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4 April 2023
Columbus man arrested, charged with trafficking multiple victims for sex through violence and the use of drugsRead the Press Release
COLUMBUS, Ohio - A 28-year-old Columbus man was ordered detained after he appeared before a U.S. Magistrate Judge here today after a criminal complaint charging him with sex trafficking was unsealed.
The complaint alleges that Terrael Alexander Alls, aka “Ace” and “Rell” engaged in sex trafficking by means of force, threats, fraud, and coercion. Alls was arrested on March 31, 2023 in Licking County and appeared in federal court for his initial appearance on April 3.
According to court documents, an email tip received by the Columbus Division of Police regarding possible sex trafficking in Columbus was sent to the Central Ohio Human Trafficking Task Force. The Task Force investigation, which spanned the course of one year, ultimately led to All’s arrest.
“Court records contain disturbing testimony by two of the numerous victims as they describe what they’ve been through,” said Kenneth L. Parker, United States Attorney for the Southern District of Ohio. “I admire their courage to come forward and encourage anyone else who may be a victim to reach out to law enforcement.”
“Human traffickers control their victims with abuse, fear and intimidation – which are difficult to overcome,” Ohio Attorney General Dave Yost said. “Now that this defendant is in custody, we’re asking potential victims to contact law enforcement with any information about the case. If you’ve seen something, now is the time to say something.”
Anyone with additional information regarding this investigation or knowledge of additional victims of human trafficking is encouraged to contact the Ohio Bureau of Criminal Investigation at 855-BCI-OHIO (855-224-6446) or the National Human Trafficking Hotline at 1-888-3737-888 and request to be connected with a member of the Central Ohio Human Trafficking Task Force.
The Central Ohio Human Trafficking Task Force, formed under the Ohio Attorney General’s Ohio Organized Crime Investigations Commission, includes resources from the Columbus Division of Police, Homeland Security Investigations, Franklin County Sheriff’s Office, Delaware County Sheriff’s Office, Licking County Sheriff’s Office, Powell Police Department, Bureau of Criminal Investigation, Adult Parole Authority, The Ohio State University Police Department, Salvation Army, Southeast Healthcare, the Franklin County Prosecutor’s Office and the Delaware County Prosecutor’s Office.
Sex trafficking by means of force, threats, fraud, and coercion is punishable by a mandatory minimum sentence of 15 years and up to life imprisonment.
U.S. Attorney Parker and Ohio Attorney General Yost announced the unsealing of the complaint and the detention ordered by U.S. Magistrate Judge Kimberly A. Jolson, who set a preliminary hearing for April 17, 2023. Assistant U.S. Attorneys Emily Czerniejewski and Jennifer Rausch are representing the United States.
A criminal complaint merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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Colchester Man Sentenced in Drug CaseRead the Press Release
Burlington, Vermont – The United States Attorney’s Office stated that Carl Martin, 37, of Colchester, Vermont, was sentenced yesterday in United States District Court in Burlington to 48 months of imprisonment following his June 2022 conviction at trial on drug charges. United States District Judge William K. Sessions III also ordered Martin to serve four years of supervised release following completion of his prison term.
According to public records, in February 2018, Carl Martin was involved in a shooting in front of the Nectar’s Bar on Main Street in Burlington. Just before the shooting, Carl Martin punched Rashad Nashid in the face and pointed a firearm at him. In return, Nashid fired his own gun in the direction of Martin. The gunshot hit an innocent bystander who was seriously wounded. In connection with the shooting, Nashid received a 150-month sentence after pleading guilty to two counts of possessing a firearm as a convicted felon. Carl Martin was never charged for his involvement in the shooting.Between July and October 2019, Martin sold cocaine to an undercover law enforcement officer on several occasions. In June 2022, a federal jury sitting in Burlington found Martin guilty of conspiracy to distribute cocaine and guilty on four counts of distribution of cocaine. The jury acquitted Martin of a sixth charge related to trading a firearm for cocaine.
“Carl Martin has proven to be a violent individual, committing multiple crimes over a lengthy period of time, using his firearm to solve disputes. Thanks to the thorough investigation and tenacity of ATF Special Agents, with assistance from the Burlington Police Department, Vermont State Police, Drug Enforcement Administration, and the United States Marshals Service, Mr. Martin will now answer for his actions,” said ATF Special Agent in Charge James Ferguson.United States Attorney Nikolas P. Kerest stated, “Federal prosecutors in Vermont are working hard every day to enforce federal firearm laws. Prosecution of firearm-related offenses is at the top of our priority list. We appreciate the dedication of our many law enforcement partners in these cases including the investigation and prosecution of Carl Martin.”
Martin was represented by Chandler Matson, Esq. The prosecutors were Assistant U.S. Attorneys Wendy L Fuller and Andrew Gilman.
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. For more information about Project Safe Neighborhoods, please visit https://www.justice.gov/psn .
Claremore Man Pleads Guilty After Being Found with 500+ Images of Child PornographyRead the Press Release
A Claremore man found with more than 500 images of child sexual abuse material on his electronic devices pleaded guilty Tuesday in federal court, announced U.S. Attorney Clint Johnson.
Christian Lee Birse, 24, pleaded guilty to distribution and receipt of child pornography.
In his plea agreement, Birse admitted to distributing and receiving child pornography via social media from Jan. 13, 2021, to Oct. 7, 2021, while connected to his employer’s internet service. Birse admitted to receiving at least 5 videos that involved the sexual abuse or exploitation of a toddler and other prepubescent children.
He further admitted that he possessed and accessed more than 500 images of children being exploited and abused.
The images were discovered on the defendant’s cell phones and computer.
The Roger’s County Sheriff’s Office and Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Cymetra M. Williams 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 CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Charges Brought in Missing Person InvestigationRead the Press Release
PHOENIX, Ariz. – Preston Henry Tolth, 23, of New Mexico, was indicted by a federal grand jury in Phoenix on March 14, 2023. The grand jury returned a two-count indictment for Assault Resulting in Serious Bodily Injury and Carjacking Resulting in Serious Bodily Injury.
The indictment alleges that, on or about June 15, 2021, Tolth assaulted the victim, resulting in serious bodily injury to her. It further alleges that Tolth took the victim's Ford F150 pick-up truck, and transported it across state lines, with the intent to cause death or serious bodily injury to the victim.
“This indictment is an important first step in determining the truth about what happened to an elderly victim on the Navajo Nation,” said U.S. Attorney Gary Restaino. “The indictment charges the defendant with carjacking and assault; the investigation is ongoing.”
A conviction for Assault Resulting in Serious Bodily Injury carries a maximum penalty of 10 years in prison and a $250,000 fine. A conviction for Carjacking Resulting in Serious Bodily Injury carries a maximum penalty of 25 years in prison and a $250,000 fine.
An indictment is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
This investigation is part of the Department of Justice’s efforts to address cases involving missing and murdered indigenous persons.
The Federal Bureau of Investigation, along with the Navajo Nation Department of Criminal Investigations, conducted the investigation in this case. The U.S. Attorney’s Office, District of Arizona, Phoenix, is handling the prosecution.
CASE NUMBER: CR-23-8043-PCT-DLR-MTM
RELEASE NUMBER: 2023-049_Tolth# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Burlington Man Who Pointed Apparent Firearm at Police Officer Sentenced for Unlawfully Possessing a FirearmRead the Press Release
Burlington, Vermont – The Office of the United States Attorney for the District of Vermont stated that Jeremiah Smith, 44, of Burlington, was sentenced yesterday to 46 months of imprisonment in the United States District Court by United States District Judge William K. Sessions III. Smith previously pleaded guilty to unlawfully possessing a firearm as a felon. Judge Sessions also ordered that Smith serve three years of supervised release after his term of imprisonment.
According to court records, on November 3, 2021, Burlington Police received a report of a pickup truck being stolen from Pine Street in Burlington. The owner of the truck also relayed that a 9mm firearm had been in the truck at the time it was stolen. Burlington Police located the truck on Pearl Street in Essex, Vermont. Essex Police Officers responded to the location of the vehicle and observed Smith as the sole occupant. Smith refused to roll down his window or exit the vehicle after repeated requests. After the officers broke the window of the truck, Smith pointed what appeared to be a firearm at an Essex Police Officer. The officer drew his service firearm, backed away from the pickup, and ordered Smith out of the vehicle. Smith continued to refuse commands, and attempted to drive the pickup, which had been remotely disabled. Smith then exited the pickup truck and began walking away from the officer. Essex Police Officers then approached Smith and detained him. While taking him into custody, officers located a Ruger 9mm pistol in Smith’s jacket pocket. A search of the truck resulted in the seizure of a realistic-looking pistol-style pellet gun from the driver’s side floorboard. Smith is prohibited from possessing firearms under federal law due to a prior felony conviction.
U.S. Attorney Nikolas P. Kerest thanked the Bureau of Alcohol, Tobacco, Firearms, and Explosives for their investigatory assistance and commended the coordinated response of the Burlington Police Department and the Essex Police Department in this matter. U.S. Attorney Kerest said, “Thanks to the training and experience of the responding officers this combustible situation was resolved without anyone being hurt. This office will continue to pursue individuals like Mr. Smith who jeopardize the safety of our Vermont communities and our law enforcement partners.”
“It is fortunate that no police officers were injured or killed during the arrest of Jeremiah Smith, who pointed a stolen firearm at the officers. ATF will prosecute the illegal possession of firearms each and every time,” said ATF Special Agent in Charge James Ferguson.
Also, the Essex Police Department would like to commend the U.S. Attorney’s Office for the District of Vermont and the ATF for their diligence and work in securing a positive outcome in this case. This incident put Essex Police Officers in serious danger, and this situation could have resulted in a use of lethal force if not for the appropriate, split-second decision making of the officers involved. Instead, they displayed extraordinary bravery and used effective tactics to take Jeremiah Smith into custody safely. Essex Police Chief Ron Hoague stated, “I am pleased to see this individual held accountable for his actions that put our officers and the public in danger. The criminal justice system should always do whatever is necessary to keep illegal firearms out of the hands of criminals.”
Assistant United States Attorney Andrew C. Gilman was the prosecutor. Smith was represented by Assistant Federal Public Defender Steven Barth, Esq.
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. For more information about Project Safe Neighborhoods, please visit https://www.justice.gov/psn .
Buffalo Man Who Led Multi-Million Dollar Narcotics Conspiracy That Stretched from Mexico to Buffalo Going to Prison for 27 YearsRead the Press Release
BUFFALO, N.Y. -- U.S. Attorney Trini E. Ross announced today that Adrian Goudelock a/k/a AD, a/k/a Ace, a/k/a Ace Boogs, 40, of Buffalo, NY, who was convicted by a federal jury of conspiring to possess with intent to distribute, and distributing, five kilograms or more of cocaine, attempted possession and possession of five kilograms or more of cocaine, and money laundering conspiracy, was sentenced to serve 324 months in prison by U.S. District Judge John L. Sinatra, Jr. Co-defendant Shamar Davis, who was also convicted at trial, was previously sentenced to serve 150 months in prison.
Assistant U.S. Attorneys Michael J. Adler, Jeremiah E. Lenihan, and Seth T. Molisani, who prosecuted the case, stated that Goudelock was a leader in a major narcotic trafficking operation that stretched from Mexico to Buffalo. An investigation began in October 2017 following the seizure of approximately 10 kilograms of cocaine and $259,960 in cash that was being shipped from El Paso, Texas to Buffalo. Bulk shipments of cocaine were delivered to Goudelock in the Buffalo area. A total of 77 kilograms of cocaine were delivered to Buffalo during the conspiracy and nearly $1,000,000 in bulk U.S. currency was seized during the investigation. A total of 12 defendants were identified, charged, and convicted in the case. In addition, 21 defendants were charged in the Eastern District of Kentucky and the Northern District of Ohio, resulting in the seizure of an additional $2,000,000 and approximately 41 kilograms of cocaine.
The sentencing is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Matthew Scarpino; the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia; the New York State Police, under the direction of Major Eugene Staniszewski; the Erie County Sheriff’s Department, under the direction of Sheriff John Garcia; and Customs and Border Protection, Air and Marine Unit, under the direction of Brian Manaher, Director, Marine Operations. Additional assistance was provided by the New York National Guard and Homeland Security Investigations, El Paso, Texas.
