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27 March 2023
Gang Member Convicted of Multiple Armed CarjackingsRead the Press Release
Dieuverson Caille was convicted today by a federal jury in Brooklyn on all counts of an indictment charging him with committing multiple armed carjackings. Between August 28, 2020 and June 20, 2021, Caille, together with his co-conspirators, robbed victims at gunpoint, kidnapped one of them, and stole their cars and personal items. The verdict followed a one-week trial before United States Circuit Judge Denny Chin sitting by designation. When sentenced, Caille faces a mandatory minimum of 21 years’ imprisonment and a maximum of life imprisonment.
Breon Peace, United States Attorney for the Eastern District of New York, and John B. DeVito, Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), announced the verdict.
“The defendant has been convicted of repeatedly using firearms to force innocent victims to give up their cars, confronting them with a terrifying choice of being seriously injured or killed,” stated United States Attorney Peace. “The verdict today reflects this Office’s ongoing commitment to vigorously prosecute defendants who commit violent, gun-related crimes in our district.”
ATF Special Agent-in-Charge DeVito stated: “Today’s conviction serves as notice that the use of firearms to terrorize innocent victims will be met with swift and exacting justice. ATF and NYPD will expend all necessary resources to ensure that offenders such as the defendant are rewarded for their criminal activity with lengthy prison sentences. I am thankful for the hard work and commitment of the men and women of ATF NY’s Strategic Pattern Armed Robbery Technical Apprehension group, NYPD’s Brooklyn Robbery Squad & the U.S. Attorney’s Office for the Eastern District of New York. ATF will continue to work with our Federal, State, and local partners to keep our communities safe.”
“Amid a nationwide increase in vehicle thefts that includes a spike in New York City, today’s guilty verdict sends a clear message that such crime – particularly the brazen variety carried out at gunpoint – will never be tolerated in our neighborhoods,” stated NYPD Commissioner Keechant L. Sewell. “The NYPD, along with our law enforcement partners, will continue to aggressively investigate, arrest, and prosecute anyone responsible for violence in our communities. I commend and thank the skilled investigators of the NYPD and the ATF, as well as everyone from the U.S. Attorney’s Office for the Eastern District who were involved in this important case.”
As proven at trial, on August 28, 2020, Caille, a member of both the Eight Tray Crip and Haitian Locc gangs, approached a victim driving an Infiniti in Flatbush and carjacked him at gunpoint. Caille and several accomplices drove the victim to a nearby drive-through ATM where the defendant attempted to force the victim to withdraw money. The victim escaped by jumping out of the car’s window. Also as part of the conspiracy, on September 3, 2020, Caille and several accomplices carjacked a Chevrolet Malibu at gunpoint in Flatbush and attacked an occupant of the car by pistol whipping him. On November 15, 2020, Caille, acting alone, carjacked at gunpoint the driver of a BMW who was working as a rideshare driver in Flatbush. The following day, after NYPD officers observed the stolen BMW, the defendant crashed the vehicle and struck a pedestrian. Finally, on June 20, 2021, the defendant, together with at least one other accomplice, carjacked at gunpoint the driver of a Porsche in East New York.
Caille was convicted of one count of conspiracy to commit carjacking, three substantive carjacking offenses, and three instances of brandishing a firearm in furtherance of those carjackings.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Assistant United States Attorneys Sara K. Winik, Ellen H. Sise, and Antoinette N. Rangel are in charge of the prosecution with assistance from Paralegal Specialist Magdalena St. Surin.
The Defendant:
DIEUVERSON CAILLE
Age: 22
Brooklyn, New YorkE.D.N.Y. Docket No. 20-CR-547 (DC)
Fresno Woman Sentenced to More than Six Years in Prison for $300,000 COVID-19 Pandemic Fraud Crime SpreeRead the Press Release
FRESNO, Calif. — Cecilia Aquino, 32, of Fresno, was sentenced today to six years and three months in prison for submitting over $300,000 in fraudulent unemployment insurance claims and Small Business Administration (SBA) loan applications during the COVID-19 pandemic, U.S. Attorney Phillip A. Talbert announced.
According to court records, from June through November 2020, Aquino went on a crime spree where she submitted fraudulent unemployment insurance claims and loan applications in seven states using stolen identities. The claims and applications contained various misrepresentations, including that the named individuals worked as strippers and owned interior design businesses, and that they lost money because of the pandemic. Aquino used the proceeds of her fraud for gambling, rent, shopping, and other personal expenditures.
This case was the product of an investigation by the Federal Bureau of Investigation, the SBA Office of Inspector General, the Department of Labor Office of Inspector General, and the Clovis Police Department. Assistant U.S. Attorney Joseph Barton prosecuted the case.
This effort is part of a California COVID-19 Fraud Enforcement Strike Force operation, one of three interagency COVID-19 fraud strike force teams established by the U.S. Department of Justice. The California Strike Force combines law enforcement and prosecutorial resources in the Eastern and Central Districts of California and focuses on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces use prosecutor-led and data analyst-driven teams to identify and bring to justice those who stole pandemic relief funds.
Franklin County Man Accused of Child Sex CrimeRead the Press Release
ST. LOUIS – A Franklin County, Missouri man has been accused of a federal criminal sex act with a minor.
Scott M. Arnold-Micke, 46, was indicted March 22, 2023 on one count of transportation of a minor to engage in a criminal sex act.
He appeared in U.S. District Court in St. Louis Friday, after his arrest, and pleaded not guilty. He is scheduled to be back in court Wednesday for a detention hearing.
The indictment alleges that from approximately the spring of 20l8 through the fall of 2020, Arnold-Micke transported a child who was as young as 11 with the intent to engage in criminal sexual activity.
The charge carries a potential penalty of 10 years to life in prison and a $250,000 fine.
A motion seeking to have Arnold-Micke held in jail until trial accuses him of continuously sexually assaulting at least six other minors. Arnold-Micke traveled into seven states with minors to engage in sexual intercourse, the motion says. The alleged victim listed in the indictment sought medical treatment after Arnold-Micke knocked teeth out of the minor’s mouth for refusing to engage in sexual intercourse, the motion also says.
Any other potential victims are asked to contact the FBI in St. Louis at 314-589-2500 or call the Rolla Police Department at 573-308-1213 and ask for a detective.
Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The case was investigated by the FBI, the Rolla Police Department, and the Phelps County Sheriff’s Department. Assistant U.S. Attorney Dianna Collins is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Foreign National Sentenced for Victimizing U.S. Persons Through Cyber-Enabled Fraud SchemesRead the Press Release
A Nigerian national was sentenced today to four years and one month in prison for his role in a cybercriminal group operating out of Nigeria and Malaysia, among other places, that executed complex financial fraud scams using the internet.
