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6 April 2023
Monmouth County Man Sentenced to 10 Years in Prison for Online Sexual Enticement of MinorRead the Press Release
NEWARK, N.J. – A Manalapan, New Jersey, man was sentenced on April 4, 2023, to 120 months in prison for using online chat applications to entice an adolescent to engage in prohibited sexual activity. Angelo N. Curato, 30, pleaded guilty by videoconference on July 18, 2022, before U.S. District Judge Brian Martinotti to a superseding information charging him with one count of online enticement of a minor.
Minnesota Man Sentenced to 2 Years for Aiming Laser at AircraftRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Nicholas James Link, 43, Rochester, Minnesota was sentenced today by U.S. District Judge William M. Conley to two years in prison for aiming a laser at an aircraft. Link pleaded guilty to this charge on January 12, 2023.
On the night of October 29, 2021, pilots with Delta Air Lines reported to the Minneapolis – Saint Paul International Airport (MSP) that they had just been struck by a laser. They were flying an Airbus A319 on a commercial flight from Raleigh-Durham to Minneapolis when, at an altitude of 9,000 feet and just west of River Falls, Wisconsin, the cockpit was lit up three times by a blue laser. At the time they had just been instructed by air traffic control to change runways at MSP. The laser strikes caused a major distraction in the cockpit as they were not able to look at their iPads to brief the new approach.
The pilots were eventually able to brief and transition to the new runway approach and safely land the aircraft. The first officer did not suffer any disruption to his vision, but the captain said that vision in his right eye was affected for several hours after this event.
Air traffic control called a Minnesota State Patrol aircraft, which flew to River Falls to investigate. The State Patrol pilots circled the area at 3,500 feet and their aircraft was also struck by a blue laser. Using the aircraft’s surveillance equipment, they were able to identify the suspect, coordinate with local law enforcement, and maintain a visual on the defendant until officers contacted him. The State Patrol pilots recorded this event using their surveillance camera.
River Falls police officers contacted the defendant and found a blue laser on his person. He said that he was shining the laser at a drone but did not believe it was an aircraft because it stayed very still. He then pointed to the Minnesota State Patrol aircraft. Unmanned aerial vehicles, or drones, are considered aircraft under federal law.
The pilot for the Delta Air Lines flight provided a statement to the Court. The captain has been a commercial airline pilot for 28 years with over 25,000 hours of logged flight hours. During their descent into MSP the cockpit was suddenly illuminated by a bright blue light. The captain described that the approach into an airport is considered a critical phase of any flight with a high workload. Because this particular approach also required a runway change, they had to reprogram their flight computers, consult the approach charts, and establish the course and descent into the new runway.
It was at that precise moment that they were struck by the laser. The captain noted the “sheer brightness” and compared it to “suddenly turning on all the lights in a dark room.” The pilots immediately shifted their priority to protecting their eyes, with the first officer using his iPad as a shield instead of using it to brief the approach. The captain wrote that “[o]ne minor mistake during this critical phase could have led to catastrophic results.” The defendant’s action caused a severe safety threat to the safety of the crew and all passengers on board the aircraft.
At sentencing, Judge Conley remarked on Link’s extensive criminal record which included numerous domestic assaults. Judge Conley also discredited the defendant’s argument that it was not commonly known that aiming a laser at aircraft was dangerous. The defendant wrote in his sentencing memorandum that there were almost 10,000 reports of laser strikes on aircraft each of the past two years. Judge Conley said that these incidents are frequently reported in the news, so the danger is commonly known. Judge Conley also mentioned an arrest in 2017 where the defendant shined and strobed a handheld flashlight in the eyes of the arresting officer, saying that incident was similar to the defendant’s conduct in this case. Judge Conley called aiming a laser at an aircraft incredibly dangerous and reckless, and in this case forced the Delta pilots to focus on their temporary blindness which put everyone on the aircraft in incredible danger.
The charge against Link was the result of an investigation conducted by the Minnesota State Patrol, River Falls Police Department, and Federal Bureau of Investigation. The prosecution of the case has been handled by Assistant U.S. Attorney Corey Stephan.
Mexican Citizen Sentenced to 5 Years for Trafficking Methamphetamine in MadisonRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Julio Alvarez Sanchez, 39, Mexico, was sentenced today by Chief U.S. District Judge James D. Peterson to 5 years in federal prison for distributing 500 grams or more of methamphetamine. The prison term will be followed by 3 years of supervised release. Alvarez Sanchez pleaded guilty to this charge on December 19, 2022.
Alvarez Sanchez brought methamphetamine from Minneapolis, Minnesota to Madison and provided it to Juana Armenta Mora. On April 4, 2022, Armenta Mora sold 973 grams of methamphetamine to a confidential informant in Madison.
On April 14, 2022, Alvarez Sanchez met with the confidential informant in a parking lot in Madison for an additional methamphetamine deal. The defendant provided the confidential informant with a toolbox containing 6.77 kilograms of methamphetamine. Alvarez Sanchez was arrested following the drug deal.
Alvarez Sanchez subsequently was interviewed by law enforcement and admitted to participating in the April 2022 deliveries, as well as additional deliveries of methamphetamine.
At sentencing, Judge Peterson noted that this was a serious crime because of the very large quantity of methamphetamine involved and because Alvarez Sanchez admitted to dealing methamphetamine on additional occasions. In arriving at the five-year sentence, Judge Peterson weighed these aggravating factors against Alvarez Sanchez’s limited prior criminal record.
Juana Armenta Mora pleaded guilty on September 8, 2022 to distributing methamphetamine. She was sentenced on December 22, 2022 to 15 months in federal prison.
The charge against Alvarez Sanchez was the result of an investigation conducted by the Drug Enforcement Administration, Federal Bureau of Investigation, Wisconsin Department of Justice Division of Criminal Investigation, Jefferson County Drug Task Force, and Madison Police Department. Assistant U.S. Attorneys Steven P. Anderson and Kathryn E. Ginsberg prosecuted this case.
Member of Brockton Drug Crew Sentenced for Fentanyl Distribution and Firearm ChargesRead the Press Release
BOSTON – A member of a violent Brockton drug crew was sentenced yesterday to six years in prison for drug and firearm charges.
Placido Pereira, 36, of Brockton, was sentenced by U.S. District Court Judge Richard G. Stearns to six years in prison and three years of supervised release. In December 2022, Pereira pleaded guilty to conspiracy to distribute fentanyl; three counts of distribution of fentanyl; one count of possession with the intent to distribute marijuana; one count of being a felon in possession of a firearm and ammunition; and one count of possessing a firearm during a drug trafficking offense.
In 2019, an investigation began into a violent Brockton-area drug crew that distributed large quantities of fentanyl throughout southeastern Massachusetts. The drug crew ran a fentanyl delivery service that encompassed all of Brockton as well as neighboring cities. Specifically, drug users/customers placed orders for fentanyl by contacting a cell phone maintained and shared by crew members, which included Pereira, Djoy Defrancesco and brothers Jason Miranda and Natalio Miranda, who worked together to deliver the fentanyl order.A search of Pereria’s Brockton home in October 2019 resulted in the seizure of a loaded firearm with an obliterated serial number, over $5,000 in cash, digital scales, marijuana packaged for sale and the cell phone used by members of the crew to distribute fentanyl.
According to court records, in 2017, Pereira was convicted of unlawful possession of a firearm and possession with intent to distribute marijuana and was sentenced to three years in prison. In 2010, Pereira was arrested on drug trafficking charges at Boston’s Logan Airport as he returned to the United States from Cape Verde and was later sentenced to 30 months in prison and three years of supervised release for conspiracy to distribute cocaine base.
On Feb. 8, 2023, Natalio Miranda, the last of the four charged defendants, pleaded guilty to conspiracy to distribute 40 grams or more of fentanyl and six counts of distribution of fentanyl. Judge Stearns scheduled sentencing for June 8, 2023. On Feb. 17, 2023 Jason Miranda was sentenced to 78 months in prison and six years of supervised release. In June 2021, Defrancesco was sentenced to time-served, 20 months in prison, after previously pleading guilty.
United States Attorney Rachael S. Rollins; Michael J. Krol, Acting Special Agent in Charge of Homeland Security Investigations in New England; John E. Mawn, Jr., Interim Colonel of the Massachusetts State Police; Brockton Police Chief Brenda Perez; Brian Kyes, U.S. Marshal for the District of Massachusetts; and Plymouth County District Attorney Timothy J. Cruz made the announcement. Assistance was provided by the East Bridgewater, West Bridgewater, Whitman and Bridgewater State University Police Departments as well as the Plymouth County Sheriff’s Office. Assistant U.S. Attorney Christopher J. Pohl of Rollins’ Narcotics & Money Laundering Unit prosecuted the case.Maryland Man Sentenced to 33 Months in Federal Prison for $1.2 Million Bank Fraud SchemeRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Daniel Ongele, age 33, of Bowie, Maryland to 33 months in federal prison, followed by three years of supervised release, for a $1.2 million bank fraud scheme.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron and Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office.
According to his guilty plea, from January to June 2018, Ongele obtained the account information of the elderly victims from a co-conspirator who was employed as a bank teller. Specifically, the co-conspirator, without authorization, accessed confidential computerized account information at the bank and obtained the names and other personal identifying information (PII), which was then provided to Ongele. Ongele and others then used automated teller machines in Maryland to deposit and attempt to deposit fraudulent checks drawn on the compromised accounts into accounts belonging to other conspirators. Ongele obtained information pertaining to at least nine victim accounts, which he used to conduct fraudulent transactions. Ongele admits that as a result of his fraudulent conduct and the foreseeable conduct of his co-conspirators, the intended loss was $1,293,237.06.
United States Attorney Erek L. Barron commended the FBI for its work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Peter J. Martinez, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to report fraud, please visit https://www.justice.gov/usao-md and https://www.justice.gov/usao-md/report-fraud.
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Maryland Man Arrested for Extorting Massachusetts Victims He Met via Online Dating WebsiteRead the Press Release
BOSTON – A Maryland man was arrested today for making extortionate threats toward victims in Massachusetts.
Brandon D. Kane, 27, of Baltimore, was charged with making extortionate threats in interstate commerce. Kane was detained following an initial appearance in federal court in the District of Maryland this afternoon. He will appear in federal court in Boston at a later date.
According to the charging documents, Kane used an online dating website to meet victims locally in Eastern Massachusetts. It is alleged that, during such meetings, Kane made unauthorized videos of his victims engaging in illicit drug use or sexual activity with him. Kane then allegedly threatened to release the videos to the victims’ families and employers unless his victims paid him.
The charge of making extortionate threats in interstate commerce provides for a sentence of up to two years in prison, one year of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorney Benjamin Tolkoff of Rollins’ Major Crimes Unit is 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.
Mandeville Man Pleads Guilty to Federal Gun ChargeRead the Press Release
NEW ORLEANS, LA – MAURICE BUTLER, age 35, of Mandeville, Louisiana, pleaded guilty on April 4, 2023 to a single count indictment charging him with possessing a firearm as a convicted felon, in violation of the Federal Gun Control Act, Title 18, United States Code, Sections 922(g)(1) and 924(a)(2) announced United States Attorney Duane A. Evans.
According to court documents, BUTLER was arrested by St. Bernard Sheriff’s Office deputies when, during the course of a traffic stop, they learned that BUTLER was wanted by the New Orleans Police Department for armed robbery. Deputies additionally noticed a Glock Model 17, nine-millimeter semi-automatic pistol (later determined to be stolen) in plain view on the front passenger seat of BUTLER’s vehicle. Further investigation revealed that BUTLER had previous felony convictions which prohibit his possession of a firearm.
BUTLER faces a maximum term of ten (10) years imprisonment, a fine of up to $250,000.00, up to three (3) years of supervised release following any term of imprisonment, and a mandatory $100 special assessment fee. BUTLER will be sentenced on July 25, 2023.
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.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the St. Bernard Parish Sheriff’s Office, and the New Orleans Police Department. The case is being prosecuted by Assistant U.S. Attorney Greg Kennedy of the Violent Crimes Unit.
Large-Scale Drug Trafficking Organization Leader Sentenced to Life in PrisonRead the Press Release
EL PASO, Texas – The leader of a large-scale drug trafficking organization was sentenced in a federal court in El Paso Thursday to life in prison.
According to court documents, Jorge Sanchez Morales aka “Capulina,” 47, ran a drug trafficking organization, spanning from Mexico to El Paso and on to Atlanta, from 2002 to 2019. In the early 2000s, Sanchez Morales worked out of Atlanta, trafficking cocaine and other drugs with Sinaloa Cartel operatives.
In 2014, Sanchez Morales returned to Mexico to run his organization, which would then primarily traffic methamphetamine, often in liquid form. Sanchez Morales’ organization imported liquid methamphetamine from Juarez, Mexico into El Paso, and then transported it to Atlanta concealed in the fuel tanks of semi tractors. In Atlanta, the liquid methamphetamine was converted to a crystalline form and distributed. Sanchez Morales oversaw the operation on behalf of the Jalisco New Generation Cartel, otherwise known as CJNG.
On Nov. 8, 2022, an El Paso jury found Sanchez Morales guilty of conspiracies to import and possess with intent to distribute cocaine and methamphetamine, conspiracy to commit international money laundering, and laundering monetary instruments. The court sentenced Sanchez Morales to life in prison for the drug conspiracies and to 20 years imprisonment for conspiring and laundering monetary instruments. The court ordered the sentences to run concurrently.