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Buffalo Man Pleads Guilty to Cocaine ChargeRead the Press Release
BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Tremaine Jacobs a/k/a Teeter a/k/a T, 49, of Buffalo, NY, pleaded guilty before U.S. District Judge Lawrence J. Vilardo to attempt to possess, with intent to distribute, cocaine, which carries a maximum penalty of 20 years in prison and a fine of $1,000,000.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that on May 16, 2020, law enforcement learned that a package containing $7,000 worth of cocaine had been sent to Jacobs. That same day, the Drug Enforcement Administration seized a package addressed to 542 Goodyear Avenue, a residence associated with Jacobs. The package contained 248 grams of cocaine. On May 30, 2020, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Buffalo Police Department Intelligence Unit executed a search warrant at the defendant’s residence at 533 Goodyear Avenue, where investigators recovered approximately 16 ounces of suspected marijuana, approximately $10,507 in US currency, and jewelry.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank A. Tarentino III, New York Field Division, the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge John B. DeVito, New York Field Division, and the Buffalo Police Department, under the direction of Commissioner Joseph Gramaglia.
Sentencing is scheduled for August 9, 2023 before Judge Vilardo.
Brazoria man lands significant sentence for producing child pornography and sending via KikRead the Press Release
GALVESTON, Texas – A 38-year-old Brazoria resident has been ordered to federal prison following his multiple convictions, to include sexual exploitation of a child, distribution and possession of child pornography as well as destruction of property, announced U.S. Attorney Alamdar S. Hamdani.
Jake Delahney Taylor pleaded guilty to possession of child pornography and destruction of property Jan. 20, 2022. U.S. District Judge Jeffrey V. Brown later found Taylor guilty of the sexual exploitation of a child and distribution of child pornography following a one-day bench trial.
Today, Judge Brown ordered him to serve 324, 240 and 120 months for the production, distribution and possession convictions, respectively. They will run concurrently for a total 324-month-term of imprisonment He also received a sentence of 60 months for the destruction of evidence which will run concurrently. At the hearing, the court also heard additional information including the impact that Taylor’s conduct had on the minor victim’s family. Taylor was further ordered to serve 10 years on supervised release following completion of his prison term. During that time, he will have to comply with numerous requirements designed to restrict his access to children and the internet. Taylor will also be ordered to register as a sex offender.
“It is despicable that someone would secretly record a child’s normal bathroom activity and then crop and edit it into a sexual striptease,” said Hamdani. “Loathsome individuals like Taylor who produce child pornography and share it with perverted like-minded individuals need to be stopped and pay the price for the harm they cause. We hope today’s sentence will send that message and do just that.”
The investigation revealed Taylor had surreptitiously recorded a 13-year-old minor female relative while she was in the bathroom on five different occasions. Taylor then edited the videos in order to create still images of the minor victim which depicted her private areas. He then sent some of these images to other individuals on Kik with whom he had also discussed his sexual interest in children.
The mother of the child found some of the images and contacted law enforcement.
A search led to the discovery of electronic devices which later yielded 118 images and 134 videos of the minor victim. Taylor also had 84 videos and 24 images of child pornography in his collection.
Taylor has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Pearland Police Department, Homeland Security Investigations-Galveston and Houston Metro Internet Crimes Against Children Task Force conducted the investigation.
Assistant U.S. Attorneys Kimberly Leo and Sherin Daniel are prosecuting the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources link on that page.
Box Elder man admits meth trafficking, firearm crimes on Rocky Boy’s Indian ReservationRead the Press Release
GREAT FALLS — A Box Elder man accused of trafficking drugs on the Rocky Boy’s Indian Reservation after law enforcement found a pound of methamphetamine and eight firearms in his truck admitted to charges today, U.S. Attorney Jesse Laslovich said.
Thomas Knife, aka “Smurf,” 41, pleaded guilty to possession with intent to distribute controlled substances and to prohibited person in possession of a firearm. Knife faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release.
Chief U.S. District Judge Brian M. Morris presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. The court set sentencing for Aug. 24. Knife was detained pending further proceedings.
The government alleged in court documents that in December 2022, law enforcement made a traffic stop on the Rocky Boy’s Indian Reservation of an individual who was suspected of bringing large quantities of controlled substances to Montana. During the stop, Knife arrived driving a truck. Knife told officers that the vehicle involved in the traffic stop belonged to him. Officers ultimately arrested Knife on a warrant. As they took Knife into custody, officers saw a short-barreled shotgun inside the truck he had been driving. During a search of the truck, officers found more than $500, approximately one pound of meth and eight firearms, including a .22-caliber rifle and a 20-gauge shotgun that appeared to have modified barrels. There also were hundreds of rounds of ammunition in the vehicle. Knife was on felony state probation at the time.
Assistant U.S. Attorney Ethan R. Plaut is prosecuting the case, which was investigated by the FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives, Rocky Boy’s Police Department and Montana Highway Patrol.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Baton Rouge Man Sentenced to 175 Months in Federal Prison for Drug ChargesRead the Press Release
United States Attorney Ronald C. Gathe, Jr. announced that U.S. District Judge Brian A. Jackson sentenced Courtney Clayton, age 39, of Baton Rouge, Louisiana, to 175 months in federal prison following his convictions for possession with the intent to distribute heroin, fentanyl, and cocaine. The Court further sentenced Clayton to five years of supervised release following his term of imprisonment.
According to admissions made as a part of his guilty plea, on January 26, 2021, after a months' long investigation into suspected narcotics trafficking by Clayton, East Baton Rouge Sheriff’s Office narcotics agents executed a traffic stop on Clayton’s vehicle. Agents found 1,172.48 grams of heroin, 103.5 grams of fentanyl, 676.5 dosage units of fentanyl, and 16 grams of cocaine. in the trunk. Additionally, $12,760 cash was found in the glovebox along with three (3) cell phones belonging to Clayton.
This matter was investigated by the Drug Enforcement Administration and the East Baton Rouge Parish Sheriff’s Office. The case was prosecuted by Assistant United States Attorney William K. Morris.
Angelina County Felon Sentenced for Federal Drug Trafficking, Firearms ViolationRead the Press Release
BEAUMONT, Texas– A Lufkin man has been sentenced to federal prison for a drug trafficking and firearms violation in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Tyson Spencer, 48, pleaded guilty on Feb. 14, 2022, to possession with intent to distribute synthetic marijuana and being a felon in possession of a firearm and was sentenced to 90 months in federal prison today by U.S. District Judge Michael J. Truncale.
According to information presented in court, Lufkin police officers came in contact with Spencer while responding to a report of a residential theft. Spencer matched the description of the suspect and was searched for stolen items. During the search, officers discovered a firearm in Spencer’s backpack. Spencer admitted to being a convicted felon, having been previously convicted of murder, which would prohibit him from owning or possessing firearms or ammunition. Spencer was also in possession of a gallon-sized baggie containing synthetic marijuana. Spencer was indicted by a federal grand jury on August 19, 2020.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Lufkin Police Department and prosecuted by Assistant U.S. Attorney Donald S. Carter.
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3 April 2023
Winston-Salem Man Pleads Guilty to Wire FraudRead the Press Release
Winston-Salem, NC – JAVAR LAJUAN CLARK of Winston-Salem, NC pled guilty today to one count of wire fraud for fraudulently obtaining an Economic Injury Disaster Loan (“EIDL”) authorized under the Coronavirus Aid, Relief and Economic Security (“CARES”) Act and administered by the Small Business Association (“SBA”), announced United States Attorney Sandra Hairston.
According to court documents, CLARK applied for an EIDL loan for a business called “Handy Works by J Clark.” The loan application falsified the business’s gross revenues and number of employees. Based on CLARK’s fraudulent representations, the SBA granted CLARK an EIDL loan of $130,500 and an advance of $10,000. Following disbursement of the loan, CLARK used the proceeds on trips to Las Vegas and New York City, jewelry, and a house.
Sentencing is scheduled to take place on August 1, 2023, at 3:00 p.m. in Winston-Salem, North Carolina, courtroom number two, before United States District Judge Thomas D. Schroeder. At sentencing, CLARK faces a maximum sentence of twenty years in prison, a period of supervised release of up to three years, and monetary penalties. As part of his plea agreement, CLARK also agreed to forfeit the property purchased using the fraudulently obtained funds.
The Treasury Inspector General for Tax Administration is investigating the case, and it is being prosecuted by Assistant U.S. Attorney Ashley Waid.
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Westbrook Woman Sentenced for Role in Money Mule Scam, Ordered to Pay FEMA $7,340 in RestitutionRead the Press Release
PORTLAND, Maine: A Westbrook woman was sentenced in U.S. District Court in Portland for serving as a “money mule” for someone she met online. A money mule is someone who transfers or moves illegally acquired money on behalf of someone else.
Chief U.S. District Judge Jon D. Levy sentenced Cheryl White, 58, to three years of probation. She was also ordered to pay $7,340 in restitution to the Federal Emergency Management Agency (FEMA). White pleaded guilty on May 19, 2022.
According to court records, White met an unknown person on the internet. At their request, White purchased prepaid debit cards and provided the card numbers to the person. She was later contacted by the person and informed that the cards had been loaded with money. In October 2017, White withdrew the money from the cards and used the funds to purchase money orders which she deposited into her bank account. She withdrew the money days later and mailed most of the money to an address provided by the person she met online.
The money loaded onto the prepaid cards came from FEMA, which had issued the money based on false and fraudulent claims for disaster relief filed with the agency. Although White did not file the false claims, she admitted that she knew the money came from some type of crime. Two banks had previously closed her accounts due to similar conduct, with one bank informing her that her deposits and withdrawals were part of a fraud scheme. White nonetheless continued the same conduct.
The Department of Homeland Security, Office of Inspector General (DHS OIG) investigated the case with assistance from FEMA’s Fraud Prevention and Investigations Branch and the Westbrook Police Department.
Money Mule Scams: Acting as a money mule is illegal and punishable even if you aren’t aware that you are committing a crime. If you are a money mule, you could be prosecuted and incarcerated as part of a criminal money laundering conspiracy. Some money mules know they are supporting criminal enterprises; others are unaware that they are helping criminals profit. Criminals often target students, those looking for work, or those on dating websites, but anyone can be approached to be a money mule. Learn more about money mule scams at https://www.fbi.gov/scams-and-safety/common-scams-and-crimes/money-mules.
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West Haven Man Sentenced to 8 Years in Federal Prison for Role in Scheme to Steal City’s COVID Relief FundsRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that JOHN TRASACCO, 50, of West Haven, was sentenced today by U.S. District Judge Omar A. Williams in Hartford to 96 months of imprisonment, followed by five years of supervised release, for conspiracy and fraud offenses related to a scheme to steal COVID-19 relief funds from the City of West Haven.
According to the evidence presented during a trial in this matter, Michael DiMassa was a Connecticut State Representative who was also employed by the City of West Haven, most recently serving as the Administrative Assistant to the City Council. In April 2020, the State of Connecticut was allocated money by the U.S. Department of the Treasury through the Coronavirus Relief Fund (“CRF”), which was established by the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) for the purpose of helping local governments pay costs incurred in responding to the COVID-19 pandemic. From July 2020 through September 2021, the City of West Haven received approximately $1,150,257 in financial assistance from this fund. DiMassa, who was authorized to approve the designated relief funds for the reimbursement of COVID-related expenditures incurred by West Haven, conspired with others to steal these funds and other West Haven funds through the submission of fraudulent invoices, and subsequent payment, for COVID relief goods and services that were never provided.
The investigation revealed that DiMassa conspired with Trasacco through the submission of fraudulent invoices from L & H Company and JIL Sanitation Services, two companies controlled by Trasacco, to West Haven for goods and services, including thousands of units of Personal Protective Equipment (PPE), HVAC maintenance at multiple municipal locations, COVID supplies for the Board of Education, and cleaning services for various municipal and school buildings, including one school building that had been vacant and abandoned for several years. Trasacco’s companies received approximately $431,982 through this scheme.
On December 2, 2022, a jury found Trasacco guilty of one count of conspiracy to commit wire fraud and one count of wire fraud.
Judge Williams ordered Trasacco to pay $143,994 in restitution.
Trasacco, who had been released on bond, was remanded to custody at the conclusion of today’s court proceeding.
On November 1, 2022, DiMassa pleaded guilty to three counts of conspiracy to commit wire fraud. He is awaiting sentencing and has agreed to pay restitution of $1,216,541.80.
On June 14, 2022, John Bernardo, a West Haven city employee who with Michael DiMassa formed a company that they used to bill the city for fraudulent COVID-related consulting services, pleaded guilty to one count of conspiracy to commit wire fraud. On March 22, 2023, he was sentenced to 13 months of imprisonment and ordered to pay $58,927.25 in restitution.
On July 14, 2022, Michal DiMassa’s wife, Lauren DiMassa, pleaded guilty to one count of conspiracy to commit wire fraud. On March 23, 2023, she was sentenced to six months of imprisonment and ordered to pay $147,776 in restitution.
This matter has been investigated by the Federal Bureau of Investigation and the U.S. Department of Housing and Urban Development – Office of Inspector General for Investigations. The case is being prosecuted by Assistant U.S. Attorneys Ray Miller and David Sheldon.