According to court documents, between December 2011 and January 2017, Solomon Ekunke Okpe, 31, of Lagos, and his co-conspirators devised and executed business email compromise (BEC), work-from-home, check-cashing, romance, and credit card scams that targeted unsuspecting individuals, banks, and businesses in the United States and elsewhere, and were intended to cause more than a million dollars in losses to U.S. victims. Among the victims of the scheme were First American Holding Company and MidFirst Bank.
To execute the scheme, Okpe and his co-conspirators launched email phishing attacks to steal victim login credentials and other sensitive information, hacked into victim online accounts, impersonated people, and assumed fake identities to defraud individuals, banks, and businesses, and trafficked, possessed, and used stolen credit cards in furtherance of the scheme. For instance, in BEC scams, Okpe and his co-conspirators posed as trusted individuals in order to deceive banks and companies into making unauthorized wire transfers to bank accounts specified by the co-conspirators. The co-conspirators also falsely posed as online employers on job websites and forums and purported to “hire” individuals in Arizona and elsewhere to positions that were marketed as legitimate. In reality, these work-from-home “employees” were often unwittingly directed to perform tasks that would facilitate the co-conspirators’ fraud schemes. Some of these tasks included creating bank and payment processing accounts, transferring/withdrawing money from these accounts, or cashing/depositing counterfeit checks.
Okpe and his co-conspirators additionally conducted romance scams by creating accounts on dating websites, feigning interest in romantic relationships with individuals under fictitious identities, and causing these victims to transfer their moneys overseas and/or receive money from wire-transfer scams. Okpe caused and intended to cause individual romance scam victims to suffer tens of thousands of dollars of losses.
Okpe was previously arrested in Malaysia at the request of the United States and detained for over two years as he contested extradition to the United States.
On March 20, one of Okpe’s co-conspirators, Johnson Uke Obogo, was sentenced to one year and one day in prison in connection with his role in related financial fraud activity.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Gary M. Restaino for the District of Arizona, and Special Agent in Charge Joseph E. Carrico of the FBI Knoxville Field Office made the announcement.
Senior Counsel Aarash Haghighat of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorney Seth Goertz for the District of Arizona prosecuted the cases against Okpe and Obogo. The Justice Department’s Office of International Affairs provided significant assistance throughout the investigation and extradition process.
A number of victims have been identified by the FBI. However, there is evidence of many more victims that remain unidentified. Anyone who believes they were defrauded by the defendants in this case should contact the Victim Witness Section at the U.S. Attorney’s Office for the District of Arizona at [email protected].
Florida Man Pleads Guilty to Possession with Intent to Distribute 40 Kilograms of CocaineRead the Press Release
Gulfport, Miss. – A Florida man pled guilty to possession with intent to distribute cocaine, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Brad L. Byerley of the Drug Enforcement Administration.
According to court records, On October 11, 2022, a DEA Task Force Officer (TFO) conducted a traffic stop on a Chevrolet Silverado on Interstate 10 in Gulfport, Mississippi. The driver of the vehicle and sole occupant was identified as Vicente Valerio. A search of the vehicle revealed three bags containing 40 kilograms of cocaine.
Valerio will be sentenced on June 27, 2023, and faces a sentence of 10 years to life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case was investigated by the Drug Enforcement Administration.
The case was prosecuted by Assistant U.S. Attorney Erica Rose.
Five Family Members Sentenced to Prison and Ordered to Forfeit a Combined $51.9 Million Dollars in Proceeds from Their Fraudulent Sale of Counterfeit Trademarked Cellular Phones and AccessoriesRead the Press Release
BOISE – On March 21, 22, and 23, 2023, five family members were sentenced to prison for their conspiracy to commit wire fraud, mail fraud, and conspiracy to traffic in counterfeit trademarked goods, in connection with their online sale of counterfeit cellphones and accessories, announced U.S. Attorney Josh Hurwit.
On August 1, 2022, a jury found Pavel Babichenko, Piotr Babichenko, Timofey Babichenko, David Bibikov, and Mikhail Iyerusalimets, guilty after a three-month trial.
Pavel Babichenko, Piotr Babichenko, Timofey Babichenko, David Bibikov, and Mikhail Iyerusalimets operated a multi-million dollar scheme wherein they sold counterfeit cellphones and cellphone accessories on Amazon.com and eBay.com that the defendants misrepresented as new and genuine Apple and Samsung products. The counterfeit cellphones and cellphone accessories were obtained in bulk from manufacturers in Hong Kong, repackaged in the Treasure Valley, and then individually resold to consumers online as genuine and new.
“My Office is committed to protecting Idaho consumers, businesses, and the public from fraud of all types,” said U.S. Attorney Josh Hurwit. “The convictions, sentences, and financial recovery in this case reflects our ability to work with our law enforcement partners to take down large-scale and long-term fraud enterprises that cross borders.”
“These sentencings are a result of HSI’s dedication to protect the U.S. economy and intellectual property by investigating schemes that threaten the global economy,” said Special Agent in Charge (SAC) Robert Hammer, who oversees HSI operations in the Pacific Northwest. “I commend the agents at HSI and our law enforcement partners at FBI, U.S. Postal Inspection Service, IRS-CI, U.S. Marshals Service, the Treasure Valley Metro Violent Crimes Task Force, Ada County Sheriff’s Office, Boise Police Department, and the Meridian Police Department for the years of work that led to this outcome.”
“These sentencings are the result of law enforcement’s unrelenting work to dismantle transnational criminal organizations,” said Acting Special Agent in Charge Cheyvoryea Gibson of the Salt Lake City FBI. “With strong partnerships in Idaho and around the world, the FBI stands firm in combatting those who attempt to defraud U.S. citizens and U.S. companies for their financial gain.”
Senior U.S. District Judge B. Lynn Winmill sentenced Pavel Babichenko to 72 months in federal prison, a $21,000 fine, and three years of supervised release. Judge Winmill further entered a $33,708,700.30 forfeiture money judgment against Pavel Babichenko.
Piotr Babichenko was sentenced to serve 48 months in federal prison, a $10,000 fine, and three years of supervised release. A $3,316,882.40 forfeiture money judgment was entered against him.
Timofey Babichenko was sentenced to serve 48 months in federal prison, a $10,500 fine, and three years of supervised release. A $9,230,196.82 forfeiture money judgment was entered against him.
