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28 March 2023
Pittsburgh Man Sentenced to 4 Years in Prison after Admitting He Destroyed a Police Vehicle and Smashed Bank Windows during Protests in DowntownRead the Press Release
PITTSBURGH, PA - A Pittsburgh resident pleaded guilty yesterday in federal court to charges of conspiracy to commit an offense against the United States and bank burglary in connection with the downtown Pittsburgh protest on May 30, 2020, Acting United States Attorney Troy Rivetti announced today.
Devin Montgomery, 27, formerly of Birmingham Avenue, Pittsburgh, PA 15210 pleaded guilty to two counts before Chief United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that on May 30, 2020, a protest march was held in the downtown Pittsburgh area. The march was related primarily to the death of George Floyd at the hands of Minneapolis Police. The march in Pittsburgh began at approximately 2:30 p.m. on Liberty Avenue in the downtown area, and eventually finished at approximately 4:30 p.m. on Centre Avenue near the intersection with Washington Place above the PPG Paints Arena. At that time, many of the participants were agitated, and members of the crowd began to vandalize a marked Pittsburgh Police vehicle (Unit 3212) on Centre Avenue. The crowd eventually set that vehicle on fire and it was totally destroyed.
Shortly after the Unit 3212 was set afire, the crowd turned around and began to walk back down Washington Place toward a line of police officers in riot gear. After a brief standoff, the police decided to avoid physical confrontation with the crowd and left the area. However, one of the police vehicles (the unmarked vehicle which is the subject of the charge in the Information) was left unattended, parked at the curb near the Fifth Avenue entrance of the PPG Paints Arena. After the police vacated the area, the crowd immediately descended upon that vehicle and began to vandalize it.
Videos obtained during the investigation show a male wearing a number 84 Antonio Brown Steelers jersey near the open rear passenger door of the unmarked vehicle. The person in the Antonio Brown shirt had the same body build, skin tone and facial hair as Devin Montgomery. He also had the same unique tattoo of a black bomb on his left elbow as Devin Montgomery. At one point during one of the videos, the man’s COVID type mask slips below his nose, displaying a facial profile that appears to be identical to Montgomery’s profile. In a jail call from Montgomery to one of his friends on the outside, after Montgomery was detained in May of 2021, Montgomery discusses his frustration about being detained, and says “it’s just property damage, it’s not like I hurt someone.”
Video footage of the scene showed that, as Montgomery stands near the unmarked vehicle, there was an unknown male wearing a black hooded sweatshirt and facemask standing right next to him. They were each holding and igniting items in their own hands. The unknown male had a small container of lighter fluid in one hand.
The unknown male was first to toss his lit item into the backseat area of the unmarked vehicle, and then Montgomery tossed his own lit item into the backseat area immediately thereafter. The fire quickly spread in the interior of the vehicle, and eventually completely destroyed the vehicle. After the second police vehicle was burned, many people from the crowd headed back into downtown, where numerous businesses were vandalized, burglarized, and looted. The Dollar Bank on Smithfield Street was one of those victim businesses. The government has video depicting Montgomery and another individual using rocks to smash the windows and glass entrance doors to Dollar Bank, and then enter the vestibule area between the two sets of doors.
Following the guilty plea, Judge Hornak sentenced Montgomery to four years' incarceration, followed by three years of supervised release. He was also ordered to pay restitution to cover the cost of the police vehicle that was destroyed.
Assistant United States Attorney Shaun E. Sweeney is prosecuting this case on behalf of the government.
Acting U.S. Attorney Rivetti commended the Bureau of Alcohol, Tobacco, Firearms, and Explosives as well as the Bureau of Pittsburgh Police for conducted the investigation that led to the successful prosecution of Montgomery.
Operation "Candyland" Leads to Multiple Drug Arrests in Marianna and Forrest CityRead the Press Release
MARIANNA—A coordinated arrest operation took place this morning in Marianna and Forrest City as part of an ongoing federal drug investigation. Dubbed “Operation Candyland,” this investigation by the FBI, Arkansas State Police, the First Judicial Drug Task Force, and the St. Francis County Sheriff’s Office, focused on individual independent distributors of methamphetamine and cocaine in Lee and St. Francis Counties.
Law enforcement began early this morning by searching for six suspects, all of whom were indicted for federal drug-trafficking crimes. Two others, who were already in custody when this morning’s roundup began, were also indicted. Five of the suspects were taken into custody: Eddie Bonner, 27, of Marianna, is charged with four counts of distribution of methamphetamine; Lance Hendrix, 39, of Marianna, is charged with four counts of distribution of methamphetamine; Leonard People, 26, of Marianna, is charged with one count of distribution of cocaine; Cedric Woods, 46, of Marianna, is charged with two counts of distribution of cocaine; and Jeremy Buchanan, 32, of Forrest City, is charged with one count of distribution of cocaine. Alfred Bonner, 28, of Marianna, and Clenton Wofford, 42, of Pine Bluff, are in custody stemming from unrelated criminal charges. Alfred Bonner is charged federally, along with Eddie Bonner, with drug conspiracy and distribution of methamphetamine. Wofford is charged federally with one count of distribution of methamphetamine. Most of the defendants who were arrested this morning will appear tomorrow afternoon for arraignment before United States Magistrate Judge Patricia S. Harris.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF. The case is being prosecuted by Assistant United States Attorney Julie Peters.
An indictment only contains allegations. A defendant is presumed innocent unless and until proven guilty.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
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North Carolina Man Charged with $7 Million Ponzi SchemeRead the Press Release
NEWARK, N.J. – A North Carolina man was indicted today on wire fraud, securities fraud, and money laundering charges related to a $7 million investment fraud Ponzi scheme, U.S. Attorney Philip R. Sellinger announced.
David Schamens, 65, of Greensboro, North Carolina, is charged by indictment with seven counts of wire fraud, one count of securities fraud, and seven counts of money laundering.
According to documents filed in this case and statements made in court:
Starting in 2014, Schamens fraudulently solicited investments in various entities he controlled, including TD Trading LLC, TFG Trading Fund LLC, Tradestream Analytics LTD, Tradedesk Financial Group Inc., and others, under the promise of annual rates of return of 12 to 30 percent. In 2019, Schamens began to solicit investment in Tradestream Algo Fund, an algorithm-based trading pool that he claimed to have developed. In each instance, Schamens directed investors to wire funds directly or to transfer portions of their Individual Retirement Accounts (IRAs) to bank accounts he controlled.
Schamens often moved victim funds through several different bank accounts before he ultimately used the funds for some non-investment related purpose. Schamens took several steps to keep his customers’ trust, including sending false account statements; posting false monthly account statements to his companies’ websites showing balances for trading accounts that did not exist; and sending false tax documents reporting earnings that did not exist.
Schamens allegedly misappropriated $7 million from at least 25 different individuals, using some of that money to repay earlier investors in the manner of a Ponzi scheme, and to pay personal expenses.
The count of wire fraud carries a maximum potential penalty of 20 years in prison and a fine of $250,000. The count of securities fraud carries a maximum potential penalty of 20 years in prison and a fine of $5 million. The count of money laundering carries a maximum potential penalty of 20 years in prison and a fine of $500,000.
U.S. Attorney Sellinger credited special agents of the Department of Homeland Security, Homeland Security Investigations, Newark Field Office, under the direction of Special Agent in Charge Ricky J. Patel, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorneys Anthony Torntore, chief of the Cybercrime Unit, and Sophie E. Reiter of the Cybercrime Unit.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
schamens.indictment.pdfNew Orleans Man Sentenced for Carjacking and Firearms OffensesRead the Press Release
NEW ORLEANS, LA – MERVIN BAILEY, age 20, of New Orleans, Louisiana, was sentenced today for carjacking and attempted carjacking in violation of Title 18, United States Code, Section 2119 and brandishing a firearm during a crime of violence in violation of Title 18, United States Code, Section 924(c)(1)(A)(ii) announced United States Attorney Duane A. Evans.
BAILEY was sentenced to a total term of imprisonment of 147 months. This consists of 63 months each, to be served concurrently, for a carjacking on June 3, 2021, which occurred outside of a residence in New Orleans and an attempted carjacking of a Lyft driver on October 4, 2021 in New Orleans. A consecutive 84-month sentence was ordered for brandishing a firearm during a crime of violence. Additionally, the defendant must serve a three-year term of supervised release and pay a $100.00 mandatory special assessment fee for each count.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the New Orleans Police Department. It is being prosecuted by Assistant U.S. Attorney Charles Strauss of the Violent Crimes Unit.
New Orleans Man Pleads Guilty to Federal Gun ChargeRead the Press Release
NEW ORLEANS, LA – LAIRD JOHNSON, age 24, of New Orleans, Louisiana, pleaded guilty on March 23, 2023 to a five-count indictment alleging violations of the Federal Gun Control Act, Title 18 United States Code, Sections 922(g)(1), 922(j), 922(u), 924(a)(2), and 924(i)(1), announced United States Attorney Duane A. Evans.
Count 1 of the indictment charged JOHNSON with theft of a firearm from a Federal Firearms Licensee (“FFL”), Counts 2 through 4 charged him with possession of a firearm and ammunition by a convicted felon, and Count 5 charged him with possession of a stolen firearm. Court documents reveal JOHNSON did unlawfully take and carry away a Glock Model 19X 9mm semi-automatic handgun from the premises of PDW Solutions, LLC, an FFL on June 19, 2021. He further possessed a firearm on July 23, 2021. During a search of his home on August 10, 2021, three firearms were recovered, including a Zastava Arms 7.62 Rifle, a Glock Model 19 9mm semi-automatic handgun, and the Glock Model 19X 9mm semi-automatic handgun, that was stolen from PDW Solutions, LLC. JOHNSON is prohibited from possessing firearms due to his previous convictions in Orleans Parish Criminal District Court for aggravated assault with a firearm, possession of a firearm by a convicted felon, and simple burglary.
Each count carries a maximum sentence of ten years imprisonment, up to a $250,000.00 fine, up to three years of supervised release, and a $100.00 mandatory special assessment fee.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It is being prosecuted by Assistant U.S. Attorney Charles Strauss of the Violent Crimes Unit.
Navy Doctor Pleads Guilty to Defrauding the NavyRead the Press Release
NEWS RELEASE SUMMARY – March 28, 2023
SAN DIEGO – Dr. Michael Villarroel, a U.S. Navy doctor, pleaded guilty today in federal court, admitting that he and others conspired to defraud the Navy by faking or exaggerating injuries to obtain insurance payments intended to help service members recovering from traumatic injuries. Villarroel acknowledged he knew the claimed injuries were false or exaggerated but signed off on applications for a share of the insurance payments.
Participants in the scheme obtained about $2 million in payments from the Traumatic Servicemembers Groups Life Insurance (TSGLI) program which is funded by service members and the Navy. Villarroel personally obtained more than $180,000 in kickbacks.
“These military healthcare dollars, which were intended to benefit injured and traumatized service members, instead funded a fraudulent windfall,” said U.S. Attorney Randy Grossman. “The U.S. Attorney’s Office and our agency partners will relentlessly pursue justice for victims of fraud schemes that harm our service members and taxpayers.” Grossman thanked the prosecution team and investigating agencies for their excellent work on this case.
Villarroel admitted that from 2012 to at least December 2015, he conspired to commit wire fraud with Christopher Toups, a chief petty officer construction mechanic in the Navy; Kelene Meyer, Toups’ spouse and a nurse; and others. Toups prodded other service members to submit claims, told them to provide medical records to Meyer, requested part of the insurance payment in return, and distributed shares to Meyer and Villarroel. Meyer used her medical background to falsify or doctor supporting records to reflect fake or exaggerated injuries.
Villarroel claimed to have reviewed medical records and verified disabilities consistent with the injuries as needed for claims to be processed and qualify. At times Villarroel supported his determination by falsely stating he interviewed the claimant. At other times Villarroel gave Meyer medical records belonging to others to use in fabricating claims. Toups paid Villarroel in cash and by cashier’s check and, at points, Villarroel conducted transactions in amounts under $10,000 to evade currency transaction reporting requirements.
Villarroel is the tenth defendant to plead guilty to crimes committed under the scheme. Several conspirators were members of Explosive Ordinance Disposal Expeditionary Support Unit One (“EOD ESU One”), based in Coronado, California.
“Dr. Villarroel defrauded the Navy and the U.S. taxpayer by participating in a reprehensible scheme to wrongly obtain more than $2 million that should have been directed to wounded service members,” said Acting Special Agent in Charge Michael D. Butler II of the NCIS Economic Crimes Field Office. “NCIS and our partners remain committed to investigating all allegations of fraud that harms Department of the Navy service members and their families.”
“Dr. Villarroel abused his position of trust to enrich himself and his co-conspirators,” said Special Agent in Charge Stacey Moy of the FBI’s San Diego Field Office. “As a medical doctor and Naval Commander, Dr. Villarroel is held to a higher standard which makes this scheme to defraud the Traumatic Service Members Group Life Insurance program even more egregious. The FBI would like to thank our partners at Veterans Affairs – Office of Inspector General and Naval Criminal Investigative Service for their tremendous partnership on this case.”
“Fraudulently filing claims for unearned TSGLI benefits diverts compensation from deserving service members who suffered serious and debilitating injuries while on active duty,” said Special Agent in Charge Rebeccalynn Staples of the Department of Veterans Affairs Office of Inspector General’s Western Field Office. “The VA OIG thanks the United States Attorney’s Office and our law enforcement partners for their efforts in bringing this defendant to justice.”
Villarroel is scheduled to be sentenced on June 16 at 9 a.m. by U.S. District Judge Janis L. Sammartino.
DEFENDANT 18CR1674-JLS
Michael Villarroel 48 Coronado, California
RELATED CASES
Kelene Meyer 18CR1674-JLS 44 Jacksonville, FL
Christopher Toups 18CR1674-JLS 43 Woodstock, GA
Paul Craig 18CR1674-JLS 47 Austin, TX
Richard Cote 18CR1674-JLS 45 Oceanside, CA
Earnest Thompson 18CR1674-JLS 46 Murrieta, CA
Ronald Olmsted 20CR0659-JLS 48 Mobile, AL
Anthony Coco 20CR0197-JLS 43 San Diego, CA
Stephen Mulholland 20CR0052-JLS 51 Panama City Beach, FL
Roy Sedano 21CR1493-JLS 44 Spring Valley, CA
CHARGES
18 U.S.C. § 1349, Conspiracy to Commit Wire Fraud
Maximum Penalty: Twenty years in prison, $250,000 fine, forfeiture and restitution
AGENCIES
Department of Veterans Affairs, Office of Inspector General
Federal Bureau of Investigation
Naval Criminal Investigative Service
Minnesota Pool Contractor Charged in Federal Indictment for Defrauding HomeownersRead the Press Release
MINNEAPOLIS – A Scott County man has been indicted on four counts of wire fraud for defrauding multiple homeowners in a swimming pool contracting scheme, announced U.S. Attorney Andrew M. Luger.
According to court documents, Charles Ray Workman, 37, was the owner of MN Crete Pools, LLC, a Minnesota company that marketed and sold concrete swimming pools to families and individuals in and throughout the Twin Cities area. Beginning in 2021 continuing through 2022, Workman knowingly devised a scheme to market and advertise concrete swimming pools and pool installation services to customers around Minnesota. In soliciting down payments for the swimming pools, Workman represented to his customers that in exchange for their down payments he could “secure” their spot in MN Crete Pool’s workload for the installation of a swimming pool the same year their down payment was provided.