Individuals with information about allegations of attempted fraud involving COVID-19 are encouraged to report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721, or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
United States Attorney’s Office for the Western District of Tennessee Commemorates Sexual Assault Awareness MonthRead the Press Release
Memphis, TN – United States Attorney Kevin Ritz joins the United States Department of Justice, the
Office on Violence Against Women (OVW), advocates, survivors, victim service providers, justice professionals, police, first responders, and communities across the United States in commemorating
Sexual Assault Awareness Month.April is Sexual Assault Awareness Month (SAAM). Every April, we rededicate our efforts to ending sexual assault, believing survivors, strengthening prevention and education efforts, and holding offenders accountable.
U.S. Attorney Ritz said: “The impact of sexual assault can reverberate through an entire community.
The crime leaves lasting harm and trauma on survivors, their families, friends, and can impact their schools and workplaces. As federal prosecutors, we have a responsibility to the citizens throughout the Western District of Tennessee to pursue accountability and justice for crimes of sexual violence.”
SAAM is a reminder of the importance of creating supportive environments and teaching young people ways to prevent sexual violence – including bystander intervention and mobilizing men and boys as allies. It is especially critical to reach young people with information and resources about sexual violence because over 80 percent of rape survivors report that they were first raped before age 25.
The Centers for Disease Control and Prevention (CDC) estimates that approximately 33.5 million women and 4.5 million men are the victims of completed or attempted rape in their lifetime, and many more experience other forms of sexual violence. The CDC estimates more than half of women and nearly one third of men are victims of contact sexual violence in their lifetimes. Sexual violence can have a lasting impact on survivors, ranging from physical injury to mental health, to fear and safety concerns, to lifelong effects on financial and housing stability, employment, and educational attainment.###
For more information, please contact Public Information Officer Cherri Green at (901) 544-4231 or [email protected]. Follow @ WDTNNews on Twitter for office news and updates.
U.S. Attorney’s Office Unveils New Initiative for Area Youth to Identify, Report and Prevent Hate CrimesRead the Press Release
Memphis, TN – United States Attorney Kevin G. Ritz announced that the United States Attorney’s
Office for the Western District of Tennessee has launched a series of presentations in district high schools aimed at educating students on identifying, reporting, and preventing hate crimes and other civil rights violations.This effort is part of the Department of Justice’s United Against Hate Program, developed by its
Hate Crimes Enforcement and Prevention Initiative. Today, attorneys from the U.S. Attorney’s
Office, the Assistant Special Agent in Charge from the FBI, and officers from the Memphis Police
Department’s Office of Community Policing launched the local program at Central High School in
Memphis and plan to visit additional schools in 2023.“Civil rights enforcement is a priority of the United States Attorney’s Office,” said U.S. Attorney
Ritz. “Ensuring that our citizens, even the young ones, understand the law and how to report what they believe are civil rights violations or hate crimes is essential. Our goal is to equip Memphis youth with the tools to recognize hate crimes or discrimination when it happens and with what steps they should take afterward.”“Hate crimes have a devastating impact not just on the victims and their families, but communities as well,” said Douglas DePodesta, Acting Special Agent in Charge of the Federal Bureau of
Investigation’s Memphis Field Office. “The FBI has been engaged in a nationwide effort to build awareness and encourage individuals to report violations and will continue to do so through the
United Against Hate program and other platforms. We want everyone, including students, to understand that if they encounter what they believe is a hate crime that the FBI is here to investigate.”If your school is interested in hosting a United Against Hate presentation, contact our office.
This interactive presentation is best for audiences under 100 students, though we are happy to discuss your school’s unique needs.To learn more about the U.S. Attorney’s Office’s Civil Rights Program, or to file a complaint with our office, visit: https://www.justice.gov/usao-wdtn/civil-rights- program.
To report a possible hate crime, call your local law enforcement or 1-800-CALL FBI.
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For more information, please contact Public Information Officer Cherri Green at (901) 544-4231 or [email protected]. Follow @ WDTNNews on Twitter for office news and updates.
Two Las Vegas Felons Sentenced to Prison for Unlawful Possession of A Firearm and Drug Trafficking ConspiracyRead the Press Release
LAS VEGAS – Two convicted felons and Las Vegas residents were sentenced today by U.S. District Judge Jennifer A. Dorsey for unlawful possession of firearms and for their roles in a methamphetamine trafficking conspiracy. Nicholas Eddards was sentenced to 96 months in prison followed by five years of supervised release. Justin Chester was sentenced to 78 months in prison followed by five years of supervised release.
Justin Chester (42) and Nicholas Eddards (36) each pleaded guilty in January 2023 to conspiracy to distribute a controlled substance and felon in possession of a firearm.
According to court documents, on January 3, 2019, Las Vegas Metropolitan Police Department officers stopped a car carrying Eddards and Chester. During a search of the car, the officers discovered a 9mm semiautomatic pistol and methamphetamine.
Eddards has prior felony convictions for assault with a deadly weapon, ex-felon not to possess a firearm, and unlawful possession of a firearm in the District of Nevada. Chester has prior felony convictions for attempted battery with a deadly weapon and domestic battery.
United States Attorney Jason M. Frierson for the District of Nevada and Acting Special Agent in Charge Joshua Jackson for the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) made the announcement.
The ATF investigated the case. Assistant United States Attorney Edward Veronda prosecuted the case.
The case was brought as part of Project Safe Neighborhoods (PSN), a nationwide program by the Department of Justice that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, the Department announced the reinvigoration of PSN. For more information about PSN, visit www.justice.gov/usao-nv.
If you have information pertaining to illegal firearms activity such as a straw purchase, please contact the ATF at 1-800-ATF-GUNS (1-800-283-4867). Anonymous tips may also be submitted to ATF through the ReportIt mobile app.
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Third Circuit Vacates Child Abuse Sentences, Orders Resentencing and ReassignmentRead the Press Release
NEWARK, N.J. – The U.S. Court of Appeals for the Third Circuit today ruled that a former U.S. Army major and his wife, convicted for having endangered the welfare of their young, adopted children through a series of physically abusive and neglectful acts, must be resentenced before a different district court judge, U.S. Attorney Philip R. Sellinger announced.
Convicted by a jury in July 2015 on multiple counts of child endangerment, Carolyn Jackson initially received 24 months in prison while her husband, John E. Jackson, formerly a major in the Army at the Picatinny Arsenal Installation in Morris County, New Jersey, received probation, plus 400 hours of community service. The government had appealed their sentences to the U.S. Court of Appeals for the Third Circuit, which found procedural error and ordered resentencing. See United States v. Jackson, 862 F.3d 365 (3d Cir. 2017).
At the 2018 resentencing, the district court imposed a 40-month sentence on Carolyn Jackson and the same probationary sentence on John Jackson. The government appealed those sentences and the Third Circuit again found procedural error and remanded for resentencing. See United States v. Jackson, 819 F. App’x 97 (3d Cir. 2020). At the third sentencing hearing, in October 2021, the district court reimposed the same 40-month sentence on Carolyn Jackson and imposed a sentence of 18 months’ home confinement on John Jackson. The government appealed those sentences.
Today, the Court of Appeals agreed that, in the process of imposing those sentences, the district court had failed to follow its directions to consider the children’s various injuries “holistically and in the context of the jury’s findings of guilt” in determining causation. In light of the three prior sentencing hearings in this case, the Court of Appeals concluded that the district court would have “substantial difficulty in putting out of her mind her previously expressed views of the evidence.” It ordered resentencing and directed the chief judge of the U.S. District Court for the District of New Jersey to reassign this case to a different district court judge. Resentencing will occur at a later date, which has yet to be determined. A copy of the Court of Appeals’ opinion is attached.
The government was represented by Assistant U.S. Attorney John F. Romano of the U.S. Attorney’s Office Appeals Division in Newark.
jackson.appeals.pdf23-090
Texas Man Sentenced to 97 Months in Federal Prison for Distributing Child Pornography in LouisianaRead the Press Release
United States Attorney Ronald C. Gathe, Jr. announced that Chief Judge Shelly D. Dick sentenced James Martin, age 51, of Beckville, Texas, to 97 months in federal prison following his conviction for distribution of child pornography. Martin must serve five years of supervised release upon completing his term of imprisonment, and he must complete sex offender treatment. The Court also ordered Martin to pay $248,000 in restitution. As a result of this conviction, Martin will be required to register as a sex offender.
Throughout July and August 2022, Martin used an instant messaging mobile application and a smartphone to distribute files of child pornography via the internet to an undercover agent in the Middle District of Louisiana. Martin distributed the videos and images of minors, knowing they were under 18 years of age. The child pornography files included a video link to a cloud storage application.
Martin distributed the video link to an undercover agent with a password and instructions to download the videos and images to confirm that the link was “working and sellable when the time [i]s right…” Throughout his conversations with undercover law enforcement, Martin described a scheme to sell child pornography online. Martin bragged about his ability to: (1) sell child pornography online for a profit; and (2) use encryption software to avoid law enforcement detection.
Martin’s video link contained approximately 245 videos and 108 images of child pornography, including toddlers. Martin also possessed at least 130 total videos and approximately 7,250 images of child pornography, which were accessible through his laptop, smartphone, and a central processing unit tower, among other devices.
This matter was investigated by the Federal Bureau of Investigation, the Louisiana Bureau of Investigation, and the Panola County, Texas Sheriff’s Office, and was prosecuted by Assistant United States Attorney Edward H. Warner.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
Tampa Man Charged with Preparing False Tax ReturnsRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging Kenneth Fowler with three counts of making and filing false federal income tax returns. If convicted, Fowler faces a maximum penalty of three years’ imprisonment as to each count.
According to the indictment, between the end of December 2013 and August 2018, Fowler, who was then working as a payroll coordinator at the Salvation Army Suncoast Adult Rehabilitation Center in St. Peterburg, engaged in a scheme to embezzle funds from the Salvation Army. Fowler falsely altered records to reflect that employees who had left the employment of the Salvation Army were still on its payroll so that Fowler could collect their paychecks and ultimately forge their signatures and deposit those checks into his own personal bank accounts. Fowler also misdirected direct deposit checks from the former employees’ bank accounts into his own personal bank account. In this manner, Fowler obtained more than $239,000 in Salvation Army funds to which he was not entitled. He then failed to include those stolen funds as income on his 2016, 2017, and 2018 Individual Income Tax Returns. By doing so, he avoided the payment of substantial taxes due and owing to the United States.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Internal Revenue Service - Criminal Investigation, with assistance from the Pinellas Park Police Department. It is being prosecuted by Assistant United States Attorney Jay L. Hoffer.
Suburban Chicago Woman Charged with Filing False Income Tax Returns with the Internal Revenue ServiceRead the Press Release
CHICAGO — An Orland Park resident and owner of a sandwich shop in Plainfield has been charged with three counts of filing a false tax return.
Per the information, HEYAM P. MALICK, 64, of Orland Park knowingly filed false tax returns with the Internal Revenue Service between the years 2016 to 2020. Malick was the owner and sole employee of Smiley’s Gyros and Beef, located in Plainfield. As charged in the information, Malick is accused of under reporting her income from the business by more than $725,000 over three years.
The charge is announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois and Justin Campbell, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation in Chicago. The government is represented by Assistant U.S. Attorney Thomas P. Peabody.
The public is reminded that an information contains only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. The charge of tax fraud carries a possible sentence of up to three years in federal prison on each count. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Stanislaus County Woman Pleads Guilty to Stealing Money from Recipients of Social Security and Other Government BenefitsRead the Press Release
FRESNO, Calif. — Lorene Deanda, 64, of Ceres, pleaded guilty today to mail fraud in relation to her stealing more than $550,000 from recipients of Social Security and other government benefit funds, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Deanda was employed by a charitable organization in Modesto and managed the organization’s representative payee program. This program assisted recipients of Social Security and other federal and state benefits who could not physically manage their own financial affairs. Deanda, on behalf of the charitable organization, would set up bank accounts for the beneficiaries and receive benefit funds into those accounts. Deanda’s duties included paying beneficiaries’ bills and necessities from those accounts. However, from 2003 to May 2015, Deanda stole benefit funds from the beneficiaries’ accounts and spent the money on her own personal expenses, including to pay for her personal credit card bills and residential mortgage. In total, Deanda stole over $550,000.
This case is the product of an investigation by the Social Security Administration - Office of the Inspector General and the Federal Bureau of Investigation. Assistant U.S. Attorneys Henry Z. Carbajal III and Brittany M. Gunter are prosecuting the case.