David Bibikov was sentenced to serve one month in federal prison, nine months of home detention, and three years of supervised release. A $4,710,207.11 forfeiture money judgment was entered against him.
Mikhail Iyerusalimets was sentenced to serve two months in federal prison, nine months of home detention, and three years of supervised release. A $953,411.95 forfeiture money judgment was entered against him.
A future hearing will determine restitution and repayment of public defender attorney fees.
U.S. Attorney Hurwit commended the cooperative efforts of the joint investigation led by the FBI and Homeland Security Investigations, along with IRS-Criminal Investigation, the U.S. Postal Inspection Service, and the U.S. Marshals Service. These federal agencies were joined in the investigation by the Treasure Valley Metro Violent Crimes Task Force, the Ada County Sheriff’s Office, the Boise Police Department, and the Meridian Police Department.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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Findlay Man Indicted on Five Counts of Bank RobberyRead the Press Release
TOLEDO - Gage Haws, 28, of Findlay, Ohio was indicted on five counts of Bank Robbery. The indictment alleges that between December 31, 2022, and February 16, 2023, the defendant committed robberies at Premier Bank in Arlington, Ohio, Old Fort Bank in Bettsville, Ohio, First National Bank of Sycamore in McCutchenville, Ohio, Union Bank Company in Kalida, Ohio, and State Bank and Trust Company in Delta, Ohio.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases, it will be less than the maximum.
The investigation preceding the indictment was a collaborative effort conducted by the Federal Bureau of Investigation, Findlay Police Department, Putnam County Sheriff’s Office, Kalida Police Department, Seneca County Sheriff’s Office, Delta Police Department, Fulton County Sheriff’s Office, Wyandot County Sheriff’s Office, and the Ohio Bureau of Criminal Investigation. The case is being prosecuted by Assistant United States Attorneys Frank H. Spryszak and Matthew D. Simko.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Final Two Defendants Plead Guilty for Roles in Scheme that Fraudulently Obtained over $2 Million in COVID-19 Jobless BenefitsRead the Press Release
RIVERSIDE, California – The last two defendants in an Inland Empire-based scheme in which eight people fraudulently obtained $2.1 million in pandemic-related unemployment insurance (UI) benefits by claiming, among other things, that they were salon and barbershop workers rendered jobless by the COVID-19 pandemic pleaded guilty today to conspiracy and mail fraud charges.
All eight defendants charged by a federal grand jury in June 2022 now have admitted to participating in a scheme to submit fraudulent applications in the names of relatives, prisoners, and identity theft victims.
Keith Burns, 39, of Houston, Texas, and Regjinay Tate, 29, of Corona, each pleaded guilty today to one count of conspiracy to commit mail fraud in relation to benefits connected to a presidentially declared emergency and one count of mail fraud in relation to benefits connected to a presidentially declared emergency. The other six defendants in this case pleaded guilty over the past several weeks to the same conspiracy count and the same or similar mail fraud charges.
According to court documents, from March 2020 through July 2021, lead defendant Robert Campbell Jr., 29, of Corona, orchestrated the scheme to use the federal government’s response to the COVID-19 pandemic to steal UI benefits. Campbell and his co-conspirators used the personally identifiable information (PII) of others – including names, dates of birth, and Social Security numbers – to file fraudulent UI applications with the California Employment Development Department (EDD), which administers the state’s unemployment insurance program.
The fraudulent UI claims were federally funded through programs authorized by Congress in response to the pandemic, including the Pandemic Unemployment Assistance and Lost Wage Assistance programs.
Many of the fraudulent claims were made on behalf of ineligible out-of-state claimants and on behalf of people ineligible for benefits because they were imprisoned, including one claimant in Texas.
The fraudulent applications falsely stated the claimants had prior annual incomes of $42,000 and they were self-employed individuals whose jobs were adversely impacted when salons and barbershop closed during the COVID-19 pandemic. The fraudulent applications listed mailing addresses with locations chosen and controlled by Campbell and his accomplices. Once the fraudulent applications were approved, debit cards were mailed to those addresses.
One defendant – Dillon Roberts, 31, of Eagle Point, Oregon – recruited Texas residents ineligible for California EDD benefits, including co-defendant Burns, to provide their PII to generate fraudulent EDD claims and payments in their names.
In total, Campbell and others caused 174 fraudulent applications to be filed with EDD, resulting in 125 fraudulent claims to be paid and resulting in total losses of approximately $2,113,966.
Campbell, who pleaded guilty on March 6, is scheduled to be sentenced on June 5 by United States District Judge Jesus G. Bernal. The other seven defendants are scheduled to be sentenced in the coming months, including sentencing hearings scheduled for June 26 for Burns and Tate.
As a result of their guilty pleas, each of the eight defendants faces statutory maximum sentences of 30 years in federal prison for the conspiracy count and 30 years in federal prison for the mail fraud charges.
The United States Department of Labor – Office of Inspector General and the California Employment Development Department – Investigation Division are investigating this matter. Homeland Security Investigations, the United States Postal Inspection Service, the California Department of Corrections and Rehabilitation’s Special Services Unit, and the United States Secret Service provided substantial assistance.
Assistant United States Attorney Adam P. Schleifer of the Major Frauds Section is prosecuting this case.
Anyone with information about allegations of fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at (866) 720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Elk Grove and Las Vegas Residents Sentenced for Conspiring to Violate the U.S. Trade Embargo on IranRead the Press Release
ACRAMENTO, Calif. — Dariush Niknia, 60, of Elk Grove, was sentenced today to two years and 10 months in prison, and Richard Lant, 77, of Las Vegas, Nevada, was sentenced to 24 months of home detention and fined $7,500 for a conspiracy to export to an embargoed country, Iran, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between May and October 2015, Niknia, Lant and others conspired to unlawfully sell and supply 500 Russian-made tank helmets to Niknia’s contact in Tehran, Iran. The helmets were to be configured for a Russian-produced T-72S battle tank and were required to have a five-pin plug, a feature that is necessary to enable a tank communication device.
In May 2015, Niknia contacted Lant, who operated R&L Ltd., a company that sold Russian items, and requested to purchase 500 T-72S tank helmets and to have the helmets shipped to Tehran. Niknia initially paid R&L to purchase sample tank helmets and to have the helmets sent from Russia to Iran. Prior to the shipment of the first sample helmet, both Lant and Niknia were told that the United States’ sanctions prohibited the shipment of items to Iran, but both nevertheless proceeded with the transaction.
