marijuana in a bedroom drawer and an open backpack that contained a large quantity of brown and white powder. During a subsequent search, over 544 grams of fentanyl and heroin as well as over 206 grams of cocaine – divided into separate plastic bags for distribution – were seized from Serrano’s apartment. Approximately $27,000, digital scales, cellular telephones and a money counter were also recovered.
United States Attorney Rachael S. Rollins and New Bedford Police Chief Paul Oliveira made the announcement. Assistant U.S. Attorneys Craig Estes and Charles Dell’Anno of Rollins’ Narcotics and Money Laundering Unit prosecuted the case.
Nigerian Man Sentenced for Mail Fraud Against a Dickinson, North Dakota CompanyRead the Press Release
BISMARCK – United States Attorney Mac Schneider announced that on February 23, 2023, U.S. District Court Judge Daniel M. Traynor sentenced Kolawole Bamidele Akande, age 37, from Nigeria, to serve 30 months in federal prison and ordered to pay $348,000 in restitution for committing the offense of Mail Fraud against a company located in Dickinson, North Dakota. On September 5, 2021, the defendant was arrested in the United Kingdom on this charge. Thereafter, on April 9, 2022, Akande was extradited from the United Kingdom to the District of North Dakota. On November 8, 2022, the defendant pleaded guilty to Mail Fraud.
While living in Dallas, Texas, Akande, as well as other codefendants, fraudulently obtained checks from a Dickinson, North Dakota, company through the mail and deposited these checks in fraudulent accounts at financial institutions located within the State of Texas. The Dickinson company was the victim of a computer intrusion scam that tricked the company’s controller into issuing checks totaling $348,000, which were deposited by Akande and codefendant Olawale Sule. This computer intrusion scheme caused the Dickinson company to sustain a loss of $298,000.
As part of this scheme to defraud, in November 2018, Akande used a fraudulent United Kingdom passport containing the fictitious name “Patric Elis Ferguson” to open a bank account at a Dallas, Texas, branch of Bank of America. On March 27, 2019, the controller of the Dickinson company received emails appearing to come from the company’s principal owners. The emails instructed the controller to mail a $192,000 check to an address in Dallas, Texas, payable to “Patel Retail and Logistics.” The controller sent, via overnight United Parcel Service (UPS) mail, the $192,000 check to the Dallas, Texas, address requested in the email. On March 28, 2019, Akande deposited the $192,000 check made payable to “Patel Retail and Logistics” into the Bank of America account that he had opened utilizing the fictitious name of “Patric Elis Ferguson.” Shortly thereafter, Akande either withdrew or transferred the funds to conceal and disguise their nature, location, source, and ownership.
Law enforcement conducted an investigation, which revealed that the Dickinson company was a victim of computer intrusion. Specifically, an unknown individual obtained access to the company’s principal owners’ Outlook 365 email accounts and sent the emails to the company’s controller directing the controller to mail the check to “Patel Retail and Logistics.”
The United States District Court for the District of North Dakota previously sentenced:
- Co-Defendant Olawale Sule a/k/a Brand King Mohammed, a/k/a John Thomas, on February 17, 2021, to serve two years’ imprisonment and payment of restitution on a charge of Conspiracy to Commit Bank Fraud.
- Co-Defendant Oluwafemi Elijah Olasode, on September 7, 2021, to time served imprisonment and payment of restitution on a charge of Misprision of Felony.
“Too often, swindlers believe they can evade justice because they are behind a computer or operating internationally,” Schneider said. “This sentence shows they should think again. This outcome is a credit to the skilled law enforcement investigators and prosecutors who patiently saw this case through.”