According to court documents, between April 2021 and June 2021, Workman collected down payments from approximately one customer a month and subsequently failed to complete pool projects for any of those customers. Despite this, Workman increased the rate at which he signed up customers and collected down payments throughout the remaining summer months, despite knowing he had not fully utilized customer down payments for the completion of pool projects. Workman sometimes falsely represented to customers he only had one spot left available for a certain customer, before continuing to solicit and signup customers after making that representation.
According to court documents, Workman converted some or all of customers’ payments for his own personal use and benefit, including $3,000 in child support payments, $18,000 at a casino, and more than $6,000 on a horse and saddle. In total, Workman fraudulently solicited and received more than $750,000 in payments from customers for whom he did not construct and install a complete and operational concrete swimming pool.
Workman, who was arrested on March 27, 2023, in Nashville, Tennessee, made his initial appearance before Magistrate Judge Alistair E. Newbern, in U.S. District Court in the Middle District of Tennessee. He will appear for his arraignment on April 10, 2023, before Magistrate Judge David T. Schultz in U.S. District Court for the District of Minnesota.
This case is the result of an investigation conducted by the FBI, the Scott County Sheriff’s Office, the Minnesota Bureau of Criminal Apprehension, and the Minnesota Attorney General’s Office.
Assistant U.S. Attorney Esther Soria Mignanelli is 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.
Midwest Veterinary Supply Pleads Guilty to Misbranding Veterinary DrugsRead the Press Release
ABINGDON, Va. – Midwest Veterinary Supply (Midwest), a Minnesota-based company that supplies prescription drugs for animals to veterinarians, farms, feedlots, and other businesses, pled guilty today to introducing misbranded drugs into interstate commerce and agreed to pay more than $10 million in criminal fines and forfeiture.
“The Department of Justice will continue to ensure that all companies follow federal laws regarding distribution of prescription drugs,” United States Attorney Christopher R. Kavanaugh of the Western District of Virginia said today. “In this case, millions of dollars were obtained from the illegal distribution of veterinary medicine and, just like pharmaceuticals intended for human-use, my Office will continue to hold accountable those companies and corporations that violate federal law.”
“The FDA regulates animal drugs as part of its mission to protect the public health. Part of this responsibility includes ensuring that prescription animal drugs are lawfully distributed and dispensed pursuant to a valid prescription,” said Special Agent in Charge George A. Scavdis, FDA Office of Criminal Investigations’ Metro Washington Field Office. “We will continue to investigate and bring to justice those who attempt to evade the law.”
According to court documents, from 2011-2021, Midwest shipped prescription drugs from their non-pharmacy locations throughout the United States to end-users that were not authorized to receive prescription drugs. Shipments from non-pharmacy locations to end-users and shipments to non-authorized locations are deemed misbranded. Midwest shipped at least $10,150,014 worth of misbranded drugs to end-users between 2011-2021. The law violated is designed, in part, to ensure that prescription drugs are kept within a controlled chain of distribution to prevent diversion and inappropriate use.
As part of the plea agreement, Midwest will forfeit $10,150,014 and serve between one and three years’ probation. Midwest will also pay $1,000,000 to the Virginia Department of Health Professions, and a $500,000 fine. Midwest is scheduled to be sentenced on June 12, 2022, in United States District Court in Abingdon.
The U.S. Food and Drug Administration – Office of Criminal Investigations and the Virginia State Police investigated the case, with the assistance of the Virginia Department of Health Professions.
Assistant U.S. Attorney Randy Ramseyer is prosecuting the case.
Mexican National Sentenced to 144 Months for Drug Trafficking in the Tri CitiesRead the Press Release
Richland, Washington – On March 28, 2023, Senior United States District Judge Edward F. Shea sentenced Rafael Muniz-De La Mora, 49, to 12 years in in federal prison after his guilty plea to possession with intent to distribute 50 grams or more of pure methamphetamine. Muniz-De La Mora, who is from Sinaloa, Mexico, also will serve 5 years of federal supervision after he is released from federal custody.
According to information disclosed during court proceedings, the DEA Tri-Cities Task Force identified Muniz-De La Mora and his Codefendant, Carlos Madrigal-Deniz, during an investigation into a drug trafficking organization operating in the Tri-Cities area. Madrigal-Deniz was brokering pound quantity transactions for the drug trafficking organization, which routinely was distributing 100 to 200 pound shipments of methamphetamine into the Eastern Washington. During the investigation, De La Mora was identified as Madrigal-Deniz’s supplier.
In September 2020, Madrigal-Deniz made arrangements for a ten-pound delivery of methamphetamine from Muniz-De La Mora, who brought a four-year-old child to the transaction. The child was wearing a Spider-Man backpack containing approximately 10 pounds of methamphetamine. Muniz-De La Mora escorted the young child, who is seen wearing the backpack, from one vehicle to another. Muniz-De La Mora, the child, and another co-defendant then entered into the second vehicle – a Chevy Cruze. Shortly, thereafter, DEA Tri-Cities stopped the Chevy Cruze and recovered the backpack, which was inside the car, next to the child. Inside the Spider-Man Backpack, the DEA recovered 10 pounds of methamphetamine supplied by Muniz-De La Mora. Below are still shots from surveillance video of the transaction. Muniz-De La Mora appears in a black t-shirt.
Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, stated “Drug distribution continues to be a scourge in the Tri-Cities and elsewhere. It is particularly troubling that Mr. Muniz-De La Mora used a four-year old child to conceal his distribution activities”
U.S. Attorney Waldref continued: “I commend the collaborative efforts of state, local, and federal law enforcement to identify Mr. Muniz-De La Mora’s drug trafficking activities and to prevent him from further distributing this poison in our community. The people of Eastern Washington also are incredibly fortunate to be represented in federal court by Assistant United States Attorney Stephanie Van Marter, who spearheads federal drug prosecutions in the Tri-Cities and elsewhere in this District.”
“Mr. Muniz-De La Mora, an individual who involved a four-year-old in his drug distribution scheme, will spend a significant amount of time in prison due to the dedication of our state, local and federal partners who continue to work to keep our communities safe, healthy and free of individuals like him,” said Jacob D. Galvan, Acting Special Agent in Charge, DEA Seattle Field Division.
This case was investigated by the DEA Tri-Cities, the METRO Drug Task Force, United States Border Patrol, Richland Police Department, Kennewick Police Department, Pasco Police Department, and West Richland Police Department. This case was prosecuted by Assistant United States Attorney Stephanie Van Marter.
4:20-CR-6028-EFS
Matriarch Sentenced for Role in Violent Multimillion-Dollar Honduran Cocaine Trafficking OrganizationRead the Press Release
A Honduran woman was sentenced today to 20 years in prison for a large-scale conspiracy to traffic cocaine for importation into the United States.
According to court documents, from 2006 until 2015, Erlinda Ramos-Bobadilla, aka Chinda, 62, served as a leader in the Montes-Bobadilla drug-trafficking organization, or Los Montes, one of the most significant drug-trafficking organizations operating in Honduras. The Los Montes drug-trafficking organization was based in the town of Francia on the northeastern coast of Honduras. There, the organization received clandestine maritime and air shipments of cocaine from sources in South America. Individual shipments of cocaine usually carried hundreds of – and sometimes more than a thousand – kilograms of cocaine. After receiving a shipment of cocaine, Los Montes worked with other drug traffickers to transport the cocaine inland through Honduras into Guatemala and, eventually, Mexico, where the cocaine would then be imported into, and distributed within, the United States.
“Today’s sentencing reflects the Department of Justice’s commitment to holding traffickers like Ramos-Bobadilla accountable and dismantling the trafficking organizations they support,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “The Criminal Division will continue to work tirelessly with our federal, state, and international partners to ensure that our communities are kept safe.”
Ramos-Bobadilla played an active leadership role in Los Montes. Among other responsibilities, she participated in the negotiation of cocaine transactions with other drug traffickers in Central and South America, managed the proceeds that the organization made from the sale of cocaine and, at times, paid sources of supply for cocaine that Los Montes purchased. Ramos-Bobadilla employed armed individuals to work at her direction and control, including by providing security for her and her cocaine shipments.
“The defendant and her family lead a dangerous drug cartel that brought thousands of kilograms of poisonous drugs into the United States from Honduras and left murder, corruption, violence, and terror in its wake. EDVA prioritizes the investigation, dismantling, and prosecution of organizations like The Los Montes cartel that destroy communities across nations,” said U.S. Attorney Jessica D. Aber for the Eastern District of Virginia. “Today’s sentence would not have been possible without the coordinated efforts of our prosecutors and law enforcement partners who work tirelessly to stop illicit drugs and violence from infiltrating our neighborhoods.”
Ramos-Bobadilla also participated in procuring, planning, and arranging acts of violence, including murders, in furtherance of the conspiracy. For example, Los Montes and other Honduran drug-trafficking organizations conspired to finance the murder of the head of Honduras’ anti-drug trafficking agency in December 2009. In June 2013, along with her son, Noe Montes-Bobadilla, and another co-conspirator, Ramos-Bobadilla also participated in coordinating and directing the murder of a permanent resident of the United States in Tocoa, Honduras, in retaliation for perceived cooperation with the U.S. government.
In addition to her participation in these acts of violence, Ramos-Bobadilla engaged in bribery in furtherance of the conspiracy. Ramos-Bobadilla and her co-conspirators made payments to public officials in Honduras, including police officers and other law enforcement officials, to facilitate and protect the family’s drug-trafficking operations.
“The Montes-Bobadilla Drug Trafficking Organization terrorized and poisoned communities under Ramos-Bobadilla’s leadership,” said Special Agent in Charge Jarod Forget of the DEA Washington Field Office. “Today’s sentencing is a testament to the capabilities and commitment by DEA to ensure that any domestic or foreign criminal who peddles deadly drugs into our neighborhoods and puts our families at risk will be held accountable.”
“Erlinda Ramos-Bobadilla played a leadership role in a major operation trafficking narcotics into and distributing them throughout the United States,” said Special Agent in Charge Derek W. Gordon of Homeland Security Investigations (HSI) Washington, D.C. “There is no way to know for sure just how much damage Ramos-Bobadilla left in her wake; however, thanks to the collaborative efforts of HSI and our law enforcement partners, Ramos-Bobadilla’s drug trafficking days are over now. HSI will continue to exhaust every resource at our disposal to bring such drug traffickers to justice and ensure the safety of the communities we have sworn to protect.”
On Oct. 8, 2015, Ramos-Bobadilla and five co-conspirators were charged by indictment in the Eastern District of Virginia with conspiracy to distribute five kilograms or more of cocaine for importation into the United States. Three of Ramos-Bobadilla’s co-conspirators have been convicted and sentenced in this case:
Noe Montes-Bobadilla was sentenced in April 2019 to 37 years in prison.
Arnulfo Fagot-Maximo was sentenced in May 2019 to 33 years in prison.
Jose del Trancito Garcia-Teruel was sentenced in February 2022 to 13 years in prison.
One co-conspirator, Tito Montes-Bobadilla, aka Alejandro Montes-Bobadilla, aka Pimpi, is deceased.
The Organized Crime and Drug Enforcement Task Force (OCDETF) supported this case.
The DEA Washington Division investigated the case with assistance from FBI’s Washington Field Office, U.S. Immigration and Customs Enforcement’s (ICE) HSI Washington, D.C., and the Virginia State Police. The Honduran National Police and the Justice Department’s Office of International Affairs provided substantial assistance.
Trial Attorneys Douglas Meisel and Janet Turnbull of the Criminal Division’s Narcotic and Dangerous Drug Section and Assistant U.S. Attorneys Thomas W. Traxler, Anthony T. Aminoff, and James L. Trump of the U.S. Attorney’s Office for the Eastern District of Virginia prosecuted the case. The U.S. Attorneys’ Offices for the Southern District of New York, the Middle District of Florida, and the Southern District of Florida also provided assistance.
Matriarch Sentenced for Role in Violent Multimillion-Dollar Honduran Cocaine Trafficking OrganizationRead the Press Release
ALEXANDRIA, Va. – A Honduran woman was sentenced today to 20 years in prison for her participation in a large-scale conspiracy to traffic cocaine for importation into the United States.
According to court documents, from 2006 until 2015, Erlinda Ramos-Bobadilla, aka Chinda, 62, served as a leader in the Montes-Bobadilla drug-trafficking organization, or Los Montes, one of the largest drug-trafficking organizations then operating in Honduras. The Los Montes drug-trafficking organization was family-run and based in the town of Francia on the northeastern coast of Honduras. There, the organization received maritime and clandestine air shipments of cocaine from sources in South America. Individual shipments of cocaine usually carried hundreds of – and sometimes more than a thousand – kilograms of cocaine. After receiving a shipment of cocaine, Los Montes worked with other drug traffickers to transport the cocaine inland through Honduras into Guatemala and, eventually, Mexico, where the cocaine would then be imported into, and distributed within, the United States.
“The defendant and her family lead a dangerous drug cartel that brought thousands of kilograms of poisonous drugs into the U.S. from Honduras and left murder, corruption, violence, and terror in its wake. EDVA prioritizes the investigation, dismantling, and prosecution of organizations like The Los Montes cartel that destroy communities across nations,” said Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia. “Today’s sentence would not have been possible without the coordinated efforts of our prosecutors and law enforcement partners who work tirelessly to stop illicit drugs and violence from infiltrating our neighborhoods.”
“Today’s sentencing reflects the Department of Justice’s commitment to holding traffickers like Romas-Bobadilla accountable and dismantling the trafficking organizations they support,” said Assistant Attorney General Kenneth A. Polite of the Justice Department’s Criminal Division. “The Criminal Division will continue to work tirelessly with our federal, state, and international partners to ensure that our communities are kept safe.”
Ramos-Bobadilla played an active leadership role in Los Montes. Among other responsibilities, she participated in the negotiation of cocaine transactions with other drug traffickers in Central and South America, managed the proceeds that the organization made from the sale of cocaine and, at times, paid sources of supply for cocaine that Los Montes purchased. Ramos-Bobadilla employed armed individuals to work at her direction and control, including by providing security for her and her cocaine shipments.
Ramos-Bobadilla also participated in procuring, planning, and arranging acts of violence, including murders, in furtherance of the conspiracy. For example, Los Montes and other Honduran drug-trafficking organizations conspired to finance the murder of the head of Honduras’ anti-drug trafficking agency in December 2009. In June 2013, along with her son, Noe Montes-Bobadilla, and another co-conspirator, Ramos-Bobadilla also participated in coordinating and directing the murder of a permanent resident of the United States in Tocoa, Honduras, in retaliation for perceived cooperation with the U.S. government.
In addition to her participation in these acts of violence, Ramos-Bobadilla engaged in bribery in furtherance of the conspiracy. Ramos-Bobadilla and her co-conspirators made payments to public officials in Honduras, including police officers and other law enforcement officials, to facilitate and protect the family’s drug-trafficking operations.
“The Montes-Bobadilla Drug Trafficking Organization terrorized and poisoned communities under Ramos-Bobadilla’s leadership,” said Jarod Forget, Special Agent in Charge of the DEA Washington Field Division. “Today’s sentencing is a testament to the capabilities and commitment by DEA to ensure that any domestic or foreign criminal who peddles deadly drugs into our neighborhoods and puts our families at risk will be held accountable.”
On Oct. 8, 2015, Ramos-Bobadilla and five co-conspirators were charged by indictment in the Eastern District of Virginia with conspiracy to distribute five kilograms or more of cocaine for importation into the United States. Three of Ramos-Bobadilla’s co-conspirators have been convicted and sentenced in this case:
Noe Montes-Bobadilla was sentenced in April 2019 to 37 years in prison. Arnulfo Fagot-Maximo was sentenced in May 2019 to 33 years in prison. Jose del Trancito Garcia-Teruel was sentenced in February 2022 to 13 years in prison. One co-conspirator, Tito Montes-Bobadilla, aka Alejandro Montes-Bobadilla, aka Pimpi, is deceased.