Niknia’s customer rejected the first sample helmet because it did not have a rectangular five-pin plug, but approved the second sample tank helmet that was sent to Tehran. In an email communication with Niknia, Niknia’s Iranian contact discussed the fact that the helmets would be inspected by the ultimate buyer, the Government of Iran. Niknia then requested additional helmets be sent to Tehran, 50 at a time, and paid Lant money for the purchase and shipment of the first 50 helmets. However, the deal ultimately stalled because Lant’s associate could not obtain and ship the tank helmets in the quantities and timeframe Niknia required. The Russian supplier said the difficulties stemmed from the fact that it was illegal to sell large quantities of tank helmets and to send modern military items to countries such as Iran that might use them in “terroristic or any war ways.”
In May 2015, Niknia had attempted to purchase battle tank helmets from another individual who sold Russian military memorabilia online. This individual did not sell Niknia any helmets and instead reported him to the Federal Bureau of Investigation.
The embargo on Iran, which is enforced through the International Emergency Economic Powers Act and the Iranian Transactions and Sanctions Regulations, prohibits the export, sale, and supply of goods to Iran by United States persons with very limited exceptions. It also prohibits, with very limited exceptions, United States persons from engaging in any transaction or dealing related to the sale or supply of goods to Iran.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Shelley D. Weger prosecuted the case with assistance from Trial Attorney Scott Claffee of the Counterintelligence and Export Control Section of the National Security Division.
East Helena woman sentenced to three months in prison for mail theft schemeRead the Press Release
GREAT FALLS — An East Helena woman who admitted to her role in a mail theft scheme to defraud others by using unauthorized financial information was sentenced on March 23 to three months in prison, to be followed by three years of supervised release, U.S. Attorney Jesse Laslovich said today.
Jessica Rose Menth, 33, pleaded guilty in October 2022 to access device fraud.
Chief U.S. District Judge Brian M. Morris presided.
In court documents, the government alleged that between December 2020 and January 2021, Menth became involved in a scheme to steal mail to obtain documents, checks, ATM and credit cards, prepaid debit cards with COVID relief funds and other items of value, and then pass the checks and access the money from the various stolen cards. In a search of Menth’s hotel room in January 2021, law enforcement discovered a stack of stolen mail, several documents and more than 30 debit cards, most of which still had activation stickers on them. There was no evidence that Menth had the chance to use or attempt to use any of the devices to make unauthorized purchases. Officers also searched Menth’s car and found several small baggies and a small amount of methamphetamine.
Assistant U.S. Attorney Jeffrey K. Starnes prosecuted the case, which was investigated by the U.S. Postal Service and Lewis and Clark County Sheriff’s Office.
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Drug ring tied to Aryan prison gang indicted with 24 federal arrestsRead the Press Release
Tacoma – Twenty-seven people were indicted by a grand jury for drug trafficking, and many of those in the indictment are tied to the “Aryan Family,” a white supremacist prison gang, announced U.S. Attorney Nick Brown. Twenty-four of the defendants have been arrested over the last five days in Washington and Arizona. The alleged leader of the drug trafficking organization, Jesse James Bailey, is also an influential member of the Aryan Family prison gang. Bailey is alleged to have trafficked huge amounts of fentanyl, methamphetamine, and other drugs in Washington, Idaho, and to Alaska. Bailey and many other defendants will have detention hearings in Tacoma today.
“While the dozen counts in this indictment do not detail every criminal moment in this conspiracy, it does provide one remarkable statistic: 48 firearms seized in this case even before last week’s takedown,” said U.S. Attorney Nick Brown. “On Wednesday we took another 177 guns off the street and additional kilos of fentanyl and meth. The level of danger is high when you have people connected to Aryan prison gangs spreading drugs and using guns in our community.”
“This operation was the culmination of a year and a half of great investigative work,” said Richard A. Collodi, Special Agent in Charge of the FBI's Seattle field office. “We were able to arrest over 20 subjects, some of whom are alleged to have operated this drug organization from prison, and also prevented vast quantities of dangerous drugs from being sold on our streets. I'm so proud of how the FBI, along with our federal, state, and local partners worked together to keep our community safe.”
On Wednesday March 22, 2023, the coordinated takedown involving ten swat teams and more than 350 law enforcement officers resulted in the seizure of an additional 177 firearms, more than ten kilos of methamphetamine, 11 kilos of fentanyl pills and more than a kilo of fentanyl powder, three kilos of heroin, and more than $330,000 in cash from eighteen locations in Washington and Arizona.
These defendants have been indicted by the grand jury. All are in federal custody unless otherwise noted.
Jesse James Bailey, 39, of Steilacoom, Washington, in custody
Thomas Carver, 59, of Auburn, Washington in custody
Bryson Gill, 30, of Buckeye, Arizona, in custody in Arizona
Yehoshua Kilp, 37, incarcerated in Washington State prison
Gustavo Castellanos-Tapia, 37, of Burien, Washington, in custody
Candice Bailey, 41, of Steilacoom, in custody
Ronaldo McComb, 58, of Ridgefield, Washington, in custody
Keagen Larsen, 28, currently incarcerated in King County Jail
Sean Moinette, 54, of Spanaway, Washington in custody
Gregory Beers, 30, of Edgewood, Washington, being sought by law enforcement
Michael Warren, 63, of Shelton, Washington, in custody
Michael Slocumb, 44, of Concho, Arizona, in custody in Arizona
Isaac Cervantes, 24, of Phoenix, in custody in Arizona
Sara Thompson, 37, of Bonney Lake, Washington, in custody
Shawn Ellis, 31, of Renton, Washington, in custody
Eric Smith, 52, incarcerated in Washington State prison
Joseph Hempel, 45, of Burien, Washington, in custody
Stephanie Yepez, 42, being sought by law enforcement
Daniel Hammond, 41, of Puyallup, Washington, in custody
Philip Boorkman, 40, of Seattle, in custody
C’La Morales, 36, of Pierce County, in custody
Ronnie Griffin, 64, of Tacoma, in custody
Anna Sarnes, 37, of Quilcene, Washington, in custody
Anthony Escoto, 51, of Tukwila, in custody
William Tripp, 34, being sought by law enforcement
Dana Hanson, 57, of Burbank, Washington, in custody
Justin Hanson, 48, of Burbank, Washington in custody
Before last week’s takedown, during the year that the ring was under investigation, law enforcement seized 830,000 fentanyl pills, 5.5 pounds of fentanyl powder, 223 pounds of methamphetamine, 3.5 pounds of heroin, 5 pounds of cocaine, $388,000 in cash, and 48 firearms.