Link for Prior Press Release Unsealing the Indictment and Announcing Akande’s extradition from the United Kingdom to the United States are located below:
https://www.justice.gov/usao-nd/pr/federal-grand-jury-indicts-nigerian-nationals-multiple-fraud-schemes-against-dickinson-nd
https://www.justice.gov/usao-nd/pr/nigerian-man-extradited-united-states-united-kingdom-face-multiple-fraud-and-money
This case was investigated by the Federal Bureau of Investigation; United States Postal Inspection Service; Homeland Security Investigations; United States Attorney’s Office in the Northern District and Eastern District of Texas; and by the Office of International Affairs, Department of Justice, assisting with securing the extradition.
Assistant U.S. Attorney Jonathan J. O’Konek prosecuted this case.
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Nicaraguan National Pleads Guilty to Possessionwith Intent to Distribute 550 Kilograms of CocaineRead the Press Release
St. Croix, VI – United States Attorney Delia L. Smith announced that Michael Antony Nelson-Gaet, 34, of Nicaragua, pleaded guilty before Magistrate Judge Emile A. Henderson, III, to conspiracy to possess with intent to distribute cocaine while on board a vessel subject to the jurisdiction of the United States. Sentencing for Nelson-Gaet is set for June 21, 2023, where he faces a maximum of 20 years in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
According to court documents, on March 5, 2022, during a routine patrol in international waters, the United States Coast Guard Cutter Legare encountered the “La Bendecida Leo, a go-fast vessel located 140 nautical miles southwest of Isla de Malpelo, Columbia. The go-fast vessel was traveling at a high rate of speed with bales and fuel barrels visible on its deck. The vessel had no registration, but the occupants claimed Nicaraguan nationality for the vessel. Nicaragua could neither confirm nor deny nationality of the vessel. The vessel was therefore subject to the jurisdiction of the United States. The Coast Guard boarding team after members observed the occupants throwing the bales overboard. Approximately 550.6 kilograms of cocaine and 136 pounds of marijuana were recovered from the ocean.
The United States Coast Guard, Homeland Security Investigations and Drug Enforcement Administration are investigating this case, and Assistant United States Attorney Daniel H. Huston is prosecuting the case. This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Michigan Man Sentenced to 15 Months in Prison for Conspiracy to Embezzle Labor Union FundsRead the Press Release
WASHINGTON – James Bradley, 44, of Grand Blanc, Michigan, was sentenced today to 15 months in prison for embezzling funds from a government employee union. The sentence was announced by United States Attorney Matthew M. Graves, FBI Special Agent in Charge Wayne A. Jacobs, of the Washington Field Office’s Criminal and Cyber Division, and Director Mark Wheeler, of the Washington District Office of the U.S. Department of Labor, Office of Labor-Management Standards. In addition to the prison term, Bradley must pay $205,421.82 in restitution, serve 36 months of supervised release, and 200 hours of community service.
According to court documents, between approximately October 2016 through May 2018, defendant James Bradley helped to embezzle approximately $205,421.82 from the American Federation of Government Employees (“AFGE”). He did so by enabling co-conspirator Donnell Owens—who worked at AFGE as a Secretary to the Director of Communications during the relevant period—to submit false and fraudulent check requests and invoices for non-existent videography services that the defendant purportedly provided to AFGE as an alleged vendor, but that the defendant never actually provided. As a result of these submissions, AFGE funds were subsequently disbursed for work that was never performed, including $205,421.82 to the defendant which he then split with Owens.
Bradley pleaded guilty on November 7, 2022, before U.S. District Court Judge Reggie B. Walton to one count of Conspiracy to Commit Embezzlement and Theft of Labor Union Assets. Another of Owens’s co-conspirators, Stacy Staples, 50, of District Heights, Maryland, also previously pleaded guilty to the same charge, and was ordered to pay $44,748 in restitution and sentenced to 3 years of probation. Owens also was previously convicted for spearheading the scheme and was ordered to pay $273,745 in restitution and sentenced to 15 months in prison.
In announcing the sentence, U.S. Attorney Graves, Special Agent in Charge Jacobs, and Director Wheeler commended the work of those who investigated the case from the FBI’s Washington Field Office and the U.S. Department of Labor, Office of Labor-Management Standards. They also expressed appreciation to those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Emily A. Miller, Anne P. McNamara, and Brian P. Kelly who investigated and prosecuted the case.