The Organized Crime and Drug Enforcement Task Force (OCDETF) supported this case.
The DEA Washington Division investigated the case with assistance from FBI’s Washington Field Office, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C., and the Virginia State Police. The Honduran National Police also provided substantial assistance. The Justice Department’s Office of International Affairs provided substantial assistance in securing the arrest and extradition of Ramos-Bobadilla.
Assistant U.S. Attorneys Thomas W. Traxler, Anthony T. Aminoff, and James L. Trump of the U.S. Attorney’s Office for the Eastern District of Virginia and Trial Attorneys Douglas Meisel and Janet Turnbull of the Criminal Division’s Narcotic and Dangerous Drug Section prosecuted the case. The U.S. Attorney’s Offices for the Southern District of New York, the Middle District of Florida, and the Southern District of Florida also provided assistance.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-290.
Massachusetts Man Pleads Guilty to Conspiring to Distribute Ten Kilograms of FentanylRead the Press Release
CONCORD – A Massachusetts man pleaded guilty in federal court to conspiracy to distribute fentanyl in New Hampshire, United States Attorney Jane E. Young announced today.
Johan M. Rodriguez, 37, of Lawrence, Massachusetts, conspired with another Lawrence-based drug trafficker to deliver approximately ten kilograms of fentanyl to an individual in Dover cooperating with the Federal Bureau of Investigations. Rodriguez is scheduled to be sentenced on July 6, 2023.
The Federal Bureau of Investigations’ Major Offender Task Force investigated the case. The Dover Police Department and the Strafford County Sheriff’s Office provided valuable assistance. Assistant U.S. Attorney Jennifer C. Davis, Deputy Chief of Young’s Criminal Division, is prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
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Man Sentenced to 292 Months in PrisonRead the Press Release
FORT WAYNE-Hector Castaneda, age 60, of Michoacan, Mexico, was sentenced by United States District Court Judge Holly A. Brady on his plea of guilty to conspiring to distribute and possess with intent to distribute 5 or more kilograms of cocaine, announced United States Attorney Clifford D. Johnson.
Castaneda was sentenced to 292 months in prison followed by 5 years of supervised release.
According to documents in this case and in related cases, from March of 2010 through April of 2011, Castaneda, also known as “El Pariente” conspired to distribute many kilograms of cocaine from Mexico into Allen County, Indiana, and elsewhere. Castaneda was indicted in 2012, and he remained a fugitive in Mexico until he was arrested in 2017.
The case was investigated by the Federal Bureau of Investigation Fort Wayne Safe Streets Gang Task Force, with the members being the Federal Bureau of Investigation, the Indiana State Police, the Allen County Sheriff’s Department, and the Fort Wayne Police Department. Other law enforcement agencies providing assistance were the Allen County Drug Task Force, the New Haven Police Department, and the San Bernardino County, California, Police Department. This case was prosecuted by Assistant United States Attorney Anthony W. Geller.
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 is also part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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Man Convicted for Two Armed Robberies Is Sentenced to 10 YearsRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Frank D. Whitney sentenced Travon Roary, 37, of Charlotte, to 120 months in prison followed by three years of supervised release for committing two armed robberies, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Robert M. DeWitt, Special Agent in Charge of the FBI in North Carolina, and Chief Johnny Jennings, of the Charlotte-Mecklenburg Police Department (CMPD), join U.S. Attorney King in making today’s announcement.
According to court documents and court proceedings, on November 24, 2021, CMPD officers responded to a 911 call for an armed robbery at Bowl 77 Arcade located at 2301 Westinghouse Blvd. in Charlotte. The arcade employee told the officers that an individual later identified as Roary had pointed a firearm at her and proceeded to take cash from the store’s registers.
According to filed court documents and proceedings, a few days later, on November 28, 2021, CMPD officers responded to a 911 call for an armed robbery at Z’s Tobacco & Vape store located at 8424 Old Statesville Road in Charlotte. The store employee told officers that two men had walked into the store. One of them, later identified as Roary, asked the store clerk if he could buy a cigarette. Court records show that Roary then came behind the counter, pulled out a black handgun, and pointed it at the victim as the victim was trying to walk away. Roary told the victim not to run or Roary would shoot him. Roary forced the victim back to the cash register, where Roary and his armed co-conspirator took money and fled.
On December 8, 2022, Roary pleaded to two counts of robbery affecting interstate commerce, also referred to as Hobbs Act robbery. Roary has previous state convictions for conspiracy to commit armed robbery, second-degree kidnapping, second-degree burglary, and assault by strangulation.
Roary is currently in federal custody. He will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
U.S. Attorney King credited today’s sentence to the investigative efforts of the FBI and CMPD.
Assistant United States Attorney David Kelly of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Madison Man Charged with Firebombing BuildingRead the Press Release
MADISON, WIS. – A Madison, Wisconsin man was arrested today on a charge related to the May 2022 firebombing of a Madison office building.
According to court documents, Hridindu Sankar Roychowdhury, 29, is charged with one count of attempting to cause damage by means of fire or an explosive. Roychowdhury was arrested earlier today in Boston, Massachusetts.
“According to the complaint, Mr. Roychowdhury used an incendiary device in violation of federal law in connection with his efforts to terrorize and intimidate a private organization,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “I commend the commitment and professionalism of law enforcement personnel who worked exhaustively to ensure that justice is served.”
“This group of local and federal law enforcement officers has worked, with the federal prosecutors, diligently and creatively to move the investigation forward,” said U.S. Attorney Timothy M. O’Shea for the Western District of Wisconsin. “This case is an example of the results law enforcement can achieve when local and federal law investigators work as a team.”
Madison Police Chief Shon F. Barnes said, “For months, our detectives remained committed to finding those responsible for this arson. When tips and leads were limited, they never gave up. Their persistence is proof that hateful acts do not have a place in Madison. I applaud their work and want to thank our federal partners for all of their help leading up to this arrest.”
“I’m very proud of the tireless and determined efforts the combined federal, state and local team put in to identify and arrest this individual,” said ATF Special Agent in Charge William McCrary of the St. Paul Field Division. “I can assure you, our ATF Certified Fire Investigator invested long hours into this case. It is very satisfying to me to see that this alleged perpetrator has been placed in custody.”
“The FBI conducts investigations when someone crosses the line from expression of protected personal beliefs to violations of federal law,” said Special Agent in Charge Michael E. Hensle of the FBI Milwaukee Field Office. “We remained vigilant during this investigation and worked with our law enforcement partners to methodically and thoroughly address every aspect of this act of violence. The arrest today represents these efforts and highlights the work done by law enforcement to protect the safety of our citizens.”
According to the complaint, on Mother’s Day, Sunday, May 8, 2022, at approximately 6:06 a.m., law enforcement responded to an active fire at an office building located in Madison, Wisconsin. Once inside the building, police observed a mason jar under a broken window; the jar was broken, and the lid and screw top were burned black. The police also saw a purple disposable lighter near the mason jar. On the opposite wall from the window, the police saw another mason jar with the lid on and a blue cloth tucked into the top; the cloth was singed. The jar was about half full of a clear fluid that smelled like an accelerant. Outside of the building, someone spray painted on one wall, “If abortions aren’t safe then you aren’t either” and, on another wall, a large “A” with a circle around it and the number “1312.” During the investigation, law enforcement collected DNA from the scene of the attack.
In March 2023, law enforcement identified Roychowdhury as a possible suspect. Local police officers observed Roychowdhury dispose of food in a public trash can; the officers recovered the leftover food and related items, and law enforcement collected DNA from the food. On March 17, 2023, law enforcement advised that a forensic biologist examined the DNA evidence recovered from the attack scene and compared it to the DNA collected from the food contents. The forensic biologist found the two samples matched and likely were the same individual.
In March 2023, Roychowdhury travelled from Madison, Wisconsin, to Portland, Maine, and he purchased a one-way ticket from Boston to Guatemala City, departing Tuesday morning, March 28, 2023. Law enforcement arrested Roychowdhury at Boston Logan International Airport. Roychowdhury will have a detention hearing in Boston.
Roychowdhury is scheduled to appear in U.S. District Court in Boston today. A date for his appearance in federal court in Madison has not been set.
If convicted, Roychowdhury faces a mandatory minimum penalty of five years and a maximum of 20 years in prison. The charge against him is the result of an investigation by the Madison Police Department, Wisconsin State Capitol Police Department, ATF, the FBI’s Joint Terrorism Task Force, Homeland Security Investigations, Dane County Sheriff’s Office, with the assistance of the FBI Boston Field Office, Boston Police Department, Massachusetts State Police, U.S. Coast Guard, Federal Air Marshal Service, and Transportation Security Administration.
Assistant U.S. Attorney Elizabeth Altman for the Western District of Wisconsin and Trial Attorney Justin Sher of the National Security Division’s Counterterrorism Section are prosecuting the case. Assistant U.S. Attorney Amanda Beck for the District of Massachusetts handled the appearance in Boston.
An indictment is merely an allegation, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Lebanese National Sentenced for Illegal Possession of a FirearmRead the Press Release
NEW ORLEANS, LOUISIANA – KAMAL AL JAWHARI, age 28, a native of Lebanon, was sentenced for possession of a firearm by an illegal alien in violation of Title 18, United States Code, Section. 922 (g)(5)(A) announced United States Attorney Duane A. Evans.
JAWHARI was found guilty as charged on December 20, 2022, after a two-day jury trial before Chief United States District Judge Nannette Jolivette Brown. JAWHARI was sentenced to time served and released to Immigration and Customs Enforcement for deportation proceedings. Judge Brown also ordered that the JAWHARI serve a supervised release term of one year should he return to the United States.
U.S. Attorney Evans praised the work of the United States Immigration and Customs Enforcement agency in investigating this matter. Assistant United States Attorneys Spiro G. Latsis of the General Crimes Unit, David Berman of the Violent Crimes Unit, and Rachal Cassagne of the Narcotics Unit are in charge of the prosecution.
Leader of Human Smuggling Transportation Cell Sentenced to 51 months in PrisonRead the Press Release
NEWS RELEASE SUMMARY – March 28, 2023
SAN DIEGO – Jose Manuel Gonzalez was sentenced in federal court yesterday to 51 months in prison for two unrelated human smuggling incidents - the first of which was committed in 2019 and the second in 2021 while the defendant was on supervised release for the 2019 charges.
According to his plea agreement, in the late evening of July 5, 2019, Border Patrol agents caught Gonzalez as he was transporting eight individuals in a minivan after they crossed the border illegally from Mexico. Gonzalez was charged with Transportation of Illegal Aliens, granted bail on that offense, and remained out of custody. Agents and the United States Attorney’s Office continued to investigate Gonzalez’ activities.
After reviewing Gonzalez’ cellphone records around the day of the offense, the prosecution team discovered that Gonzalez was communicating with unknown co-conspirators in Mexico and a “foot guide” who was responsible for guiding the illegal individuals over the U.S.-Mexico border. The purpose of Gonzalez’ communications with the unknown co-conspirators and the “foot guide” was to avoid law enforcement detection. After further investigation, the U.S. Attorney’s Office added charges alleging that Gonzalez conspired with others to bring aliens into the U.S. for financial gain.
While on bail, on June 18, 2021, Gonzalez was again caught and arrested for transporting 12 illegal aliens in the back of a pickup truck into the United States. Customs and Border Protection agents attempted to stop Gonzalez, but Gonzalez disregarded emergency lights and sirens and led them on a high speed chase, narrowly avoiding at least one vehicle and a possible head-on collision during the pursuit. The undocumented individuals remained hidden in the back of the pickup truck as Gonzalez attempted to evade agents during the high-speed chase. As a result of this incident, Gonzalez was charged with additional counts alleging the transportation of illegal aliens, plus a count alleging that Gonzalez committed the June 18, 2021 acts while Gonzalez was on Court-ordered pretrial release.
U.S. District Judge Gonzalo Curiel sentenced Gonzalez to 36 months on the human smuggling offenses, plus an additional 15 months for committing the June 2021 offense while on pretrial release, for a total of 51 months in prison. The sentence also included enhanced penalties for the substantial risk that Gonzalez’ high-speed chase caused; the illegal transportation of a minor; and an aggravated role within the transportation cell’s Alien Smuggling activities.
“This defendant committed the same crime again after he was caught and released on bond,” said U.S. Attorney Randy Grossman. “This case is more proof that human smugglers care only about money and have zero regard for the safety and well-being of their customers. Please, never trust your life to a smuggler.” Grossman thanked the prosecution team and investigating agencies for their excellent work on this case.
“This prosecution is a result of the continued dedication by our agents, and our partners in the U.S. Attorney's office,” said San Diego Border Patrol Sector Chief Patrol Agent Aaron M. Heitke. “We will continue to deliver consequences to the transnational criminal organization operating throughout border region.”
DEFENDANT Case Number 20-cr-03446-GPC
Jose Manuel Gonzalez Age: 31 Spring Valley, CA
SUMMARY OF CHARGES
Conspiracy, in violation of 18 U.S.C. § 371;
Bringing in Aliens for Financial Gain and Aiding and Abetting, in violation of 8 U.S.C. § 1324(a)(2)(B)(ii);
Maximum penalty: Five years in prison and a $250,000 fine per count, with a mandatory minimum of three years for the counts under § 1324.
Transportation and Attempted Transportation of Certain Aliens for Financial Gain, in violation of 8 U.S.C. § 1324(a)(1)(A)(ii) and (a)(1)(B)(i);
Maximum penalty: Ten years in prison and a $250,000 fine per count.
AGENCY
U.S. Customs and Border Protection
U.S. Border Patrol
*This case is the result of the ongoing efforts of the Violent Crime and Human Trafficking (VCHT) Section. Formed in 2019, the VCHT is tasked with leading collaborations between federal and local law enforcement in the investigation and prosecution of cases involving violent crimes, firearms and gang cases; sex trafficking and child exploitation; civil rights, and labor trafficking. The VCHT Section oversees the Southern District of California Coordinators for Project Safe Neighborhoods, Human Trafficking, and Project Safe Childhood. The VCHT Section also provides federal prosecutors to the downtown San Diego Violent Crimes Task Force-Gang Group, the North County Gang Task Force, and the East County Gang Task Force.
Lawrence Man Sentenced for Fentanyl DistributionRead the Press Release
BOSTON – A Lawrence man was sentenced today in federal court in Boston for distributing more than 100 grams of fentanyl.
Rafael Sierra-Baez, 42, was sentenced by U.S. Senior District Court Judge Douglas P. Woodlock to two years in prison and three years of supervised release. In November 2022, Sierra-Baez pleaded guilty to distribution and possession with intent to distribute fentanyl.
On five separate occasions between Feb. 22, 2022 and May 4, 2022, Sierra-Baez sold fentanyl to a cooperating witness in Methuen. Sierra-Baez coordinated and arranged all five deals and personally met with the cooperating witness to conduct the hand-to-hand transactions. On one occasion, Sierra-Baez was observed returning to his residence with a young child before exiting a few minutes later to conduct the drug deal. In total, Sierra-Baez sold about 120 grams of fentanyl.
United States Attorney Rachael S. Rollins and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement. Assistant U.S. Attorney Charles Dell’Anno of Rollins’ Major Crimes Unit prosecuted the case.
Laredo man admits having over 27,000 child pornography images, including some of minor relativesRead the Press Release
LAREDO, Texas – A 29-year-old Laredo resident has pleaded guilty to sexual exploitation of a child and possession of child pornography, announced U.S. Attorney Alamdar S. Hamdani.