Deanda is scheduled to be sentenced by U.S. District Judge Jennifer L. Thurston on July 24, 2023. Deanda faces a maximum statutory penalty of 20 years in prison and a fine of $250,000. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Stanislaus County Man Pleads Guilty to Federal Drug ChargesRead the Press Release
FRESNO, Calif. — Julian Loeza, 33, of Ceres, pleaded guilty today to distribution of methamphetamine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in 2020, a team of local and federal law enforcement officers partnered in an investigation into the drug trafficking activities of Julian Loeza and Esmerelda Ceja-Mendez, 43, of Ceres; Sofia Cisneros-Noyola, 37, of Sacramento; and Victor Ramirez, 37, of Atwater. On March 3, 2021, Loeza sold 2 pounds of methamphetamine for $3,600.
This case is the product of an investigation by the Federal Bureau of Investigation and the San Joaquin County Metropolitan Narcotics Task Force. Assistant U.S. Attorney Antonio J. Pataca is prosecuting the case.
Ramirez has pleaded guilty to conspiracy to distribute and possession with intent to distribute methamphetamine and possession with intent to distribute methamphetamine. Ramirez is scheduled to be sentenced by U.S. District Judge Jennifer L. Thurston on May 15, 2023.
Charges are pending against Ceja-Mendez and Cisneros-Noyola; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Loeza is scheduled to be sentenced by U.S. District Judge Ana de Alba on July 17, 2023. Loeza faces a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Sioux City Man Sent to Federal Prison for Being a Marijuana User in Possession of a FirearmRead the Press Release
A man who possessed a firearm on multiple occasions and intentionally fired upon a car full of people including two young children and who negligently shot a woman in the leg was sentenced, to 3-years in federal prison.
Jalond Hills, 19, from Sioux City, received the prison term after a guilty plea to one count of felon in possession of a firearm.
Evidence in the case showed that on or about September 16, 2021, Jalond Hills, fired at an individual who was in a car with a woman and her two minor children. Jalond Hills was caught with the gun and confessed he was in possession of the gun and had fired it while being a user of illegal drugs.
Further, on or about April 15, 2022, Jalond Hills, was at an apartment in the 2200 block of Gibson Street where he and another person began wrestling over a firearm. The other person was trying to make the weapon safe, and Hills wanted the weapon. In the end, the other person was shot in the leg while attempting to take control of the gun. After Hills contributed to this horrible accident, he cut off his location monitoring bracelet, and absconded without even stopping to check on the other person as she began to bleed out.
Jalond Hills was previously convicted of possession of a controlled substance as a juvenile, in the Woodbury County, Iowa District Court at Case Number SRCR112683.
Jalond Hills was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand, to 36 months’ imprisonment. He must also serve a 2-year term of supervised release after the prison term and pay a $100 special assessment fee. There is no parole in the federal system.
Jalond Hills is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the Sioux City, Iowa Police Department and prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-04057.
Follow us on Twitter @USAO_NDIA.
Sinaloa Cartel Distributor Sentenced for Methamphetamine Conspiracy and Firearms CrimesRead the Press Release
United States Attorney Steven Russell announced that Jose Leyva-Martinez, 49, was sentenced today in federal court in Omaha, Nebraska, for his participation in a methamphetamine drug conspiracy and for possessing a firearm during a drug trafficking crime. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Leyva-Martinez to 210 months’ imprisonment on the drug charge and a consecutive 60 months’ imprisonment on the firearm charge for a total sentence of 270 months. There is no parole in the federal system. After his release from prison, he will begin a five-year term of supervised release.
On March 31, 2021, an Omaha Police confidential source purchased more than 50 grams of methamphetamine from an Omaha-based methamphetamine dealer. A search of the dealer’s home resulted in the seizure of more than 300 grams of methamphetamine, 19 grams of heroin, 14 grams of cocaine, a Glock 10mm handgun, and $5,744 in United States currency.
In an interview with police, the Omaha dealer provided police with the name of his supplier: Leyva-Martinez. With this information, officers searched Leyva-Martinez’s home, seizing nearly 4 kilograms of methamphetamine, 1 kilogram of cocaine, money transfer receipts, ammunition, 2 drug scales, vehicle titles for a gray Toyota Tacoma, a gray Honda civic, and a black GMC 1500, a money counter, drug ledger, jewelry, $468,990.00 in United States currency, and an Astra 9mm handgun. The handgun was found in a bedroom near $28,000 in United States currency.
Leyva-Martinez admitted being a methamphetamine supplier and distributor for the Sinaloa Cartel. He admitted that all three vehicles and the residence were put in his name at the direction of the Cartel. Law enforcement estimated that the seized currency represented cash proceeds from the sale of more than 100 pounds of methamphetamine.
Leyva-Martinez’s home, vehicles, monies, and other valuables were seized by law enforcement as proceeds of narcotics trafficking.
This case was investigated by the Omaha Police Department.
San Antonio Woman Pleads Guilty to Providing Fentanyl That Led to Man’s DeathRead the Press Release
SAN ANTONIO – A San Antonio woman pleaded guilty in San Antonio federal court Thursday to distribution of a controlled substance resulting in death.
According to court documents, Claudia Cardenas, 47, provided a man with a sample of fentanyl on May 8, 2022, allowing him to try the substance before committing to future purchases. The man ingested the fentanyl sample the following day. He immediately collapsed and was unresponsive. Two doses of Narcan were administered prior to the arrival of Emergency Medical Services, but the man was declared deceased upon EMS’s arrival. An autopsy revealed that the victim’s death was the result of toxic effects from Fentanyl and Methamphetamine.
Cardenas is scheduled to be sentenced on July 13 and faces a penalty of at least 20 years in prison up to life imprisonment. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Jaime Esparza for the Western District of Texas and Special Agent in Charge Daniel Comeaux of the Drug Enforcement Administration made the announcement.
The DEA; the University of Texas at San Antonio Police Department; the San Antonio Police Department; the Texas Department of Public Safety; and the Alamo Heights Police Department are investigating the case.
Assistant U.S. Attorney Amy Hail is prosecuting the case.
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SWGA Man Sentenced to Prison Resulting from Armed Drug Trafficking InvestigationRead the Press Release
ALBANY, Ga. – A Southwest Georgia resident with a criminal record who admitted to distributing heroin resulting from an armed drug trafficking investigation was sentenced to prison for his crime.
Alexander Brown, Sr. aka “Poochie,” 48, of Albany, was sentenced to serve 120 months in prison to be followed by four years of supervised release by U.S. District Judge Leslie Abrams Gardner on March 30, after he previously pleaded guilty to distribution of heroin. There is no parole in the federal system.
“Armed repeat offenders remain a high priority for our office and our law enforcement partners,” said U.S. Attorney Peter D. Leary. “I appreciate the hard work and cooperation that resulted in this conviction and sentencing.”
“The combination of drugs and guns is destructive in so many ways to our communities,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “Our agents focus daily on getting repeat offenders like Brown off our streets. The FBI and the partners we work with are committed to stopping these destructive drug operations flowing through our state.”
“Illegal drugs and guns are dangerous and threaten the safety of Georgia communities. The GBI is committed to working with our partners to investigative drug and gun dealing. Thank you to the U.S. Attorney’s Office for prosecuting this defendant, making the Albany area safer,” said GBI Director Mike Register.
According to his plea agreement and court records, the GBI began investigating Brown in Jan. 2021 for distributing heroin; multiple recorded purchases of narcotics from Brown occurred during the course of the investigation. On Sept. 15, 2021, an undercover agent went to Brown’s apartment on Maryland Drive in Albany. Brown offered to get the agent fully automatic AR-15 rifles, which he described as ghost guns without serial numbers. Brown also sold the agent heroin. On Oct. 14, 2021, GBI and FBI agents purchased a rifle from Brown at a residence on Askew Drive in Dawson, Georgia. A search warrant of the Askew Drive residence was executed on Nov. 2, 2021. Agents recovered heroin, methamphetamine and fentanyl, in addition to drug distribution paraphernalia and $12,000. Brown has a criminal history with convictions in Dougherty County, Georgia, Superior Court, including a conviction for possession with intent to distribute oxycodone.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities and measuring the results.
This case was investigated by GBI and FBI.
Criminal Chief Leah McEwen prosecuted the case for the Government.
President of Rhode Island Trucking Company and Truck Computer Design Service, and Companies, Admit to Conspiring to Violate the Clean Air ActRead the Press Release
PROVIDENCE – The owner and President of a North Kingstown-based trucking company, along with his two corporations, all admitted to a federal judge in Providence today that they conspired together with trucking and diesel vehicle sales and service companies throughout the United States and with a foreign national to violate the Clean Air Act by selling and providing a software program that tampered with on-board computers in order to alter or bypass key features in emission control systems, announced United States Attorney Zachary A. Cunha.
Under the federal Clean Air Act, the Environmental Protection Agency (EPA) has established standards that limit the emission of air pollutants from various types of vehicle engines. To meet those standards, vehicle manufacturers design and install certain hardware components as part of the systems that manage and treat engine exhaust to reduce multiple types of pollution.
“Our environmental laws are here to protect the clean air that every Rhode Islander deserves to breathe,” said U.S. Attorney Zachary Cunha. “When companies choose to ignore those laws and put profit over their legal duties, and spew diesel soot and contaminants across Rhode Island and New England in the process, this Office will hold them to account.”
“Tampering with diesel vehicles by installing defeat devices increases emissions of smog and soot, both of which contribute to serious health problems that often disproportionately affect families, especially children, living in underserved communities,” stated Tyler Amon, Special Agent in Charge for EPA’s Criminal Investigation Division for New England. “Placing profit over public health in Rhode Island has clear accountability.”
According to court documents, from roughly September of 2014 through approximately August 27, 2019, Michael J. Collins, his North Kingstown company M&D Transportation, Inc.; his now-defunct computer company Diesel Tune-Ups of RI, Inc.; various trucking and diesel vehicle sales and repair companies throughout the United States; and a foreign national all conspired to alter or disable certain functions of the Electronic Control Modules (ECM) and On Board Diagnostic (OBD) monitoring systems of heavy-duty diesel vehicles such as semi-trucks or “big rigs.” These alterations were referred to in the industry as “tunes.”
In exchange for a fee, the foreign national would download tuning software through a laptop computer, provided by Collins and his companies, that was then connected to each vehicle. The tuning business was marketed on Facebook, with claims that it provided increased power and better fuel mileage and offered tuning for “BigRig semi-trucks & engines” including tuning related to emission control equipment. The Facebook page directed interested companies to contact a Rhode Island telephone number associated with Collins, M & D and Diesel Tune-Ups.
When tuning was done through a laptop computer, Collins instructed the Companies to call the foreign national for further instructions once they had received the laptop. Through a remote connection, the “tunes” were then downloaded onto each vehicle’s ECM or computer to reprogram the vehicle’s monitoring systems. The tunes tampered with the vehicle’s monitoring systems so that they would not detect malfunctions in the emission control components, thereby allowing vehicles to operate without proper emission controls. As a result, “tuned” vehicles could run with increased horsepower and torque, which can reduce maintenance and repair costs, but which results in significant increases in pollutant emissions. Often, installation of the “tunes” was undertaken in concert with diesel sales and service centers that were making other changes to trucks’ pollution control systems. Collins also employed the same techniques to circumvent emission controls on some of M & D's own diesel vehicles.
Customers paid Collins’ companies between $1,700 and $3,650 for each vehicle tuned. Collins and his companies wired a portion of the funds to their foreign co-conspirator and retained a portion of the funds for themselves. From at least March of 2017 through at least June 1, 2018, Collins either deposited or caused to be deposited into the Diesel Tune-Ups bank account fees received from approximately 25 different diesel trucking or repair shops throughout the United States.
According to court documents, diesel exhaust is known to contain a variety of air pollutants identified as hazardous air pollutants under the Clean Air Act. The act of completely removing or disabling a vehicle's emission control system can increase pollutant emissions, presenting a risk to the environment and public health. More recent testing conducted by EPA indicates that the pollutant increase is even greater when the emission controls are deleted from commercial semi-tractor trailer trucks.
Collins, M&D Transportation, and Diesel Tune Ups of RI pleaded guilty to conspiracy to violate the Clean Air Act. They are scheduled to be sentenced on July 10, 2023. The defendant’s sentence will be determined by United States District Judge Mary S. McElroy after consideration of the U.S. Sentencing Guidelines and other statutory factors.
The case is being prosecuted by Assistant United States Attorney John P. McAdams.
The matter was investigated by the Environmental Protection Agency Criminal Investigation Division - Boston Area Office.
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Possession of loaded weapons and multi-kilos of meth lands local in prison for three decadesRead the Press Release
HOUSTON – A 38-year-old Houstonian has been ordered to federal prison following his conviction of conspiracy to distribute meth during a drug transaction that occurred in an IKEA parking lot, announced U.S. Attorney Alamdar S. Hamdani.