“The sheer amount of narcotics seized in this investigation is shocking,” said Jacob D. Galvan, Acting Special Agent in Charge, DEA Seattle. “The fentanyl seized in this operation contained enough lethal doses to kill everyone who lives in Tacoma and Seattle, with enough lethal doses left over to poison another half a million people.
“DOC is honored to be part of this interdisciplinary task force,” said Department of Corrections Secretary Cheryl Strange. “It takes a highly skilled team to investigate, disrupt and dismantle a sophisticated group of criminals like this. Fentanyl use by incarcerated individuals and those under DOC supervision in the community has become a serious problem. Removing a major supplier of this deadly drug is a huge victory for all Washingtonians.”
“Combatting large criminal enterprises who have tentacles into our communities, prisons, and borders cannot be accomplished without partnerships at all levels. This joint effort demonstrates our capabilities to investigate and seize firearms, narcotics and large amounts of cash used to destabilize our communities and institutions,” said Special Agent in Charge Robert Hammer, who oversees HSI operations in the Pacific Northwest. “We’re thankful to the FBI, DEA, ATF, CBP, Tacoma PD, Thurston County Narcotics Task Force and all our partners in this investigation which made the dismantlement of this organization possible.”
“This operation is an example of the difference we can make when we collaborate to keep illegal guns and drugs from hitting our streets,” said Chief Avery Moore, Tacoma Police Department. “Guns and drugs have taken the lives of our loved ones, friends, neighbors, and community members. The contraband confiscated in this effort will not be allowed to harm anyone. The Tacoma Police Department, along with our law enforcement partners will not stop in the pursuit to bring those who set out to harm and exploit our communities to justice.”
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This investigation was led by the FBI with critical investigative teamwork from the Drug Enforcement Administration (DEA), Homeland Security Investigations (HSI), the Washington State Department of Corrections and significant local assistance from the Tacoma Police Department, Pierce County Sheriff’s Office, and the Thurston County Narcotics Task Force, led by the Thurston County Sheriff’s Office. Throughout this investigation the following agencies assisted the primary investigators: Washington State Patrol, Customs and Border Protection Air and Marine, Lewis County Sheriff’s Office, Lakewood Police Department, and U.S. Postal Inspection Service (USPIS).
In addition to the agencies above, on Wednesday March 22, 2023, agents and officers from FBI Phoenix, DEA Phoenix Field Division, the U.S. Marshals Service, Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the Puyallup Tribal Police, and the Vancouver, Pasco, Kennewick, Puyallup, Steilacoom, and Burien Police Departments, the Clark, Cowlitz, Jefferson, King, and Benton County Sheriff’s Offices all assisted with arrests and search warrants.
The case is being prosecuted by Assistant United States Attorneys Max Shiner and Zach Dillon.
bailey_et_al_indictment.pdfDrug Trafficker Sentenced to 120 Months Imprisonment Following Exchange of Gunfire with SWAT and Seizure of NarcoticsRead the Press Release
Salt Lake City, Utah – A Utah man was sentenced today to 10 years’ imprisonment for possessing and intending to distribute methamphetamine and possessing a firearm during a drug trafficking crime, where a SWAT officer and the defendant were shot and injured in the District of Utah.
According to court documents, Sean Dejesus Darragh, 54, of Sandy, Utah, admitted that on September 8, 2021, while possessing more than 50 grams of a mixture and substance containing a detectable amount of methamphetamine, he carried a Canik, Model TP9 Elite Combat, 9mm pistol, with ammunition. He further admitted, that during the execution of a search warrant by officers with the Sandy City Police Department SWAT, he fired shots as they entered his home. The exchange of gunfire between Darragh and officers led to the injury of a SWAT officer and Darragh.
“The impact of this drug trafficking crime could have been far worse,” said U.S. Attorney Trina A. Higgins of the District of Utah. “The U.S. Attorney’s office will remain vigilant in working with our law enforcement partners to investigate and prosecute drug traffickers who pose a threat in our community.”
"The combination of illegal firearms and illicit drugs in the hands of a prohibited felon poses a grave threat to not only our communities, but also our law enforcement partners every day,” said ATF Special Agent in Charge Brent Beavers. “We are grateful for the US Attorney’s Office prosecutorial success which will now hold this violent felon accountable for his reckless and dangerous actions.”
The case was investigated jointly by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Sandy City Police Department and the Salt Lake City Police Department, who had the primary role in the investigation per Salt Lake County officer-involved shooting protocols.
Assistant U.S. Attorneys, Stewart M. Young and Stephen L. Nelson of the District of Utah prosecuted the case.
This case was 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.
Denver Woman Accused of Stealing More Than $3.3 Million from Covid Relief ProgramsRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces DeJane Reaniece Lattany, age 32, of Denver, has been charged by information with wire fraud for receiving more than $3.3 million of fraudulent COVID-19 loans.
On March 27, 2020, the President of the United States signed into law the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act, which provided emergency assistance to small business owners suffering adverse economic effects caused by the Coronavirus (“COVID-19”) pandemic. The CARES Act established several new temporary programs and expanded existing programs, including programs created or administered by the SBA. Two sources of funding for small businesses were the Paycheck Protection Program (“PPP”) and the Economic Injury Disaster Loans (“EIDL”) program. The CARES Act mandated that only businesses in operation on February 15, 2020, for PPP, or before February 1, 2020, for EIDL, were eligible under the programs. In addition, the CARES Act authorized the SBA to issue advances of up to $10,000 to small businesses, known as Economic Injury Disaster Grants (“EIDG”). The amount of the EIDG was determined by the number of employees the applicant certified having. The EIDGs did not need to be repaid.
According to court documents, beginning in June 2020 and continuing through January 2022, the defendant prepared and submitted fraudulent EIDL applications to the Small Business Administration (SBA) on behalf of business entities that she purportedly owned. In these fraudulent EIDL applications, Lattany made false statements regarding the entities’ number of employees, gross revenues, and cost of goods sold; she further falsely certified that the information provided in the EIDL applications was true and accurate and that the funds would be used to pay payroll and other permissible expenses when, in fact, she used the bulk of the proceeds for her personal benefit. The SBA approved and funded five EIDL applications and three EIDGs for a total of $430,000 in EIDLs and $20,000 in EIDGs. From June 2020 through December 2021, Lattany submitted fraudulent PPP applications to participating lenders on behalf of business entities that she purportedly controlled and obtained $2,887,976.94 in PPP loans as a result of the Scheme. These PPP applications contained a number of false and fraudulent certifications and representations regarding Lattany’s ownership of other businesses, as well as the businesses’ average monthly payroll and number of employees. Lattany falsely represented that all PPP funds would be used to pay eligible business expenses, when, in fact, the bulk of the proceeds were used for her personal benefit. She also submitted false and fraudulent documentation in support of the PPP applications to the participating lenders. Lattany also sought loan forgiveness for PPP loans by submitting loan. In total, $3,337,976.94 of PPP, EIDL, and EIDG proceeds were paid out as a result of the scheme.