Authorities identified Kristopher Santos in 2019 when conducting a peer-to-peer (p2p) undercover investigation. Santos was sharing child pornography online.
On April 12, 2019, law enforcement executed a search warrant at his home and discovered and seized several electronic devices. Law enforcement also discovered a trunk full of sex toys and children’s underwear.
Santos acknowledged he was sexually attracted to children, viewing the child pornography and that the trunk belonged to him. He also admitted to touching two minor relatives inappropriately and taking naked pictures of the boys exposing themselves.
Law enforcement ultimately identified a total of 27,729 images and 7,667 videos containing child pornography on the seized electronic devices.
U.S. District Judge Marina Garcia Marmolejo will impose sentencing at a later date. At that time, Santos faces a mandatory minimum of 15 and up to 30 years in federal prison.
He has been and will remain in custody pending that hearing.
Webb County Sherriff’s Office and Homeland Security Investigations conducted the investigation.
Assistant U.S. Attorney Michael Makens is 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.
Kirkwood Man Admits Gun CrimesRead the Press Release
ST. LOUIS – A man from Kirkwood, Missouri on Tuesday admitted repeatedly possessing firearms after having been committed to a mental institution, in violation of federal law.
Joseph Zarky, 24, pleaded guilty in front of U.S. District Judge Audrey G. Fleissig to two counts of possession of a firearm after being previously committed to a mental institution.
“Police encountered Mr. Zarky behaving erratically while in the possession of firearms, a bloody knife, and animal parts,” said U.S. Attorney Sayler A. Fleming after Tuesday’s hearing. “After each encounter, he would try or succeed in buying more firearms and ammunition. This plea agreement is designed not to send him to prison, but to ensure that he receives the medication and treatment that he needs for the maximum amount of time we can provide. The felony conviction will also serve as an additional barrier if Mr. Zarky attempts to buy guns in the future.”
As part of his plea, Zarky admitted being caught by police with firearms on multiple occasions.
On June 1, 2021, Webster Groves Police Department officers responding to a report of an unstable person encountered Zarky, who was acting erratically and was in possession of multiple firearms, ammunition, and several plastic bags containing animal body parts. Relatives told police that he had a history of mental illness and they were concerned for his and their safety. More guns, ammunition and weapons were found in his bedroom. Police took Zarky to the hospital for a psychiatric evaluation. After a June 10, 2021 court hearing, Zarky was ordered involuntarily committed to a hospital for treatment. He remained there until June 25.
On July 2 and July 7 of 2021, Zarky unsuccessfully tried to purchase firearms in a store.
On July 28, 2021, Webster Groves police conducted a traffic stop near the intersection of South Old Orchard Avenue and Big Bend Boulevard and recognized Zarky from previous interactions. They asked Zarky if he had any guns and he said he did. He had a .22-caliber revolver in the waistband of his shorts and a 9mm pistol in a bag on his left hip. He said he bought the firearms at a gun show.
On September 30, 2021, Webster Groves police were called again about Zarky. Officers found Zarky in a wooded area nearby, and he ran from officers. When police caught Zarky, they found him in possession of a knife with animal blood on it. He was again taken to the hospital and later ordered by a judge to be involuntarily committed to a hospital for treatment, where he stayed until October 20, 2021. While he was hospitalized, relatives found an AR-15 rifle hidden under a comforter in the backseat of Zarky’s vehicle.
On January 29, 2022, St. Louis County police received a call for “shots fired” at a disc golf course in Unger Park. Officers were told about 24 shots had been fired. Upon arrival, officers found Zarky with a 9mm pistol in his waistband and a .22-caliber rifle nearby.
Zarky was indicted in U.S. District Court in St. Louis on May 4, 2022 and arrested in Kentucky May 7. He has been in jail since that time.
On May 9, 2022, federal agents executed a court-approved search of Zarky’s apartment in Kirkwood and found fifteen guns and over 4,000 rounds of ammunition in two safes.
As part of the plea agreement, both the U.S. Attorney’s office and Zarky’s lawyer have agreed to recommend a series of measures to ensure that Zarky undergoes treatment and is compliant with all prescribed mental health medications. The agreement recommends five years of probation, during which time Zarky will participate in a location monitoring program and reside in a residential facility approved by the U.S. Probation Office.
Zarky also agreed to participate in the Janis C. Good Mental Health Court, where participants receive treatment, counseling and resources from trained professionals to address persistent mental health issues, while at the same time being intensively supervised to ensure that they comply with the conditions of probation.
The sentence is ultimately up to Judge Fleissig. Zarky is scheduled to be sentenced July 10.
The Webster Groves Police Department, the St. Louis County Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Assistant U.S. Attorney Jennifer Szczucinski is prosecuting the case.
Kauai Woman Sentenced to 17 Years in Prison for Wire Fraud Schemes and Aggravated Identity TheftRead the Press Release
HONOLULU –Leihinahina Sullivan, 51, of Lihue, Kauai, was sentenced today before United States District Judge J. Michael Seabright to 17 years in prison and three years of supervised release for three counts of wire fraud and one count of aggravated identity theft related to multiple long-running fraudulent schemes. Sullivan previously pleaded guilty to these offenses in July 2021. She is also required to pay $3,396,035.15 in restitution to various victims and public and private entities and subject to a penalty of $2,012,41.92 in forfeiture for the criminal proceeds of her offenses. In sentencing Sullivan, Judge Seabright described the “staggering scope, length, and complexity” of her criminal conduct.
According to court documents and information presented in court, Sullivan perpetrated three fraud schemes beginning as early as January 2011, through at least July 2019. Sullivan devised a tax fraud scheme involving over $2.8 million in tax loss, mostly in the form of fraudulent tax refunds from the IRS and the State of Hawaii that she and the other individuals were not entitled to receive. She filed hundreds of false tax returns for herself and for others. The false federal and state tax returns included fictitious expenses, claims for credits, and other items Sullivan knew were false when made. Sullivan did not review these tax returns with the individuals before she filed the tax returns in their names and forged their signatures on many of the returns.
According to further information presented to the court, the second scheme involved educational fraud. For college-bound students, mostly located on the island of Kauai, Sullivan prepared and submitted false student loan, grant, scholarship, and financial aid applications and other documents that requested money from public and private educational-based financial assistance and aid providers. Sullivan transferred some money from students’ financial aid applications to her personal bank accounts and other bank accounts that she controlled, then spent the money on her own personal and other expenses, such as for her home construction, retail purchases, and her bills.
In the last fraud scheme, according to information presented to the court, Sullivan used personal identification information of many individuals, such as social security numbers and birth dates, to apply for and use approximately 40 credit cards in other peoples’ names and under their guaranteed lines of credit without their authorization. Sullivan spent over $1 million on these unauthorized cards.
“This 17-year sentence holds Sullivan accountable for the damage she caused by her years-long fraudulent schemes, the money she stole from individuals in her community and public and private institutions, and her repeated and willful rejection of the rule of law.” said United States Attorney Clare E. Connors. “This sentence will stop Sullivan from continuing to prey on vulnerable members of our community who unwittingly trusted her manipulation and lies.”
“Sullivan has spent the last decade spinning a web of lies, committing fraud, and not caring who she hurt in the process. But that ends today, as Ms. Sullivan faked it until she made it to a real-life prison sentence,” said Special Agent in Charge Bret Kressin, IRS Criminal Investigation (IRS-CI), Seattle Field Office. “While crime may seem to pay in the short run, today’s sentence is a reminder that IRS:CI is committed to bringing real-world consequences for fraud. ”
“I am proud of the work of OIG Special Agents and our law enforcement partners for their work in this case and their dedication to protecting the integrity of Federal funds, and in particular, Federal student aid and the students that rely on those funds to make their dreams of higher education a reality,” said Adam Shanedling, Special Agent in Charge of the Department of Education’s Office of Inspector General’s (DOE-OIG) Western Regional Office. "We will continue to pursue those who exploit innocent students and misappropriate Federal student aid or game their system for their own selfish purposes.”
IRS-CI conducted the investigation resulting in the indictment, in partnership with DOE-OIG, the FBI, and the State of Hawaii, Department of Taxation. Assistant U.S. Attorneys Rebecca Perlmutter and Mohammad Khatib prosecuted the case.
Justice Department Announces Significant Milestone in Policing Reform Efforts for the City of Seattle and Seattle Police DepartmentRead the Press Release
The Justice Department announced today that it has jointly filed a proposed agreement with the City of Seattle that recognizes the city’s consistent compliance with the core requirements of a 2012 consent decree regarding the Seattle Police Department (SPD). The agreement includes important obligations that the city must take to continue the reform process.
The proposed agreement, which must be approved by the U.S. District Court for the Western District of Washington, describes the city’s and the SPD’s achievements in implementing the consent decree. For five years, the city has consistently complied with significant portions of the consent decree, including requirements regarding use of force (outside of the crowd management context), crisis intervention, stops and detentions, supervision and the city’s Office of Police Accountability.
The proposed agreement would replace the consent decree, but would require that the city continue to measure whether the reforms required by the consent decree remain effective. The city must also complete work in two remaining areas, use of force in crowd management and accountability.
“For over a decade, the Justice Department has worked to ensure that the City of Seattle and the Seattle Police Department undertake reforms necessary to bring about constitutional policing,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Our consent decree has provided the strong medicine needed to help cure problems and improve the way policing is carried out across the City of Seattle. Today we recognize the progress that has been made, the significant reforms instituted and the central role that the community has played and will continue to play in ensuring fair, non-discriminatory and effective policing moving forward.”
“The joint motion filed today acknowledges the significant progress of the City of Seattle and its Police Department, and very clearly lays out what must happen before all requirements of the consent decree may be terminated,” said First Assistant U.S Attorney Tessa M. Gorman for the Western District of Washington. “This proposed agreement allows the City of Seattle to focus on these remaining critical areas so that reforms in those areas become ingrained in the ways the Seattle Police Department engages with the community.”
The city has made notable progress in the areas where it has consistently complied with the consent decree for more than five years, and has adopted reforms that go beyond the explicit requirements of the consent decree. For example:
- Reduced Use of Force: SPD changed its policies and training regarding use of force, including how use of force is reported, reviewed and investigated. As a result, force is used in less than one-quarter of one percent of all events to which officers respond. SPD has reduced the use of serious force by 60%.
- Improved Response to Behavioral Health Crises: SPD reduced the use of force in crisis incidents to less than two percent of such incidents, and the majority of force used (65%) is low-level. SPD changed its response to people having behavioral health crises, including developing an advanced crisis intervention program, adopting a model where police and civilian mental health practitioners respond jointly and coordinating with King County to dispatch non-police mobile crisis teams to behavioral health incidents.
- Improved Response to Investigative Stops: SPD changed its policy, training and practices for investigative stops. The court monitor’s review has found that officers complied with legal and policy requirements in nearly all instances it assessed.
- New Bias-free Policing Policy and Training: SPD adopted a bias-free policing policy and, in consultation with the Community Police Commission, developed bias-free policing training. It also changed its procedures for addressing bias-related complaints.
- New Supervision Model: SPD changed its supervision practices, providing new training and adopting a new staffing model to ensure that all patrol officers have a consistent, highly-trained supervisor.
The proposed agreement, which must be approved by the U.S. District Court for the Western District of Washington, calls for continued work in the following areas:
- Use of Force/Crowd Management: SPD will develop new crowd management policies and provide them to the court and independent Court Monitor for approval. These policies include ways to report and review uses of force during crowd management.
- Accountability: Under the proposed agreement, the independent Court Monitor will review the city’s accountability system and propose any improvements.
This matter is handled by the Special Litigation Section of the U.S. Department of Justice’s Civil Rights Division and the U.S. Attorney’s Office’s Civil Division.
The Civil Rights Division continues to prioritize constitutional policing and currently has pending investigations into police departments across the country, including in Minneapolis, Phoenix, New York City and Louisiana. The consent decree, proposed agreement, as well as additional information about the Civil Rights Division, are available on its website at https://www.justice.gov/crt/special-litigation-section.
Justice Department Announces Extradition and Guilty Plea in Connection with International Fraud SchemeRead the Press Release
One defendant pleaded guilty on March 27 in an international fraud scheme that preyed on elderly Americans, and the lead defendant in the case was extradited from Spain yesterday in connection with the same scheme.
Ezennia Peter Neboh, 48, of Madrid, Spain, made his initial appearance in Miami today to face federal charges. Neboh, and his co-defendants, Kennedy Ikponmwosa, 51, and Prince Amos Okey Ezemma, 49, also of Madrid; and Iheanyichukwu Jonathan Abraham, 44, Emmanuel Samuel, 39, and Jerry Chucks Ozor, 43, of London, were previously charged in the Southern District of Florida with conspiracy to commit mail fraud as well as counts of mail fraud and wire fraud. Samuel pleaded guilty March 27 in Miami to conspiracy to commit mail and wire fraud.
According to court documents, the defendants allegedly operated an inheritance fraud scheme. As part of that scheme, they sent personalized letters to elderly consumers in the United States over the course of more than five years. The letters falsely claimed that the sender was a representative of a bank in Spain and that the recipient was entitled to receive a multimillion-dollar inheritance left for the recipient by a family member who purportedly had died years before in Spain. According to the indictment, the defendants told a series of lies to consumers including that, before they could receive their purported inheritance, they were required to send money for delivery fees, taxes, and payments to avoid questioning from government authorities. The defendants collected money sent in response to the fraudulent letters through a complex web of U.S.-based former victims, whom the defendants convinced to receive money and forward to the defendants or persons associated with them. According to the indictment, victims who sent money never received any purported inheritance funds.
“Schemes that prey on the elderly are particularly insidious,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Department of Justice’s Consumer Protection Branch will pursue and prosecute transnational criminals who defraud U.S. consumers, wherever they are located. I thank the Kingdom of Spain, including the Spanish National Police and the Ministry of Justice, for their tireless efforts in assisting U.S. authorities to find and arrest these individuals so that they may face charges here in the United States.”
“The U.S. Postal Inspection Service has a long tradition of protecting citizens from these types of schemes and bringing those responsible to justice,” said Postal Inspector in Charge Juan A. Vargas for the U.S. Postal Inspection Service (USPIS) Miami Division. “This extradition and guilty plea are a testament of the dedicated partnership between the Department of Justice’s Consumer Protection Branch, Homeland Security Investigations (HSI), and the U.S. Postal Inspection Service, to protect our citizens from these scams.”
“We are one step closer to ensuring that those who conned elderly victims for pure financial greed are brought to justice,” said Special Agent in Charge Scott Brown of HSI Arizona. “The recent extradition of one defendant and the guilty plea of another defendant involved in this inheritance fraud scheme demonstrates the commitment of HSI and our law enforcement partners to target offenders wherever they may live and ensure that those offenders answer for their crimes.”
According to court documents, Samuel admitted to defrauding over $6 million from more than 400 victims, many of whom he knew were elderly or otherwise vulnerable. He is scheduled to be sentenced by the Honorable Kathleen M. Williams on June 13, 2023, and faces a maximum penalty of 20 years’ imprisonment.
The Consumer Protection Branch, USPIS, and HSI are investigating the case.
Senior Trial Attorney Phil Toomajian and Trial Attorneys Josh Rothman and Brianna Gardner of the Justice Department’s Consumer Protection Branch are prosecuting the case. The Justice Department's Office of International Affairs, the U.S. Attorney’s Office for the Southern District of Florida, Europol, the Spanish National Police, the United Kingdom’s National Crime Agency, and the Portuguese Judicial Police all provided critical assistance.