Josue Daniel Casco pleaded guilty July 6, 2021.
Today, US District Judge Andrew Hanen sentenced Casco to a total of 360 months in federal prison to be immediately followed by five years of supervised release. The sentence represents enhancements to include attempting to evade arrest and putting authorities at risk. The court also ordered the forfeiture of the three and ammunition law enforcement had seized upon his arrest.
"This drug dealer showed no regard for human life when he brought 15 kilos of meth and three loaded guns to a local IKEA parking lot while local residents shopped,” said Hamdani. “He and his AR-15 holding partner in crime exposed our community to an extremely potent drug and could have caused more harm in a flagrant attempt to flee. Thanks to the quick and brave action of law enforcement and the subsequent prosecution, two dangerous criminals, along with their guns and meth, are off the streets.”
The undercover investigation began in September 2020, when authorities learned of a potential narcotics transaction via a Mexican phone number. Continued communication led to Casco, in Houston, agreeing to sell 15 kilograms of crystal meth for more than $100,000.
On Oct. 8, 2020, Casco drove a while Chevy Malibu to the IKEA on Katy Freeway in Houston. Co-defendant – Dante Nava, 39, Houston – was holding a loaded AR-15 style weapon in one hand as he leaned against a brown cardboard box which housed the drugs.
Authorities quickly moved to arrest both men. However, instead of complying with commands, Casco immediately accelerated and rammed into undercover law enforcement vehicles.
No one was injured.
At the time of the arrests, authorities found a loaded Glock 30 SF in the Nava’s waistband and another Glock 30 SF with fully loaded magazine on the front passenger seat. In total, they seized three weapons a total of 62 rounds of ammunition.
Nava also pleaded guilty and was previously sentenced.
Both men have been and will remain in custody.
The Drug Enforcement Administration, police departments in Pasadena and Houston and Harris County Sheriff’s Office conducted the investigation. Assistant U.S. Attorney (AUSA) Shelley J. Sullivan and former AUSA Ed Gallagher Sullivan prosecuted the case.
Owner of D.C.-area Tax Preparation Business Pleads Guilty to Tax Refund Fraud SchemeRead the Press Release
An Indiana woman pleaded guilty in federal court last Friday in the District of Columbia to conspiring to file false tax returns and related charges.
According to court documents and statements made in court, Awett Tedla of Indianapolis was the owner and operator of Speedy Tax Services, L.L.C., a tax preparation business in Washington, D.C., and District Heights, Maryland. From 2012 through 2016, Tedla and her coconspirators prepared and electronically filed with the IRS fraudulent returns on behalf of clients and illegally-obtained identities of unwitting taxpayers, claiming purported refunds were due. The false returns reported fictitious businesses and claimed certain tax credits in order to generate inflated tax refunds. Clients paid an increased fee depending on the size of the fraudulent refund.
Tedla also underreported business gross receipts and taxable income on her 2016 personal income tax return, and in total, evaded approximately $171,534 in income tax between 2013 through 2016.
She faces a maximum sentence of 20 years in prison for wire fraud, 10 years in prison for conspiring to file false claims, five years in prison for tax evasion and a mandatory sentence of two years in prison for aggravated identity theft. Tedla also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS-Criminal Investigation and the Treasury Inspector General for Tax Administration (TIGTA) are investigating the case.
Trial Attorneys Mark McDonald and George Meggali of the Justice Department’s Tax Division are prosecuting the case.
Orange County Pharmacist Sentenced to 15 Years in Federal Prison for Helping to Defraud U.S. Military’s Health Plan Out of $11.1 MillionRead the Press Release
LOS ANGELES – A licensed Orange County pharmacist was sentenced today to 180 months in federal prison for her role in a health care fraud scheme in which more than 1,000 bogus prescriptions for compounded medications were filled, costing Tricare, the United States military’s health care plan, more than $11 million in losses.
Sandy Mai Trang Nguyen, 42, of Irvine, was sentenced by United States District Judge Otis D. Wright II, who also ordered her to pay $11,098,756 in restitution.
At the conclusion of a five-day trial in November 2022, a jury found Nguyen guilty of 21 counts of health care fraud, and one count of obstruction of a federal audit.
Nguyen was the pharmacist-in-charge of the now-defunct Irvine Wellness Pharmacy (IWP) in Irvine. From late 2014 to May 2015, Nguyen and others under her supervision filled approximately 1,150 compounded prescriptions for pain, scarring and migraines that Tricare reimbursed for tens of thousands of dollars per prescription. Nearly all the prescriptions were sent to the pharmacy by so-called marketers who were paid kickbacks of upwards of 50% of the Tricare reimbursements.
Compounded drugs are tailor-made products doctors may prescribe when the Food and Drug Administration-approved alternative does not meet the health needs of a patient.
The beneficiaries were solicited to provide their Tricare insurance information for medications they did not seek out or need, and most were never examined by a physician. The prescriptions were electronically sent from marketers or telemedicine businesses and submitted by the pharmacy for reimbursement even though Tricare rules excluded reimbursements for claims based on telemedicine visits and would not, in any event, have authorized reimbursements for prescriptions obtained through the payment of kickbacks.
Nguyen was aware that the prescriptions – purportedly tailored to individual patients’ needs – were purportedly written by physicians in states other than where the beneficiaries lived, multiple members of the same families received the same medications, and the same prescriptions were written for members of different patient populations, including a 13-year-old boy in Chicago who got the same prescription as a woman in Orange County who happened to be Nguyen’s grandmother.
The pharmacy invoiced the beneficiaries to pay hundreds of dollars in required co-payments, but the beneficiaries stated that they knew nothing about co-payments and understood that the medications were fully covered by Tricare, according to trial testimony. The total co-payments due during the scheme exceeded $16,000, but the pharmacy never collected them.
Nguyen also obstructed a federal audit by providing bogus, cut-and-pasted prescriptions to frustrate Tricare’s effort to validate millions of dollars paid for the same prescriptions.
During Nguyen’s tenure as pharmacist-in-charge, Tricare paid $11,098,756 on the fraudulently submitted claims.
“At [Nguyen’s] trial, the government proved that [Nguyen] knew that IWP was, essentially, a fraud factory that was churning out prescriptions solely to make a fast buck,” prosecutors argued in a sentencing memorandum. “She routinely ignored the numerous red flags that indicated that the prescriptions were fraudulent.”
On March 20, Judge Wright sentenced co-defendant Marcus Orlando Armstrong, 56, of Miami, to 9½ years in federal prison for his role in the scheme to defraud Tricare. Armstrong was IWP’s director of operations when the criminal activity occurred.
Co-defendants Leslie Andre Ezidore, 53, of West Los Angeles, and Alexander Michael Semenik, 51, of Las Vegas, have pleaded guilty to felony charges in this case and await sentencing.
The Department of Defense Office of Inspector General; the Defense Criminal investigative Service; the FBI; the Amtrak Office of Inspector General; IRS Criminal Investigation; the United States Department of Labor – Employee Benefits Security Administration; the California Department of Insurance; and the Office of Personnel Management Office of Inspector General investigated this matter.
Assistant United States Attorneys Mark R. Aveis and Ali Moghaddas of the Major Frauds Section are prosecuting this case.
Ohio Woman Pleads Guilty to Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – Judy Ann Goodman, also known as Judy Ann Eplion, 32, of Chesapeake, Ohio, pleaded guilty today to conspiracy to distribute suboxone and methamphetamine.
According to court documents and statements made in court, on October 6, 2022, Goodman conspired with Western Regional Jail inmate Corey Michael Perkins during phone calls to assist the smuggling of a package of suboxone and methamphetamine into the jail. The phone calls were recorded by the West Virginia Division of Corrections and Rehabilitation. Goodman admitted that she helped to pay a woman working at the jail to transport the drugs into the jail. Goodman further admitted that Perkins instructed her on what to do with the package and arranged a meeting between Goodman and the jail worker.
Investigators intercepted the package when the jail worker attempted to deliver it. Goodman admitted that the package contained 126 Suboxone strips and approximately 7.3 grams of suspected methamphetamine. The West Virginia State Police Forensic Laboratory confirmed that the controlled substances were buprenorphine and 6.8 grams of methamphetamine.
Goodman is scheduled to be sentenced on July 5, 2023, and faces a maximum penalty of 20 years in prison, three years of supervised release, and a $1 million fine.
The jail worker, Bryanna Danielle Kern, 25, of Proctorville, Ohio, pleaded guilty to conspiracy to distribute suboxone and is scheduled to be sentenced on May 22, 2023. The indictment remains pending against the inmate, Perkins. An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the West Virginia Division of Corrections and Rehabilitation Investigations Unit, the West Virginia State Police, and the Huntington Police Department.
United States District Judge Robert C. Chamber presided over the hearing. Assistant United States Attorney Ryan A. Keefe is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:22-cr-220.
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Nurse Practitioner Convicted of Opioid Distribution ConspiracyRead the Press Release
WASHINGTON – A federal jury convicted a Tennessee nurse practitioner last week for illegally prescribing opioids – including oxycodone and fentanyl – from his medical practice.
According to court documents and evidence presented at trial, Jeffrey Young, 49, of Jackson, used his medical practice, Preventagenix, to illegally prescribe more than one million medically unnecessary controlled substance pills to hundreds of patients, including a pregnant woman and women with whom he was having inappropriate physical relationships. Young maintained a party-like atmosphere at his clinic, and prescribed these drugs at least in part to boost his popularity on social media and promote a self-produced reality TV show pilot based on his self-identified persona, the “Rock Doc.”
Young was convicted of conspiracy to unlawfully distribute controlled substances, maintaining a drug-involved premises, and 13 counts of distributing controlled substances, six of which involved distribution to a pregnant woman. He is scheduled to be sentenced on Aug. 3 and faces a maximum penalty of 40 years in prison for each count involving distribution to a pregnant woman, and 20 years in prison for each of the other counts of conviction. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Kevin G. Ritz for the Western District of Tennessee, Special Agent in Charge J. Todd Scott of the DEA Louisville Field Division, and Director David Rausch of the Tennessee Bureau of Investigation made the announcement.
The DEA and Tennessee Bureau of Investigation investigated the case, with valuable assistance from the Jackson Police Department.
Assistant Chief Kate Payerle and Trial Attorney Drew Pennebaker of the Criminal Division’s Fraud Section are prosecuting the case with significant assistance from Jillian Willis and Dermot Lynch.
The Fraud Section leads the Appalachian Regional Prescription Opioid (ARPO) Strike Force. Since its inception in late 2018, ARPO has partnered with federal and state law enforcement agencies and U.S. Attorneys’ Offices throughout Alabama, Kentucky, Ohio, Virginia, Tennessee, and West Virginia to prosecute medical professionals and others involved in the illegal prescription and distribution of opioids. Over the past four years, ARPO has charged over 115 defendants, collectively responsible for issuing prescriptions for over 115 million controlled substance dosage units. To date, more than 70 ARPO defendants have been convicted. More information can be found at https://www.justice.gov/criminal-fraud/health-care-fraud-unit.
Nurse Practitioner Convicted of Opioid Distribution ConspiracyRead the Press Release
A federal jury convicted a Tennessee nurse practitioner last week for illegally prescribing opioids – including oxycodone and fentanyl – from his medical practice.
According to court documents and evidence presented at trial, Jeffrey Young, 49, of Jackson, used his medical practice, Preventagenix, to illegally prescribe more than one million medically unnecessary controlled substance pills to hundreds of patients, including a pregnant woman and women with whom he was having inappropriate physical relationships. Young maintained a party-like atmosphere at his clinic, and prescribed these drugs at least in part to boost his popularity on social media and promote a self-produced reality TV show pilot based on his self-identified persona, the “Rock Doc.”
Young was convicted of conspiracy to unlawfully distribute controlled substances, maintaining a drug-involved premises, and 13 counts of distributing controlled substances, six of which involved distribution to a pregnant woman. He is scheduled to be sentenced on Aug. 3 and faces a maximum penalty of 40 years in prison for each count involving distribution to a pregnant woman, and 20 years in prison for each of the other counts of conviction. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Kevin G. Ritz for the Western District of Tennessee, Special Agent in Charge J. Todd Scott of the DEA Louisville Field Division, and Director David Rausch of the Tennessee Bureau of Investigation made the announcement.
The DEA and Tennessee Bureau of Investigation investigated the case, with valuable assistance from the Jackson Police Department.
Assistant Chief Kate Payerle and Trial Attorney Drew Pennebaker of the Criminal Division’s Fraud Section are prosecuting the case with significant assistance from Jillian Willis and Dermot Lynch.