“This sentence serves as another step forward in the U.S. government’s efforts to disrupt and dismantle some of the most dangerous drug trafficking organizations we face,” said U.S. Attorney Jaime Esparza of the Western District of Texas. “My office is committed to working with our law enforcement partners, within this district and beyond, to hold accountable those who attempt to poison our communities and carelessly endanger Americans.”
“The men and women of DEA are laser-focused in our mission of defeating the Sinaloa and Jalisco cartels,” said Special Agent in Charge Greg Millard of the Drug Enforcement Administration’s El Paso Division. “We will continue to tirelessly target these cartels and their associates involved in the manufacture or distribution of methamphetamine and other illicit, synthetic poisons that are killing Americans at record rates.”
The DEA, HSI, United States Border Patrol, El Paso Sheriff’s Office, Texas Department of Public Safety and Socorro Police Department investigated the case.
Assistant U.S. Attorneys Steven Spitzer and Nathan Brown prosecuted the case.
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Kern County Man Charged with Making Death Threats and Bomb Threats to a Nonprofit and Reproductive Health CentersRead the Press Release
LOS ANGELES – A Kern County man charged with making threatening telephone calls last year, including to a Planned Parenthood office on the day the United States Supreme Court overturned its Roe v. Wade decision, has been arraigned in federal court, the Justice Department announced today.
Nishith Tharaka Vandebona, 34, currently of Bakersfield, but who lived in Camarillo during the alleged offenses, is charged with three misdemeanor counts of threatened forcible intimidation regarding the obtaining and provision of reproductive health services under the federal Freedom of Access to Clinic Entrances (FACE) Act. Vandebona also is charged with two felony counts of transmitting threatening communications in interstate commerce to another organization in Ventura County.
Vandebona pleaded not guilty late Wednesday afternoon to the charges against him and a May 30 trial date was scheduled. A federal magistrate judge ordered Vandebona jailed without bond.
“Death threats are never acceptable regardless of what a person believes,” said United States Attorney Martin Estrada. “No one should be threatened with death or bodily harm simply because they provide health services or work for a nonprofit. This indictment serves as a warning that there will be significant repercussions especially for anyone seeking to intimidate those seeking and providing reproductive health services.”
“The Constitution gives each of us broad free speech rights, but using death threats to bully individuals or attempt to terrorize others will lead to criminal charges, as evidenced in this indictment,” said Donald Alway, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “The use of violence to intimidate an individual from exercising their rights cannot be tolerated in a free and civil society.”
According to the indictment returned on March 29 and unsealed Wednesday, from February to June of 2022, Vandebona used an internet application to create anonymous telephone numbers to make the threatening calls.
During the spring of 2022, there was news coverage that the Supreme Court was considering overturning Roe, its 1973 decision that recognized a constitutional right to abortion, after an initial draft of the new opinion was leaked.
On June 24, 2022, the Supreme Court published a decision in Dobbs v. Jackson Women’s Health Organization, which overturned Roe and ruled that the Constitution does not confer a right to abortion.
That day, using an anonymous number, Vandebona left a voicemail message containing death threats with Planned Parenthood California Central Coast, a Santa Barbara-based reproductive health services organization, the indictment alleges.
On June 25, 2022, Vandebona allegedly called Planned Parenthood Los Angeles and spoke with a call center specialist. According to the indictment, Vandebona said, “I’m calling to let you know that I’m going to come in there and kill all of you, including your staff and your security. You got it? You’re overdue for an attack.”
Within an hour, Vandebona allegedly telephoned Planned Parenthood Los Angeles again and made several death threats, including “I’m gonna come in there and murder your staff.”
Prior to the alleged threats to the Planned Parenthood facilities, Vandebona allegedly called in a bomb threat in February 2022 to the office of Californians for Population Stabilization (CAPS), a Ventura-based non-profit organization that advocates for “zero population growth,” primarily through immigration restrictions.
Vandebona allegedly used anonymous numbers he obtained from the internet to make threatening phone calls to CAPS. In one of the calls, he said, “I’m gonna come in there and kill all of you, dude. Be careful.”
In another call to CAPS in February 2022, Vandebona said, “I’m gonna come in there, plant a bomb, and kill as many white Americans as possible. You understand that? Servicemen, families, everybody,” according to the indictment.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If convicted, Vandebona would face a statutory maximum sentence of five years in federal prison for each count of transmitting threatening communications in interstate commerce, and a statutory maximum sentence of one year in federal prison for each FACE Act count.
The FBI is investigating this matter. The Santa Barbara Police Department, the Santa Monica Police Department, and the Ventura County Sheriff’s Office have assisted in this investigation.
Assistant United States Attorneys Frances S. Lewis and Julius J. Nam of the Public Corruption and Civil Rights Section are prosecuting this case.
Anyone who has information about incidents of violence, threats, and obstruction that target a patient or provider of reproductive health services or damage and destruction of reproductive health care facilities, should report that information to the FBI at https://tips.fbi.gov.
For more information about clinic violence, and the Department of Justice’s efforts to enforce FACE Act violations, please visit www.justice.gov/crt/national-task-force-violence-against-reproductive-health-care-providers.
Kansas Man Sentenced to 4 Years for Methamphetamine TraffickingRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Jimmy Castillo, 24, Topeka, Kansas, pleaded guilty and was sentenced today by U.S. District Judge William M. Conley to four years in prison for possession with intent to distribute methamphetamine.
On February 19, 2022, based on information received during the course of a drug investigation, police officers approached Castillo as he exited a hotel in Onalaska, Wisconsin. Castillo was wearing a grey backpack at the time. After detaining Castillo and removing his backpack, officers asked him if he had anything illegal on him. Castillo looked at the backpack. After a drug dog indicated the presence of drugs, officers searched the backpack and found approximately 15.5 pounds of methamphetamine.
At the sentencing hearing, Judge Conley stated that Castillo possessed a “massive” amount of methamphetamine and its delivery into the community would have caused major ripple effects. Judge Conley noted that Castillo admitted to officers that he had transported methamphetamine on two occasions prior to his arrest. Judge Conley also noted it was a mitigating factor that Castillo had no prior criminal history.
The charge against Castillo is the result of a joint investigation by the La Crosse Police Department, La Crosse County Sheriff’s Office, Trempealeau County Sheriff’s Office, Onalaska Police Department, and the Town of Campbell Police Department. Assistant U.S. Attorney Aaron Wegner prosecuted this case.
Kanawha County Man Pleads Guilty to COVID-19 Relief Fraud SchemeRead the Press Release
CHARLESTON, W.Va. – Tamir Pratt, 20, of Dunbar, pleaded guilty today to receipt of stolen money, admitting to a scheme to defraud the Paycheck Protection Program (PPP) of $20,832 in COVID-19 relief loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).
According to court documents and statements made in court, Pratt applied for a PPP loan for his purported business, “Tamir Pratt,” in April 2021. Pratt admitted that “Tamir Pratt” was not in operation on February 15, 2020, though that was a requirement to qualify for a PPP loan, and he falsely certified that it was. Businesses applying for PPP loans were also required to provide documentation showing their prior gross income from either 2019 or 2020. Pratt admitted that he submitted a false IRS Form 1040, Schedule C, stating that “Tamir Pratt” had earned approximately $100,000 in gross income in 2020.
Pratt submitted the loan application electronically from West Virginia and it was uploaded to servers in Arizona for processing. Pratt’s loan application was approved and $20,832 was electronically transferred to his personal bank account on April 26, 2021. Pratt admitted that he withdrew $1,700 of the fraudulent loan proceeds in Charleston the same day and spent more than $460 using the fraudulent funds.
The CARES Act, enacted in March 2020, offered emergency financial assistance to Americans suffering from the economic effects caused by the COVID-19 pandemic. This assistance included forgivable loans to small businesses for job retention and certain other expenses through the Paycheck Protection Program.
Pratt admitted that he did not spend the fraudulent loan proceeds on any permissible business expenses. Pratt further admitted that the SBA forgave his PPP loan on August 9, 2021.
Pratt is scheduled to be sentenced on July 6, 2023, and faces a maximum penalty of 10 years in prison, three years of supervised release, and a $250,000 fine. Pratt also owes $20,832 in restitution.
United States Attorney Will Thompson made the announcement and commended the investigative work of the West Virginia State Police – Bureau of Criminal Investigation (BCI), and the West Virginia State Auditor’s Office (WVSAO) Public Integrity and Fraud Unit (PIFU).
United States District Judge Joseph R. Goodwin presided over the hearing. Assistant United States Attorney Jonathan T. Storage is prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:23-cr-38.
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Justice Department Files Complaint Against Manufacturer Alleging Delay in Reporting Dangerous Awning CoversRead the Press Release
The Justice Department and the Consumer Product Safety Commission (CPSC) jointly announced today the filing of a complaint against SunSetter Products LP (SunSetter), alleging that the company delayed reporting a hazardous defect involving protective vinyl covers for its retractable awnings.
SunSetter is a limited partnership based in Malden, Massachusetts, that manufactures motorized, retractable awnings for outdoor use. The complaint, filed in U.S. District Court for the District of Massachusetts, alleges that SunSetter knowingly failed to immediately report to the CPSC that when bungee tie-downs securing its protective awning covers were removed, the retractable awnings could spring open unexpectedly with enough force to strike consumers and cause them to fall and suffer death or serious injury. The complaint alleges that between 2012 and 2017, SunSetter received 14 reports of its motorized awnings springing open, which resulted in several injuries and one death. Despite notice of these incidents, the company did not report the problems with its awning covers to the CPSC until October 2017.
According to the complaint, the protective covers at issue were sold separately or given away as a promotional item with the company’s motorized awnings between June 1999 and January 2019. The covers were recalled in August 2019.
“Companies must report safety issues in consumer products immediately, as the law requires, to prevent unnecessary injury or death,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Department of Justice will continue to work closely with the CPSC to hold accountable manufacturers that put profits over the safety of consumers.”
“Prompt reporting of potentially dangerous defects in or problems with products is vital to impactful and immediate consumer protection. CPSC cannot do its job without strict compliance by industry. The defect in this matter, as alleged, can cause serious injury up to and including death,” said U.S. Attorney Rachael S. Rollins for the District of Massachusetts. “Manufacturers must be held accountable for failing to comply with this important obligation which jeopardizes the safety of consumers.”
“SunSetter knew for years that its product was hazardous, yet failed to tell CPSC as required by federal law,” said Chair Alex Hoehn-Saric of the CPSC. “It took a tragic death and numerous other injuries before they finally took action – which is unacceptable. When a company continues to sell dangerous products – knowing they can cause injuries and death – it must be held accountable.”
The Consumer Product Safety Act requires manufacturers, distributors, and retailers of consumer products to report “immediately” to the CPSC information that reasonably supports the conclusion that a product contains a defect which could create a substantial product hazard or creates an unreasonable risk of serious injury or death.
This matter is being handled by Senior Litigation Counsels Christina Parascandola and Claude Scott and Trial Attorney Nicole Frazer of the Justice Department’s Civil Division, Consumer Protection Branch and Assistant U.S. Attorney Erin Brizius for the District of Massachusetts, with the assistance of Harriet Kerwin and Renee H. McCune of the CPSC’s Office of the General Counsel.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch.
The claims made in the complaint are allegations that, if the case were to proceed to trial, the government would be required to prove by a preponderance of the evidence.
Jury Convicts Major Southwest Virginia Drug SupplierRead the Press Release
ABINGDON, Va. – A federal jury convicted a Texas man last week for trafficking large quantities of high-purity methamphetamine from Mexico into Southwest Virginia.
According to court documents, Alonso Cantu-Cantu, 46, of Houston, Texas, was the major source of supply for a drug conspiracy that distributed more than 33 kilograms of crystal methamphetamine and 6 kilograms of cocaine into Southwest Virginia through a multi-jurisdiction drug trafficking organization.
Evidence presented at trial showed that Cantu-Cantu received methamphetamine in 55-gallon drums that had been transported into the United States in water tankers directly from sources in Mexico. Cantu-Cantu then directed the drugs through distributors from Indiana, who ultimately distributed down the supply chain throughout the Western District of Virginia, from Harrisonburg to Bristol, Virginia. Many of these transactions were orchestrated through another major drug trafficker who was incarcerated in multiple Virginia prisons during the conspiracy.
In all, the estimated street value of the methamphetamine and cocaine distributed during the course of the conspiracy was more than $1.4 million. Over 4.5 kilograms of methamphetamine, 125.4 grams of heroin, 94 grams of cocaine, and 7 firearms were seized, and 26 defendants have now been convicted over the course of the six-year investigation, which started with the investigation of street level dealers in the Smyth County, Virginia, area.
At sentencing, Cantu-Cantu faces life imprisonment. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Christopher R. Kavanaugh and Virginia Attorney General Jason Miyares made the announcement today.
This investigation was led by the Drug Enforcement Administration-Washington Field Division’s Bristol Post of Duty, and the United States Postal Inspection Service with assistance from the Smyth County Virginia Sheriff’s Office. Numerous other agencies also provided assistance throughout the investigation including the Drug Enforcement Administration in Indianapolis, Indiana, and Birmingham, Alabama, the Washington County Virginia Sheriff’s Office, the Abingdon, Virginia Police Department, the Rockingham County Virginia RUSH Drug Task Force, the Rockingham County Virginia Sheriff’s Office, the Harrisonburg, Virginia Police Department, the Bessemer, Alabama Police Department, the Virginia Department of Corrections, the Virginia Department of Corrections Probation and Parole Unit, and the Southwest Virginia Regional Jail Authority.