The Department urges individuals to be on the lookout for these types of schemes. An inheritance scam is a form of an imposter scam in which fraudsters pretend to be someone they are not, often a lawyer, banker, or foreign official. These fraudsters will try to get people excited about a large windfall and may use legitimate-looking legal documents as part of the scam. Be wary of unexpected contact from individuals offering a large inheritance. Do not send money or provide information to anyone you do not know. Seek advice from a trusted individual or an independent professional if you are in doubt.
If you or someone you know is age 60 or older and has experienced financial fraud, experienced professionals are standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, can provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish and other languages are available.
More information about the Department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which can be reached at https://www.ovc.gov.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Houston Attorney Pleads Guilty to Offshore Tax Evasion SchemeRead the Press Release
A Houston Attorney pleaded guilty today to conspiring to defraud the United States.
In September 2019, a federal jury in Houston convicted Jack Stephen Pursley, also known as Steve Pursley, after a several-day trial on charges relating to an offshore tax evasion scheme, and the Court sentenced him to 24 months in prison. However, Pursley’s conviction was reversed on appeal and the case was sent back to the trial court for further proceedings. Pursley has now pleaded guilty to the conspiracy with which he was charged, as set forth in Count One of the indictment.
According to court documents and the evidence presented at the 2019 trial, Pursley conspired with a former client to repatriate more than $18 million in untaxed income that the client had earned through his company, Southeastern Shipping. Knowing that his client had never paid taxes on these funds, Pursley designed and implemented a scheme whereby the untaxed funds were transferred from Southeastern Shipping’s business bank account, located in the Isle of Man, to the United States. Pursley helped to conceal the movement of funds from the IRS by disguising the transfers as stock purchases in United States corporations owned and controlled by Pursley and his client.
At trial, the government proved that Pursley received more than $4.8 million and a 25% ownership interest in the co-conspirator’s ongoing business for his role in the fraudulent scheme. For tax years 2009 and 2010, Pursley evaded the assessment of and failed to pay the income taxes he owed on these payments by, among other means, withdrawing the funds as purported non-taxable loans and returns of capital. The government showed at trial that Pursley used the money he garnered from the fraudulent scheme for personal investments, and to purchase assets for himself, including a vacation home in Vail, Colorado and property in Houston, Texas. In total, Pursley caused a tax loss to the IRS of more than $6.4 million.
Pursley is scheduled to be sentenced on June 8. 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 is investigating the case.
Senior Litigation Counsel Sean Beaty and Trial Attorneys Grace Albinson and Wilson Rae Stamm of the Justice Department’s Tax Division are prosecuting the case.
Four Men Recently Sentenced in Connection with Three Louisville Area CarjackingsRead the Press Release
Louisville, KY – Four men were sentenced in the United States District Court for the Western District of Kentucky for their roles in Louisville area carjackings.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Chief Jacquelyn Gwinn-Villaroel of the Louisville Metro Police Department, Special Agent in Charge Jodi Cohen of the FBI Louisville Field Office, and Special Agent in Charge Rana Saoud of Homeland Security Investigations (HSI) Nashville made the announcement.
On February 28, 2023, Timothy McCurley, 34, of Louisville, Kentucky, was sentenced to 8 years in prison for his role in a January 22, 2021, carjacking of a victim in the parking lot of her workplace in Mt. Washington, Kentucky, at 7:30 a.m. McCurley, who is serving a state sentence on unrelated charges, previously pled guilty to one count of carjacking and one count of being a felon in possession of a firearm. McCurley’s 8-year sentence was ordered to be served consecutive to previously imposed state court sentences. He was also sentenced to a three-year term of supervised release which will commence after he completes his federal sentence.
On October 12, 2022, McCurley’s co-defendant, Cameron Burnett, 31, of Louisville was sentenced to 15 years in prison followed by a five-year term of supervised release. Burnett previously pled guilty to two counts of carjacking and one count of brandishing a firearm in furtherance of a crime of violence. Burnett’s sentence included the carjacking with McCurley and his separate role in a carjacking that was committed on January 18, 2021. During this carjacking, Burnett approached the victim at her place of employment in Louisville at 7:20 a.m., pointed a gun at her face, said he would shoot her if he had to, and drove away in her vehicle after she gave him her purse and keys.
On March 16, 2023, Jalyn Redd, 24, and Dayveon Willock, 19, both of Elizabethtown, Kentucky, were sentenced for their roles in the carjacking and robbery of a Domino’s delivery driver on December 22, 2021, in Louisville, Kentucky.
Both Redd and Willock were each sentenced to 4 years in prison followed by three years of supervised release. Both had had previously entered guilty pleas to one count of carjacking and one count of interference with commerce by robbery.
According to court documents and statements made in court, Redd and Willock lured a Domino’s pizza delivery driver to the location of the carjacking by placing an online order for a pizza. When the homeowner rejected the pizza, Willock, who had parked with Redd nearby, approached the victim, pointed a 9 mm semi-automatic firearm at the victim, demanded the victim’s keys, and drove away in the victim’s car. The car was located by law enforcement officials approximately a month later being used by Willock.
There is no parole in the federal system.
“We will continue to identify, arrest, and prosecute those associated with violent carjackings,” stated U.S. Attorney Bennett. “Working with our federal and local law enforcement agencies, and in partnership with Jefferson County Commonwealth’s Attorney Tom Wine, this office will continue to seek justice for victims put in harm’s way by those who engage in such violent criminal behavior.”
“These cases are examples of our federal campaign to crack down on carjacking,” stated FBI Special Agent in Charge Cohen. “Armed carjacking poses an unacceptable danger to public safety and creates a climate of fear for residents in our community. Frankly, everyone in the Commonwealth deserves the right to go about their daily lives without fear of falling victim to violent crime. These sentences show that the FBI, in coordination with our law enforcement partners at every level, will aggressively pursue violent criminals who attempt to prey on our community.”
“These four young individuals committed violent crimes, callously putting multiple lives within our communities at risk,” stated HSI Nashville Special Agent in Charge Saoud. “HSI is committed to working with its law enforcement partners to investigate and bring these violent offenders to account for the harm they cause to victims.”
The carjackings were investigated by LMPD, FBI, and HSI, with assistance from the Greater Hardin County Drug Task Force and the Elizabethtown Police Department.
The cases were prosecuted by Assistant United States Attorney Marisa J. Ford and Special Assistant U.S. Attorney Emily Lantz of the Jefferson County Commonwealth’s Attorney’s Office.
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Former officer and another sentenced for drug traffickingRead the Press Release
McALLEN, Texas – Two men from Donna have been ordered to federal prison following their convictions of conspiracy to possess with the intent to distribute cocaine, announced U.S. Attorney Alamdar S. Hamdani.
Alejandro Martinez, 44, was a former police officer with the Donna Police Department. He and Victor Vallejo, 48, pleaded guilty March 22, 2022.
Today, U.S. District Judge Micaela Alvarez ordered Vallejo to serve 108 months in federal prison to be immediately followed by a three years of supervised release for his part in the drug trafficking conspiracy. In handing down the sentence, the court noted the serious harm drug trafficking can have against the community.
Judge previously sentenced Martinez to serve a 175-month sentence followed by a five-year-term of supervised release. In imposing the sentence, the court noted that people come to the United States to escape nations with corrupt law enforcement officers. By accepting bribes, Martinez damaged public trust in the justice system.
While serving as a police officer, Martinez assisted co-conspirators as they transported illegal drugs through Donna by escorting load vehicles in his official capacity as a police officer. He also diverted other officers away from the area.
Vallejo assisted co-conspirators in the coordination and transportation of the narcotics.
Previously released on bond, Vallejo was taken into custody following the sentencing today where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. Martinez is currently serving his 175-month sentence.
The Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorney (AUSA) Matthew Phelps and former AUSA Robert Wells prosecuted the case.
Former South Bay Resident Sentenced to 27 Years in Prison for Enticing Vulnerable Girls to Engage in Masochistic Abuse OnlineRead the Press Release
LOS ANGELES – A former Redondo Beach resident was sentenced today to 324 months in federal prison for targeting girls on the internet and enticing them to engage in masochistic abuse for his sexual gratification.
Matthew Christian Locher, 32, was sentenced by United States District Judge Dolly M. Gee, who at today’s hearing said, Locher was “a parent’s worst nightmare” and was an individual who committed “monstrous acts.” Judge Gee also ordered Locher to pay $25,209 in restitution to his victims and ordered him placed on lifetime supervised release once he is released from prison.
Locher pleaded guilty in August 2022 to one count of sexual exploitation and attempted sexual exploitation of a child for the purpose of producing a sexually explicit visual depiction.
From November 2020 to May 2021, Locher targeted girls suffering from mental health issues, including depression, suicidal thoughts, and eating disorders. During internet conversations, Locher groomed his victims to engage in self-mutilation and instructed a victim struggling with an eating disorder to starve herself, ordering her to film herself cutting her body when she disobeyed him.
Locher enticed two of the minor victims to send Locher images and videos of themselves committing acts of self-harm, which included cutting their breasts with razor blades.
Locher enticed a third victim, who was 12 years old, to run away from her home in Ohio and travel to California to engage in illegal sexual activity with him. Specifically, Locher encouraged the victim to kill her parents and set her family’s house on fire, at which point he would pick her up, bring her to California, and make her his “slave.” This victim began a trip to California after setting a fire in her family’s home in an unsuccessful attempt to kill her parents.
Soon after federal authorities executed a search warrant at his residence, Locher relocated to Indiana in the summer of 2021. Following his arrest in Indianapolis in January 2022, federal authorities transported Locher to California. He has been in federal custody since then.
“[Locher’s] victims are real people – real girls who turned to the internet to seek help with their struggles with anorexia, schizophrenia, and depression, and tragically fell into [Locher’s] hands,” prosecutors argued in a sentencing memorandum. “[Locher] knew he was talking to kids, wanted to be talking to kids, and knew kids were, in fact, harming themselves at his urging.”
The FBI, Homeland Security Investigations, the Los Angeles Police Department, the Springfield (Ohio) Police Department, the Shelby County (Tennessee) Sheriff’s Office, and the New York City Police Department investigated this matter.
Assistant United States Attorney Chelsea Norell of the Violent and Organized Crime Section prosecuted this case.
Former Law Firm Partner Arrested for Bankruptcy FraudRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of an Indictment charging JOHN ROESSER, a former attorney, with abusing the bankruptcy system by making false statements under penalty of perjury and submitting falsified records. By February 2022, after years as a partner at major law firms, ROESSER owed the Internal Revenue Service (“IRS”) millions of dollars in income taxes and filed for Chapter 11 bankruptcy. Through multiple false statements, ROESSER lied to the Bankruptcy Court and the IRS about his purported receipt of millions of dollars in order to receive the protections of bankruptcy and keep his assets – including a multi-million-dollar residence and an Aston Martin sports car – while not paying his bills. ROESSER was arrested this morning in Bronxville, New York, and will be presented today in Manhattan federal court.
U.S. Attorney Damian Williams said: “Bankruptcy is a lifeline for many people who need its protections to keep their lives together. The defendant allegedly corrupted and degraded a system that helps so many. As alleged, he manipulated the bankruptcy system by lying and falsifying bank records so that he could use its protections to keep his assets and to avoid paying his bills. And he should have known better — he used to be a lawyer. This Office will always bring to justice those who use their status to abuse the public’s trust and to try to put themselves above the law.”
FBI Assistant Director Michael J. Driscoll said: “As alleged, Roesser committed bankruptcy fraud when he lied to both the Bankruptcy Court and the IRS about his receipt of millions of dollars so he could retain his assets – which included a multi-million-dollar residence and a luxury sports car – while avoiding paying his bills. The FBI will continue to investigate and bring to justice those who attempt to fraudulently exploit our nation’s legitimate financial protections to satisfy their own selfish desires.”
As alleged in the Indictment:[1]
From in or about March 2013 through in or about January 2018, ROESSER was a partner at three multinational law firms. During his time as a partner at these law firms, ROESSER earned substantial income — and incurred substantial income tax liability. ROESSER resigned from the New York bar in or about June 2020 after admitting to misappropriating client funds.
By 2022, ROESSER owed the IRS, and others, over three million dollars. He also owned a house that he estimated was worth millions of dollars and an Aston Martin Rapide, a luxury sports car. Instead of paying his debts, in February 2022, ROESSER filed for Chapter 11 bankruptcy in the United States Bankruptcy Court for the Southern District of New York. See In re John Roesser, No. 22 Bk. 22049 (Bankr. S.D.N.Y.) (the “Bankruptcy”). In a Chapter 11 bankruptcy, a debtor may remain “in possession,” meaning that the debtor keeps possession and control of his assets during the bankruptcy. But a debtor-in-possession must propose a viable plan of reorganization, which creditors then vote on. If a debtor fails to comply with the requirements of Chapter 11, a Chapter 11 bankruptcy can be converted to a Chapter 7 bankruptcy or dismissed. In a Chapter 7 bankruptcy, an appointed trustee usually converts a debtor’s assets into cash for distribution among creditors. If a bankruptcy is dismissed, the debtor loses the protections of bankruptcy; for example, creditors can take steps to seize a debtor’s assets.
ROESSER told the Bankruptcy Court and the IRS that he would soon receive millions of dollars and be able to pay his debts while keeping his house. Then, ROESSER filed a false declaration and submitted falsified records in the Bankruptcy indicating that he had received millions of dollars. This was false. ROESSER was concealing that he had not received millions of dollars after all, in a fraudulent effort to retain control of his assets while avoiding payment of his debts.
On or about March 3, 2023, after some of the above false statements were withdrawn by ROESSER’s attorney in the Bankruptcy, ROESSER’s Chapter 11 bankruptcy was dismissed. Without the protections of bankruptcy, creditors can now take steps to seize ROESSER’s assets to pay his debts.
* * *
ROESSER, 52, of Bronxville, New York, is charged with one count of falsification of records in bankruptcy, which carries a maximum sentence of 20 years in prison, and one count of false oaths and claims in bankruptcy, which carries a maximum sentence of five years in prison.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the outstanding investigative work of the FBI.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Steven J. Kochevar is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described therein should be treated as an allegation.
Former Connections CEO Pays $300,000 to Resolve Alleged Violations of Federal Controlled Substances ActRead the Press Release
WILMINGTON, Del. – U.S. Attorney David C. Weiss announced today that Catherine Devaney McKay, the former CEO of Connections Community Support Programs, Inc. (“CCSP”), has agreed to pay $300,000 to resolve alleged violations of the federal Controlled Substances Act. Prior to the sale of its assets in bankruptcy, CCSP provided a variety of mental health and addiction treatment services at numerous locations throughout Delaware.
In April 2021, the United States filed a lawsuit alleging that CCSP and three of its former executives, including Ms. McKay, had negligently failed to keep proper records of the company’s use of controlled substances, including methadone and buprenorphine, in its treatment of patients with substance use disorders. Among numerous other issues, during a March 2019 audit by the Drug Enforcement Administration (“DEA”), CCSP was unable to properly account for tens of thousands of doses of controlled substances at its Millsboro location, which were later determined to have been transferred to other CCSP facilities without proper documentation.
On June 15, 2021, CCSP completed a sale, overseen by the U.S. Bankruptcy Court for the District of Delaware, of its assets and operations to Conexio Care, Inc. and Coras Wellness and Behavioral Health, which are now providing the mental health and addiction treatment services formerly provided by CCSP. On November 1, 2021, the U.S. District Court for the District of Delaware entered a consent judgment in the amount of $1,621,571 against CCSP. The settlement announced today resolves the United States’ separate claims against Ms. McKay for her individual role in CCSP’s violations.