The Fraud Section leads the Appalachian Regional Prescription Opioid (ARPO) Strike Force. Since its inception in late 2018, ARPO has partnered with federal and state law enforcement agencies and U.S. Attorneys’ Offices throughout Alabama, Kentucky, Ohio, Virginia, Tennessee, and West Virginia to prosecute medical professionals and others involved in the illegal prescription and distribution of opioids. Over the past four years, ARPO has charged over 115 defendants, collectively responsible for issuing prescriptions for over 115 million controlled substance dosage units. To date, more than 70 ARPO defendants have been convicted. More information can be found at https://www.justice.gov/criminal-fraud/health-care-fraud-unit.
Nevada Attorney Indicted in Multimillion-Dollar Ponzi SchemeRead the Press Release
LAS VEGAS – A Las Vegas attorney made his initial appearance on March 31, 2023, before U.S. Magistrate Judge Elayna J. Youchah for allegedly orchestrating a Ponzi scheme causing more than 1,000 victim-investors to part with more than $460 million.
A federal grand jury returned the indictment on March 29, 2023, charging Matthew Wade Beasley (50) with five counts of wire fraud and three counts of money laundering. A detention hearing was scheduled for April 7, 2023, before U.S. Magistrate Judge Cam Ferenbach. A jury trial was scheduled for June 6, 2023, before U.S. District Judge Jennifer A. Dorsey.
According to allegations contained in the indictment, from about 2017 to March 2022, Beasley falsely represented to another person that he could find plaintiffs in personal injury lawsuits who wanted to borrow money against their pending settlements and would pay high interest rates to do so. He created fake contracts to lend money to purported personal injury plaintiffs. Beasley caused others to find investors to invest in these fake contracts.
The indictment further alleges that, Beasley caused victim investors to wire transfer their investments to Beasley’s IOLTA account, which is a bank account set up by an attorney to hold client monies. He used the money from the scheme to buy luxury homes, cars, and recreational vehicles.
“This indictment alleges the defendant devised and orchestrated a large-scale, multimillion-dollar Ponzi scheme with thousands of victims across the country,” said United States Attorney Jason M. Frierson for the District of Nevada. “While the allegations are intolerable regardless of the defendant’s position, they are even more egregious when considering defendant’s position of trust as an attorney. The U.S. Attorney’s Office will continue to work closely with our law enforcement partners to pursue, investigate, and prosecute individuals who lure victims with a false promise and take advantage for their personal benefit.”
“Investment fraud can be crippling for its victims, with life savings obliterated in a flash,” said Special Agent in Charge Spencer L. Evans for the FBI. “The defendant used fraudulent means to mislead multiple victims into believing they were investing in legitimate legal contracts. The FBI is committed to identifying and working with anyone impacted by this brazen scheme. This indictment is only one piece of an ongoing investigation. We will continue to follow the facts and pursue anyone who seeks to defraud others through deceptive and illegal practices.”
If convicted, Beasley faces up to 160 years in prison and fines up to $2,750,000 or twice the value of property involved in the scheme, whichever is greater. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI and IRS Criminal Investigation are investigating the case. Assistant United States Attorneys Daniel R. Schiess and Eric Schmale are prosecuting the case.
An indictment is merely an allegation, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Morris County Company Settles Matter Alleging it Received Improper Paycheck Protection Program LoanRead the Press Release
NEWARK, N.J. – A Morris County public relations firm entered into a settlement agreement with the United States resolving allegations that the company violated the False Claims Act by taking a loan from the Paycheck Protection Program (PPP) to which the company was not entitled, U.S. Attorney Philip R. Sellinger announced today.
Congress created the PPP in March 2020, as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, to provide emergency financial support to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. The CARES Act authorized billions of dollars in forgivable loans to small businesses struggling to pay employees and other business expenses.
According to the allegations in the complaint and the contentions of the United States in the settlement agreement:
Coyne Public Relations LLC (Coyne) knowingly applied for and received a PPP loan totaling $2 million, even though it was ineligible for such a loan because it was a required registrant under the Foreign Agent Registration Act (FARA). Coyne thereafter sought and received forgiveness of the total amount of the loan.
Coyne fully cooperated in the investigation and resolution of this matter. In accordance with the terms of the settlement Coyne agrees to pay the United States $2.24 million. The settlement resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties, called relators, to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. In this matter, the relator is receiving $203,183 as his share in the recovery.
U.S. Attorney Sellinger credited special agents of the Small Business Administration, Office of Inspector General, under the direction of Supervisory Criminal Investigator Angelo Palmeri in New York, with the investigation.
The government is represented by Assistant U.S. Attorney David E. Dauenheimer of the Healthcare Fraud Unit in Newark.
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 Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The qui tam case is captioned United States ex rel. GNGH2 Inc. v. Coyne Public Relations, LLC, 21-cv-20442 (D.N.J.).
coyne.settlement.pdfMoney from Debt Elimination Services Fraud Scheme Successfully Forfeited and Returned to VictimRead the Press Release
GRAND RAPIDS, MICHIGAN —U.S. Attorney Mark Totten today announced the civil forfeiture and return of over $79,000 that was stolen from an individual victimized by a “debt elimination services” scam. This is the latest public action by the U.S. Attorney’s Office in its ongoing efforts to combat fraudsters who seek to financially exploit vulnerable individuals.
“Scams, including fraudulent promises to eliminate debt, are everywhere and can financially ruin unsuspecting victims. Be aware: if something sounds too good to be true, it’s probably a scam,” said U.S. Attorney Totten. “Thankfully, due to the hard work of the FBI, the fraud in this case was detected quickly and all lost funds were returned to the victim. Working with our law enforcement partners, we will continue to use every available tool to ensure fraudsters don’t benefit from their crimes.”
Criminal organizations engage in a variety of scams with the intention of convincing unwitting victims to send money to locations or bank accounts based in the United States or overseas. One type of scam involves purported debt elimination services, where the fraudsters offer to pay off the victim’s debt obligations for an upfront fee that is considerably less than the underlying debt. The fraudsters induce the victims by paying off small increments of debt in the beginning to gain trust, and eventually, the victims pay larger upfront fees while the underlying debt remains unpaid.
“The victim in this case lost more than $79,000 in a debt elimination scam, one of many types of scams criminals use to separate people from their hard-earned money,” said James A. Tarasca, Special Agent in Charge of the FBI in Michigan. “The return of those funds would not have been achievable without the cooperative efforts of FBI agents and federal prosecutors in the Western District of Michigan. Forfeiture of ill-gotten gains not only takes money from criminals, but it is among our most powerful tools to make victims whole.”
According to allegations contained in the civil forfeiture complaint filed in U.S. District Court (attached), in September 2021, fraudsters contacted the victim by phone, offering a debt elimination service, which was a scam. Throughout the scam, the victim made upfront “fee payments” that totaled $79,760, while the victim’s underlying debt was never paid off. Following an investigation, these fraud proceeds were seized by the FBI from various bank accounts, forfeited to the United States, and ultimately returned to the victim.
The U.S. Attorney’s Office continues to combat financial fraud schemes against vulnerable victims, including the elderly, by expanding efforts to investigate and promote coordination with law enforcement partners, and by seizing fraud proceeds through federal forfeiture laws.
In addition to debt elimination service fraud, some well-known examples of financial scams targeting seniors and other vulnerable populations are:
- Lottery phone scams: fraudsters persuade victims that a large fee or tax must be paid before they can receive lottery winnings.
- Grandparent scams: fraudsters convince elderly victims that their grandchildren are in trouble and need money to pay rent, repair a car, or make bail.
- Romance scams: scammers lull victims into believing that they are in a romantic relationship and that the scammers need money to travel to the U.S. or for some other seemingly legitimate purpose.
- IRS or government imposter scams: fraudsters pose as IRS or other government officials that claim the victims owe the government money.
- Sham business opportunities: fraudsters convince victims to invest in lucrative business opportunities or investments.
To avoid falling victim to financial scams:
- Don’t share personal information with anyone you don’t know.
- Don’t send money or pay upfront fees to obtain some greater financial benefit down the road. Remember, it’s not rude to say, “No.”
- If you are unsure about contact you receive from a potential fraudster, take the time to talk to a trusted family member or friend before you do anything.
If you have been contacted by a fraudster, or believe you have fallen victim to a scam, please file a report with the Justice Department’s Elder Fraud Hotline at 1-833-Fraud-11, the Federal Trade Commission (FTC) via their website or by calling 877-FTC-HELP, or the FBI, for law enforcement action, at https://tips.fbi.gov/.
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Michigan Man Pleads Guilty to Illegal Possession of a Firearm After a High-Speed Pursuit with an Iowa State TrooperRead the Press Release
Ahmed Abdullahai Khalif, 23, from Owosso, Michigan, pled guilty on March 30, 2023, to being a prohibited person in possession of a firearm. Khalif was a user of marijuana and was previously convicted of felony Illegal Sale/Use of a Financial Transaction Device in Michigan. Both prohibit a person from possessing a firearm.
At the plea hearing, defendant admitted that on October 19, 2022, during a traffic stop, he possessed a 9mm Taurus pistol and marijuana while being a felon. Prior to the traffic stop, an Iowa State Patrol trooper clocked the vehicle defendant was driving traveling in excess of 100 mph. After the trooper activated his emergency lights, Khalif led the trooper on a high-speed pursuit into Wright County, at times traveling toward oncoming traffic. Ultimately, the defendant hit the trooper’s vehicle, and defendant fled on foot a short distance before being apprehended. The vehicle defendant was driving was stolen in Massachusetts. During a search of the vehicle, law enforcement found the 9mm Taurus pistol and marijuana. In addition to the federal conviction for the firearm possession, defendant was convicted in Iowa District Court for Wright County with felony Eluding, Theft 2nd Degree, Assault on Persons in Certain Occupations, Possession Marijuana, and Operating While Under the Influence.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Khalif remains in custody of the United States Marshal pending sentencing. Khalif faces a possible maximum sentence of 15 years’ imprisonment, a $250,000 fine, and not more than three years of supervised release following any imprisonment.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case is being prosecuted by Assistant United States Attorney Patrick T. Greenwood and was investigated by the Iowa Division of Narcotics Enforcement, Iowa State Patrol, Iowa DCI, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-3035. Follow us on Twitter @USAO_NDIA.
Mexican National Sentenced for Meth ConspiracyRead the Press Release
KANSAS CITY, Mo. – A Mexican national was sentenced in federal court today after a Missouri State Highway Patrol trooper found more than 88 pounds (40 kilograms) of methamphetamine and a firearm during a car stop on Interstate 70 in Saline County, Mo.
Jose Alfredo Renteria-Rojas, 34, who was residing in Des Plaines, Illinois, was sentenced by U.S. District Chief Judge Beth Phillips to 11 years and six months in federal prison without parole.
On Oct. 25, 2022, Renteria-Rojas pleaded guilty to one count of conspiracy to distribute methamphetamine and one count of using a firearm in furtherance of a drug-trafficking crime.
Renteria-Rojas was a passenger in a white 2011 Volkswagen Jetta SE being driven by his brother, co-defendant Gustavo Renteria-Rojas, 39, a citizen of Mexico residing in Evanston, Ill., on April 5, 2021. Their car was stopped by a Missouri State Highway Patrol trooper on eastbound I-70 in Saline County, Mo. The trooper could smell the odor of burnt and raw marijuana emanating from the vehicle as he stood outside the front passenger-side window. He also noticed a marijuana blunt in the center console. When Gustavo Renteria-Rojas opened the glove box to retrieve the requested paperwork, a bag of marijuana was visible in plain view.
Gustavo Renteria-Rojas was placed in the trooper’s patrol car. The trooper requested Jose Renteria-Rojas, in the rear passenger seat, to exit the vehicle for a vehicle search. As Jose Renteria-Rojas did so, air fresheners fell from the car. Jose Renteria-Rojas then collected them and put them in the door pocket, which also contained a loaded Smith & Wesson .380-caliber handgun with a magazine, as well as an extra magazine.
The trooper searched the vehicle and found four white cardboard boxes in the trunk that contained 36 packages with a total of 88.7 pounds of methamphetamine. The trooper also found a methamphetamine smoking pipe concealed within a roll of toilet paper on the driver’s seat where Gustavo Renteria-Rojas had been sitting.
Gustavo Renteria-Rojas pleaded guilty to the same charges on Oct 13, 2022, and will be sentenced on April 6, 2023.
This case is being prosecuted by Assistant U.S. Attorney Bruce Rhoades. It was investigated by the Drug Enforcement Administration and the Missouri State Highway Patrol.
Maryland Woman Pleads Guilty to Conspiring to Defraud the GovernmentRead the Press Release
BOSTON – A Maryland woman pleaded guilty today in federal court in Boston to her role in a conspiracy to defraud the government of thousands of dollars from 2014 to 2018.