Mexican National Sentenced to Federal Prison for Distributing MethRead the Press Release
MIDLAND, Texas – A Mexican national was sentenced Wednesday in federal court in Midland to 294 months in prison for distributing methamphetamine.
According to court documents, Julio Cesar Banuelas-Gutierrez, 47, of Camargo, Chihuahua distributed one to one and a half pounds of methamphetamine every two weeks in the Midland-Odessa area, totaling at least 12 pounds of the drug. Investigators also found that on at least one occasion, Banuelas-Gutierrez had exchanged firearms for methamphetamine.
“The substantial sentence imposed in this case reflects our unwavering commitment to protect our communities and bring drug traffickers to justice,” said U.S. Attorney Jaime Esparza of the Western District of Texas. “My appreciation goes out to all the law enforcement officers involved, who made it possible for us to prosecute and put an end to this dealer’s activities.”
The Odessa and Midland Police Department Joint Task Force investigated the case.
Assistant U.S. Attorneys Joe Mahoney and Monica Daniels prosecuted the case.
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Maryland Law Firm Kandel & Associates, P.A., Agrees to Pay the United States Nearly $40,000 to Settle Claims That It Did Not Reimburse Medicare for Payments Made on Behalf of Firm ClientsRead the Press Release
Baltimore, Maryland – Erek L. Barron, United States Attorney for the District of Maryland, announced today that Kandel & Associates, P.A., a Baltimore-based law firm, and Nelson R. Kandel, Esq., have entered into a settlement agreement with the United States to resolve allegations that they failed to reimburse the United States for certain Medicare payments the Government had previously made to medical providers on behalf of firm clients.
The Government’s investigation arose under the Medicare Secondary Payer (“MSP”) provisions of the Social Security Act, which authorizes Medicare, as a secondary payer, to make conditional payments for medical items or services under certain circumstances. When an injured person receives a tort settlement or judgment, Medicare law requires persons or entities who receive the settlement or judgment proceeds, including the injured person’s attorney, to repay Medicare for its conditional payments. If Medicare does not receive timely repayment, these same laws and regulations permit the Government to recover the conditional payments from the injured person’s attorney and others who received the settlement or judgment proceeds.
The Government alleges that, over many years, Medicare made conditional payments to healthcare providers to satisfy medical bills for firm clients. During that period, the firm negotiated for and received settlement proceeds for the firm’s clients, but neither the firm nor its clients repaid Medicare for conditional payments it made to medical providers. This settlement resolves the Government’s claims that the firm and Mr. Kandel failed to resolve at least twelve MSP debts. The Government alleges that the firm disbursed settlement proceeds to clients without confirming the existence of an MSP debt. Under the terms of the settlement agreement, the firm and Mr. Kandel agreed to pay the United States $39,828.66 to resolve the Government’s claims.
The firm and Mr. Kandel also agreed to designate a person at the firm responsible for paying MSP debts; train the designated employee to ensure that the firm pays MSP debts on a timely basis; and periodically review any outstanding MSP debts with the designated employee to ensure compliance.
The claims resolved by this settlement are allegations. The settlement is not an admission of liability by the firm or Mr. Kandel, nor a concession by the United States that its claims are not well founded.
This settlement should remind attorneys of their obligation to reimburse Medicare for conditional payments after receiving settlement or judgment proceeds for their clients. The attorneys’ obligation to reimburse Medicare for conditional payments exists regardless of whether they disburse settlement proceeds to their clients before the Centers for Medicare & Medicaid Services contacts them about the existence of an MSP debt. When attorneys receive settlement funds in personal injury cases, they have an independent obligation to confirm whether their clients received conditional payments from Medicare.