Special Assistant United States Attorney M. Suzanne Kerney-Quillen, a Senior Assistant Attorney General with the Virginia Attorney General’s Major Crimes and Emerging Threats Section, and Assistant United States Attorney Lena L. Busscher prosecuted the case for the United States.
Indictment Charges 14 New Haven Area Residents with Charges Related to Counterfeit Pill Production, Narcotics TraffickingRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England; Robert Fuller, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation; Michael J. Krol, Acting Special Agent in Charge of Homeland Security Investigations (HSI), New England; today announced that a federal grand jury in New Haven has returned an indictment charging the following 14 individuals with offenses related to the large-scale trafficking of fentanyl and methamphetamine pills disguised as legitimate prescription medication, as well as other controlled substances:
WILLIS TAYLOR, 66, of West Haven
AQUARIUS GUMBS, a.k.a. “Q,” “Ice,” and “Diamond,” 48, of New Haven
SEAN PEPE, 38, of East Haven
GORDON LAURIA, 52, of New Haven
PAUL PAOLELLA, 52, of East Haven
PETER ABLONDI TAYLOR, 20, of North Branford
MARK APOTRIAS, 54, of North Branford
THOMAS JOSLIN, 63, of East Haven
DAVID KING, 58, of East Haven
RICHARD GREATSINGER, 26, of West Haven
CHRISTOPHER CAHILL, 55, of Florida
MARKOS PAPPAS, a.k.a. “Speedy,” 49, of New Haven
LISA FAUSEL, 59, of Milford
JULIO ECHEVARRIA, a.k.a. “Warrior, 42, of New HavenAs alleged in court documents and statements made in court, this matter stems from an investigation by the FBI’s New Haven Safe Streets/Gang Task Force and the DEA New Haven’s Tactical Diversion Squad targeting the manufacture and distribution of counterfeit oxycodone tablets containing fentanyl and counterfeit Adderall tablets containing methamphetamine, and the distribution of heroin and cocaine, in the New Haven area. The investigation revealed that Willis Taylor, with the assistance of Paul Paolella, Gordon Lauria, and others, coordinated the manufacture of the counterfeit pills, which Taylor distributed to Sean Pepe, and Taylor’s son, Peter Ablondi Taylor, for further distribution. Pepe supplied pills to Christopher Cahill and others. Willis Taylor also arranged counterfeit pill transactions between second and third parties, including Mark Apotrias, Thomas Joslin, and David King, and used Aquarius Gumbs as a source of supply for some of these transactions. Gumbs also distributed controlled substances to his own customers, including Richard Greatsinger. Marcos Pappas, Lisa Fausel and Julio Echevarria, also conspired to distribute controlled substances.
During the investigation, investigators seized more than two kilograms of fentanyl, including thousands of counterfeit Oxycodone tablets; approximately two kilograms of methamphetamine, including thousands of counterfeit Adderall pills; three kilograms of cocaine and other drugs; four pill-press machines; one industrial mixer; five firearms; and more than $200,000 in cash.
Thirteen of the defendants were arrested on federal criminal complaints last week. Pepe is currently in state custody.
On April 4, 2023, the grand jury returned an indictment charging each defendant with conspiracy to possess with intent to distribute, and to distribute, controlled substances. If convicted of this offense, based on the type and quantity of controlled substances attributable to each defendant, Willis Taylor and Paolella face a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life; Pepe, Pappas, and Fausel face a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years; and the remaining defendants face a maximum term of imprisonment of 20 years. In addition, the indictment charges Willis Taylor, Gumbs, Pepe, Paolella, and Greatsinger with one or more counts related to the possession and distribution of controlled substances.
The indictment also charges both Gumbs and Pepe with unlawful possession of a firearm by a felon, an offense that carries a maximum term of imprisonment of 15 years, and with possession of a firearm in furtherance of a drug trafficking crime, an offense that carries a mandatory consecutive sentence of at least five years.
U.S. Attorney Avery stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the DEA New Haven’s Tactical Diversion Squad, the FBI’s New Haven Safe Streets/Gang Task Force, Homeland Security Investigations (HSI), and the U.S. Marshals Service. The DEA Tactical Diversion Squad is composed of personnel from the DEA and the Manchester, Glastonbury, West Haven, Hamden, Newington, and Bristol Police Departments. The FBI Task Force includes participants from the FBI, the Connecticut State Police, the Connecticut Department of Correction, and the New Haven, Milford, East Haven, West Haven, and Wallingford Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys Sarah P. Karwan and Tara E. Levens, in coordination with the New Haven and Milford State’s Attorney’s Offices.
This case is being prosecuted 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.
Immigration Services Provider Pleads Guilty to Fraud and Identity TheftRead the Press Release
MIAMI – Mario Henry Garcia, 65, of Miami has pled guilty to one count of fraud and misuse of visas, permits and other documents, as well to one count of aggravated identity theft.
Garcia operated a business, Mar Financial, through which he provided a variety of tax preparation, divorce, and immigration services. In particular, the Defendant would assist clients preparing immigration applications (form I-485) to adjust their status to that of a legal permanent resident. Often those clients would have to provide an Affidavit of Financial Support (form I-864) from a financial sponsor guaranteeing to support the applicant while they were in the United States. When a client of the Defendant did not have anyone to act as their financial sponsor, the Defendant would steal the personal identifying information and supporting documents of a sponsor for a prior legitimate application without the sponsors’ knowledge or consent, in exchange for a fee.
The Defendant was released on bond. On February 1, 2023, the Defendant failed to appear at his arraignment in this case. The Defendant absconded and left the country traveling on a Peruvian travel document. The Defendant was detained in Panama after arriving on a flight from Costa Rica and returned to the United States.
U.S. District Judge Cecilia Altonaga set the sentencing hearings for Garcia for June 14.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, acting Special Agent in Charge Michael E. Buckley, Homeland Security Investigations (HSI), Miami, announced the guilty plea.
HSI Miami investigated the case. Assistant U.S. Attorney Hayden P. O’Byrne is prosecuting the case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
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Illinois Man Sentenced to 100 Months in Prison for St. Louis CarjackingRead the Press Release
ST. LOUIS – A man from Belleville, Illinois was sentenced Thursday to 100 months in prison for a 2020 carjacking in St. Louis.
Darrell Gilkey, 26, was one of two men who carjacked a 2019 Dodge Charger on Sept. 19, 2020. A man and a woman were unloading items from the Charger on Washington Avenue in downtown St. Louis when a red Toyota drove up, the occupants pointed a gun at the victims and demanded the Charger’s keys. The robbers then ordered the victims to remove their shoes and lie on the ground before the Toyota and the Charger were driven away.
Gilkey pleaded guilty in U.S. District Court in St. Louis in January to one count of carjacking and one count of brandishing a firearm in furtherance of a crime of violence.
In addition to his prison time, which will begin running Thursday, Gilkey was ordered to pay $31,251 in restitution for the Charger, which was totaled.
Gilkey has been in jail since 2020, when he was indicted on 21 felony charges in St. Louis Circuit Court. He is accused of the carjacking as well as a series of robberies of wallets, phones and other items from June 26, 2020 to Sept. 9, 2020.
The case was investigated by the St. Louis Metropolitan Police Department. Assistant U.S. Attorney Don Boyce prosecuted the case.
Illegal Possession of a Firearm Sends Ruston Man to PrisonRead the Press Release
MONROE, La. - United States Attorney Brandon B. Brown announced that Howard Demartae Jackson, 27, of Ruston, Louisiana, has been sentenced by United States District Judge Terry A. Doughty to 170 months in prison, followed by 5 years of supervised release, for possession of a firearm by a convicted felon and possession of a firearm in furtherance of drug trafficking.
According to evidence presented to the court, on or about May 25, 2022 while on patrol, an officer with the Ruston Police Department observed a man with a brown shoulder bag standing near the driver’s side of a vehicle near a gas station. The officer was suspicious of the activity and ran the license plate on the vehicle and learned that the driver’s license of the vehicle’s registered owner was suspended. The officer conducted a traffic stop of the vehicle and the driver was confirmed to be the registered owner and she admitted that her license was suspended. Howard Jackson was identified as the passenger in the vehicle with the female. The officer detected the odor of marijuana coming from inside and a search of the vehicle was conducted. Officers and found Jackson with a shoulder bag containing a loaded Smith and Wesson 40 caliber pistol, methamphetamine, marijuana, oxycodone, alprazolam, MDMA, plastic baggies, and a digital scale.
Agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) examined and tested the firearm and found it to have been manufactured in Massachusetts and therefore traveled in interstate commerce. Jackson is a convicted felon with prior felony convictions for possession with intent to distribute both Schedule II and III controlled substances in 2020 and knew that he was prohibited from possessing any firearm or ammunition. Jackson pleaded guilty to the charges on November 28, 2022.
The case was investigated by the DEA, ATF and Ruston Police Department and prosecuted by Assistant U.S. Attorney Jessica D. Cassidy.
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India National Sentenced to Four Months After Unlawfully Re-Entering the United StatesRead the Press Release
St. Croix, VI – United States Attorney Delia L. Smith announced that Ashokkumar Patel, 40, of India, was sentenced by District Court Judge Wilma A. Lewis to 139 days of incarceration on his conviction of re-entry of a removed alien, followed by one year of supervised release and a special assessment of $100.00.
According to court documents, on November 24, 2021, Patel, an illegal alien from India, was intercepted by U.S. Customs and Border Protection at the Henry E. Rohlsen Airport as he attempted to board Spirit Airlines flight #449 to Fort Lauderdale, FL. At inspection, Patel presented a fraudulent Florida driver’s license. Further inspection revealed that on August 17, 2019, Patel was apprehended and detained by Custom and Border Patrol in Tecate, CA. Thereafter, on November 21, 2019, Patel was removed and departed from the United States to India.
The U.S. Customs and Border Protection and Homeland Security Investigations investigated the case and Assistant United States Attorney Daniel H. Huston prosecuted the case.
Honduran Man Sentenced to Prison for Illegally Reentering the United States After Being DeportedRead the Press Release
A man who illegally returned to the United States after being deported was sentenced today to more than two months in federal prison.
Jesus Mira-Pineda, age 31, a citizen of Honduras illegally present in the United States and residing in Waterloo, Iowa, received the prison term after a February 9, 2023, guilty plea to one count of illegal reentry into the United States after having been deported.
At the guilty plea, Mira-Pineda admitted he had previously been deported from the United States and illegally reentered the United States without the permission of the United States government. Mira-Pineda was previously deported in March 2014 and illegally reentered the United States in 2015. On December 19, 2022, immigration officials learned Mira-Pineda had illegally returned to the United States and found Mira-Pineda at the Black Hawk County Jail following his arrest for assault causing bodily injury.
Mira-Pineda was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Mira-Pineda was sentenced to 73 days’ imprisonment. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
Mira-Pineda is being held in the United States Marshal’s custody until he can be turned over to immigration officials.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-CR-2001.
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Hoboken Woman Admits $1.5 Million Fraud Scheme that Targeted over 100 Non-Profit Victims, Including Schools and Religious InstitutionsRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, woman pleaded guilty today to stealing over $1.5 million from over 100 victims made up mainly of non-profits, private schools, and religious institutions throughout New Jersey, U.S. Attorney Philip R. Sellinger announced.
Yezenia Castillo, 46, of Hoboken, New Jersey, pleaded guilty before U.S District Judge Susan D. Wigenton, to an information charging her with one count each of wire fraud and tax evasion.
According to documents filed in this case and statements made in court:
From 2012 through 2021, Castillo falsely claimed to be a CPA who could provide various financial and accounting services to non-profit organizations throughout New Jersey, including private schools and religious institutions. Castillo was not a CPA and never provided any of these promised services. After she was hired, Castillo used various ways to steal from her clients, including collecting fees for services that she never performed and transferring client funds to herself without authorization. Castillo also collected funds from clients by falsely claiming she would use it to pay their taxes, but she instead kept the money. To conceal her fraud, Castillo told victims that she had filed and paid their taxes, and she falsified receipts to make it appear to the victims as if their taxes were paid. Castillo defrauded over 100 victims, resulting in financial losses totaling over $1.5 million.
The charge of wire fraud carries a maximum potential penalty of 20 years in prison and $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest. The charge of tax evasion carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Aug. 7, 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; special agents of the U.S. Department of Housing and Urban Development, Office of the Inspector General, under the direction of Special Agent in Charge Christina Scaringi; and special agents of IRS – Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy L. Tomlins, with the investigation leading to the today’s guilty plea.
The government is represented by Assistant U.S. Attorney Blake Coppotelli of the U.S. Attorney’s Office Economic Crimes Unit.
castillo.information.pdfGuatemalan Woman Sentenced for Use of Fraudulent Identity Documents to WorkRead the Press Release
United States Attorney Steven A. Russell announced that Cristian Yanira Ruiz-Cardona, 28, was sentenced on Thursday, April 6, 2023, in federal court in Omaha, Nebraska, for use of immigration documents not lawfully issued, false representation of a Social Security number with intent to deceive, and for making a false claim to U.S. Citizenship. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Ruiz to probation for a term of 3 years, including a condition for home detention for 180 days. Ruiz may later face removal (deportation) from the United States to Guatemala by immigration authorities.
In March of 2022, Homeland Security Investigations (HSI) received information from the Nebraska Department of Motor Vehicles (NEDMV) Fraud Unit regarding an identity theft case under investigation by the Dixon County Sheriff’s Office (DCSO). A suspect in that case used fraudulent identity documents in the name of C.M. to work at Michael’s Foods in Wakefield, Nebraska. The suspect told the DCSO deputy that she had used a Social Security card and identification card (the fraudulent C.M. identity documents) obtained from Ruiz, and that Ruiz required that the suspect to return them to her (Ruiz) later.