Chantelle Boyd, 53, of Woodsboro, Md., pleaded guilty to one count of conspiracy, 10 counts of theft of government funds and false declarations before the grand jury. U.S. Senior District Court Judge Mark L. Wolf scheduled sentencing for June 26, 2023. Boyd was arrested and charged in July 2020 along with co-defendant Thomas Bouchard.
Bouchard was the Contracting Officer in charge of the U.S. Army Natick Contracting Division, a full-service contracting organization for the Department of Defense. According to the charging documents, in 2014, Bouchard used his long-standing relationship with Evolution Enterprise, Inc., a government contractor, to have Boyd hired for a “no show” job as an assistant that specifically supported Bouchard. Boyd’s position cost the Department of Defense more than $490,000 during her time at Evolution from 2014 to 2018, during which Boyd performed little if any useful function.
Bouchard and Boyd took numerous government-funded trips, ranging in duration from two to 15 days, under the guise that they were work related. This included 31 trips to Orlando, Fla., among other locations such as Clearwater Beach, Fla., and Stafford, Va., during which Boyd allegedly performed little if any work. For many of the trips, Bouchard and Boyd stayed in the same hotel room and spent time at the pool and Disney parks – all during business hours. In order to conceal the personal nature of the trips, Bouchard altered, created and approved false travel to reimburse the Boyd for out-of-pocket expenses. Additionally, Boyd made false statements to the grand jury in May 2018 in relation to these trips.The charge of conspiracy provides a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charges of theft of government funds each provide for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. The charge of lying to a grand jury provides a sentence of up to five years in prison, three years of supervised release and a fine of 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; Joseph Dattoria, Special Agent in Charge of the General Services Administration Office of Inspector General; Patrick Hegarty, Special Agent in Charge of the Defense Criminal Investigative Service; and Scott Moreland, Special Agent in Charge of the Army Criminal Investigation Division Major Procurement Fraud Field Office made the announcement. Assistant U.S. Attorney Neil J. Gallagher, Jr. of Rollins’ Public Corruption & Special Prosecutions Unit is prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Man to Federal Prison for over 11 Years for Illegal Possession of Stolen FirearmsRead the Press Release
A man who illegally possessed firearms that were stolen was sentenced on March 30, 2023, in federal court in Sioux City to over 11 years in federal prison.
Logan Rhinehart, 27, from Fairfield, Iowa, pled guilty on November 16, 2022, to one count of prohibited person in possession of a firearm and one count of possession of a stolen firearm.
At the plea and sentencing hearings, evidence showed that Rhinehart was previously convicted of felony burglary, escape and theft. These convictions prohibit a person from possessing any firearm. Evidence showed that on January 13, 2022, law enforcement located a stolen .22 caliber firearm under circumstances which indicated it had been stolen by Rhinehart. On January 28, 2022, law enforcement attempted to pull Rhinehart over when they observed him driving a stolen vehicle. As law enforcement attempted to stop the vehicle, Rhinehart attempted to flee driving at a high rate of speed (113+ mph) and the vehicle ended up crashing into a snow drift. Rhinehart then attempted to flee on foot before apprehended by law enforcement. During the attempted flight Rhinehart threw a 40 caliber pistol, which was also stolen, out of the vehicle which was later recovered from the scene. Further evidence showed that from between January 13, 2022 and January 28, 2022, Rhinehart burglarized two separate homes and stole numerous items, including two firearms.
Sentencing was held before United States District Court Chief Judge Leonard T. Strand. Rhinehart was sentenced to 136 months’ imprisonment and must serve a three-year term of supervised release following imprisonment. There is no parole in the federal system. Rhinehart remains in custody of the United States Marshal until he can be transported to a federal prison.
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 prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Wright County Sheriff’s Office, Franklin County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-3008. Follow us on Twitter @USAO_NDIA.
Man Pleads Guilty to Distributing HeroinRead the Press Release
A man who distributed heroin in Dubuque, Iowa, plead guilty on March 30, 2023.
John A. Pruitt, age 39, formerly of Dubuque, was convicted of distribution of heroin.
In a plea agreement, Pruitt admitted to distributing heroin in the Dubuque area. In the fall of 2021, Pruitt was stopped by Dubuque police officers because he had three active arrest warrants. During the stop, officers recovered a distribution quantity of heroin from Pruitt’s person and from the floorboard area, where he was reaching during the stop.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Pruitt remains in custody of the United States Marshal pending sentencing. Pruitt faces a possible maximum sentence of 20 years’ imprisonment, a fine of not more than $1 million, and of at least three years and up to a lifetime of supervised release.
This case was investigated by the Dubuque Drug Task Force and is being prosecuted by Assistant United States Attorney Jason D. Norwood.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 22-CR-1030-CJW.
Follow us on Twitter @USAO_NDIA.
Man Pleads Guilty to $3.1M Medicare Fraud SchemeRead the Press Release
A Southern California man pleaded guilty today to submitting false enrollment applications to Medicare that hid the real owners of a fraudulent hospice company, which then submitted over $3.1 million in false and fraudulent claims to Medicare.
According to court documents, Karen Sarkisyan, aka Kevin Sarkisyan, 44, of Glendale, submitted false and fraudulent Medicare enrollment forms for San Gabriel Hospice and Palliative Care Inc. (San Gabriel), falsely identifying a straw owner as the sole owner and manager, concealing the actual beneficial owners and managers. San Gabriel submitted approximately $3,668,050 in false and fraudulent claims to Medicare, of which $3,180,677 was paid after Sarkisyan submitted the false enrollment applications.
Sarkisyan pleaded guilty to one count of conspiracy to defraud the United States. He is scheduled to be sentenced on Sept. 11 and faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Co-conspirator Gayk Akhsharumov previously pleaded guilty to health care fraud conspiracy and is scheduled to be sentenced on Aug. 14. A third co-conspirator was indicted for his role in the scheme but remains a fugitive.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Martin Estrada for the Central District of California, Assistant Director in Charge Donald Always of the FBI Los Angeles Field Office, and Special Agent in Charge Timothy B. DeFrancesca of the Department of Health and Human Services Office of Inspector General (HHS-OIG) made the announcement.
The FBI Los Angeles Field Office and HHS-OIG are investigating the case.
Assistant Chief Niall M. O’Donnell and Trial Attorneys Patrick J. Queenan and Alexandra Michael of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, comprised of 15 strike forces operating in 25 federal districts, has charged more than 5,000 defendants who collectively have billed federal health care programs and private insurers more than $24 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at https://www.justice.gov/criminal-fraud/health-care-fraud-unit.
Lawrence Man Sentenced for Identity Theft, Social Security and Passport FraudRead the Press Release
BOSTON – A Lawrence man was sentenced today in federal court in Boston for stealing the identity of a United States citizen to fraudulently obtain a United States passport.
Arciliano Gregorio Arias Suarez, 65, was sentenced by U.S. District Court Judge Leo T. Sorokin to two years and one day in prison and two years of supervised release. In November 2022, Arias Suarez pleaded guilty to one count of aggravated identity theft, one count of false representation of a Social Security number and one count of passport fraud.
In January 2016, Arias Suarez submitted a U.S. passport application at a post office in Lawrence in the name of a United States citizen from New York. In support of the fraudulent passport application, Aris Suarez submitted copies of a Massachusetts driver’s license and a New York birth certificate, both in the victim’s name. Later, in May 2019, Aris Suarez submitted a license renewal application at the Lawrence Registry of Motor Vehicles (RMV) in the name of the same victim and provided the RMV with a copy of a U.S. passport, a Massachusetts driver’s license and a Social Security card all in the victim’s name.
Arias Suarez has two prior federal heroin related convictions in the District of Massachusetts. He was sentenced to federal prison in both of those cases.
United States Attorney Rachael S. Rollins and Michael J. Krol, Acting Special Agent in Charge of Homeland Security Investigations in New England made the announcement. Assistant U.S. Attorney David G. Tobin of Rollins’ Major Crimes Unit prosecuted the case.
Lawrence Man Sentenced for Drug TraffickingRead the Press Release
CONCORD – A Lawrence man was sentenced today in federal court in Concord for possession with intent to distribute controlled substances.
Daniel Adorno, Jr., 28, was sentenced by U.S. District Court Judge Paul J. Barbadoro to 41 months in prison and 3 years of supervised release. Adorno pleaded guilty to the charge on January 11, 2022.
“The U.S. Attorney’s Office is committed to working closely with our law enforcement partners to identify and prosecute drug dealers,” said U.S. Attorney Jane E. Young. “In this case, the Salem Police Department successfully stopped the flow of fentanyl, cocaine, and methamphetamine from endangering their community.”
On November 13, 2019, a Salem Police Officer encountered Adorno during a routine motor vehicle stop that resulted in the arrest of the driver and impoundment of the vehicle. During the pre-tow inventory search of the vehicle, officers located Adorno’s backpack containing cocaine, cocaine base, and methamphetamine. Adorno admitted that the drugs in the backpack belonged to him and that he distributed drugs.
On May 15, 2020, the same Salem Police Officer recognized Adorno as he was driving away from a hotel. Adorno had a suspended license and had an active warrant for the November 2019 encounter at the time. The officer stopped Adorno to arrest him for the outstanding warrant. Adorno admitted that he possessed drugs and had more in his hotel room. The officer located 9 baggies of fentanyl from Adorno’s pockets. Officers attempted to recover the drugs from Adorno’s hotel room, but they learned that the defendant’s sister had removed and concealed the drugs in a bush next to the hotel room. Officers recovered approximately 174.89 grams of fentanyl during their search of the area.
United States Attorney Jane E. Young made the announcement today. This case was prosecuted by former Assistant U.S. Attorney Joachim H. Barth and Assistant U.S. Attorney Cam T. Le
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Las Vegas Woman Sentenced to Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
LAS VEGAS – A Las Vegas woman was sentenced today by U.S. District Judge Cristina D. Silva to 65 months in prison followed by five years of supervised release for conspiring with others to distribute methamphetamine.
Adeline Coronel (31) pleaded guilty in December 2022 to conspiracy to distribute a controlled substance – methamphetamine.
According to court documents, in September and October 2021, Coronel conspired with co-defendant Melinda Rodriguez and others to sell and possess with the intent to sell 2.1 kilograms of methamphetamine. Coronel arranged and negotiated the sale of drugs, and on one occasion she drove from California to Las Vegas to sell about three pounds of methamphetamine. Additionally, she admitted to working with individuals in Mexico to smuggle the drugs into the United States.
United States Attorney Jason M. Frierson for the District of Nevada and Assistant Special Agent in Charge Kevin Adams for the Drug Enforcement Administration (DEA) Las Vegas District Office made the announcement.
Rodriguez pleaded guilty to conspiracy to distribute a controlled substance - methamphetamine and she was sentenced to 96 months in prison.
The DEA investigated the case. Assistant United States Attorney Allison Reese prosecuted the case.
If you have information of a potential violation of controlled substances laws and regulations, including the growing, manufacture, distribution or trafficking of controlled substances, please contact the DEA at https://www.dea.gov/submit-tip.
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Keene Man Charged for Threatening to Kill a Member of CongressRead the Press Release
CONCORD – A man attending Keene State College has been charged for calling the office of a member of the United States House of Representatives and threatening to kill the Congressman.
Allan Poller, 23, was charged with transmitting in interstate commerce a threat to injure the person of another. Poller made an initial appearance in federal court in Concord on April 3, 2023 at 3:00 p.m.
According to the charging documents, on March 29, 2023 at approximately 12:20 a.m., Poller called the congressional office in Washington DC and left a voicemail, stating:
"Hi, my name is Allan Poller, A-L-L-A-N P-O-L-L-E-R, phone number []8931. And I just want to let you know, Representative [Name], if you keep on coming for the gays, we’re gonna strike back and I guarantee you, you do not want to fuck with us. We will kill you if that’s what it takes. I will take a bullet to your fucking head if you fuck with my rights anymore. And then if you want to keep going down that path, you know who’s next."
The charge provides for a sentence of up to five years in prison, up to three years of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Jane E. Young; the Federal Bureau of Investigation, Boston Division; and the United States Capitol Police made the announcement today. Valuable assistance was provided by the Keene, New Hampshire Police Department and the Springfield, Vermont Police Department. Assistant U.S. Attorney Jarad E. Hodes 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.
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Justice Dept. Seizes over $112M in Funds Linked to Cryptocurrency Investment Schemes, with over Half Seized in Los Angeles CaseRead the Press Release
LOS ANGELES – The Department of Justice announced today that it has seized virtual currency worth an estimated $112 million linked to cryptocurrency investment scams commonly called “pig butchering.”