“Over the many years that she served as CEO of Connections, Ms. McKay repeatedly failed to take steps to address the company’s compliance failures,” said U.S. Attorney Weiss. “Those failures increased the possibility of drug diversion, putting at risk the very population that Connections purported to serve. Where executives ignore their individual duty to ensure that the companies they manage comply with the laws that protect public safety, my office will continue to seek to hold them personally responsible for those violations.”
“We applaud the support of U.S. Attorney Weiss and his office in securing this significant settlement against McKay,” said Thomas Hodnett, Special Agent in Charge of the DEA’s Philadelphia Field Division. “Treatment programs such as CCSP have an obligation to properly account for controlled substances such as methadone and buprenorphine that are used for medication assisted treatment. Settlements such as this are a mechanism to ensure compliance with the requirements of the Controlled Substances Act.”
Assistant U.S. Attorneys Dylan J. Steinberg and Laura D. Hatcher represented the United States in this action.
The claims resolved by the settlement are allegations only and there has been no determination of liability. Related court documents and information from the civil lawsuit are on PACER by searching for Case No 1:21-cv-00514-MN. A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware.
Former CFO of Russian Natural Gas Company Convicted of Making False Statements to the IRS, Failing to Disclose Offshore Accounts and Failing to File Tax ReturnsRead the Press Release
A federal jury found a Florida man guilty of failing to file a Report of Foreign Bank and Financial Accounts (FBAR), making a false statement to the IRS, and willfully failing to file tax returns.
According to court documents and evidence presented at trial, from 2005 to 2015, Mark Anthony Gyetvay of Naples, Florida, concealed his ownership and control over substantial offshore assets and failed to file and pay taxes on millions of dollars of income. After working as a certified public accountant (CPA) in the United States and Russia, Gyetvay became the chief financial officer of Novatek, a large Russian gas company. Beginning in 2005, Gyetvay opened two different accounts at a bank in Switzerland to hold substantial assets, which at one point had an aggregate value of over $93,000,000. Over a period of several years, Gyetvay took steps to conceal his ownership and control over these funds, including removing himself from the accounts and making his then-wife, a Russian citizen, the beneficial owner of the accounts. Additionally, despite being a CPA, Gyetvay did not file his 2013 and 2014 U.S. tax returns.
Gyetvay did not file FBARs, as required, to disclose his control over the Swiss bank accounts, at times, rejecting his accountant’s recommendation to do so. In an unsuccessful attempt to avoid significant financial penalties, Gyetvay made a false filing with the IRS using the Streamlined Foreign Offshore Procedures, available only to taxpayers whose failure to report offshore assets and income is due to non-willful conduct.
He is scheduled to be sentenced on September 21, 2023, and faces a maximum penalty of five years in prison for failing to file an FBAR, five years in prison for making a false statement and one year in prison for each willful failure to file a tax return. 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 is investigating the case.
Senior Litigation Counsel Stanley Okula, Assistant Chief David Zisserson and Trial Attorney Kevin Schneider of the Justice Department’s Tax Division are prosecuting the case.
Fontana Man Sentenced to 10 Years in Federal Prison for Scams that Defrauded His Romantic Partners and OthersRead the Press Release
LOS ANGELES – A San Bernardino County man has been sentenced to 120 months in federal prison for defrauding eight women – some of whom he developed romantic relationships with – and nine businesses and then laundering the proceeds of his scheme, the Justice Department announced today.
Ze’Shawn Stanley Campbell, 35, formerly of Irvine but who now resides in Fontana, was sentenced late Monday afternoon by United States District Judge Mark C. Scarsi, who said at the hearing that Campbell’s conduct showed a “shocking level of disrespect for the law” as well as a lack of contrition.
Campbell pleaded guilty in October 2022 to one count of wire fraud and one count of money laundering.
From April 2014 to April 2020, Campbell convinced his victims that he was reliable by befriending them and starting romantic relationships with them. To enhance his purported creditworthiness in their eyes, he told them lies, such as falsely saying that he had millions of dollars and operated successful businesses, including McDonald’s franchises, a security company, and a chain of gyms in Texas.
Campbell also boosted his stature with the victims by falsely telling them he was a successful investor in real estate and Bitcoin, as well as claiming he had served as a Navy SEAL in the Iraq and Afghanistan wars.
Once he convinced his victims of his bona fides, Campbell would induce them to provide money and property to him, claiming that he would use the victims’ money and property to support his businesses, fund investments made on the victims’ behalf and pay his purported medical bills. Rather than using the victims’ money as he promised he would, he instead used it to pay personal expenses and to buy luxury items for himself.
For example, in December 2017, one victim wrote Campbell a check for $61,452, which Campbell deposited via interstate wires into a Wells Fargo bank account he controlled. Campbell promised the victim that the money would be used for an investment in Bitcoin on the victim’s behalf. Instead, Campbell spent the money on himself, including by making payments on a BMW and a Mercedes-Benz that he had leased in a different victim’s name.
Campbell caused 17 different victims, including eight individuals and nine companies to suffer significant financial losses.
Judge Scarsi found that the losses caused by Campbell’s criminal conduct exceeded $550,000. He will set a hearing to determine the exact amount of restitution that will be owed to the victims.
“[Campbell] is a con man and a predator,” prosecutors argued in a sentencing memorandum. “He develops romantic relationships with his victims and then, exploiting the intimacy and trust he cultivates, lies to them to get their money…But the harms [Campbell] caused go further than these significant financial losses. The harms include the serious emotional damage…which [Campbell] inflicted on his victims. Most of [Campbell’s] individual victims were women he began dating, encouraging their affection only to exploit it and leave their self-esteem, as well as their finances, in tatters.”
The FBI investigated this matter.
Assistant United States Attorney Ranee A. Katzenstein, Chief of the Major Frauds Section, prosecuted this case.
Federal Grand Jury Indicts Former Franklin Man for Sexually Exploiting a Child by Producing and Possessing Child PornographyRead the Press Release
Bowling Green, KY – A federal grand jury in Bowling Green returned a two-count indictment on March 15, 2023, charging a former Franklin, Kentucky, man with sexual exploitation of a child by producing child pornography and possessing child pornography.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky and Special Agent in Charge Jodi Cohen of the FBI Louisville Field Office made the announcement.
According to the indictment, Clint Culverhouse, 33, currently of Paducah, Kentucky, formerly of Franklin, Kentucky, was charged with one count of sexual exploitation of a child by producing child pornography and one count of possessing child pornography.
The defendant made his initial court appearance on March 17, 2023, before a U. S. Magistrate Judge of the U. S. District Court for the Western District of Kentucky in Bowling Green. Culverhouse faces a minimum sentence of 15 years and a maximum sentence of 50 years in prison. If convicted, a federal district court judge will determine any sentence after considering the sentencing guidelines and other statutory factors. There is no parole in the federal system.
This case is being investigated by the FBI Paducah Satellite Office with assistance from the Kentucky State Police.
Assistant U.S. Attorney Leigh Ann Dycus, of the U.S. Attorney’s Paducah Branch Office, is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Federal Grand Jury Indicts Christian County Felon for Illegally Possessing a Firearm, Possessing a Firearm in Furtherance of Drug Trafficking, and Trafficking CocaineRead the Press Release
Paducah, KY – A federal grand jury in Paducah, Kentucky, returned an indictment on March 14, 2023, charging a Christian County felon with illegally possessing a firearm, possessing a firearm in furtherance of drug trafficking, and possessing cocaine with the intent to distribute it.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge J. Todd Scott of the DEA Louisville Field Division and Acting Special Agent in Charge Robert Maynard of the ATF Louisville Field Division made the announcement.
According to the indictment, Morgan Hancock, Jr., 45, of Pembroke, Kentucky, was charged with possessing over 500 grams of cocaine with the intent to distribute it, being a convicted felon in possession of a firearm, and possessing a firearm in furtherance of a drug trafficking crime. Hancock was prohibited from possessing a firearm because he was previously convicted in Christian Circuit Court of first-degree trafficking in a controlled substance.
Hancock, Jr. made his initial court appearance on March 24, 2023, before a U.S. Magistrate Judge in the Western District of Kentucky. If convicted, Hancock, Jr. faces a mandatory minimum sentence of 10 years and a maximum sentence of 60 years in prison. A federal district court judge will determine any sentence after considering the sentencing guidelines and other statutory factors. There is no parole in the federal system.
This case is being investigated by the DEA Paducah Post of Duty Office and the ATF Bowling Green Field Office with assistance from the DEA Nashville Field Division, the 19th Judicial Task Force in Montgomery County Tennessee, the DEA Nashville HIDTA TF-3, the Christian County Sheriff’s Office, and the Hopkinsville Police Department.
Assistant U.S. Attorney Leigh Ann Dycus, of the U.S. Attorney’s Paducah Branch Office, is prosecuting this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Federal Grand Jury Indicts Tennessee Man for Possession of a MachinegunRead the Press Release
NEW ORLEANS, LOUISIANA – KEATON MANGHANE, age 24, a resident of Chattanooga, Tennessee, was charged on March 10, 2023 in a sealed one-count indictment for possession of a machinegun. The indictment was unsealed on March 28, 2023.
If convicted, MANGHANE faces a maximum sentence of 10 years in prison, a fine of up to $250,000, up to 3 years of supervised release, and a mandatory special assessment fee of $100.00.
U.S. Attorney Duane A. Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the New Orleans Police Department. Assistant United States Attorney David Berman of the Violent Crimes Unit is in charge of the prosecution.
Eagle River Man Arrested for Trafficking FirearmsRead the Press Release
ANCHORAGE – An Eagle River man was arrested today in Illinois on criminal charges related to his alleged trafficking of firearms from Alaska to California.
According to court documents, Cornelius Leon William Smith, 32, purchased 9 firearms on behalf of other individuals while falsely stating that he was the true purchaser, bought a gun in Alaska and then re-sold it to a California resident, and operated a firearms business, all without the proper license.
Smith is charged with one count of Engaging in the Business of Dealing Firearms Without a License, one count of Transferring a Firearm to an Out-of-State Resident, and nine counts of False Statement During Purchase of Firearms. If convicted, Smith faces a maximum penalty of ten years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney S. Lane Tucker of the District of Alaska made the announcement.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives are investigating the case.
Assistant U.S. Attorney Jennifer Ivers is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Drug Trafficker Pleads Guilty to Identity Theft and Attempting to Steal Seized Cars from the FBI Using Fake Court DocumentsRead the Press Release
SACRAMENTO, Calif. — Quinten Giovanni Moody, aka Christano Rossi, 38, of Dublin, pleaded guilty today to conspiracy to distribute marijuana, aggravated identity theft, and obstruction of justice, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between June 2017 and June 2022, Moody, co-defendant Myra Boleche Minks, 44, formerly of Roseville, and other co‑conspirators generated hundreds of thousands of dollars by transporting marijuana from California to Georgia, Nevada, Texas, and other locations. Moody and others bought marijuana in California and then transported the marijuana to distributors in other states via couriers and baggage traveling on commercial airplanes and commercial shipping services. Once the marijuana was sold, Moody and others caused the proceeds of the marijuana sales to be returned to them in California by using couriers to travel on commercial airline flights carrying cash, using shipping services to ship cash, and causing others at their direction to deposit cash into bank accounts.
Moody and others also committed unemployment insurance fraud during the COVID-19 pandemic. Beginning in August 2020, Moody, Minks, and co-defendant Jessica Tang, 49, of Sacramento, participated in a scheme to submit fraudulent claims of unemployment benefits through the California Department of Employment Development (EDD). As part of this scheme, on Sept. 4, 2020, Moody used a Bank of America debit card in the name of an identity theft victim to make purchases at a Cartier store and Louis Vuitton store in Las Vegas, Nevada.
Moody sought to obstruct the investigation into his activities by using faked court documents. As part of the investigation, the United States applied for seizure warrants for a 1969 Chevrolet Camaro and a 1956 Chevrolet pickup that Moody purchased with the proceeds of his criminal activities. On April 15, 2022, personnel from the Federal Bureau of Investigation seized the two vehicles in Georgia pursuant to the seizure warrants issued in the Eastern District of California. The vehicles were transported to the FBI’s Atlanta Field Office for storage. On May 8, 2022, at approximately 9:30 p.m., a flatbed truck from towing company arrived at the FBI’s Atlanta field office. The tow truck driver informed FBI security personnel that he had been directed to retrieve the vehicles from FBI’s custody. The tow truck driver gave FBI security personnel documents, including a document purporting to be an order issued by the Honorable John K. Larkins III, U.S. Magistrate Judge for the Northern District of Georgia. The documents purported to order the U.S. Marshal and the FBI to release the vehicles. The documents, however, were fraudulent and had been created by Moody and Minks for the purpose of fraudulently obtaining custody of the two seized vehicles.
On May 21, 2022, a tow truck from a different towing company arrived at the FBI’s Atlanta field office. Again, the driver presented a fake federal court order purporting to authorize the release of the seized vehicles. The fraudulent federal court documents had been altered from the previous attempt. FBI personnel did not release the vehicles. Shortly before the arrival of the tow truck, a co-conspirator called personnel at the FBI’s Atlanta field office and pretended to be an FBI Special Agent. While in character, the co-conspirator attempted to contact the employees assigned to the gate outside of the field office to facilitate the tow truck gaining access to the FBI property.
Charges are pending against Minks and Tang. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Moody is scheduled to be sentenced by U.S. District Judge John A. Mendez on July 11, 2023. Moody faces a maximum statutory penalty of 40 years in prison and a fine up to $5 million for the marijuana distribution conspiracy. He faces a maximum sentence of two years in prison consecutive to any other term of incarceration and a fine of up to $250,000 for the aggravated identity theft count, and he faces up to 10 years in prison and a fine of up to $250,000 for the obstruction of justice count. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was the product of an investigation by the Federal Bureau of Investigation, with assistance from the Drug Enforcement Administration, California Highway Patrol, Placer County Sheriff’s Office, Placer County Probation Department, San Mateo County Sheriff’s Department, Colma Police Department, Reno-Tahoe Airport Authority Police Department, Roseville Police Department, San Francisco Police Department, Atlanta Police Department, U.S. Department of Labor – Office of Inspector General, and the California Employment Development Department. Assistant U.S. Attorney Justin Lee, and Sam Stefanki are prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice 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.
Domestic Assault on Menominee Indian Reservation Leads to 24-Month Prison Sentence for Keshena ManRead the Press Release
United States Attorney Gregory J. Haanstad of the Eastern District of Wisconsin announced that Stephen Teller, Jr., (age: 41), a former resident of the Menominee Indian Reservation, was sentenced to 24 months in prison for an assault he committed on the Menominee Indian Reservation. Teller, an enrolled member of the Menominee Indian Tribe of Wisconsin, pleaded guilty on December 22, 2022, to Domestic Assault by a Habitual Offender in violation of 18 U.S.C. § 117(a). At a hearing on March 28, 2023, Senior United States District Judge William C. Griesbach imposed a total sentence of 24 months in prison, followed by 36 months on supervised release.
On July 29, 2022, officers with the Menominee Tribal Police Department responded to a 911 call from a residence in Keshena, which is on the Menominee Indian Reservation. The caller reported seeing Teller drag a screaming woman into a nearby house. Investigators subsequently learned that Teller had strangled the woman, with whom he was involved in a domestic relationship and shared a child, with his forearm and punched her in the head and back. The woman sustained injuries during the incident. Teller had previously been convicted of similar offenses in Menominee Tribal Court, which made him eligible for federal prosecution.