HSI learned that Ruiz had been arrested by the U.S. Border Patrol in 2009, placed in removal proceedings at that time, and released. In 2020, HSI received information that the defendant was selling identity documents in Wakefield, Nebraska. She was arrested again but was released due to lack of jail space. At the time, she was not prosecuted for selling identity documents, but it was determined that she was working for Michael’s Foods in Wakefield under another identity, “A.C.”.
At the time she was arrested in this case she was working at Williams Form Engineering in Wayne, Nebraska under the identity of C.M., the same identity she provided to the suspect in the Dixon County case for use at Michael’s Foods. Ruiz used counterfeit identity documents in C.M.’s name including a Kansas Identification Card and a Social Security Card bearing the C.M.’s Social Security Number, as proof of identity to obtain employment. Ruiz also attested that she was a U.S. Citizen during the hiring process.
This case was investigated by Homeland Security Investigations and the Nebraska Department of Motor Vehicles Fraud Unit.
Georgia Men Convicted in Separate Project Safe Childhood Cases for Possessing Child Sexual Abuse MaterialRead the Press Release
MACON, Ga. – A former U.S. Airman and a repeat child sex offender both admitted to possessing child sexual abuse material (CSAM) involving minor victims in separate Project Safe Childhood cases in the Middle District of Georgia this week.
Kenneth Queen, 35, of Forsyth, Georgia, and formerly of Dayton, Tennessee, pleaded guilty to two counts of possession of child sexual abuse material and one count of failure to register as a sex offender today before U.S. District Judge Marc Treadwell. Queen faces a maximum sentence of 20 years in prison for each count of possession of CSAM, a maximum sentence of ten years in prison for failing to register as a sex offender and a maximum lifetime of supervised release. Queen will also have to register as a sex offender for life upon his release from prison. Sentencing for Queen is scheduled for July 13, 2023.
Justin Wayne Pallett, 29, of Warner Robins, Georgia, was sentenced to serve 210 months in prison to be followed by a lifetime on supervised release by U.S. District Judge Tilman E. “Tripp” Self III on April 4, after he previously pleaded guilty to possession of child sexual abuse material. Pallett will have to register as a sex offender for life upon his release from federal prison. There is no parole for federal convictions.
“Our office will work tirelessly to protect children from child predators,” said U.S. Attorney Peter D. Leary. “Through Project Safe Childhood, our office has a team of prosecutors working with law enforcement from every level dedicated to protecting our most vulnerable citizens from child victimization.”
According to public records, Queen was convicted of sexual battery against a child under 16 and child molestation in Madison County, Georgia, Superior Court on Oct. 27, 2008. Queen was required to register as a sex offender for life. After his conviction, Queen relocated to Tennessee, where he registered as a sex offender. Queen was residing in Monroe County, Georgia, in the summer of 2020 when it was reported to authorities that he was unlawfully tattooing children. Queen was found in possession of graphic child sexual abuse material he captured involving a young child. Queen was required to be registered as a sex offender at the time, but had not registered himself in Monroe County as the law required him to do. For the protection of the minor victim, a portion of Queen’s plea agreement will remain sealed.
According to Pallett’s plea agreement, the mother of a 13-year-old girl reported to law enforcement in November 2020 that her daughter had exchanged sexually explicit Snapchat and Facebook messages and images with a 26-year-old male. The male was later identified as Pallett, who was an active duty service member assigned to Robins Air Force Base. A search warrant executed on Pallett’s Snapchat account revealed he was engaged in similar sexually explicit communication with numerous underage girls. Agents found 178 images and six videos of child sexual abuse material on Pallett’s electronic devices—a cell phone, tablet, laptop and PC—including 14 images found within the National Center for Missing and Exploited Children (NCMEC) database.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The Queen case was investigated by the Monroe County Sheriff’s Office, FBI and the U.S. Marshals Service. Assistant U.S. Attorney Joy Odom is prosecuting the case.
The Pallett case was investigated by the U.S. Air Force, Office of Special Investigations. Deputy Criminal Chief Will Keyes prosecuted the Pallett case.
Four Charged in State Bribery SchemeRead the Press Release
Rick Johnson, former Chairperson of the Michigan Medical Licensing Board, and three others have agreed to plead guilty and cooperate in ongoing investigation
LANSING – U.S. Attorney for the Western District of Michigan Mark Totten today announced that four men were charged in federal court for participating in the bribery of Rick Johnson, the former Chairperson of the Michigan Marijuana Licensing Board. All four defendants are cooperating with the investigation and have agreed to plead guilty to their offense.
"Public corruption is a poison to any democracy. Those who wield the power of state have a sacred obligation to serve the people they represent. But when a government official takes a bribe, they spurn that solemn duty – in favor of the connected, the crooked, and ultimately themselves,” said U.S. Attorney Mark Totten. "Now and always, my office will place the highest priority on rooting out public corruption, with independence and impartiality.”
U.S. Attorney Totten charged the following individuals today:
- Rick Vernon Johnson, 70, of Leroy was charged with Accepting a Bribe, a felony offense punishable by up to 10 years in federal prison and a $250,000 fine.
- John Dawood Dalaly, 70, of West Bloomfield was charged with Payment of a Bribe, a felony offense punishable by up to 10 years in federal prison and a $250,000 fine.
- Brian Dennis Pierce, 45, of Midland was charged with Conspiracy to Commit Bribery, a felony offense punishable by up to 5 years in federal prison and a $250,000 fine.
- Vincent Tyler Brown, 32, of Royal Oak was charged with Conspiracy to Commit Bribery, a felony offense punishable by up to 5 years in federal prison and a $250,000 fine.
According to court documents, Rick Johnson was a member and the Chairperson of the Michigan Medical Marijuana Licensing Board (MMLB) between May 2017 and April 2019. John Dalaly operated two companies that were formed with the purpose of obtaining various operating licenses from the MMLB or exploring the licensing of a digital currency platform for medical marijuana financial transactions. Brian Pierce and Vincent Brown were lobbyists doing business as Philip Alan Brown Consulting, LLC and Michigan Grower’s Consultants, LLC, who lobbied on behalf of businesses and individuals who were seeking operating licenses from the MMLB. Johnson provided valuable non-public information about the anticipated rules and operation of the MMLB and assistance with license application matters to Dalaly, Pierce, Brown, and others that paid money to Johnson while he was Chairperson of the MMLB. The cash payments were made to three business entities, which Johnson used to accept payments from the companies, Philip Alan Brown Consulting, LLC, and Michigan Grower’s Consultants, LLC, to help hide those payments to Johnson while he was Chairperson of the MMLB. Between July 2018 and April 2019, Johnson voted in favor of approving the prequalification status of one of Dalaly’s companies and a company that was represented by Pierce and Brown and voted in favor of granting medical marijuana licenses to those companies.
All four defendants have agreed to plead guilty in written plea agreements that will be filed with the Court today. Johnson’s plea agreement states that he accepted more than $100,000 in cash payments and benefits while he was a member and Chairperson of the MMLB. Dalaly’s plea agreement states that he gave at least $68,200 in cash payments and other benefits to Johnson, including paying for Johnson’s travel on two private chartered flights to Canada. Pierce’s and Brown’s plea agreements state that they caused at least $42,000 in cash payments and other benefits to be given to Johnson. The defendants have agreed to cooperate with the FBI and the U.S. Attorney’s Office in the investigation of the charges as well as of any other federal crimes, including full, complete, and truthful interviews and testimony.
“It is always a sad day when someone who enjoys the trust of the people abuses that trust for his or her personal gain,” said James A. Tarasca, Special Agent in Charge of the FBI in Michigan. “Public corruption is a top investigative priority for the FBI and today’s charges represent our continued commitment to working with the United States Attorney’s Office to ensure residents receive the fair and honest government to which they are entitled.”
The FBI’s investigation into this matter is ongoing. Assistant United States Attorneys Christopher O’Connor and Clay Stiffler are prosecuting the case on behalf of the United States.
A Felony Information contains allegations of criminal conduct, and all defendants are presumed innocent under the law until they are found guilty by the court or a jury.
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Former St. Louis Postal Worker Accused of Stealing and Depositing Checks Taken from MailRead the Press Release
ST. LOUIS – An ex-employee of the U.S. Postal Service has been accused in an indictment of stealing checks from the mail and then depositing them in her own account.
Porcia Denise Rhodes, 26, of St. Louis, Missouri, was indicted March 8 on four counts of bank fraud and one count of theft of mail by an employee of the U.S. Postal Service. She appeared in U.S. District Court in St. Louis and pleaded not guilty Wednesday.
The indictment alleges that between July 26, 2022 and Sept. 22, 2022, Rhodes stole checks from the mail, replaced the payee’s name on the check with her own and then used a mobile device to deposit them. Rhodes altered and deposited or attempted to deposit 21 checks totaling $5,035, victimizing 21 people and 13 financial institutions, the indictment says.
The bank fraud charges are punishable by up to 30 years in prison, a $1 million fine or both. The theft charge is punishable by up to five years 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 U.S. Postal Inspection Service. Assistant U.S. Attorney Linda Lane is prosecuting the case.
Former Potosi Police Officer Accused of Child Sex TraffickingRead the Press Release
ST. LOUIS – A former Potosi, Missouri police officer appeared in federal court Thursday to face charges of sex trafficking, solicitation of child pornography and coercion and enticement of a minor.
Matthew N. Skaggs, 39, was indicted March 29 and arrested Wednesday. The indictment alleges that between January 1 and August 10 of 2022, Skaggs enticed or solicited three minors into engaging in a commercial sex act, solicited a visual depiction of a minor engaging in sexually explicit conduct and attempted to persuade a minor to engage in sexual acts.
A motion seeking to have Skaggs held in jail until trial says he gave vape cartridges to one minor in exchange for pornographic images, paid another via CashApp not to reveal sexual abuse and sexually abused a third minor. Skaggs met the alleged victims through his work as a police officer or committed sex acts while on duty or in uniform, the detention motion says.
Anyone who believes they are a victim or has information about other offenses is asked to call the Missouri Highway Patrol at 573-751-3313.
The sex trafficking and coercion charges are each punishable by a minimum of 10 years in prison and a maximum of life. The solicitation of child pornography charge carries a minimum five-year term and a maximum of life in prison. All also are punishable by a fine of up to $250,000.
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 Missouri State Highway Patrol. Assistant U.S. Attorney Jillian Anderson is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former Hospice Care Owner Convicted of Defrauding MedicareRead the Press Release
LAFAYETTE, La. – A federal jury has returned a guilty verdict against Kristal Glover-Wing, 50, of Broussard, Louisiana, for one count of conspiracy to commit health care fraud and three counts of health care fraud following a trial that lasted nearly four weeks, announced United States Attorney Brandon B. Brown. Dr. Gary M. Wiltz and Dr. Charles H. Louis were each acquitted on their charges in the indictment. Judge Robert R. Summerhays presided over the trial.
Glover-Wing was the owner of Angel Care Hospice (“Angel Care”), a Louisiana corporation that purported to provide hospice services in Lafayette Parish and other parishes in the Western District of Louisiana. Through evidence presented at trial, jurors learned that from approximately 2009 through 2017, over 24 patients were placed on hospice by Angel Care without meeting the criteria required by Medicare. During the time period that the patients were on hospice and under the care and supervision of Angel Care, none of them had been diagnosed with a terminal illness. In fact, many of the patients themselves, who are still alive and thriving many years later, as well as family members of other patients, testified that they never knew that they had been placed on hospice. The testimony revealed that while on hospice care, many of the patients were living normal lives and although most of them did have medical conditions, none had been diagnosed as being terminally ill. The fraudulent claims submitted to Medicare and reimbursed to Angel Care resulted in a loss of approximately $1,539,161.10 to Medicare.
“Krystal Glover-Wing defrauded the government and we thank the jury for holding her accountable. We will now move forward to her sentencing hearing,” stated U.S. Attorney Brandon B. Brown. “I thank the trial team and investigators for staying the course throughout years of investigating and a hard-fought trial. Although the doctors in this case were ultimately acquitted, we as prosecutors present the facts to a federal grand jury when we truly believe there has been a violation of federal law that we can prove beyond a reasonable doubt. Furthermore, if the grand jury decides to indict, we are not afraid to proceed to trial and give a federal trial jury the chance to ultimately decide someone’s guilt or innocence based on the evidence that we have. The verdict rendered in this case is evidence that the system can be just, fair and the trial jury has the ultimate prerogative to convict or acquit.”
“Whenever Medicare providers are motivated by greed, our most vulnerable citizens, the elderly, are put at risk,” said Assistant Special Agent in Charge Jeff Richards of the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG agents will continue to work closely with our law enforcement partners to investigate providers who loot the Medicare Trust Fund.”
Glover-Wing faces a sentence of up to 20 years in prison on the conspiracy to commit health care fraud charge, up to 10 years in prison on the health care fraud charges, 3 years of supervised release, and a fine of up to $250,000.
The case was investigated by the Department of Health and Human Services, Office of Inspector General, and Federal Bureau of Investigation, and prosecuted by Assistant U.S. Attorneys Kelly P. Uebinger, Danny Siefker, and Lauren L. Gardner.
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Former Hawaii State Representative Sentenced to 24 Months in Federal PrisonRead the Press Release
HONOLULU – Senior United States District Judge Susan Oki Mollway sentenced Ty J.K. Cullen, age 42, former Hawaii State Representative and Vice Chair of the House Committee on Finance to serve 24 months in federal prison for honest services wire fraud which consisted of his acceptance of multiple bribes in return for performing, and agreeing to perform, official legislative acts on behalf of a Hawaii businessperson.