“Plaintiffs’ attorneys cannot simply rely on their clients’ representations about their status as Medicare beneficiaries and ignore their obligations to reimburse Medicare for its conditional payments,” said U.S. Attorney Erek L. Barron. “This is the third matter our office has resolved with attorneys who fail to make good on their obligations to repay Medicare for its conditional payments, and we will continue to investigate these matters, regardless of when settlement distributions are made, and regardless of what clients tell their attorneys regarding their status as Medicare beneficiaries.”
U.S. Attorney Erek L. Barron commended Eric Wolfish, Assistant Regional Counsel, United States Department of Health and Human Services, Office of the General Counsel, Region III, for his work in the investigation. Mr. Barron also thanked Assistant United States Attorney Alan C. Lazerow, who handled the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Man Who Supplied Heroin to Waterbury Drug Ring Sentenced to More Than 5 Years in Federal PrisonRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that JESUS NIEVES, also known as “Pop,” 39, formerly of Waterbury, Connecticut, and Springfield, Massachusetts, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 63 months of imprisonment, followed by five years of supervised release, for supplying heroin to a member of a Waterbury-area drug trafficking ring.
According to court documents and statements made in court, in May 2020, the DEA New Haven Task Force and Waterbury Police Department began an investigation into a drug trafficking organization that was distributing large amounts of heroin, cocaine and crack in the Waterbury area, and was believed to be headed by Zachary Lee Foster, who worked closely with Jason Metz of Naugatuck. The investigation included court-authorized wiretaps on multiple phones used by members of the organization, physical surveillance, controlled purchases of narcotics, and motor vehicle stops that resulted in the seizure of drugs. The investigation revealed that Nieves supplied Metz with pre-packaged heroin that Metz redistributed to others.
On March 1, 2021, a federal grand jury in New Haven returned an indictment charging Nieves, Foster, Metz and 14 others.
Nieves, Foster, Metz, and several associates were arrested on March 3, 2021. In association with these arrests, law enforcement executed seven search warrants and seized approximately 40,000 bags of suspected heroin, 350 grams of cocaine and 50 grams of crack cocaine, and nine firearms.
Nieves has been detained since his arrest. On April 26, 2022, he pleaded guilty to one count of conspiracy to distribute 100 grams or more of heroin.
Foster and Metz also pleaded guilty. On June 8, 2022, Metz was sentenced to 10 years of imprisonment. Foster awaits sentencing.
This investigation has been conducted by the Drug Enforcement Administration New Haven Task Force and the Waterbury Police Department. The DEA New Haven Task Force includes participants from the DEA, U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division, Connecticut State Police and the New Haven, Waterbury, East Haven, Branford, West Haven, Ansonia, Meriden, Naugatuck, and Shelton Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys Patrick F. Caruso and Brendan Keefe through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
U.S. Attorney Avery thanked the State’s Attorney’s Office for the Judicial District of Waterbury for its close cooperation in investigating and prosecuting this matter.
Man Pleads Guilty to $55M Investment Fraud SchemeRead the Press Release
A Florida man pleaded guilty today to orchestrating an investment fraud scheme that defrauded more than 10,000 victims of over $55 million.
According to court documents, Michael Glaspie, 72, of Palm City, marketed an investment opportunity under the name “CoinDeal” or “Coin Deal.” Glaspie claimed that CoinDeal would yield extremely high returns on the premise that one or more technology companies – operated under the banner of “ViRSE” and allegedly owned by Neil Suresh Chandran – was about to be acquired by a consortium of wealthy buyers. To entice investors to put money into CoinDeal, Glaspie falsely promised that in the event the returns from CoinDeal failed to materialize, he would repay investors their money with seven percent annual interest over three years. In fact, Glaspie knew he had no means of making such repayments.
“For his brazen and repeated lies that defrauded more than 10,000 victims out of more than $55 million, the defendant now justifiably faces a lengthy prison term,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “The Department of Justice is committed to rooting out investment fraud and holding wrongdoers accountable to protect the financial security of all Americans.”