In sentencing Teller, Judge Griesbach noted “the fact that someone would do this to someone he had a child with is outrageous.” Judge Griesbach also reflected upon what he described as a pattern of behavior where Teller engaged in violent acts against women with whom he had a domestic relationship. Judge Griesbach emphasized the need to protect the public from the defendant and observed the need to deter others who might consider engaging in violence against women.
The Menominee Tribal Police Department and Federal Bureau of Investigation investigated the case. It was prosecuted by Assistant United States Attorney Andrew J. Maier.
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Doctor Sentenced to 15 Months in Prison for Health Care FraudRead the Press Release
CAMDEN, N.J. – A doctor was sentenced today to 15 months in prison and three years of supervised release and ordered to pay restitution of $1.9 million and forfeiture of $54,000 for his role in two separate conspiracies for defrauding New Jersey state health benefits programs and accepting kickbacks in exchange for referring laboratory work. Dr. Daniel Oswari, 51, of Bordentown, New Jersey, pleaded on Dec. 16, 2019, in Camden federal court to two counts of an indictment charging him with conspiracy to commit health care fraud and wire fraud and conspiracy to violate the Anti-Kickback Statute and the Travel Act.
Defense Company CEO Pleads Guilty to Conspiracy to Defraud Investors and CreditorsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that BAREND OBERHOLZER, a/k/a “Barry Oberholzer,” the Chief Executive Officer of a defense technology start-up (“Start-Up-1”), pled guilty today in Manhattan federal court in connection with a conspiracy to solicit investment in and financing for Start-Up-1 on the basis of fraudulent misrepresentations regarding financial solvency, access to cash, and use of investor funds. Magistrate Judge Robert W. Lehrburger accepted the defendant’s guilty plea. The case is assigned to U.S. District Judge Andrew L. Carter, Jr.
U.S. Attorney Damian Williams said: “Barend Oberholzer attempted to use the reputation of a retired, four-star Army General in order to solicit investments in his start-up company and a device he developed that purportedly could detect concealed weapons. Instead of attracting investors honestly, Oberholzer lied continuously to make his company more appealing to investors. Fortunately, law enforcement was able to detect the defendant’s lies, and he is now facing substantial time in prison.”
According to the allegations in the Indictment and other filings and statements made in court:
Beginning in or around 2018, OBERHOLZER began soliciting investments in Start-Up-1 and a purported security device it had developed (“Security Device-1”) from at least two venture capital firms on false pretenses. OBERHOLZER sent multiple emails to the firms, posing as a retired, four-star General in the United States Army (“Retired General-1”), who was employed by a prominent private equity firm based in New York, New York (“Private Equity Firm-1”). Therein, OBERHOLZER, posing as Retired General-1, endorsed and solicited investment in Start-Up-1 and Security Device-1, a smartphone case that purportedly permitted its users to detect at a distance weapons or other dangerous items concealed on another person.
OBERHOLZER and his co-conspirator, JAROMY PITTARIO, a/k/a “Jaromy Jannard-Pittario,” also solicited investments in and loans to Start-Up-1 and Security Device-1 by falsely representing, among other things, their financial solvency, access to cash, and use of investor funds. For instance, the pair repeatedly provided falsified financial statements to potential creditors to secure funding.
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OBERHOLZER, 39, of Calabasas, California, pled guilty to one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison. PITTARIO previously pled guilty on January 26, 2023. The sentencing of PITTARIO is scheduled for May 25, 2023, before Judge Andrew L. Carter, Jr., and the sentencing of OBERHOLZER is scheduled for July 11, 2023.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the New York Office of the U.S. Postal Inspection Service.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Jilan J. Kamal and Timothy V. Capozzi are in charge of the prosecution.
Couple Pleads Guilty to Smuggling $2 Million in Pesticides and Veterinary DrugsRead the Press Release
NEWS RELEASE SUMMARY – March 28, 2023
SAN DIEGO – Otilio Rodriguez Toledo and Alicia Aispuro Hernandez, husband and wife from Thermal, California, pleaded guilty in federal court today to conspiring to smuggle and distribute $2 million worth of Mexican pesticides and veterinary drugs that are not approved for use in the United States.
In pleading guilty, the defendants acknowledged that since at least December of 2018, they had been engaged in smuggling pesticides and veterinary drugs from Mexico into the United States, and then distributing them within the United States. The pesticides involved were primarily Taktic and Bovitraz, which are not registered with the EPA for use in the United States. The smuggled veterinary drugs included Tetragent Aves, Metabolase, Terramicina, Cipio Vet, Baytril Max, Tylovet, Caterrol, Penicilina, and Tylosma, which are not approved by the FDA for use in the United States.
In pleading guilty, the defendants admitted that the smuggled pesticides and veterinary drugs were brought in through the Calexico Port of Entry in Imperial County and placed in storage units near the border. The smugglers would send photographs of the products at the storage units as proof of delivery.
The defendants admitted they later picked up the products from the storage units and distributed them to others within the United States. As part of their plea agreement, the defendants agreed that the value of the smuggled goods was more than $1 million but less than $2.2 million and further agreed that the government could seek the forfeiture of up to $2.2 million in proceeds obtained from the sale of the smuggled goods.
According to experts at the U.S. Environmental Protection Agency and elsewhere, the active ingredient in the pesticides Taktic and Bovitraz is amitraz, which is toxic to bees and humans if it is released into hives and ultimately ends up in honey, honeycomb and beeswax.
Misuse of amitraz-containing products in beehives can result in exposures that could cause neurological effects and possibly reproductive effects in humans from the consumption of contaminated honey. Signs of neurotoxicity from exposure to amitraz has been documented in multiple animal species, including central nervous system depression, decrease in pulse rate, and hypothermia.
“These rules are in place to protect animals, people and the environment from harmful pesticides and drugs,” said U.S. Attorney Randy Grossman. “Public safety is our top priority and we intend to enforce those laws.” Grossman thanked the prosecution team and investigators on the case who relentlessly pursued the leaders of this smuggling organization.
“The defendants in this case smuggled illegal and hazardous chemicals into the United States for profit knowing they were banned and posed a significant health and safety threat to humans, wildlife and the environment,” said Chad Plantz, Special Agent in Charge, HSI San Diego. “This guilty plea highlights HSI’s steadfast commitment to working with our partners to pursue, arrest, and bring to justice anyone who threatens the well-being of our communities.
“The FDA regulates animal drugs as part of its mission to protect the public health, which includes ensuring that prescription animal drugs are lawfully distributed and dispensed pursuant to a valid prescription,” said Acting Special Agent in Charge Brian G. McClune, FDA Office of Criminal Investigations Kansas City Field Office. “We will continue to pursue and bring to justice those who attempt to evade the law.”
“The defendants’ conduct put consumers at risk,” said Scot Adair, Special Agent in Charge of the EPA’s criminal enforcement program in California. “The pesticides they attempted to distribute were smuggled into the United States from Mexico and are illegally used in beehives. The defendants in this case made millions of dollars in ill-gotten gains through the illegal sale of this unregistered pesticide.”
The defendants are scheduled to be sentenced by U.S. District Judge John A. Houston on June 21,2023 at 10 a.m. This case is being prosecuted by Assistant U.S. Attorney Melanie K. Pierson from the U.S. Attorney’s Office for the Southern District of California and Senior Trial Attorney Stephen Da Ponte from the Environmental Crimes Section, Environment and Natural Resources Division of the U.S. Department of Justice.
DEFENDANTS Case Number 22cr1965-JAH
Otilio Rodriguez Toledo Age: 38 Thermal, CA
Alicia Aispuro Hernandez Age: 38 Thermal, CA
SUMMARY OF CHARGES
Conspiracy – Title 18, U.S.C., Section 371
Maximum penalty: Five years in prison and $250,000 fine
INVESTIGATING AGENCIES
Homeland Security Investigations
U.S. Environmental Protection Agency
Criminal Investigations Division
U.S. Food and Drug Administration, Office of Criminal Investigations; California Department of Toxic Substances Control
Contractor and His Wife Charged with Bankruptcy Fraud, Money Laundering, and Wire FraudRead the Press Release
PROVIDENCE – A North Kingstown self-employed contractor who “flipped houses,” and his wife, have both been charged in federal court with executing schemes to conceal substantial assets from the U.S. Bankruptcy Court in Providence, as well as money laundering and wire fraud, announced United States Attorney Zachary A. Cunha.
Court documents allege that Ernest P. Ricci and his wife, Brenda L. Ricci, have been accruing large, outstanding debts to creditors and to the IRS dating back to 2004, and that they have engaged in conduct designed to evade their creditors since 2011. It is alleged that, in October 2017, Ernest Ricci filed a Chapter 7 Bankruptcy Petition to protect a $1.5 million dollar home in Florida that he and his wife used as both rental property and a vacation home. Bank records indicate that Ricci has failed to make any mortgage payments on the property since at least 2012.
Ricci and his wife are alleged to have concealed assets and knowingly made false representations and omissions in filings with the U.S. Bankruptcy Court. Specifically, according to court documents, Ricci swore under oath that he had been unemployed for many years; that he had no income, no bank accounts, and no assets or properties other than the Florida home; and that he garnered no compensation of any kind from his wife’s company. In those bankruptcy filings, Ricci at first claimed liabilities in excess of $200,000,000 against assets of $1.3 million. He later amended his filings to claim liabilities of more than $2.3 million.
In reality, however, it is alleged that Ricci, before filing for bankruptcy, Ricci transferred all the assets of his business: Premier Home Restoration LLC (Premier) in order to shield those assets from his creditors. While Ricci claimed in bankruptcy filings that, following the transfer of the company’s assets, he performed services for Premier without compensation, according to court documents, an investigation determined that, in fact, Ricci continued to control Premier, ran its day-to-day operations, and made use of company financial resources to maintain his lifestyle. Among other falsehoods, it is alleged that Ricci failed to truthfully disclose his monthly income; rental income from his Florida property and income from property he owned in New Hampshire; failed to disclose an actual Rolex watch as an asset (he allegedly went so far as to produce a fake watch for the Bankruptcy Trustee to examine); and failed to disclose ownership of a boat he was offering for sale as late as February 2023. Additionally, Ernest and Brenda Ricci allegedly falsely claimed, under oath, that Ernest Ricci held a $200,000 mortgage in the name of another person for the New Hampshire property that, in fact, he owned and for which he was collecting rent.
It is further alleged that, after the Bankruptcy Trustee was declared to be the equitable owner of Premier, Ernest and Brenda Ricci fraudulently applied for COVID-related Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL) from the Small Business Administration, supposedly to pay Premier employees and to company expenses. When filing, they failed to disclose that the Trustee was the owner of Premier, and that they were involved in bankruptcy proceedings.
It is alleged that, after fraudulently obtaining the EDIL and PPP funds, Ernest and Brenda Ricci committed money laundering by conducting a series of financial transactions designed to conceal the location, ownership, and control of the PPP and EDIL proceeds, and to use those funds to purchase rental property in Warwick, RI, in the name of another person.
Additionally, it is alleged that Ernest Ricci fraudulently applied for and received COVID-related unemployment benefits from the Rhode Island Department of Labor and Training at the same time he collected approximately $84,370 rental property income from his New Hampshire property.
Court documents detail a number of alleged stalling tactics, frivolous pleadings, and fraudulent claims by Ernest Ricci, including claims that he was indigent, during the years’ long bankruptcy proceedings. Documents also detail numerous combative communications allegedly sent by Ernest to the bankruptcy Trustee, some laced with profanities.
Ernest and Brenda Ricci were arrested by FBI agents on Friday and charged by way of federal criminal complaints filed by the United States Attorney’s Office. Ernest P. Ricci is charged with Bankruptcy Fraud; Wire Fraud; and Money Laundering; Brenda L. Ricci is charged with Aiding and Abetting Bankruptcy Fraud; Aiding and Abetting Concealment of Assets in Bankruptcy; Aiding and Abetting Wire Fraud; and Aiding and Abetting Money Laundering.
The case is being prosecuted by Assistant U.S. Attorney John P. McAdams.
The matter was investigated by the FBI, Internal Revenue Service Criminal Investigation, and the United States Bankruptcy Trustee.
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Cambridge Man Faces 5-40 Years, $5M Fine for Role in Penobscot County Drug Trafficking ConspiracyRead the Press Release
BANGOR, Maine: A Cambridge man pleaded guilty in U.S. District Court in Bangor today to conspiracy to distribute and possess with intent to distribute fentanyl, cocaine base, methamphetamine and cocaine.
According to court records, between January 2021 and April 2021, Jeffrey Frost, 38, conspired with others to distribute the drugs in the Penobscot County area and elsewhere. As part of the conspiracy, Frost regularly obtained drugs and supplied them to a local dealer to sell for him.
Frost faces a minimum of five years and up to 40 years in prison and a $5 million fine. He also faces a minimum of four years and up to a lifetime of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The U.S. Drug Enforcement Administration and Somerset County Sheriff’s Office investigated the case.
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Businessman sentenced to prison for theft from Morgantown companyRead the Press Release
CLARKSBURG, WEST VIRGINIA – A businessman from Pennsylvania was sentenced to 46 months in prison today for stealing $3.5 million from a Morgantown construction company.
Michael D. Allen, 60, of Irwin, Pennsylvania, pled guilty in November to wire fraud and money laundering. Allen, who had been the manager of Accelerated Construction Services, admitted that he used his position to divert $3.5 million in company funds for his own personal benefit.
Allen spent $154,000 on vehicles, including a 2020 Range Rover, a 1954 Chevrolet 3100 truck, and a classic car restoration. He purchased a 5.19 carat diamond ring for $113,250 and spent an estimated $19,000 on other jewelry, $18,000 of which was used to purchase a Breitling watch.
In addition to serving the prison sentence, Allen must pay $3.5 million in restitution to the company.
Assistant U.S. Attorney Jarod J. Douglas prosecuted the case on behalf of the government.
The Internal Revenue Service Criminal Investigations and the Monongalia County Sheriff’s Office investigated. The FBI assisted in the investigation.
Chief U.S. District Judge Thomas S. Kleeh presided.
Boyle County Man Pleads Guilty to Agricultural Loan FraudRead the Press Release
LEXINGTON, Ky. – A Danville, Ky., man, Peter Alex Cox, 33, entered a guilty plea on Monday, before Chief U.S. District Judge Danny Reeves, to unlawful conversion of loan collateral.
According to his plea agreement, starting in 2013, Cox obtained a line of credit from Central Bank Agricultural Credit Association, secured by the Farm Service Agency, part of the United States Department of Agriculture. Between 2013 and 2018, Cox applied to increase his line of credit, until it reached $1,057,140.35 in 2018. Cox pledged 800 beef and dairy cattle that he owned, as collateral to secure the loan.
Cox admitted in the plea agreement that, between May and October 2019, he sold his cattle to unapproved sellers, using a fictitious farm name, and did not apply the proceeds from the cattle sold to his debt. He further admitted that his intention in using the fictious farm name was to prevent Ag Credit from receiving any of sales or profits of the sales. Cox’s cattle sales totaled $1,106,701.17, without any payments made toward his loan and without providing any notice of the sales.Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky, and Salina Walker, Acting Special Agent in Charge, United States Department of Agriculture Office of Inspector General, jointly announced the guilty plea.
The investigation was conducted by USDA. The United States was represented by Assistant U.S. Attorney Kate K. Smith.
Cox is scheduled to be sentenced on July 14, 2023. He faces a maximum of five years in prison and a maximum fine of $250,000. However, any sentence will be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
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Biloxi Man Sentenced for Explosive HoaxRead the Press Release
Gulfport, Miss. – A Biloxi man was sentenced to 6 months in prison followed by 2 years of supervised release and a $1,000.00 fine for submitting a false tip to the Federal Bureau of Investigation, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation.