According to the prosecution’s argument to the Court, Cullen accepted bribery payments on eight (8) separate occasions over the course of several years from a person identified as “Person A” in the Information. Cullen initially accepted casino chips in New Orleans from Person A and later supported legislation that would benefit Person A’s company. More recently, in September of 2019, Cullen accepted a $5,000 bribe from Person A for anticipated legislative assistance that would benefit Person A’s company. Cullen subsequently accepted payments in the amounts of $3,000 in December 2019, $5,000 in January 2020, and then $10,000 on March 10, 2020, $2,000 in June 2021 and $5,000 in October 2021. The payments Person A made to Cullen were for the purpose of influencing Cullen to support or manipulate legislation that would benefit Person A’s company.
According to other information provided to the court, on his annual mandatory gift disclosure reports, Cullen failed to report any of the bribes and gifts paid and given to him by Person A. As a part of his official gift disclosure submissions, Cullen emailed a false and misleading disclosure form, thereby using interstate commerce.
“Cullen’s acceptance of bribes while serving as a state legislator significantly undermined the public’s confidence in its elected officials,” said U.S. Attorney Clare E. Connors. “By using his position to accumulate personal wealth, he betrayed the trust of those who elected him . This office has prioritized public corruption investigations and will hold officials who violate the public trust accountable by prosecuting them to the full extent of the law.”
"The insidious nature of public corruption is such that it gradually erodes the very fabric of our society, causing widespread damage to our institutions and corroding the public's trust in them," said FBI Special Agent in Charge Steven Merrill. "This sentence unequivocally signals that acts of public corruption will not be condoned, and that the FBI will persist in its relentless efforts to investigate these individuals who misuse their positions of power for personal gain."
The Federal Bureau of Investigation conducted the investigation that resulted in the filing of the Information. Assistant U.S. Attorneys Ken Sorenson, Micah Smith and Michael Albanese handled the prosecution.
Former Federal Correctional Officer Indicted for Sexual Abuse of an InmateRead the Press Release
A federal grand jury returned an indictment charging a former federal correctional officer with one count of sexual abuse of an individual in federal custody.
The indictment alleges that, between October 2021 and August 2022, Lenton Jerome Hatten, 54, of Tallahassee, Florida, engaged in sexual acts with an inmate while employed as a sports specialist for the Bureau of Prisons.
Hatten made his initial appearance in federal court this afternoon.
Trial for Hatten is set for June 5 at 8:15 a.m., at the U.S. Courthouse in Tallahassee before the Honorable Senior U.S. District Judge Robert L. Hinkle.
If convicted, Hatten faces a maximum sentence of 15 years in federal prison, five years to life on supervised release, and a maximum $250,000 fine.
U.S. Attorney Jason R. Coody for the Northern District of Florida made the announcement.
The FBI and the Justice Department’s Office of the Inspector General investigated the case.
Assistant U.S. Attorney James A. McCain for the Northern District of Florida is prosecuting this case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Federal Correctional Officer Indicted for Sexual Abuse of an InmateRead the Press Release
TALLAHASSEE, FLORIDA – Lenton Jerome Hatten, 54, of Tallahassee, Florida, was indicted by a federal grand jury charging him with one count of sexual abuse of an individual in federal custody. The indictment was announced by Jason R. Coody, United States Attorney for the Northern District of Florida. Hatten made his initial appearance in federal court to face the charge this afternoon.
The indictment alleges that, between October 2021, and August 2022, Hatten engaged in sexual acts with an inmate while employed as a sports specialist for the Bureau of Prisons.
Trial for Hatten is set for June 5, 2023, at 8:15 a.m., at the United States Courthouse in Tallahassee before the Honorable Senior United States District Judge Robert L. Hinkle.
If convicted, Hatten faces a maximum sentence of 15 years in federal prison, 5 years to Life on supervised release, and a maximum $250,000 fine.
The case was investigated by the Federal Bureau of Investigation and the Department of Justice Office of the Inspector General. The case is being prosecuted by Assistant United States Attorney James A. McCain.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office for the Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Former D.A.R.E. officer sentenced to over 15 years in prison for child pornography crimesRead the Press Release
DAYTON, Ohio – A former longtime Beavercreek police officer was sentenced in U.S. District Court here today to 181 months in prison for committing two federal child pornography crimes.
Kevin A. Kovacs, 60, of Fairborn, was arrested in April 2020 and indicted by a federal grand jury in June 2020. He pleaded guilty in February 2022 to transporting and possessing child pornography.
“The law holds everyone accountable, no matter who they are or what their profession is,” said U.S. Attorney Kenneth L. Parker. “As a law enforcement officer, Kovacs should have been a trusted member of society, but instead he victimized children. He deserves this time in federal prison.”
Kovacs was employed as a police officer with the Beavercreek Police Department from 1992 until his retirement in 2018. He spent the last six years of his police career as the D.A.R.E. officer in the Beavercreek City Schools.
According to court documents, between April 2015 and July 2017, Kovacs uploaded more than 300 images and 2,200 videos depicting child pornography to his Dropbox account. Videos featured the sexual abuse of children as young as toddler-aged. One video depicted a toddler lying on a diaper whose arms and legs were bound by black tape.
Kovacs also used online messenger, social media, cloud storage and email accounts to transport and possess child pornography.
In total, as of December 2019, Kovacs possessed more than 780 images and 5,100 videos of child pornography.
He was further sentenced to 15 years of supervised release after completion of his prison term and ordered to pay $45,000 in restitution to victims.
Kenneth L. Parker, United States Attorney, Southern District of Ohio; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Fairborn Police Chief Terry Bennington and Beavercreek Police Chief Jeff Fiorita announced the sentence imposed today by U.S. District Judge Michael J. Newman. Assistant United States Attorney Dwight K. Keller is representing the United States in this case.
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Former City of Kenner Director of Inspection and Code Enforcement Sentenced to 46 Months ImprisonmentRead the Press Release
NEW ORLEANS, LA – The U.S. Attorney’s Office announced today that United States District Court Judge Lance M. Africk sentenced JAMES MOHAMAD, 54, of Kenner, to forty-six (46) months imprisonment. MOHAMAD pleaded guilty to conspiracy to using an interstate facility with intent to carry on unlawful activity (Title 18, United States Code, Sections 371 and 1952(a)(3)) and filing false tax returns (Title 26, United States Code, Section 7206(1)). Additionally, MOHAMAD was ordered to pay a $100,000 fine, $314,902 in restitution to the IRS, and a mandatory $200 special assessment fee. Upon release from imprisonment, he will serve a three (3) year term of supervised release.
According to court documents, MOHAMAD, the former Director of the Department of Inspection and Code Enforcement for the City of Kenner, bribed Brian Medus, the Assistant Chief Mechanical Inspector for the City of New Orleans, Safety and Permits Department with money, in return for the issuance of fraudulent permits for MOHAMAD’s HVAC jobs. Throughout the conspiracy, MOHAMAD paid Medus and others approximately $93,000 to further the bribery scheme. Additionally, MOHAMAD filed false individual tax returns that omitted substantial amounts of income, thus understating the income tax due the IRS.
Co-defendant, Brian Medus, pleaded guilty to the conspiracy charge and is scheduled for sentencing on May 3, 2023.
“James Mohamad intentionally defrauded the government by filing false individual tax returns which omitted substantial amounts of income and paying bribes to public officials” said James E. Dorsey, Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “The sentencing shows that no one is above the law and that those who abuse their public positions and trust to commit illegal acts will be held accountable.”
"James Mohamad jeopardized the safety of countless homeowners who trusted him for more than a decade," said Douglas A. Williams, Jr. Special Agent in Charge of FBI New Orleans. "Those homeowners were unaware he was taking dangerous shortcuts in bribing a city official, hiding behind the legitimate permits of other contractors, and further concealing the dangers by inspecting his own work. We thank our partners, the United States Attorney's Office for the Eastern District, Internal Revenue Service, Louisiana State Licensing Board for Contractors and the New Orleans Office of Inspector General, who helped construct a strong case to put this con man out of business."
This matter was investigated by the Federal Bureau of Investigation, the Internal Revenue Service-Criminal Investigations, and the City of New Orleans/Office of Inspector General. Assistance was also provided by the Louisiana State Licensing Board for Contractors. Assistant United States Attorney Tracey N. Knight is prosecuting the matter.
Foreign National and Former Utah State University Student Club President Facing Federal Charges Relating to CARES Act COVID-19 FraudRead the Press Release
Salt Lake City, Utah – A federal grand jury in Utah returned an indictment charging a foreign national and former religious club president at Utah State University with CARES Act fraud.
According to the indictment, Mubarak Sulaiman Ukashat, 36, of Kaysville, Utah, who was living in Taylorsville, Utah, at the time of the alleged crime, executed a scheme to steal money intended for small businesses seeking COVID-19 economic relief loans through the Economic Injury Disaster Loan (EIDL) Program. As stated in the indictment, between June 2020 and July 2020, Ukashat, a former Utah State University Student Association Muslim Students Club President, submitted four fraudulent EIDL applications to the U.S. Small Business Association (SBA). He used the names of four people he had no connection to and directed the proceeds to be sent to the USUSA Muslim Students Club bank account at America First Credit Union, over which Ukashat had custody and control. Ukashat then used wire transfers to move the EIDL proceeds into another America First Credit Union account, over which he had ownership and control and held jointly with a relative before spending the CARES Act funds on unauthorized personal expenses. In total, the former USU graduate student allegedly applied for, illegally obtained, and misused over $300,000 in EIDL funds, for his own personal expenses. Ukashat’s expenses included purchasing a $45,900 GMC Yukon in cash; paying personal expenses, including at least $27,000 to electronic retailers; $21,000 to pay off a car loan; $20,000 in apparent debt payments; $10,000 in earnest money to buy a house; $5,200 for college expenses; other cash withdrawals, wires, and miscellaneous household purchases; and the wiring of approximately $15,000 to someone in Nigeria and $20,000 to someone in Dubai.
Ukashat is charged with four counts of wire fraud, one count of aggravated identity theft, and two counts of money laundering. The defendant is scheduled for his initial court appearance April 7, 2023, at 2:15 p.m. in courtroom 8.4 before a U.S. Magistrate Judge at the Orrin G. Hatch United States District Courthouse in Salt Lake City, Utah.
U.S. Attorney Trina A. Higgins for the District of Utah made the announcement.
The case is being investigated by IRS – Criminal Investigation (CI).
Assistant U.S. Attorney, Todd Bouton, of the District of Utah is prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by 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 and https://www.justice.gov/coronavirus/combatingfraud.
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.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.Foreign National Sentenced to 33 Months in Prison for Participating in an International Scheme to Defraud Elderly VictimsRead the Press Release
NEWARK, N.J. – An Indian national was sentenced today to 33 months in prison, two years of supervised release and ordered to pay $2.4 million in restitution for his role in an international conspiracy that preyed on elderly victims in New Jersey and throughout the United States. Ashish Bajaj, 29, pleaded guilty on Aug. 4, 2022, before U.S. District Judge Kevin McNulty in Newark federal court to an information charging him with conspiracy to commit wire fraud.
Foot Guide Charged with Sexual Abuse of 17-Year-Old GirlRead the Press Release
NEWS RELEASE SUMMARY – April 6, 2023
SAN DIEGO – Cecilio Jimenez-Bautista of Mexico appeared in federal court today to face charges that he sexually abused a 17-year-old unaccompanied minor who he and his brother guided from Tijuana, Mexico into the United States in June 2022.
According to allegations in a grand jury indictment, Jimenez-Bautista and his brother, Alexander Jimenez-Bautista, guided the girl and other Mexican citizens from Mexico to the United States through the Otay Mountain Wilderness area with the intent to violate the immigration laws of the United States. Over the course of three days, the group was taken along remote, rugged and desolate paths before being apprehended by U.S. Border Patrol agents at an area near Otay Lakes Road.
During those three days, Cecilio Jimenez-Bautista repeatedly isolated the girl from the group and placed her in fear, and sexually abused her, the indictment said. He ultimately used her fear of him to cause her to engage in sex with him, causing her serious bodily injury.
Both brothers face charges related to their role as foot guides for an alien smuggling organization from June 2022 to February 2023.
“We will do everything in our power to protect children from harm,” said U.S. Attorney Randy Grossman. “The United States is committed to protecting the rights of all individuals on our soil, especially the most vulnerable.” Grossman thanked the prosecution team and investigating agencies for their excellent work on this case.
“The dangers of human smuggling cannot be overstated,” said Chad Plantz, special agent in charge, HSI San Diego. “According to the complaint, this child entrusted her safety to smugglers. They, in turn, demonstrated that they value profit over human life. HSI and its law enforcement partners are committed to investigating organizations and individuals involved in the exploitation of migrants.”
“We are continuously watchful and alert to deter, detect and prevent threats to any individual,” said San Diego Sector Chief Patrol Agent Aaron M. Heitke. “This includes working together with our law enforcement partners to identify smugglers, and their organizations, who take advantage and profit by placing human lives at risk.”
Assistant U.S. Attorneys Katherine McGrath and Edward Chang of the Southern District of California, and Trial Attorney Danielle L. Hickman of the Human Rights and Special Prosecutions Section of the Criminal Division of the Department of Justice are prosecuting the case.