To support his false repayment promise, Glaspie deceptively claimed that he had an exclusive and lucrative contract with AT&T to distribute government‑funded phones, and that an app that he developed was being distributed by the Better Business Bureau and would yield over $400 million in revenue, when he had no such contract or distribution agreement. Furthermore, when the promised sale of CoinDeal did not close, Glaspie transmitted investor funds to Chandran after falsely representing to CoinDeal investors that he would not do so. Glaspie also falsely claimed that he never paid himself with CoinDeal investor funds, when in truth, he misappropriated nearly $2.5 million of victim investments for personal purposes, including trading cryptocurrency, paying his employees’ salaries, and buying a life insurance policy for a family member.
“Michael Glaspie admitted today to his involvement in a widespread scheme to defraud investors for his personal benefit,” said U.S. Attorney Steven A. Russell for the District of Nebraska. “Thanks to the tireless efforts of our law enforcement partners to untangle this fraud, Glaspie will now be held accountable for this serious crime.”
“This case identified a fraudulent online investment scheme that defrauded over 10,000 victims,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “The subject promised investors high rates of returns then misused investor funds for personal use. The FBI and our law enforcement partners will continue to work diligently to identify and pursue those who seek to deceive and defraud the American public.”
“This elaborate investment fraud scheme defrauded more than 10,000 victims of over $55 million,” said Assistant Director in Charge David Sundberg of the FBI Washington Field Office. “Investment fraud schemes of any type will not be tolerated. The FBI will continue to do what we have done for over 100 years and investigate those who attempt to defraud unsuspecting Americans of their hard-earned money. I would like to thank our partners at FBI offices across the country and the Department of Justice for their work and collaboration to bring justice on behalf of these victims.”
Glaspie pleaded guilty to one count of wire fraud. He is scheduled to be sentenced on June 16 and faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Separately, on June 14, 2022, a federal grand jury in the District of Nebraska returned an indictment charging Chandran with three counts of wire fraud and two counts of engaging in monetary transactions in criminally derived property for his role in the scheme. If convicted, he faces up to 20 years in prison for each of the wire fraud counts and up to 10 years in prison for each count of engaging in unlawful monetary transactions. An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI Washington, Omaha, Las Vegas, and Los Angeles Field Offices are investigating the cases.
Assistant Chief William E. Johnston and Trial Attorney Tian Huang of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Donald J. Kleine for the District of Nebraska are prosecuting the cases.
All potential investor victims of this fraud are encouraged to visit the webpage https://www.justice.gov/criminal-vns/united-states-v-chandran to identify themselves and obtain more information on their rights, including the opportunity to submit a victim impact statement.
Man Arrested for Cold Case Murder on Military Base in GermanyRead the Press Release
A man was arrested today in the Northern District of Florida on criminal charges related to a murder on a U.S. Army base in Germany 21 years ago.
According to court documents, Shannon L. Wilkerson, 42, is allegedly responsible for the death of Amanda Gonzales on Nov. 3, 2001. The murder occurred at Fliegerhorst Kaserne, then a U.S. Army base in Hanau, Germany. Wilkerson was a member of the Armed Forces at the time of the alleged offense but was later discharged from the Army.
Wilkerson is charged under the Military Extraterritorial Jurisdiction Act, which gives the U.S. federal courts jurisdiction over crimes committed outside the United States by, among others, former members of the Armed Forces who are no longer subject to the Uniform Code of Military Justice.
Wilkerson is charged with one count of first-degree murder. If convicted, he faces a maximum penalty of life in prison.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Jason R. Coody for the Northern District of Florida, Assistant Director in Charge Michael J. Driscoll of the FBI New York Field Office, and Special Agent in Charge Lisa Yockel of the U.S. Army Criminal Investigation Division’s Europe Field Office made the announcement.
The FBI is investigating the case. The FBI Jacksonville Field Office, the Air Force’s Office of Special Investigations, and Army’s Criminal Investigative Division, which originally investigated the case, provided valuable assistance with the arrest.