According to information presented to the Court, on September 20, 2022, Gregory Lee McKee, 24, submitted an anonymous tip to tips.fbi.gov, an FBI website, in which he claimed to have overheard a specific individual discussing plans to blow up a local police station. As a result of the tip, law enforcement officers searched the individual’s home, interviewed the individual, and interviewed the individual’s mother.
The individual denied making any statements about blowing up the Biloxi Police Station. The individual also explained that Gregory McKee may have set him up because they had previously had a falling out. Internet data indicated that the tip had come from an IP address associated with McKee’s mother. Ultimately, officers spoke with McKee who eventually admitted to submitting the tip because he was angry with the individual.
The FBI and Biloxi Police Department investigated the case.
Assistant U.S. Attorney Jonathan Buckner prosecuted the case.
Atlantic County Doctor Admits Health Care Fraud ConspiracyRead the Press Release
CAMDEN, N.J. – An Atlantic County, New Jersey, doctor today admitted his role in defrauding New Jersey state and local health benefits programs and other insurers by submitting fraudulent claims for medically unnecessary prescriptions, Attorney for the United States Vikas Khanna announced.
Brian Sokalsky, 44, of Margate, New Jersey, pleaded guilty before U.S. District Judge Robert B. Kugler to a superseding information charging him with one count of conspiring to commit health care fraud.
Sokalsky, pharmaceutical sales representative Vincent Tornari, 49, of Linwood, New Jersey, and former advanced nurse practitioner Ashley Lyons-Valenti, 66, of Swedesboro, New Jersey, were charged in a 33-count indictment in June 2020. Tornari pleaded guilty on March 14, 2023, and Lyons-Valenti pleaded guilty on Feb. 28, 2023, to their respective roles in the conspiracy.
According to court documents filed in this case and statements made in court:
Compounded medications are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although compounded drugs are not approved by the Food and Drug Administration (FDA), they are properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient, such as if a patient is allergic to a dye or other ingredient.
The conspirators learned that certain medications made by compounding pharmacies reimbursed for up to thousands of dollars for an individual’s one-month supply. They learned that certain insurance plans – including insurance plans for state and local government employees and certain other insurance plans – covered these medications.
Sokalsky agreed to authorize prescriptions for former pharmaceutical sales representative Matthew Tedesco, 47, of Linwood, New Jersey, who pleaded guilty to health care fraud conspiracy in June 2017, and others working with Tedesco. In exchange for authorizing those prescriptions, Tedesco referred approximately 30 patients to Sokalsky’s new medical practice. Sokalsky, in turn, billed insurance for patient visits for those people steered to his practice by Tedesco. Sokalsky also authorized prescriptions for the medications for existing patients of his practice, which he did to financially benefit Tedesco and encourage him to refer more patients to his new practice. Sokalsky authorized medically unnecessary medications, including libido creams for young females and excessive quantities of the medications with the maximum number of refills selected. When insurance stopped covering certain formulations of the medications, Tedesco informed Sokalsky that he needed to authorize new prescriptions. Sokalsky did so, often without seeing the individual for a follow-up visit or informing the person of the change in medication. In total, insurance paid more than $5 million for fraudulent prescriptions authorized by Sokalsky.
Sokalsky faces a maximum penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for Aug. 22, 2023.
Attorney for the United States Khanna credited agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge James E. Dennehy in Newark; special agents of IRS - Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy Tomlins in Newark; and the U.S. Department of Labor Office of Inspector General, New York Region, under the direction of Special Agent in Charge Jonathan Mellone, with the investigation leading to today’s guilty plea.
The government is represented by Christina O. Hud, Senior Trial Counsel in the Health Care Fraud Unit; R. David Walk, Jr., Deputy Chief of the Criminal Division; and Assistant U.S. Attorney Daniel A. Friedman.
sokalsky.sinformation.pdfAtlanta Man Sentenced for Role in Car Theft RingRead the Press Release
NEW ORLEANS – KEINAN CHAPMAN (“CHAPMAN”), age 39, was sentenced on March 23, 2023, for conspiring to transport and sell stolen vehicles in violation of Title 18, United States Code, Section 371, announced U.S. Attorney Duane A. Evans.
According to court documents, CHAPMAN and his co-conspirators stole cars from car dealerships and rental car facilities in Louisiana, Mississippi, Alabama, and Georgia. After the cars were stolen, CHAPMAN and his co-conspirators retitled the cars under fraudulent Vehicle Identification Numbers (VINS) with the Louisiana Office of Motor Vehicles. After the cars were retitled and cloned with fraudulent VINS, the defendants resold the cars to buyers in the New Orleans metro area at discounted prices.
Chief U.S. District Court Judge Nanette Jolivette Brown sentenced CHAPMAN to serve 57 months in prison, to be followed by three (3) years of supervised release and imposed a $100 mandatory special assessment fee. The judge also set a restitution hearing in this matter for June 15, 2023.
U.S. Attorney Evans praised the work of the Department of Homeland Security, the Louisiana State Police, the D’Iberville Police Department, and the New Orleans Police Department in investigating this matter. Assistant U.S. Attorneys Spiro G. Latsis and Jon Maestri of the General Crimes Unit are in charge of the prosecution.
27 March 2023
Virginia Mayor Indicted for Violating Federal Clean Water ActRead the Press Release
ROANOKE, Va. – A federal grand jury in Roanoke, Virginia has indicted James Howard Spencer, the Mayor of Glen Lyn, Virginia, for his alleged violation of the Clean Water Act (CWA).
The CWA was enacted by Congress to restore and maintain the chemical, physical, and biological quality of the nation’s waterways.
The indictment, returned under seal March 9, 2023 and unsealed following the defendant’s initial court appearance, charges Spencer with three counts of violating the CWA.
“The protection of our nation’s waters is critical to ensuring environmental justice for all the residents of the Western District of Virginia,” United States Attorney Christopher R. Kavanaugh said today. “When individuals – especially those in positions of authority –pollute our rivers and streams in violation of the law, our Office will hold them accountable.”
“The defendant abused his position of authority and violated the public’s trust by ordering public employees of Glen Lyn to illegally discharge raw sewage into the East River, a tributary of the New River,” said Acting Special Agent in Charge Richard Conrad. “EPA is committed to prosecuting those who choose to violate our environmental laws, especially those who hold a position of public trust such as Mayor Spencer.”
The indictment alleges that Spencer directed employees of the Town of Glen Lyn to pump sewage and other pollutants from a pump station located behind the Glyn Lyn Post Office into the East River, which is a perennial stream and tributary of the New River. Spencer took these alleged actions on three separate occasions, in the summer of 2019, December 2020, and again in June 2021.
United States Attorney Christopher R. Kavanaugh, Colonel Gary T. Settle, Superintendent of the Virginia State Police, and Acting Special Agent in Charge Richard Conrad made the announcement today.
The ongoing investigation is being jointly handled by the Environmental Protection Agency’s Criminal Investigation Division and the Virginia State Police.
Assistant U.S. Attorney and Environmental Justice Coordinator Michael Baudinet is prosecuting the case for the United States.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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United States Orders Matador Production Company to Reduce Unlawful Air Pollution from its Oil and Gas Wells in New Mexico, Eliminating 16,000 Tons of Harmful Air PollutantsRead the Press Release
Matador Production Company has agreed to pay a penalty and ensure compliance with both state and federal clean air regulations at all 239 of its New Mexico oil and gas well pads to resolve unlawful operations alleged in a civil complaint filed today under the Clean Air Act and state regulations.
The complaint, filed jointly by the United States, on behalf of the U.S. Environmental Protection Agency (EPA), and the New Mexico Environment Department (NMED), alleges that Matador failed to capture and control air emissions from storage vessels; comply with inspection, monitoring and recordkeeping requirements; and obtain required state and federal permits at 25 of its oil and gas production operations in New Mexico. NMED and EPA identified the alleged violations through flyover surveillance and field investigations conducted in 2019.
The consent decree, filed together with the complaint, requires Matador to ensure that all 239 of its well pads in New Mexico are operated lawfully. Under the settlement, Matador will spend at least $2.5 million to implement extensive design, operation, maintenance and monitoring improvements, including installing new tank pressure monitoring systems that will provide advance notification of potential emissions and allow for immediate response action by the company.
“Air quality in the Permian Basin is at risk of not meeting national standards,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “We will continue to work with the State of New Mexico to ensure that oil and gas production operations are operating within the law to improve air quality and public health in surrounding communities.”
“Matador’s facilities unlawfully released air pollutants associated with several types of respiratory illnesses and that contribute to global warming,” said Acting Assistant Administrator Larry Starfield of the EPA’s Office of Enforcement and Compliance Assurance. “This settlement will not only improve air quality for neighboring communities but also assist with our national effort to slow climate change. It will also help ensure that Matador does not profit from its violations of environmental laws.”
Matador’s compliance with the consent decree will result in a reduction of more than 16,000 tons of pollutants, including oxides of nitrogen (NOx), volatile organic compounds (VOCs) and carbon monoxide (CO). VOCs and NOx are key components in the formation of ground-level ozone, a pollutant that irritates the lungs, exacerbates diseases such as asthma, and can increase susceptibility to respiratory illnesses, such as pneumonia and bronchitis. In addition, as a co-benefit of these reductions, the consent decree will result in significant reductions of greenhouse gas emissions, including reducing methane – a powerful greenhouse gas, by more than 31,000 tons, measured as carbon dioxide (CO2) equivalent. This is similar to the amount of greenhouse gas reductions that would be achieved by taking 6,060 gasoline powered vehicles off the road for one year. Greenhouse gases from human activities are a primary cause of climate change and global warming.
As part of the settlement, Matador also will pay a civil penalty of $1.15 million to be split between the United States and the State of New Mexico. In addition, Matador will spend no less than $1.25 million on a supplemental environmental project involving diesel engine replacements, which will result in significant reductions of harmful air pollutants and help address the environmental harm caused by the company’s previous violations. Matador will also spend another $500,000 to conduct aerial monitoring of its facilities for leaks of methane and other pollutants and to address any problems identified. Finally, Matador will spend approximately $800,000 to offset the harm caused by the alleged violations by reducing emissions from pneumatic devices and vapor recovery units used in its oil and gas operations.
The Clean Air Act (CAA) requires the EPA to set National Ambient Air Quality Standards (NAAQS) for criteria pollutants that are considered harmful to public health and the environment. Ozone, CO and nitrogen dioxide (NO2, a component of NOx) are criteria pollutants emitted by oil and gas production facilities, such as those operated by Matador where the alleged violations occurred. During the timeframes of Matador’s alleged violations, air quality monitors in the relevant counties in New Mexico registered rising ozone concentrations exceeding 95% of the NAAQS for ozone. In counties where ozone levels reach 95% of the NAAQS, NMED is required by New Mexico state statute to take action to reduce ozone pollution.
Matador is an independent oil and gas producer engaged in the exploration, development, production and acquisition of oil and natural gas resources in the United States. The company is a large producer in the New Mexico portion of the Permian Basin, which is a shale oil and gas producing area located in southeast New Mexico and west Texas.
This settlement is part of EPA’s National Enforcement and Compliance Initiative, Creating Cleaner Air for Communities by Reducing Excess Emissions of Harmful Pollutants.
The consent decree is available for public viewing at www.justice.gov/enrd/consent-decrees. The United States will publish a notice of the consent decree’s lodging with the U.S. District Court for the District of New Mexico in the Federal Register and will accept public comment for 30 days after the notice is published. The Federal Register notice will also include instructions for submitting public comment.
United States Attorney Kavanaugh Announces Grant Funding for Project Safe Neighborhoods InitiativesRead the Press Release
Charlottesville, Va. – United States Attorney Christopher R. Kavanaugh announced today the availability of over $320,000 in grant funding for Project Safe Neighborhoods (PSN) initiatives. This funding opportunity will assist in implementing comprehensive, collaborative, and community-based approaches to reducing violent crime in the Western District of Virginia using a wide range of effective violent crime reduction strategies.
The grant money, distributed in partnership with the Virginia Department of Criminal Justice Services (DCJS) and the Bureau of Justice Assistance (BJA), will allow eligible organizations to support a broad range of activities to reduce gun and gang violence. Programs should address deterrence efforts aimed at potential offenders, the implementation of evidence-based programs and proven enforcement strategies to prevent and reduce gun and gang crimes, and/or the prosecution of significant firearm, controlled substance, and violent crime offenses.
“These funding opportunities will be used by local organizations who are doing important work at the grassroots level to reduce violence in our neighborhoods,” United States Attorney Christopher R. Kavanaugh said today. “Project Safe Neighborhoods continues to be the major source of funding for many of these organizations and we look forward to sharing more information about those partnerships in the future.”
In May 2021, Attorney General Merrick B. Garland announced a new effort to reduce violent crime, including the gun violence that is often at its core. Integral to that effort was the reinvigoration of PSN, a two-decade old evidence-based and community-oriented program focused on reducing violent crime. The updated PSN approach, outlined in the Department’s Comprehensive Strategy for Reducing Violent Crime issued by Deputy Attorney General Lisa Monaco, is guided by four key principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence, setting focused and strategic enforcement priorities, and measuring the results of our efforts.
The fundamental goal is to reduce violent crime, not simply to increase the number of arrests or prosecutions.
Guided by these principles, in October 2021, the United States Attorney’s Office for the Western District of Virginia (WDVA) implemented a strategic PSN plan. PSN is the collaboration of community organizations as well as federal, state, and local law-enforcement agencies to build evidence-based and intelligence-led approaches to identifying the most violent gangs and offenders in each affected community and deploying their combined resources not only to prevent violent crimes but also, through offender intervention and rehabilitation efforts, to help break the cycle of violence by addressing its underlying causes. United States Attorney Kavanaugh has assigned specific federal prosecutors to those areas in our District to help implement this strategy and coordinate with law enforcement as well as engaging with community partners.
The Grants Program is just one component of the multi-faceted efforts the U.S. Attorney’s Office has implemented in Danville, Roanoke City/County region, and Lynchburg. This funding opportunity is open to state and local law enforcement agencies, governmental entities, educational institutions, and 501(c)(3) non-profit organizations who are located in, or have the ability to serve, those areas. Applicants are expected to use the funds to support the WDVA’s PSN pillars, which include community engagement, prevention and intervention, focused and strategic enforcement, and accountability.
To select and administer its PSN grant funds, the United States Attorney’s Office will select community members to serve as members of an independent Grants Committee. The Committee will be composed of individuals from the Danville, Lynchburg, and Roanoke areas with experience in community outreach, law enforcement, or who are otherwise qualified to fairly review and assess applications that will help achieve our PSN goals. None of the Committee’s members will be current federal employees, and no member will be eligible to apply for or receive PSN funding.
The U.S. Attorney’s Office encourages those eligible organizations to apply for grant assistance by visiting the Virginia Department of Criminal Justice Services website at https://www.dcjs.virginia.gov/grants/programs/2023-project-safe-neighborhoods-grant-program-western. The website also has information related to the guidelines and application procedures. Completed applications should be submitted by 5:00 p.m. on April 26, 2023.
PSN programs are led by U.S. Attorneys’ Offices in collaboration with local public safety agencies, community stakeholders and other agencies and organizations that work to reduce violent crime.
For additional funding opportunities and awards that will further assist our efforts to reduce violent crime across our district, please visit The Office of Justice Programs website https://www.ojp.gov/funding/explore/current-funding-opportunities. The Office of Justice Programs provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, advance racial equity in the administration of justice, assist victims, and enhance the rule of law.