Seizure warrants for six virtual currency accounts were authorized by judges in Los Angeles, the District of Arizona, and the District of Idaho. In the Los Angeles matter, a United States magistrate judge authorized the seizure of an account containing approximately $66.4 million in various cryptocurrencies after finding probable cause that the funds were derived from wire fraud schemes.
According to court documents, the six virtual currency accounts were used to launder proceeds of various cryptocurrency confidence scams. In these schemes, fraudsters cultivated long-term, online relationships with victims, eventually enticing them to make investments in fraudulent cryptocurrency trading platforms. In reality, the funds sent by victims for these purported investments were instead funneled to cryptocurrency addresses and accounts controlled by scammers and their co-conspirators.
“The victims in Pig Butchering schemes are referred to as ‘pigs’ by the scammers because the scammers will use elaborate storylines to ‘fatten up’ victims into believing they are in a romantic or otherwise close personal relationship,” according to the affidavit in support of the Los Angeles seizure warrant. “Once the victim places enough trust in the scammer, the scammer brings the victim into a cryptocurrency investment scheme.”
The scammer attempts to create the appearance of legitimacy by fabricating websites or mobile apps to display a bogus investment portfolio with large returns, the affidavit states. In relation to the Los Angeles-based account seizure, the FBI has identified at least 10 victims who were unable to withdraw funds they had invested, with the seized account containing some funds from all 10 victims.
Authorities executed the Los Angeles seizure warrant in December and received the last transfer of cryptocurrency on March 21.
“Using the methods of traditional con artists, high-tech fraudsters have taken advantage of the publicity and hype surrounding cryptocurrency to encourage an untold number of Americans to invest in get-rich-quick schemes,” said United States Attorney Martin Estrada. “We all know that investment scams are not new, but the use of digital currency to commit fraud presents new challenges to victims and to law enforcement trying to recover lost funds – which likely total billions of dollars in the so-called ‘pig butchering’ schemes. The major seizures announced today show that law enforcement is confronting the new challenges and taking strong measures to address this fraud, but the public should be extremely wary of investment scams that use cryptocurrency and promise unrealistic returns.”
The affidavit in the Los Angeles seizure warrant discussed a series of cryptocurrency investment scams, one of which targeted a professional woman who was contacted on LinkedIn by a man who used the name “Fei Kuang.” After learning that the victim already had a small cryptocurrency account, “Fei Kuang” offered to help the victim, eventually convincing her to invest more money and to move her funds to another, presumably fraudulent, trading exchange. When she tried to withdraw her funds, she was told she had to pay a 20% in “taxes.” When the trading platform continued to demand more money, the woman realized she was the victim of a scam which cost her approximately $2.5 million.
“Transnational criminal organizations are combining confidence scams with technological savvy to swindle Americans out of their hard-earned funds,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “These particularly vicious frauds – where scammers carefully cultivate relationships with their victims over time – have devastated families and cost individuals their life savings. Now that we have seized this virtual currency, we will seek to swiftly return it to victims. In addition to our tireless efforts to disrupt these schemes, we must also work to raise public awareness and help inform potential victims: be wary of people you meet online; seriously question investment advice, especially about cryptocurrency, from people you have not met in person; and remember, investments that seem too good to be true, usually are.”
In 2022, investment fraud caused the highest losses of any scam reported by the public to the FBI’s Internet Crimes Complaint Center (IC3), totaling $3.31 billion. Frauds involving cryptocurrency, including pig butchering, represented most of these scams, increasing 183% from 2021 to $2.57 billion in reported losses last year.
According to the FBI, the highest number of reports came from victims between the ages of 30 and 49. In these schemes, often called “Sha Zhu Pan,” a Chinese phrase that loosely translates to “pig butchering,” scammers often target their victims through social networking and online communications platforms, dating websites, and phone calls and text messages that are meant to appear to have been misdialed. After gaining the trust of their victims – sometimes over a period of months – scammers eventually introduce the idea of trading in cryptocurrency. They then direct victims to cryptocurrency investment platforms or to co-conspirators posing as investment advisors or customer service representatives. Scammers control websites that are built to look like legitimate trading platforms, applications that victims download onto their phones, or malicious smart contracts accessed through cryptocurrency wallet software.
Once victims make an initial “investment,” the platforms purport to show substantial gains. Sometimes, victims are even allowed to withdraw some of these initial gains to further engender trust in the scheme. It is not until a large investment is made that victims find that they are unable to withdraw their funds.
Even when a victim is denied access to their funds, the fraud is often not yet over. Scammers request additional investments, taxes or fees, promising that these payments will allow victims access to their accounts. These scam operations often continue to steal from their victims and do not stop until they have deprived victims of any remaining savings.
“Depriving scam organizations of their ill-gotten gains is an important part of our strategy to combat these ruthless schemes,” said Director Eun Young Choi of the Criminal Division’s National Cryptocurrency Enforcement Team (NCET). “We will continue to use all tools at our disposal to disrupt and deter cryptocurrency confidence schemes, including by following the money on the blockchain and seizing cryptocurrency to return funds to victims, and by targeting and taking down online infrastructure used by the scammers. Today’s announcements also demonstrate the value of early notification by victims to law enforcement; we thank those victims who came forward to notify the FBI when they were targeted by this scheme.”
The FBI Phoenix Division is investigating the matter that resulted in seizures announced today.
Assistant United States Attorney Daniel Boyle of the Asset Forfeiture and Recovery Section is handling the Los Angeles case. The other cases are being handled by the District of Arizona and the District of Idaho. The NCET and the Criminal Division’s Fraud Section provided substantial assistance and coordination.
If you or someone you know is a victim, visit www.fbi.gov/cryptoguard, contact your local FBI field office (the Los Angeles Field Office can be reached at 310-477-6565), call 1-800-CALL-FBI, or report it to IC3.gov. In your complaint, please reference, “Pig Butchering PSA.” Include as much information as possible in your complaint including names of investment platforms, cryptocurrency addresses and transaction hashes, bank account information, and names and contact information of suspected scammers. Maintain copies of all communications with scammers and records of financial transactions.
Justice Department Seizes over $112M in Funds Linked to Cryptocurrency Investment SchemesRead the Press Release
The Department of Justice announced today that it has seized virtual currency worth an estimated $112 million linked to cryptocurrency investment scams.
Seizure warrants for six virtual currency accounts were authorized by judges in the District of Arizona, the Central District of California, and the District of Idaho.
According to court documents, the virtual currency accounts were allegedly used to launder proceeds of various cryptocurrency confidence scams. In these schemes, fraudsters cultivate long-term relationships with victims met online, eventually enticing them to make investments in fraudulent cryptocurrency trading platforms. In reality, however, the funds sent by victims for these purported investments were instead funneled to cryptocurrency addresses and accounts controlled by scammers and their co-conspirators.
“Transnational criminal organizations are combining confidence scams with technological savvy to swindle Americans out of their hard-earned funds,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “These particularly vicious frauds – where scammers carefully cultivate relationships with their victims over time – have devastated families and cost individuals their life savings. Now that we have seized this virtual currency, we will seek to swiftly return it to victims. In addition to our tireless efforts to disrupt these schemes, we must also work to raise public awareness and help inform potential victims: be wary of people you meet online; seriously question investment advice, especially about cryptocurrency, from people you have not met in person; and remember, investments that seem too good to be true, usually are.”
In 2022, investment fraud caused the highest losses of any scam reported by the public to the FBI’s Internet Crimes Complaint Center (IC3), totaling $3.31 billion. Frauds involving cryptocurrency, including pig butchering, represented the majority of these scams, increasing a staggering 183% from 2021 to $2.57 billion in reported losses last year.
According to the FBI, the highest number of reports came from victims between the ages of 30 and 49. In these schemes, often called “Sha Zhu Pan,” a Chinese phrase that loosely translates to “pig butchering,” scammers often target their victims through social networking and online communications platforms, dating websites, and phone calls and text messages that are meant to appear to have been misdialed. After gaining the trust of their victims – sometimes over a period of months – scammers eventually introduce the idea of trading in cryptocurrency. They then direct victims to cryptocurrency investment platforms or to co-conspirators posing as investment advisors or customer service representatives. Scammers control websites that are built to look similar to legitimate trading platforms, applications that victims download onto their phones, or malicious smart contracts accessed through cryptocurrency wallet software. Once victims make an initial “investment,” the platforms purport to show substantial gains. Sometimes, victims are even allowed to withdraw some of these initial gains to further engender trust in the scheme. It is not until a large investment is made that victims find that they are unable to withdraw their funds. Even when a victim is denied access to their funds, the fraud is often not yet over. Scammers request additional investments, taxes, or fees, promising that these payments will allow victims access to their accounts. These scam operations often continue to steal from their victims and do not stop until they have deprived victims of any remaining savings.
“Depriving scam organizations of their ill-gotten gains is an important part of our strategy to combat these ruthless schemes,” said Director Eun Young Choi of the Criminal Division’s National Cryptocurrency Enforcement Team (NCET). “We will continue to use all tools at our disposal to disrupt and deter cryptocurrency confidence schemes, including by following the money on the blockchain and seizing cryptocurrency to return funds to victims, and by targeting and taking down online infrastructure used by the scammers. Today’s announcements also demonstrate the value of early notification by victims to law enforcement; we thank those victims who came forward to notify the FBI when they were targeted by this scheme.”
“Financial fraud schemes like these demonstrate the great lengths criminals will take to swindle innocent victims out of their money,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “We continue to see these schemes evolve and provide new avenues for criminals to exploit. Today's announcement should serve as reminder of the FBI's unwavering commitment, alongside our federal and international law enforcement partners, to investigating and pursuing criminal actors who seek to defraud the American public. There is no place beyond the reach of the FBI.”
The FBI Phoenix Division is investigating this case.
Assistant U.S. Attorneys Seth Goertz and Ryan Ellersick for the District of Arizona, Daniel Boyle for the Central District of California, and Bill Humphries for the District of Idaho are in charge of the seizures announced today, with significant assistance and coordination by Georgiana MacDonald of the NCET and Tian Huang and Brandon Burkart of the Criminal Division’s Fraud Section.
If you or someone you know is a victim, visit www.fbi.gov/cryptoguard , contact your local FBI field office, call 1-800-CALL-FBI, or report it to the IC3.gov. In your complaint, please reference, “Pig Butchering PSA.” Include as much information as possible in your complaint including names of investment platforms, cryptocurrency addresses and transaction hashes, bank account information, and names and contact information of suspected scammers. Maintain copies of all communications with scammers and records of financial transactions.
Justice Department Files Lawsuit and Proposed Consent Decree to Prohibit Activision Blizzard from Suppressing Esports Player CompensationRead the Press Release
The Justice Department filed a civil antitrust lawsuit today against Activision Blizzard, Inc. (Activision), one of the world’s largest video game developers and publishers, for imposing rules that limited competition for players in Activision’s Overwatch and Call of Duty professional esports leagues and suppressed the wages of esports players in these leagues in violation of the Sherman Act.
“Video games and esports are among the most popular and fastest growing forms of entertainment in the world today, and professional esports players—like all workers—deserve the benefits of competition for their services. Activision’s conduct prevented that from happening,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “Today’s lawsuit makes clear that the Antitrust Division remains committed to protecting workers across all types of industries from anticompetitive conduct.”
The complaint, filed today in the U.S. District Court for the District of Columbia, alleges that in two esports leagues owned by Activision, Activision and the independently-owned teams in each league implemented a so-called Competitive Balance Tax. As alleged in the complaint, the Tax was structured to penalize teams in the Overwatch and Call of Duty Leagues, respectively, if a team’s player compensation exceeded a threshold set by Activision.
At the same time, the Antitrust Division filed a proposed consent decree to address its competition concerns. If approved by the Court, the proposed consent decree would prohibit Activision from imposing any rule that would, directly or indirectly, limit player compensation in any of Activision’s professional esports leagues, or that would tax, fine, or otherwise penalize any team for exceeding a certain amount of compensation for its players.
The proposed consent decree with Activision would also require Activision to certify that it has ended all Competitive Balance Taxes in its professional esports leagues, to implement revised antitrust compliance and whistleblower protection policies, and to provide notice and an explanation of the final judgment to teams and players in its professional esports leagues.
As required by the Tunney Act, the proposed consent decree, along with the competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed consent decree during a 60-day comment period to Chief, Civil Conduct Task Force, Antitrust Division, Department of Justice, 450 Fifth Street NW, Suite 8600, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the U.S. District Court for the District of Columbia may enter the final judgment upon finding it is in the public interest.
Today’s lawsuit is part of a broader focus of the Antitrust Division on anticompetitive labor market abuses. Anyone with information about anticompetitive conduct against workers, or any other violations of the antitrust laws, is encouraged to contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or [email protected].