DEFENDANTS Case Number 22cr1550-LL
Cecilio Yonatan Jimenez-Bautista Age: 26
Alexander Jimenez-Bautista Age: 20
SUMMARY OF CHARGES
Cecilio Jimenez Bautista
Conspiracy to Bring in Aliens Resulting In Serious Bodily Injury, 8 U.S.C. §§ 1324(a)(1)(A)(i), (v)(1), and (a)(1)(B)(iii)
Maximum Penalty: Twenty years
Abusive Sexual Contact, 18 U.S.C. § 2244(b)
Maximum Penalty: Two years
Sexual Abuse by Fear, 18 U.S.C. § 2242(1)
Maximum Penalty: Life in prison
Bringing an Alien to the United States for Financial Gain and Aiding and Abetting,
8 U.S.C. § 1324(a)(2)(B)(ii), and 18 U.S.C. § 2
Maximum Penalty: Fifteen years (Five years mandatory minimum)
Alexander Jimenez-Bautista
Conspiracy to Bring in Aliens Resulting In Serious Bodily Injury, 8 U.S.C. §§ 1324(a)(1)(A)(i), (v)(1), and (a)(1)(B)(iii)
Maximum Penalty: Twenty years
Bringing an Alien to the United States for Financial Gain and Aiding and Abetting,
8 U.S.C. § 1324(a)(2)(B)(ii), and 18 U.S.C. § 2
Maximum Penalty: Fifteen years (Five years mandatory minimum)
AGENCY
Homeland Security Investigations
U.S. Border Patrol
Joint Task Force Alpha
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
This case was supported by Joint Task Force Alpha (JTFA). JTFA was created by the Attorney General in June 2021 in partnership with the Department of Homeland Security (DHS), to strengthen the Department’s overall efforts to combat these crimes based on the rise in prolific and dangerous smuggling from and through Central America and impacting our border communities. JTFA’s goal is to disrupt and dismantle those human smuggling and trafficking networks operating in El Salvador, Guatemala, Honduras, and Mexico, with a focus on networks that endanger, abuse or exploit migrants, present national security risks, or engage in other types of transnational organized crime.
The U.S. Attorney’s Office for the Southern District of California helps lead JTFA, which is comprised of detailees from southwest border U.S. Attorney’s Offices, including the Southern District of Texas, the Western District of Texas, the District of New Mexico, the District of Arizona, and the Southern District of California, and dedicated support for the program is also provided by numerous components of the Criminal Division that are part of JTFA – led by the Human Rights and Special Prosecutions Section (HRSP), and supported by the Office of Prosecutorial Development, Assistance, and Training (OPDAT), the Narcotic and Dangerous Drug Section (NDDS), the Money Laundering and Asset Recovery Section (MLARS), the Office of Enforcement Operations (OEO), the Justice Department’s Office of International Affairs (OIA), and the Organized Crime and Gang Section (OCGS). JTFA is made possible by substantial law enforcement commitment from DHS, FBI, Drug Enforcement Administration (DEA), and other partners.
Florida Man Admits Buying Gift Cards with Stolen Bank Account InformationRead the Press Release
ST. LOUIS – A man from Florida caught with more than $12,000 in Walmart gift cards that he’d bought using stolen bank account information pleaded guilty Thursday to a federal felony.
Juseph Eugene Suero-Olmeda, 23, admitted using stolen bank information to purchase Walmart gift cards. He then shipped the cards to an associate in Florida.
The Wright City Police Department stopped Suero-Olmeda’s vehicle for speeding on Oct. 3, 2021, and found the gift cards, which had recently been purchased from Walmart stores in Wentzville, Lake St. Louis and St. Peters, Missouri. Each gift card had a value of $480.
Suero-Olmeda pleaded guilty in front of U.S. District Judge John A. Ross. to one count of unauthorized use of an access device.
He is scheduled to be sentenced July 11. The crime carries a maximum penalty of 10 years in prison, a $250,000 fine, or both. Suero-Olmeda has also agreed to pay restitution.
The case was investigated by the U.S. Secret Service, the Wright City Police Department, the Warren County Sheriff’s Department, the St. Peters Police Department, the Wentzville Police Department and the Lake St. Louis Police Department. Assistant U.S. Attorney Jennifer Roy is prosecuting the case.
Five current and former police officers convicted in multi-million-dollar COVID-19 loan schemeRead the Press Release
NEWNAN, Ga. – Former Fulton County Sheriff’s Office deputy Katrina Lawson has been found guilty by a federal district court jury of conspiracy to commit wire fraud, wire fraud, bank fraud, mail fraud, and money laundering in connection with a wide-ranging Paycheck Protection Program and Economic Injury Disaster Loan program small business loan scheme.
“The jury found Lawson guilty on all charges brought against her, adding to the previous convictions of 11 of her co-conspirators,” said U.S. Attorney Ryan K. Buchanan. “In a time of crisis when the federal government sought to save small businesses from the significant, negative impacts of COVID-19, Katrina Lawson and her co-conspirators stole funds intended for these vulnerable businesses.”
“The verdict clearly illustrates that individuals who engage in fraudulent activities will be held accountable for their actions,” said Tommy D. Coke, Inspector in Charge of the Atlanta Division. “An extensive investigation by Postal Inspectors revealed the defendant and her co-conspirators took advantage of COVID-19 funds that were designated to assist small businesses for their own financial gain.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: On August 11, 2020, agents from the U.S. Postal Inspection Service (USPIS) conducted a search at Alicia Quarterman’s residence in Fayetteville, Georgia related to an ongoing narcotics trafficking investigation. Inspectors seized Quarterman’s cell phone and a notebook during the search.
In the phone and notebook, law enforcement discovered evidence of a Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program scheme masterminded by Lawson (Quarterman’s distant relative and best friend). Lawson’s cell phone was also seized later as a part of the investigation.
The text messages found in Lawson’s and Quarterman’s cell phones revealed that Lawson had identified a vulnerability in the PPP and EIDL programs and exploited it. Because of Congress’s goal of getting CARES Act funding into the hands of small businesses as quickly as possible, both programs relied heavily on the honesty of the applicants seeking funds. As a result, Lawson and Quarterman recruited several other people, who did not actually own registered businesses, to provide them with their personal and banking information. Once Lawson ultimately obtained that information, she completed fraudulent applications and submitted them to the Small Business Administration and banks for forgivable small business loans and grants.
Lawson was responsible for recruiting more than 200 individuals to participate in this PPP and EIDL fraud scheme. Three of the individuals she recruited were active sheriff’s deputies and one was a former U.S. Army military policeman. Lawson submitted PPP and EIDL applications seeking over $6 million in funds earmarked to save small businesses from the impacts of COVID-19. She and her co-conspirators ultimately stole more than $3 million. Lawson used a portion of these funds to purchase a $74,492 Mercedes Benz, a $13,500 Kawasaki motorcycle, $9000 worth of liposuction, and several other expensive items.
Several of Lawson’s co-defendants were previously convicted as a part of this case on charges of conspiracy to commit wire fraud and theft of government funds, mail fraud, money laundering, or related offenses:
- Alicia Quarterman, 40, of Fayetteville, Georgia;
- Tranesha Quarterman, 35, of Atlanta, Georgia, a former U.S. Army military policeman;
- Nikia Wakefield, 44, of Rockville, Maryland;
- Darryl Washington, 68, of Atlanta, Georgia;
- Adarin Jones, a/k/a Adrian Jones, 44, of Atlanta, Georgia;
- Katie Quarterman, 30, of Atlanta, Georgia;
- Victor Montgomery, 45, of Washington, D.C.;
- India Middleton, 36, of Accokeek, Maryland, a former Arlington County Sheriff’s Office deputy;
- Jeffrey Moffett, 54, of Jonesboro, Georgia, a former Fulton County Sheriff’s Office deputy; and
- Stephanie R. Cooper, 50, of Decatur, Georgia, a current Fulton County Sheriff’s Office deputy.
Sentencing for Katrina Lawson, 43, of Houston, Texas, is scheduled for July 6, 2023, at 10:00 a.m., before U.S. District Judge Timothy C. Batten, Sr. In determining the actual sentence, the Court will consider the U.S. Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders.
This case is being investigated by the U.S. Postal Inspection Service.
Assistant U.S. Attorneys Miguel R. Acosta, Alex Sistla, Radka Nations, and Chris Huber are 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.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Federal prosecutor named as First Assistant U.S. Attorney for Southern District of GeorgiaRead the Press Release
SAVANNAH, GA: Southern District of Georgia U.S. Attorney Jill E. Steinberg has announced the appointment of Tara M. Lyons as First Assistant U.S. Attorney, effective April 9.
First Assistant U.S. Attorney Lyons currently is the Deputy Criminal Chief and an Assistant U.S. Attorney serving in the Southern District’s Augusta Office and a 20-year veteran prosecutor for the U.S. Department of Justice (DOJ).
“Tara’s ability, drive, and passion to advance the DOJ mission makes her a clear choice for an executive role in this District,” U.S. Attorney Steinberg said. “The office will benefit enormously from her exceptional insight, leadership acumen, and depth and breadth of experience.”
A native of New York, Lyons is a graduate of South Carolina State University and the University of South Carolina School of Law. She started her professional career as a law clerk for the Honorable Henry F. Floyd during his service as a South Carolina Circuit Court Judge with the 13th Judicial Circuit of South Carolina, followed by more than three years as a public defender in Richland County, S.C. Lyons joined DOJ in 2003, serving as an Assistant U.S. Attorney in the District of South Carolina before transferring to the Southern District of Georgia as a criminal prosecutor.
“I am deeply honored to be chosen to serve in a greater leadership role with the exceptional team in the Southern District U.S. Attorney’s Office,” Lyons said. “It is a humbling experience to fight for justice on behalf of victims in the courtroom, and I am excited to take on a role that allows higher-level advocacy on behalf of all victims served in our judicial circuit.”
In the Southern District of Georgia, Lyons has served as Deputy Chief of the Criminal Division, Project Safe Childhood Coordinator, and Criminal Civil Rights Coordinator. She served as lead counsel in the first federal hate crimes prosecution in the Southern District of Georgia, United States v. McMichael et al., securing a conviction for the murder of Ahmaud Arbery in Brunswick, Ga.
As First Assistant U.S. Attorney, Lyons joins Criminal Division Chief Patricia M. Rhodes and Civil Division Chief Shannon H. Statkus as senior leadership in the Southern District U.S. Attorney’s Office.
U.S. Attorney Steinberg also announced Karl Knoche will remain in the front office of the U.S. Attorney’s Office as Senior Counsel to the U.S. Attorney. Knoche previously served as First Assistant U.S. Attorney, Senior Counsel to the U.S. Attorney, and Criminal Division Chief during his 34-year career at the U.S. Attorney’s Office in the Southern District.
Federal Way armed fentanyl dealer sentenced to 15 years in prisonRead the Press Release
Seattle – A 27-year-old Federal Way, Washington, resident was sentenced today in U.S. District Court in Seattle to 180 months in prison for distribution of fentanyl and carrying a firearm in commission of a drug trafficking crime, announced U.S. Attorney Nick Brown. Fernando Lopez-Armenta has been in custody since his arrest on August 4, 2021.
According to records filed in the case, a confidential source received a phone call from Lopez-Armenta on August 4, 2021, stating that he was willing to sell him fentanyl. Later that day, Lopez-Armenta met the confidential source in his car in Federal Way, intending to sell the source 10,000 fentanyl pills, with 4,000 more stashed in his car.
Once it was confirmed that Lopez-Armenta possessed illegal narcotics, agents moved in to arrest him. Upon seeing the agents, Lopez-Armenta stepped out of his car and pointed his loaded pistol in the direction of agents and the confidential source. Lopez-Armenta finally put his pistol down on the hood of his car after a verbal order from another agent. He was subsequently arrested. At the sentencing hearing, U.S. District Judge Coughenour stated, “The Court commends the arresting officers. The fact that Lopez-Armenta pointed a loaded gun at the officers, and they did not fire, shows tremendous restraint. He is lucky to be alive today.”
At trial in August, the jury found Lopez-Armenta guilty of one count of possessing fentanyl with the intent to distribute and one count of carrying a firearm in commission of that crime.
In asking for a prison sentence of 180 months plus five years of supervised release, Assistant United States Attorney Erika Evans argued to the Court, “The 10,000 fentanyl pills that Lopez-Armenta brought to this drug deal represented thousands of potential overdose deaths. And he did not just traffic deadly drugs—he did so while carrying a gun.”
The case was investigated by Homeland Security Investigations (HSI) and the Drug Enforcement Administration (DEA).
The case was prosecuted by Assistant United States Attorneys Erika Evans and Rebecca Cohen.
Elkhorn Man Sentenced to 102 Months for Distributing Child PornographyRead the Press Release
United States Attorney Steven A. Russell announced that John R. Steier, age 32, was sentenced in federal court today in Omaha, Nebraska, for distributing child pornography. Chief United States District Judge Robert F. Rossiter sentenced Steier to 102 months of imprisonment. There is no parole in the federal system. After completing his term of imprisonment, Steier will begin a 10-year term of supervised release. Steier was also ordered to pay $6,000 in restitution and a $4,000 assessment.
Between October 28, 2019, and April 29, 2021, from his Elkhorn, Nebraska, residence, Steier made child pornography available for download on the internet program eMule. On July 19, 2021, from the Glenwood, Iowa, fire department, Steier made child pornography available for download from the same eMule account. Steier was a fireman in Glenwood. On October 14, 2021, agents searched Steier’s Elkhorn residence. During the search, Steier took agents to the Glenwood fire department and agents obtained his laptop. Agents located approximately 80 videos of child pornography (40 unique) on the laptop.