The defendant made her initial appearance before Magistrate Judge S. Kato Crews on March 27, 2023.
This case was investigated by the Federal Bureau of Investigation (FBI) Denver Division. Prosecution is being handled by Nicole C. Cassidy and Rebecca S. Weber.
The charge contained in the information is an allegation and the defendant is presumed innocent unless and until proven guilty.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
CASE NUMBER: 23-cr-00074-NYW
Denver Woman Accused of Stealing More Than $3.3 Million from Covid Relief ProgramsRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces DeJane Reaniece Lattany, age 32, of Denver, has been charged by information with wire fraud for receiving more than $3.3 million of fraudulent COVID-19 loans.
On March 27, 2020, the President of the United States signed into law the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act, which provided emergency assistance to small business owners suffering adverse economic effects caused by the Coronavirus (“COVID-19”) pandemic. The CARES Act established several new temporary programs and expanded existing programs, including programs created or administered by the SBA. Two sources of funding for small businesses were the Paycheck Protection Program (“PPP”) and the Economic Injury Disaster Loans (“EIDL”) program. The CARES Act mandated that only businesses in operation on February 15, 2020, for PPP, or before February 1, 2020, for EIDL, were eligible under the programs. In addition, the CARES Act authorized the SBA to issue advances of up to $10,000 to small businesses, known as Economic Injury Disaster Grants (“EIDG”). The amount of the EIDG was determined by the number of employees the applicant certified having. The EIDGs did not need to be repaid.
According to court documents, beginning in June 2020 and continuing through January 2022, the defendant prepared and submitted fraudulent EIDL applications to the Small Business Administration (SBA) on behalf of business entities that she purportedly owned. In these fraudulent EIDL applications, Lattany made false statements regarding the entities’ number of employees, gross revenues, and cost of goods sold; she further falsely certified that the information provided in the EIDL applications was true and accurate and that the funds would be used to pay payroll and other permissible expenses when, in fact, she used the bulk of the proceeds for her personal benefit. The SBA approved and funded five EIDL applications and three EIDGs for a total of $430,000 in EIDLs and $20,000 in EIDGs. From June 2020 through December 2021, Lattany submitted fraudulent PPP applications to participating lenders on behalf of business entities that she purportedly controlled and obtained $2,887,976.94 in PPP loans as a result of the Scheme. These PPP applications contained a number of false and fraudulent certifications and representations regarding Lattany’s ownership of other businesses, as well as the businesses’ average monthly payroll and number of employees. Lattany falsely represented that all PPP funds would be used to pay eligible business expenses, when, in fact, the bulk of the proceeds were used for her personal benefit. She also submitted false and fraudulent documentation in support of the PPP applications to the participating lenders. Lattany also sought loan forgiveness for PPP loans by submitting loan. In total, $3,337,976.94 of PPP, EIDL, and EIDG proceeds were paid out as a result of the scheme.
The defendant made her initial appearance before Magistrate Judge S. Kato Crews on March 27, 2023.
This case was investigated by the Federal Bureau of Investigation (FBI) Denver Division. Prosecution is being handled by Nicole C. Cassidy and Rebecca S. Weber.
The charge contained in the information is an allegation and the defendant is presumed innocent unless and until proven guilty.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
CASE NUMBER: 23-cr-00074-NYW
Correctional Officer Arrested for Suspected Contraband, Narcotics SmugglingRead the Press Release
SAN ANTONIO – A Karnes County Detention Facility (KCDF) correctional officer was arrested Friday in San Antonio on criminal charges related to his alleged smuggling of contraband and narcotics into KCDF.
According to the affidavit in support of the criminal complaint, Dexter Obryan Sistrunk, 40, of Converse is alleged to have smuggled contraband such as heroin, methamphetamine and tobacco to inmates in return for money.
Sistrunk is charged with attempting to provide contraband in prison. If convicted, he faces a maximum penalty of 20 years in prison and a $250,000 fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Jaime Esparza for the Western District of Texas; Special Agent in Charge Oliver E. Rich Jr. of the FBI San Antonio Division; Special Agent in Charge Daniel Comeaux of the Drug Enforcement Administration Houston Field Office; and U.S. Marshal Susan Pamerleau for the Western District of Texas made the announcement.
The FBI, DEA and U.S. Marshals Service are investigating the case.
Assistant U.S. Attorneys Fidel Esparza III and Amy Hail are prosecuting the case.
A criminal complaint 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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Convicted Murderer Pleads Guilty to Illegally Possessing FirearmsRead the Press Release
Ocala, Florida – United States Attorney Roger B. Handberg announces that Christopher Richard Munroe (55, Ocala) has pleaded guilty to possessing a firearm as a convicted felon. Munroe faces a maximum penalty of 15 years in federal prison. His sentencing hearing is scheduled for June 15, 2023. Munroe had been indicted on December 20, 2022.
According to court documents, on November 14, 2022, the Ocala Police Department and the Marion County Sheriff’s Office responded to a call from the owner of a moving company who reported Munroe had stolen three firearms while packing a residence for customers. When officers arrived on scene, they found Munroe crouched down in some nearby bushes. Officers located the stolen firearms, seven ammunition magazines, and ammunition where Munroe had been hiding. Munroe had previously been convicted of second-degree murder in New York. He was released on parole in 2018. As a previously convicted felon, he is prohibited from possessing a firearm under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the City of Ocala Police Department, and the Marion County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Belkis H. Crockett.
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.
Columbia Man Pleads Guilty to Illegally Possessing a FirearmRead the Press Release
COLUMBIA, SOUTH CAROLINA —Raphiel Coleman, 37, of Columbia, has pleaded guilty in federal court to being a felon in possession of a firearm.
Evidence obtained in the investigation revealed Richland County Sheriff’s Deputies were called to a convenience store on Broad River Road concerning a man with a gun. When the deputies arrived, they saw Coleman wearing the same clothing as the man described by the 911 caller. They ordered him to the ground, but Coleman fled behind the store. One deputy gave chase on foot and the other deputy followed in the police car. Eventually, they caught Coleman, and they found one .357 caliber bullet in his pocket. With the help of a police dog, they retraced their steps and found a handgun on the ground in a bush nearby. The police also found approximately 2 grams of marijuana in Coleman’s pocket.