Trial Attorney Patrick Jasperse of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney David L. Goldberg for the Northern District of Florida are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Man Arrested for Cold Case Murder on Military Base in GermanyRead the Press Release
A man was arrested today in the Northern District of Florida on criminal charges related to a murder on a U.S. Army base in Germany 21 years ago.
According to court documents, Shannon L. Wilkerson, 42, is allegedly responsible for the death of Amanda Gonzales on Nov. 3, 2001. The murder occurred at Fliegerhorst Kaserne, then a U.S. Army base in Hanau, Germany. Wilkerson was a member of the Armed Forces at the time of the alleged offense but was later discharged from the Army.
Wilkerson is charged under the Military Extraterritorial Jurisdiction Act, which gives the U.S. federal courts jurisdiction over crimes committed outside the United States by, among others, former members of the Armed Forces who are no longer subject to the Uniform Code of Military Justice.
Wilkerson is charged with one count of first-degree murder. If convicted, he faces a maximum penalty of life in prison.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Jason R. Coody for the Northern District of Florida, Assistant Director in Charge Michael J. Driscoll of the FBI New York Field Office, and Special Agent in Charge Lisa Yockel of the U.S. Army Criminal Investigation Division’s Europe Field Office made the announcement.
The FBI is investigating the case. The FBI Jacksonville Field Office, the Air Force’s Office of Special Investigations, and Army’s Criminal Investigative Division, which originally investigated the case, provided valuable assistance with the arrest.
Trial Attorney Patrick Jasperse of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney David L. Goldberg for the Northern District of Florida are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
MS-13 Members Sentenced to Life in Prison for Racketeering, Murder, Extortion, and Federal Drug ChargesRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paula Xinis has sentenced Luis Flores-Reyes, a/k/a “Maloso,” “Lobo,”’ and “Viejo Lovvon,” age 42, of Arlington, Virginia and Jairo Jacome, a/k/a “Abuelo,” age 40, of Langley Park, Maryland, to life in federal prison, for charges related to a racketeering enterprise known as La Mara Salvatrucha, or “MS-13.” Jacome and Flores-Reyes were convicted by a federal jury on September 29, 2022, of a racketeering conspiracy, murder in aid of racketeering, and an extortion conspiracy. The jury also found Flores-Reyes guilty of a drug distribution conspiracy. Flores-Reyes was sentenced yesterday and Jacome was sentenced today.
On January 12, 2023, Judge Xinis also sentenced co-defendant Brayan Contreras-Avalos, a/k/a “Anonimo” and “Humilde,” age 28, of Langley Park, Maryland, to life in federal prison for his participation in the same racketeering conspiracy.
The sentences were announced by United States Attorney for the District of Maryland Erek L. Barron; Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; Special Agent in Charge Wayne Jacobs of the Federal Bureau of Investigation - Washington Field Office Criminal Division; Special Agent in Charge Frank A. Tarentino III of the Drug Enforcement Administration – New York Division; Special Agent in Charge James C. Harris of Homeland Security Investigations (HSI) Baltimore; Chief Malik Aziz of the Prince George’s County Police Department; and Chief Marcus Jones of the Montgomery County Police Department.
MS-13 is a national and international gang composed primarily of immigrants or descendants from El Salvador and other central American countries. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Frederick County, Anne Arundel County, Prince George’s County, and Montgomery County, Maryland. Jacome was the highest-ranking member of the local Langley Park Salvatrucha, or “LPS” clique. Flores-Reyes and Contreras-Avalos were leaders within the Sailors Clique, which held territory in Maryland, Virginia, New York, New Jersey, Texas, and El Salvador.