This case was investigated by the Federal Bureau of Investigation and was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Dominican National Sentenced to 30 Months in Federal Prison for Trafficking Fentanyl and HeroinRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that JEFFREY AMARANTE-PEREZ, 29, of the Dominican Republic, was sentenced yesterday by U.S. District Judge Vanessa L. Bryant in Hartford to 30 months of imprisonment, followed by three years of supervised release, for trafficking fentanyl and heroin.
According to court documents and statements made in court, this matter stems from a joint investigation headed by the DEA New Haven Task Force and the Waterbury Police Department into a Waterbury-based drug trafficking operation headed by Nestor Sosa-Ortiz. The investigation, which included the use of court-authorized wiretaps, physical surveillance, and controlled purchases of narcotics, revealed that Sosa-Ortiz’s organization received large quantities of fentanyl and heroin from suppliers in Connecticut and New York and distributed the narcotics through a network of co-conspirators, including Sanchez-Martinez. After Sosa-Ortiz was arrested in New York City on a separate federal heroin and fentanyl trafficking charge in May 2019, he continued to control his drug network while incarcerated by using smuggled cell phones to communicate with various co-conspirators.
The Sosa-Ortiz organization used an apartment located at 330 Bishop Street in Waterbury to store kilogram-quantities of fentanyl and heroin, and to process and package the drugs for street sale. On October 29, 2019, investigators arrested several members of the organization, executed search warrants at the Bishop Street apartment and four other locations, and seized approximately six kilograms of fentanyl and heroin, approximately 100,000 bags of fentanyl/heroin packaged for street distribution, approximately 1,000 fentanyl pills disguised as Percocet pills, one firearm, approximately $50,000 in cash, drug ledgers, and other items.
As the investigation continued, it revealed that Jeffrey Amarante-Perez and his brother, Jeisson Amarante-Perez, served as an alternate source of drug supply to the Sosa-Ortiz organization, and that Edwin Rivas-Cruz was a drug courier for the Amarante-Perez brothers. Jeisson Amarante-Perez and Rivas-Cruz were intercepted over a wiretap coordinating narcotics transactions, and drug ledgers seized from the Sosa-Ortiz organization in October 2019 indicated drug debts to Jeffrey Amarante-Perez of more than $30,000.
Jeffrey Amarante-Perez has been detained since his arrest on July 1, 2022. On November 15, 2022, he pleaded guilty to conspiracy to possess with intent to distribute heroin and fentanyl.
Jeisson Amarante-Perez, Rivas-Cruz, and Sosa-Ortiz have pleaded guilty and await 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 Lauren C. Clark and Jocelyn Courtney Kaoutzanis 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.
Dominican National Pleads Guilty to Possession with Intent to Distribute 630 Kilograms of CocaineRead the Press Release
St. Croix, VI – United States Attorney Delia L. Smith announced that Leandro De Los Santos, 33, of the Dominican Republic, 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. A sentencing date for De Los Santos has been set by the Court for August 4, 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 September 11, 2022, while on routine patrol south of the Dominican Republic, a maritime patrol aircraft detected a go-fast vessel navigating on a northerly course approximately 80 nautical miles south of Bani, Dominican Republic. The U.S.S. Billings was dispatched to the area when crew members observed that the vessel had no flag flown, no registration numbers and no name painted on its hull. The Dominican Republic Navy later advised that the vessel was not registered with their country. The vessel was therefore treated as one without nationality thereby subjecting it to laws of the United States. Onboard the vessel, the U.S.S. Billings boarding team detained De Los Santos and another individual and located 18 bales of cocaine weighing approximately 630 kilograms.
The United States Coast Guard, Homeland Security Investigations and Drug Enforcement Administration are investigating this case, and Assistant United States Attorney Evan Rikhye is prosecuting the case. This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Cryptocurrency Founder “Bruno Block” Pleads Guilty to Tax CrimesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that AMIR BRUNO ELMAANI, a/k/a “Bruno Block,” the founder of the cryptocurrency “Oyster Pearl,” pled guilty yesterday to tax offenses. In connection with his guilty plea, ELMAANI admitted that he had secretly minted and sold for his own gain Pearl cryptocurrency tokens, which caused the price of Pearl tokens to plummet, and that he did not pay income tax on certain cryptocurrency profits. ELMAANI agreed that he caused a tax loss of over $5.5 million. ELMAANI pled guilty before United States District Judge Colleen McMahon.
U.S. Attorney Damian Williams said: “Amir Elmaani violated the duty he owed to pay taxes on millions of dollars of cryptocurrency profits. As he admitted, he also violated the trust of investors in the cryptocurrency he founded. Our Office will continue to bring groundbreaking cases, like this one, to ensure participants in cryptocurrency markets play by the rules.”
Based on the allegations in the Indictment, in the Superseding Information to which ELMAANI pled guilty, the plea agreement, and other statements made and documents filed in court:
In September and October 2017, ELMAANI began promoting online a new cryptocurrency known as Pearl tokens. Using a variation of his online pseudonym “Bruno Block,” ELMAANI stated that he planned to develop an online data-storage platform, known as Oyster Protocol, which would allow users to purchase online data storage with Pearl tokens. Instead of using his real name, ELMAANI operated almost exclusively online under the pseudonym “Bruno Block.” ELMAANI concealed his true identity from his prospective employees and business associates and never met them in person.
In late October 2018, although the number of Pearl tokens was purportedly fixed, ELMAANI used his access to the blockchain technology used to create Pearl tokens to mint new tokens, which he took for his own personal use (the “Exit Scheme”). ELMAANI thereby increased the total volume of Pearl tokens. Shortly after creating the new tokens, ELMAANI converted the Pearl tokens he had obtained to other types of cryptocurrency on an online marketplace or exchange. As a result of ELMAANI’s conduct, trading in Pearl tokens halted on that exchange and the price of Pearl tokens held by investors dropped substantially. Pearl tokens were subsequently de-listed from the primary exchange where they were traded. Subsequent to the Exit Scheme, ELMAANI used his friends and family to receive cryptocurrency and to transfer funds to a bank account in his name.
While ELMAANI initially attempted to hide even “Bruno Block’s” involvement in the Exit Scheme, he later effectively admitted to the conduct online under his “Bruno Block” pseudonym. In a recorded call with the then-chief executive officer (“CEO”) of Oyster Protocol Inc., after the Exit Scheme, the CEO asked ELMAANI why he had to take the additional new Pearl tokens if he had already cashed out millions of dollars’ worth of Pearl tokens in the past. ELMAANI responded, in part, that “taxes are pretty nasty.” ELMAANI carried out the Exit Scheme only days before the exchange he had used to cash out his Pearl tokens was set to require “know your customer” personal identifying information from its users.
In connection with his plea, ELMAANI admitted in the plea agreement that:
In or about 2017, using the alias “Bruno Block,” I began an online project called the “Oyster Protocol.” In support of this project, an initial coin offering (“ICO”) was held in or about October 2017, in which a token named “Pearl” (“PRL”) was issued. I stated in public forums that after the ICO, the supply of PRL would not increase, and that the smart contract that created PRL would be “locked.” Contrary to these statements, on or about October 29, 2018, I used the smart contract to mint new PRL, without telling anyone, including others who worked on the Oyster Protocol project. I then sold these newly minted PRL on a digital trading platform. I was aware that the counterparties who were buying these newly minted PRL likely were not aware of my reopening of the smart contract, and did not know that I had just substantially increased the total supply of PRL. After Oyster management learned of my reopening of the smart contract and alerted the public, the price of PRL plummeted.
ELMAANI filed a false 2017 tax return stating that he had only approximately $15,000 of income from a “patent design” business, and he filed no return and reported no income to the Internal Revenue Service (“IRS”) in 2018. Nevertheless, ELMAANI spent, in 2018, over $10 million for the purchase of multiple yachts, $1.6 million at a carbon-fiber composite company, hundreds of thousands of dollars at a home improvement store, and over $700,000 for the purchase of two homes, one of which was titled in the name of a shell company and the other in the name of two of his associates. The tax loss to the United States from ELMAANI’s conduct was approximately $5,523,794.
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ELMAANI, 31, of Martinsburg, West Virginia, pled guilty to one count of subscribing to a false tax return for the year 2017, which carries a maximum sentence of three years in prison, and one count of failure to file a tax return for the year 2018, which carries a maximum sentence of one year in prison. ELMAANI also agreed to pay restitution in the amount of at least $5,523,794.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the investigative work of the Federal Bureau of Investigation and the IRS and also thanked the Securities and Exchange Commission and the Commodity Futures Trading Commission for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Margaret Graham, Adam Hobson, and Drew Skinner are in charge of the prosecution.
Copiah County Man Sentenced to 30 Years in Prison for Distribution of Crystal Meth and Heroin Laced with FentanylRead the Press Release
Jackson, Miss – A Crystal Springs man was sentenced to 30 years in prison for operating a drug trafficking organization that distributed heroin laced with fentanyl in addition to kilogram quantities of crystal methamphetamine throughout the metropolitan area.
Gregory Jamal Williams, a/k/a “Grip”, 43, was sentenced on April 5, 2023 in U.S. District Court in Jackson.
According to court documents, from as early as February 2019 through the date of his indictment in November 2020, Williams conspired with others and possessed with the intent to distribute crystal methamphetamine as well as heroin. Evidence demonstrated that the heroin was mixed with fentanyl.
In October 2022, Williams pled guilty to all counts in his federal indictment. Williams’s 30-year sentence includes penalties for acting as a supervisor or manager of the organization’s drug trafficking activities, for possession of firearms in connection with his drug trafficking activities, for committing his drug crimes as part of a pattern of criminal conduct engaged in as his livelihood, and for importation of methamphetamine from Mexico. Williams was previously convicted of various state drug crimes, including sale of drugs within 1500 feet of a church.
Williams’s son and co-defendant, Sage Braddy, is currently serving an 87-month federal sentence for his role in the drug trafficking operation.
U.S. Attorney Darren J. LaMarca of the Southern District of Mississippi and DEA Special Agent in Charge Brad Byerly made the announcement.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This OCDETF case is the result of an extensive investigation by the Drug Enforcement Administration, the Mississippi Bureau of Narcotics, the U.S. Postal Inspection Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Mississippi Highway Patrol.
Assistant U.S. Attorney Carla J. Clark prosecuted the case.
Charlotte Man Indicted for International Multi-Million Dollar Tech Support Fraud ScamRead the Press Release
CHARLOTTE, N.C. – Nachiket Banwari, 34, of Charlotte, was indicted by a federal grand jury for conspiracy to commit mail fraud, wire fraud, and money laundering, for his involvement in an international multi-million dollar tech support fraud scam, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. The federal indictment was unsealed today, following Banwari’s initial appearance in federal court.
Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, joins U.S. Attorney King in making today’s announcement.
According to allegations in the indictment, Banwari was part of a conspiracy with other individuals that carried out an international internet technical support fraud scam, through his management of Capstone Technologies LLC (Capstone), a company headquartered in Charlotte that claimed to provide computer-related services to its customers. Capstone allegedly conducted business using several different aliases, including Authenza Solutions LLC, MS-Squad Technologies, MS-Squad.com, MS Infotech, United Technologies, and Reventus Technologies.
According to allegations in the indictment, fraudulent internet pop-up “ads” were a central part of the conspiracy’s tech support scam. It is alleged that the fraudulent pop-ups suddenly appeared on victims’ computers freezing their screens and containing misrepresentations designed to trick the victims into believing their computer needed technical support to fix a problem, prompting victims to contact Capstone at a number shown on the pop-ups. When victims called Capstone’s India-based call center for assistance, the indictment alleges that victims were tricked into purchasing unnecessary technical support services from Capstone. The indictment further alleges that the conspirators defrauded thousands of victims throughout the United States, some of whom were elderly, of more than $7 million.
According to allegations in the indictment, Banwari agreed to obtain payment-processing services in his name on behalf of Capstone, in order to process victims’ payments to the conspirators, and laundered the proceeds domestically and internationally to bank accounts located in India. For his participation in the scheme, Banwari allegedly received three percent of the Capstone revenue.
The indictment also contains a notice of forfeiture, which gives notice that the defendant must forfeit to the United States all of the property, currency and monetary instruments involved in the offenses charged in the indictment. The government will pursue a forfeiture money judgment in the amount of at least $211,000, which the government contends constitutes the proceeds of the violations alleged in the charging document.
Banwari remains in federal custody. The mail fraud and wire fraud conspiracy charge and the money laundering conspiracy charge each carry a maximum prison term of 20 years.
The charges against Banwari are allegations. The defendant is innocent until proven guilty beyond reasonable doubt in a court of law.
The FBI conducted the investigation.
Assistant U.S. Attorney Matthew Warren of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
Central Iowa Man Charged for Preparing and Filing False Tax ReturnsRead the Press Release
Des Moines, IA – A Central Iowa man made his initial appearance today in federal court for numerous tax charges.
Bakou Kees Vonty (also known as Bob Vonty), 40, is charged in a 39-count indictment returned on March 21, 2023. As alleged in the indictment, from at least 2015 through 2021, Vonty prepared Individual Income Tax Returns for numerous customers who paid him to prepare and file their tax returns. Vonty acted as a “ghost preparer,” meaning that Vonty did not sign his customers’ tax returns when he prepared and filed them. Vonty prepared the customers’ tax returns but did not explain the contents of the returns to the customers, review the returns with the customers, or provide copies of the returns to the customers before Vonty electronically filed the returns with the Internal Revenue Service. Instead, Vonty would typically inform the customer of the amount of their anticipated refund. It is alleged that Vonty often included on his customers’ federal tax returns, schedules, and forms, items that Vonty knew to be false, such as false claims for business-expense deductions and education expenses. The effect of Vonty including false items on the tax documents was to increase the refunds his clients received.