Federal law prohibits Coleman from possessing a firearm because of his prior convictions for burglary, possession of a stolen vehicle, failure to stop for a blue light, intimidation of a juror or witness, possession of less than 1 gram of methamphetamine, and pointing and presenting a weapon.
Coleman faces a maximum penalty of 10 years federal prison. He also faces a fine of up to $250,000, restitution and 5 years, of supervision to follow the term of imprisonment. United States District Judge Sherri A. Lydon accepted the guilty plea and will sentence Coleman after receiving and reviewing a sentencing report prepared by the U.S. Probation Office.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Richland County Sheriff’s Department. Assistant U.S. Attorney William K. Witherspoon is prosecuting the case.
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Carrabelle Man Sentenced to 84 Months in Federal Prison for Child PornographyRead the Press Release
TALLAHASSEE, FLORIDA – Franklin Jefferson Mathes, Jr., 59, of Carrabelle, Florida, has been sentenced to 84 months in federal prison for receiving material constituting child pornography. The sentence was announced by Jason R. Coody, United States Attorney for the Northern District of Florida.
“The safety and well-being of our children is paramount,” stated U.S. Attorney Coody. “Those who seek to view and maintain child pornography facilitate the abuse of children by those who produce and profit from this illegal content, robbing our children of their innocence and their very childhood. With our law enforcement partners, we will hold such offenders accountable.”
Between September 2018, and July 2022, Mathes received, and possessed material containing child pornography. The pornographic material found in Mathes’ possession involved minors under the age of 12.
“This sentencing demonstrates the commitment of the FBI to investigate cases of child pornography and work with our U.S. Attorney’s Office partners to hold them accountable,” said Sherri E. Onks, Special Agent in Charge of the FBI Jacksonville Division. “We will stop at nothing to protect children from those who engage in this type of activity, and we have now ensured one less predator is victimizing the most innocent and vulnerable members of our community.”
Mathes’ prison sentence will be followed by 20 years of supervised release. He will also be required to register as a sex offender and will be subject to all sex offender conditions.
This conviction was the result of an investigation conducted by the Federal Bureau of Investigation and the Florida Department of Law Enforcement. The case was prosecuted by Assistant United States Attorney Meredith L. Steer.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office for the Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Brooklyn Man Pleads Guilty and Is Sentenced for Hacking into Online Accounts of Wegmans CustomersRead the Press Release
ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Maurice Sheftall, 24, of Brooklyn, NY, pleaded guilty before U.S. District Judge Charles J. Siragusa to fraud and related activity in connection with computers. Judge Siragusa then sentenced Sheftall to serve three years’ probation and pay restitution totaling $41,441.
Assistant U.S. Attorney Meghan K. McGuire, who is handling the case, stated that in January 2021, Sheftall obtained the customer credentials, including logins and passwords, of more than 50 individuals who had accounts on www.wegmans.com. He then logged into the accounts and changed passwords and e-mail contact information, locking each customer out of his or her account. Sheftall than used the customers saved credit card information, without their knowledge, to order groceries and have those groceries delivered to himself and his associates. Between January 22, 2021, and July 25, 2021, Sheftall intentionally defrauded Wegmans and approximately 50 customers by placing approximately 25 fraudulent orders, totaling approximately $9,297.05. Actual losses totaled $41,441, to include reimbursement to customers, the purchase of credit monitoring for affected customers, and the purchase of dark web monitoring to determine where and how Sheftall obtained the customer account information he used to access the accounts.
The plea and sentencing are the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia.
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Boston Men Indicted for Unlawful Trafficking of Machinegun Conversion DevicesRead the Press Release
BOSTON – Two Boston men have been indicted by a federal grand jury in Boston for illegally selling a dozen machinegun conversion devices.
Elijah Navarro, 24, and Michael Wilkerson, 22, were indicted on one count each of engaging in the business as a manufacturer or dealer in firearms. Wilkerson and Navarro were also indicted on one count and two counts, respectively, of transferring or possessing a machine gun. The defendants were previously arrested and charged by criminal complaint on Feb. 16, 2023.
“When we look at crime data for Boston in 2022, our city remains one of very few urban centers in the country where overall violent crime remains down. Every illegal firearm and conversion device we take off the street is preventing a potential homicide, shooting or maiming. Every piece of illegal ammunition we seize represents a life saved. The proliferation of illegal firearms and deadly conversion devices in our Commonwealth is a public health and a public safety crisis,” said United States Attorney Rachael S. Rollins. “Mr. Navarro and Mr. Wilkerson allegedly possessed unregistered machinegun conversion devices that turn already deadly firearms into weapons of war. Our city is far too familiar with the deadly and devastating effects of gun violence. In 2021, we had 40 homicides in Boston and in 2022 we had 41 homicides. The overwhelming majority of those murders were committed with an unregistered firearm by a person expressly prohibited from possessing one. According to the Boston Police Department, fatal shootings rose by eight between 2021 and 2022. Every case we charge that removes an illegal firearm, conversion device or ammunition from the streets of Boston and Massachusetts and ultimately holds prohibited users accountable matters. We will continue to charge these types of cases and work closely with our state, local and federal law enforcement partners to end gun violence.”
“Circumventing the law by selling unregistered machine guns, and operating as a licensed dealer without the benefit of following the legal requirements is egregious, particularly when the result is providing unlawful possessors with access to fully automatic firearms”, James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives. “ATF will continue to actively enforce federal firearms laws to keep our communities safe.”
“It is this type of cooperative effort with our federal partners at the ATF and the U.S. Attorney's Office that allows us to take dangerous individuals off our streets and to lessen the availability of high-powered firearms in our City,” said Boston Police Commissioner Michael A. Cox. “We will continue to work together to stem the tide of illegal guns in Boston utilizing all city, state and federal resources available to us in doing so.”
According to the charging documents, in January 2023, Navarro agreed to sell 12 machinegun conversion devices to an individual in exchange for $1,700. It is alleged that, following a series of communications, Navarro met the individual twice at a pre-arranged location. It is alleged that on Jan. 19, 2023, Navarro sold the first two machinegun conversion devices to the individual for $400 and later, on Jan. 25, 2023, Navarro sold the remaining 10 devices for an additional $1,300 out of Wilkerson’s residence.
It is alleged that during a search of Wilkerson’s residence on Feb. 16, 2023, two 3-D printers, 3-D printing material, machinegun conversion devices, a ballistic vest as well as firearms, ammunition and magazines were seized.