At all times of this conspiracy, members of MS-13 were expected to protect the name, reputation, and status of the gang and to use any means necessary to force respect from those who showed disrespect, including acts of intimidation and violence. One of the principal rules of MS-13 is that its members must attack and kill rivals, often referred to as “chavalas,” whenever possible. Participation in criminal activity by a member, particularly in violent acts directed at rival gangs or as directed by gang leadership, increase the respect accorded to that member, resulting in that member maintaining or increasing his position in the gang, and opens the door to promotion to a leadership position.
As detailed during the trial, Flores-Reyes, Jacome, and Contreras-Avalos participated in at least six murders, including two minor victims, during the period of the conspiracy. Most of the victims were purported gang rivals except for one minor victim. For example, in June 2016, members of MS-13, including Contreras-Avalos, stabbed to death two unhoused individuals, who gang members believed to be members of the 18th Street gang, in Hyattsville, Maryland. The investigation revealed no evidence that the victims were in fact members of any gang.
Among the most important rules of MS-13 is the prohibition against talking to law enforcement, embodied by the maxim ver, oir, y callar – see, hear, and say nothing. The gang enforced this rule by placing a “green light” – an order to kill – on any member of MS-13 who was thought to be informing on the gang. In December 2016, Jacome directed and participated in the murder of a 14-year-old member of MS-13 who was suspected of talking to the police. The boy’s remains were discovered more than 18 months later in a wooded area outside of Germantown, Maryland.
Additionally, in March 2017, a member of the Sailors Clique, who was hiding from law enforcement in the Lynchburg, Virginia, area, after committing a murder in 2016 in Gaithersburg, Maryland, had a dispute with a local high school student over marijuana. In response, Flores-Reyes aided and abetted a squad of MS-13 members to drive down to Lynchburg and murder this high school student. The gang members kidnapped the student from his front lawn and cut his hand off before killing him. After the murder, Flores-Reyes helped to hide and protect the killers from law enforcement.
According to court documents and evidence presented at trial, the defendants also ran an extortion scheme in and around Langley Park, extorting local businesses by charging them “rent” for the privilege of operating in MS-13 “territory.” Flores-Reyes and Contreras-Avalos also trafficked illegal drugs, including marijuana, and cocaine. A large share of the proceeds of the gang’s illegal activities were sent to gang leadership in El Salvador to further promote the illicit activities of the gang, using structured transactions and intermediaries to avoid law enforcement scrutiny.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Anyone with information about MS-13 is encouraged to provide their tips to law enforcement. The FBI and Homeland Security Investigations both have nationwide tiplines that you can call to report what you know. You can reach the FBI at 1-866-STP-MS13 (1-866-787-6713), or you can call HSI at 1-866-DHS-2-ICE.
United States Attorney Erek L. Barron and Assistant Attorney General Kenneth A. Polite, Jr. commended the FBI, DEA, HSI, Prince George’s County Police Department, Montgomery County Police Department, Virginia State Police, Lynchburg Police Department, Prince William County Police Department, Nassau County District Attorney’s Office, the Bedford County Commonwealth’s Attorney’s Office and the Bedford County Sheriff’s Office for their work in the investigation. Mr. Barron and Mr. Polite thanked Assistant U.S. Attorneys Timothy F. Hagan, Chris M. Sarma, William Moomau, Assistant Director Catherine Dick of the Department of Justice Consumer Protection Division and Trial Attorney Alexander Gottfried of the Justice Department’s Criminal Division, who prosecuted this case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
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Luzerne County Man Pleads Guilty to Fentanyl Trafficking and Firearms OffensesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Rasjon Walters, age 27, of Wilkes-Barre, Pennsylvania, pleaded guilty on February 21, 2023, before U.S District Court Judge Robert D. Mariani, to one count of fentanyl distribution and one count of carrying a firearm in relation to a drug trafficking crime.
According to United States Attorney Gerard M. Karam, Walters admitted to distributing fentanyl in the Luzerne County area between June 2021 and December 2021. He also admitted to using and carrying a firearm during and in relation to a drug trafficking crime. The charges stem from an investigation in which investigators made multiple purchases of fentanyl and a firearm from Walters. Investigators then obtained a search warrant for Walters’ residence in Wilkes-Barre and seized additional amounts of fentanyl, packaging materials, scales, and other items of drug paraphernalia.