In addition, it is alleged that Vonty also filed several of his own federal income tax returns knowing that they contained false information.
Vonty is charged with thirty-six counts of Preparing and Presenting a False Tax Return and three counts of Making and Subscribing a False Tax Return. If convicted, he faces a maximum penalty of three years in prison on each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. Internal Revenue Service Criminal Investigation is investigating the case. Assistant United States Attorney Adam J. Kerndt 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.
Career Offender Who Carjacked, Sexually Assaulted, and Stabbed Woman Sentenced to over 24 Years in PrisonRead the Press Release
RALEIGH, N.C. –David Earl Page, 54, of Maxton, North Carolina was sentenced yesterday to 293 months in prison for carjacking resulting in serious bodily injury after forcing a woman into a car at knifepoint and driving her to a remote location where he sexually assaulted her and then stabbed her when she attempted to escape. Page pled guilty on January 3, 2023.
According to court documents and other information presented in court, on March 11, 2021, a Robeson County Sheriff’s Deputy was approached by a female who was suffering from multiple stab wounds. The victim advised that while she was working at the South of the Border shopping center in Dillon, South Carolina, she was approached on a smoke break by a black male, later identified as Page, who put a knife to her throat—forcing her into her own vehicle. Page then drove the vehicle into Rowland, North Carolina, where he tied her hands and feet with a sheet. They traveled down a series of roads before stopping in a rural area where the victim was forced out of her vehicle and sexually assaulted. When she attempted to escape, Page grabbed her by her hair, beat her, and stabbed her with a knife. He then forced her back into the vehicle and drove around to different convenience stores to purchase different items, which was captured on video surveillance.
Page has a history of committing armed robberies and is a career offender.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina, made the announcement after sentencing by U.S. District Judge Terrence W. Boyle. The Bureau of Alcohol, Tobacco, Firearms, and Explosives, Robeson County Sheriff’s Office, and Dillon County Sheriff’s Office investigated the case and Assistant U.S. Attorney Chad Rhoades prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:21-CR-87-BO.
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Caldwell Man Sentenced to over 11 Years in Federal Prison for Possession of Child PornographyRead the Press Release
BOISE – Juan Salinas Jr., 48, of Caldwell, Idaho, was sentenced to 143 months in federal prison for possession of child pornography, U.S. Attorney Josh Hurwit announced today. Senior U.S. District Judge B. Lynn Winmill also sentenced Salinas to a lifetime of supervised release and entered an order forfeiting the electronic devices used to commit the offense. Salinas was ordered to pay $45,000 restitution to the victims in the images he possessed and will be required to register as a sex offender as a result of the conviction.
According to court records, the investigation began when Homeland Security Investigations (“HSI”) received a report that child pornography had been uploaded to a social media account that was later identified as belonging to Salinas. In March of 2022, HSI executed a federal search warrant at Salinas’ residence in Caldwell and seized a cellphone belonging to Salinas. During a forensic examination of the cellphone, HSI located hundreds of images and videos of child pornography, including files depicting infants and toddlers.
U.S. Attorney Hurwit, of the District of Idaho commended the cooperative efforts of Homeland Security Investigations, the Idaho Internet Crimes Against Children Task Force, the Caldwell Police Department, and Idaho Department of Corrections Probation and Parole, which led to charges.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. As part of Project Safe Childhood, the U.S. Attorney’s Office for the District of Idaho and the Idaho Attorney General’s Office partner to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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CPA Sentenced for Securities FraudRead the Press Release
CHARLOTTE, N.C. – United States District Judge Kenneth D. Bell sentenced Mac Wayne Billings, 49, of Raleigh, N.C. to 41 months in prison for defrauding investors in his company Alpha Finance Company (ALPHA) of at least $1.3 million, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, joins U.S. Attorney King in making today’s announcement.
On June 21, 2022, Billings was indicted by a grand jury in Charlotte for securities fraud. On September 13, 2022, Billings pleaded guilty and admitted that from 2016 through 2019, he made false representations to ALPHA investors concerning the use of their money and deliberately withheld important information about ALPHA’s business. Billings incorporated ALPHA on October 22, 2008, and opened its first office in Sparta, N.C. ALPHA made small loans—usually less than $7,000—to consumers, secured by used vehicles and other property that could be repossessed. Billings financed ALPHA with loans from local community residents that Billings promised to pay back with interest. At least 19 residents of Alleghany, Wilkes and Surry Counties, invested over $3.6 million in ALPHA “notes.”
Billings admitted that in 2016 he knew ALPHA was operating at loss, but was still soliciting new investors and telling existing investors that ALPHA was “doing well.” Billings used investment statements, emails and meetings to mislead and deceive victim-investors into believing that ALPHA was a profitable company and that the victims’ investments were safe. Billings also admitted that he failed to disclose material information to investors concerning ALPHA’s financial and business troubles, including that he had sold or mortgaged most of ALPHA’s assets to hard money lenders. Based on the fraudulent information provided by Billings, many of the victim-investors renewed and/or made additional investments with ALPHA, causing them to incur further financial losses.
As part of Billings sentence, Billings was ordered to pay approximately $3.5 million in restitution to investors who lost their retirement savings when ALPHA was closed by the North Carolina Commissioner of Banks (NCCOB) in June 2019.
On March 23, 2023, the North Carolina Board of Certified Public Accountant (CPA) Examiners revoked Billings’ CPA certification.
In making today’s announcement, U.S. Attorney King commended the FBI for their investigation of the case and thanked the Securities and Exchange Commission, the North Carolina Commissioner of Banks, and the North Carolina Attorney General’s Office for their cooperation.
Assistant U.S. Attorney Michael E. Savage of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Browning man sentenced for theft of artifacts from Museum of the Plains Indian on Blackfeet Indian ReservationRead the Press Release
GREAT FALLS — A Browning man who worked at the Museum of the Plains Indian on the Blackfeet Indian Reservation was sentenced today for stealing culturally significant artifacts, including a grizzly bear claw necklace, beaded moccasins and golden eagle feathers from a war bonnet, U.S. Attorney Jesse Laslovich said.
Chief U.S. District Judge Brian M. Morris sentenced Preston Jay Spotted Eagle, 32, to five years of probation, as recommended by both parties in a plea agreement, 250 hours of community service and ordered him to pay $16,860 restitution.
Spotted Eagle pleaded guilty in October 2022 to theft of government property.
“As an aide employed by the Museum of the Plains Indian, Spotted Eagle was entrusted with caring for culturally significant, sacred and priceless artifacts of the Blackfeet Nation, Crow, Lakota, and other Northern Plains tribes,” U.S. Attorney Laslovich said. “Instead, Spotted Eagle plundered the museum’s collection for his own benefit—damaging, as well as stealing, claws from a grizzly bear claw necklace, taking a pair of beaded moccasins, and removing golden eagle tail feathers from a rare full-length eagle headdress. Perhaps Spotted Eagle’s most egregious conduct was to rifle through sacred medicine bundles, not only causing physical damage, but also desecrating them. These irreplaceable cultural items represent the brave and valued history of our Native American brothers and sisters, which is why we will hold accountable anyone who seeks to engage in similar criminal conduct.”
“Protecting and preserving Indian art, culture, and heritage is of the utmost importance to the Indian Arts and Crafts Board (IACB), including through its Museum of the Plains Indian operations and programs,” stated IACB Director Meridith Stanton. “The IACB shares the outrage expressed by Blackfeet community members regarding the mishandling, destruction, and theft from the Museum of the Plains Indian of culturally significant and sacred Blackfeet collections by Mr. Spotted Eagle -- someone entrusted with their care and protection as a then Museum employee. The IACB is grateful for the outstanding work of the U.S. Fish and Wildlife Service Office of Law Enforcement and the Office of the U.S. Attorney – District of Montana in bringing Mr. Spotted Eagle to justice for his destructive and reckless actions.”
“Mr. Spotted Eagle not only stole from the museum, but also from the people of the Northern Plains Tribes,” said Edward J. Grace, Assistant Director of the U.S. Fish and Wildlife Service’s Office of Law Enforcement. “He also wore and damaged culturally significant items that are irreplaceable in spirit and value and his actions have robbed current and future generations of seeing these items intact and enjoying their significance. Today’s sentence was the result of the strong collaboration between our special agents, the Indian Arts and Crafts Board, and the U.S. Attorney’s Office.”
The government alleged in court documents that the thefts occurred between May and August 2021 from the Museum of the Plains Indian, in Browning, where Spotted Eagle was employed as an aide. None of the stolen items has been recovered. The Museum of the Plains Indian displays the arts of various Northern Plains Tribes and is managed by the U.S. Department of Interior’s Indian Arts and Crafts Board. All art held by the museum is property of the federal government. In August 2021, museum staff noticed that a bear claw necklace was missing from a display. The U.S. Fish and Wildlife Service investigated and identified Spotted Eagle as the thief.
The government alleged that the first item found to be missing was a grizzly bear necklace that contained 11 large claws. An employee assumed Spotted Eagle had removed it because she had given him an inventory assignment. When asked about the necklace, Spotted Eagle reported not knowing what happened to it. A review of security system video led to Spotted Eagle. When confronted again, Spotted Eagle said he believed he removed the necklace after seeing that it had fallen off its hanger. Spotted Eagle told the employee that nobody else needed to review the video and that he could guarantee the necklace was still in the museum. That afternoon, Spotted Eagle said he found the necklace under some papers in a collection room. The necklace was heavily damaged and appeared to have had four of the 11 claws removed and replaced with smaller claws.
Court documents further alleged that museum staff conducted an inventory to determine if there were other items missing and learned that an additional four loose grizzly bear claws, a pair of beaded moccasins and 26 golden eagle feathers from a war bonnet were gone. A review of surveillance footage showed that Spotted Eagle removed the pair of stolen moccasins, but first he held several different pairs of moccasins up to the bottom of his shoe for a size comparison. He later took the pair of moccasins and rearranged the other moccasins they were stored with so the missing pair would not be easy to detect. Video further showed Spotted Eagle handling a war bonnet that was later found with 26 missing golden eagle feathers. Investigators identified additional video of Spotted Eagle removing artifacts and photographing them with his cell phone. He was observed trying on historic clothing, including a ceremonial Crazy Dog Society shirt that was too small for him but did not rip during the struggle. And he was observed rummaging through many sacred bundles, even breaking a strap on the parfleche tube case of one of the bundles. In addition to physically damaging the bundles, Spotted Eagle caused spiritual harm to them and to the community by violating cultural protocols associated with the care and handling of sacred medicine bundles.
When interviewed by agents, the government alleged, Spotted Eagle claimed that he found the bear claw necklace damaged, removed it and attempted to repair it, but that he was unable to notify other employees because they were absent. Agents confirmed the employees were present on the date Spotted Eagle removed the necklace. Agents confronted Spotted Eagle about removing four claws from the necklace and replacing them, which he denied. Spotted Eagle abruptly ended the interview, swore at the agent and left after making an obscene gesture.
Investigators later confirmed that Spotted Eagle posted on social media a photo of 33 immature golden eagle feathers that are similar to the 26 feathers stolen from the museum headdress. Spotted Eagle has never applied for or received golden eagle parts from the National Eagle Repository.
An appraisal of the missing and damaged items determined the following values:
- Grizzly bear claw necklace, $3,200 fair market value before being damaged.
- Beaded moccasins, $350 fair market value and $425 replacement cost.
- Four grizzly bear claws, $800 market value and $1,700 replacement cost.
- 26 golden eagle feathers, no fair market value because the trade is illegal. The valuation of a feather under the uniform collateral forfeiture is $300 each, for a total of $7,800.
- The smaller bear claws found on the damaged necklace were determined to be one black bear claw and three grizzly bear claws, which were significantly newer than the other seven original claws.
- The damage to the war bonnet was not calculated because no legal market exists. A war bonnet similar to the one damaged was sold overseas for $18,172 in 2012.
The U.S. Attorney’s Office prosecuted the case, which was investigated by the U.S. Fish and Wildlife Service, Office of Law Enforcement.
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Boston Man Pleads Guilty to Distributing MethamphetamineRead the Press Release
BOSTON – A Boston man pleaded guilty yesterday to methamphetamine distribution.
Joshua Westbrook, 26, pleaded guilty to one count of distribution and possession with intent to distribute 50 grams or more of methamphetamine. U.S. District Court Judge Angel Kelley scheduled sentencing for Aug. 2, 2023. Westbrook was indicted by a federal grand jury in December 2021.
In November 2021, Westbrook distributed over 360 grams of pure methamphetamine in Dorchester. An additional 500 grams of pure methamphetamine and a machete were also seized from Westbrook over the course of the investigation.
The charge of distribution and possession with intent to distribute 50 grams or more of methamphetamine provides for a sentence of at least 10 years and up to life years in prison, at least five years and up to a lifetime of supervised release and a fine of up to $10 million. 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; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Commissioner Carol Mici of the Massachusetts Department of Correction made the announcement today. Valuable assistance was provided by the United States Postal Service; Plymouth County and Norfolk County Sheriff’s Offices; Massachusetts State Police; and the Portland (Maine), Watertown, Waltham, Concord, Reading, Peabody and Hudson Police Departments. Assistant U.S. Attorney Alathea Porter of Rollins’ Narcotics & Money Laundering Unit is prosecuting the case.
This case 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.