The investigation was conducted by the FBI Safe Streets Task Force, the Pennsylvania State Police, and the Wilkes-Barre Police Department. Assistant United States Attorney Robert J. O’Hara is prosecuting the case.
This case is also 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.
Under federal law, the charges carry a maximum sentence of life in prison, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
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Lowell Money Manager Sentenced to More Than Nine Years in Prison for Defrauding Clients of Millions of DollarsRead the Press Release
BOSTON – A Lowell man was sentenced today in federal court in Boston for engaging in a scheme to defraud his clients of millions of dollars.
Steven Xigoros, 55, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 109 months in prison and two years of supervised release. Xigoros was also ordered to pay $4,754,184 in restitution to individual victims and the Internal Revenue Service and forfeiture in the amount of $4,321,106. In October 2022, Xigoros pleaded guilty to two counts of wire fraud, one count of aggravated identity theft, and one count of filing a false tax return.
Between 2015 and 2021, Xigoros used his position as an accountant, tax preparer and investment advisor to misappropriate millions of dollars from his clients. He induced clients to entrust their money to him to make various investments, to purchase securities, and to lend him money for purported business ventures. Xigoros then used those funds for his own expenses, including to make payments against his gambling debts. In order to deceive his clients about the fact that he had stolen their money, Xigoros made a series of false statements about how their money was purportedly invested and when he would repay it. In total, Xigoros defrauded his clients of more than $4.3 million, including the entire life savings of one elderly couple, who gave more than $1.3 million to him to make investments on their behalf. By failing to report the misappropriated funds as income, Xigoros also failed to pay taxes due and owing of more than $1 million to the Internal Revenue Service.
“For more than five years, Mr. Xigoros used his position to steal millions of dollars from his trusting clients. His victims saw him as a reliable, safe investment advisor – he had years of professional experience and many of the victims’ trust as a fellow member of their close-knit Greek community. Eventually, as his gambling debts grew, Mr. Xigoros chose to abuse this trust and rob his clients of more than $4.3 million,” said United States Attorney Rachael S. Rollins. “The financial hardship, trauma and shame inflicted as a result of Mr. Xigoros’ fraud cannot be overstated. In some circumstance it may last a lifetime and have generational impacts. He callously exploited vulnerable victims out of their hard-earned life savings and went to great lengths to conceal his theft. It is my hope that today’s sentence brings a sense of closure and accountability to those impacted by Mr. Xigoros’ egregious, shameful and criminal conduct.”
“Steven Xigoros stole millions from his long-time clients, betraying their trust, and cheating taxpayers, primarily to pay off his gambling debts,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Equally troubling is that he took advantage of some of those closest to him, including wiping out an elderly couple’s entire life savings. The FBI had to re-arrest Xigoros as he tried to flee the country to avoid prosecution. Today’s sentence ensures he will have plenty of time behind bars to reflect on his criminal conduct.”
“The defendant knowingly exposed individuals’ finances, their life savings in some cases, to sham investments and shady business ventures, creating financial devastation that will unfortunately last a lifetime for many,” said Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston. “Today's sentencing demonstrates that federal law enforcement collaboration is a powerful tool in thwarting criminal behavior and IRS Criminal Investigation is proud to bring our forensic accounting skills to this joint venture and help put a stop to this and other types of white collar crime.”
While on pre-trial release, Xigoros was arrested at the Newark Liberty International Airport, boarding a flight to Greece in an attempt to flee approximately two months before he was set to stand trial.
U.S. Attorney Rollins, FBI SAC Bonavolonta, and IRS SAC Simpson made the announcement. Assistant U.S. Attorneys Leslie Wright and David Holcomb of Rollins’ Securities, Financial & Cyber Fraud Unit prosecuted the case.