Neither Navarro nor Wilkerson possess licenses to import, manufacture, deal or possess firearms.
The charge of engaging in the business as a manufacturer or dealer in firearms provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $10,000. The charge of unlawful transferring or possession of a machinegun provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
U.S. Attorney Rollins, ATF SAC Ferguson and BPD Commissioner Cox made the announcement today. Assistant U.S. Attorney John T. Dawley of Rollins’ Organized Crime & Gang Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Boston Man Charged with Armed Robbery of Postal WorkerRead the Press Release
BOSTON – A Boston man has been charged with the Jan. 4, 2023 armed robbery of a United States Postal Service (USPS) letter carrier in Massachusetts.
Anthony Diaz, 20, was charged by an Information with forcibly assaulting, resisting, opposing, impeding, intimidating and interfering with a United States Postal Employee, while they were engaged in the performance of their official duties, and did so by use of a deadly weapon, a firearm. In addition, Diaz was also charged with assaulting a person having lawful charge, custody and control of United States mail, money and other property of the United States, with the intent to rob, steal and purloin that mail, money and other property of the United States, and in doing so put the life of that victim in jeopardy by the use of a firearm. Diaz was arrested on Feb. 17, 2023 and was detained following a hearing in U.S. District Court in Worcester on Feb. 27, 2023.
According to the charging documents, USPS has seen a rise in the use of Arrow Keys to facilitate the theft of U.S. Mail. An Arrow Key is a specific key designed to open designated blue USPS collection boxes in a specific area. These Arrow Keys are the property of USPS and it is a federal offense for an unauthorized person to possess one. Since July 2022, there have been at least 12 assaults on USPS letter carriers while in the performance of their official duties in Boston and surrounding cities and towns.
It is alleged that, on Jan. 4, 2023, in Peabody, Mass., Diaz approached a USPS letter carrier and stated, “Give me the keys,” while pointing a semi-automatic pistol at the victim. After the victim handed Diaz the USPS vehicle key, Diaz allegedly responded, “Give me the rest of the key,” and “Hurry up or I’ll shoot you.” The victim removed his keychain, which was attached to his belt, containing his USPS Arrow Key and asked if he could have his vehicle key back. Allegedly, Diaz did not respond, as he turned, placing the firearm in his right jacket pocket, and walked directly to the dark grey sedan parked in the area of 3A Veterans Memorial Drive. It is further alleged that Diaz stopped at the rear of the vehicle with the trunk open, before getting into the driver’s seat and departing.
The charge of assaulting, resisting, or impeding certain officers or employees, provides for a sentence of up to 20 years in prison, at least three years of supervised release and a fine of up to $250,000. The charge of robbery of any person having lawful charge, control, or custody of any mail matter or of any money or other property of the United States provides for a sentence of up to 25 years in prison, at least three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins and Ketty Larco Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division made the announcement today. Valuable assistance was provided by the U.S. Postal Service, Office of the Inspector General. Assistant U.S. Attorney Luke A. Goldworm of Rollins’ Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Bakersfield Man Sentenced to Prison for Laser Strikes on Sheriff Helicopter at Street Race GatheringRead the Press Release
FRESNO, Calif. — Andrew Nathan Hernandez, 20, of Bakersfield, was sentenced today to four months in prison for knowingly aiming the beam of a laser pointer at a Kern County Sheriff’s helicopter, Air One, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Dec. 26, 2020, Hernandez aimed the beam of a green laser at the Sheriff’s helicopter, striking it multiple times. Hernandez was attending a street race in the area of Hughes and White Lane in Bakersfield at the time. Once he was identified, Hernandez led law enforcement ground units on a nine-minute, 11-mile high-speed chase before he was eventually apprehended. The laser strikes caused the pilot to experience significant visual interference as a result of temporary flash blindness and after images.
According to the Federal Aviation Administration website, in 2020, the FAA received 6,852 reports of laser strikes, which was up from the year before. The FAA advises that, when aimed at an aircraft, lasers can cause visual interference and incapacitate pilots. Such incidents can occur anywhere, but have been reported most frequently in the Western Pacific and Southern regions of the United States.
This case was the product of an investigation by the Federal Bureau of Investigation, the Kern County Sheriff’s Office, and the Bakersfield Police Department. Assistant U.S. Attorney Karen Escobar prosecuted the case.
Assistant Attorney General Jonathan Kanter Delivers Opening Remarks at the Second Annual Spring Enforcers SummitRead the Press Release
Good morning. I am incredibly honored and grateful to welcome you all to the second annual Enforcers Summit. I am deeply humbled to be in the presence of so many esteemed, talented and dedicated competition law enforcement officials from throughout our country and around the world.
We are gathered in the “Great Hall” here at the Justice Department. Today, it is most certainly living up to its name. Today’s collection of enforcers is truly “great.” Just this morning we will hear from leaders in the U.S., U.K., South Africa and the National Association of State Attorneys General. In total, we are joined today by senior officials from 30 global jurisdictions, 21 states and the District of Columbia.
And we are joined this morning by a livestreamed audience of a public that rightly demands solutions to the problems of monopoly and oligopoly. We meet at a time when a popular movement is growing in support of more robust competition enforcement in the United States and around the globe. Our fellow citizens, who are feeling the effects of monopoly power, are advocating for greater protection of markets and opportunities to compete and benefit from competition.
So let me start by saying that this is not just another conference. This is a chance for expert enforcers confronting similar challenges to exchange ideas and collaborate regarding the path forward at a time when our markets are experiencing tectonic shifts. I know I speak for my co-host FTC Chair Lina Khan when I say we are eager to listen and to learn.
We are experiencing change in our economies on par with, if not exceeding, the industrial revolution. The ideas of competition policy are timeless but only if we are willing to adapt the familiar tools of competition to keep pace.
Poles and wires have given way to 1s and 0s. Intermediaries that once protected against information sharing have given way to digital collusion. Data has replaced oil as the power source for our new industrial tools.
The models of the smokestack economy reflected the simple geometries of the physical world. Goods used to move up and down supply chains. Competitive relationships were vertical and horizontal.
Those facts have changed. We have platforms that are multi-dimensional, serving distinct users and businesses all at once with complex relationships. The geometries of our markets today often look more like gemstones than two-dimensional drawings. Gatekeeper power has become the most pressing competitive problem of our generation at a time when many of the previous generations’ tools to assess and address gatekeeper power have become outmoded.
But we are working to meet the moment. The group assembled today in this Great Hall is not sitting by idly. Together, we are not just advancing the dialogue, but adapting our tools, analytical frameworks and internal expertise with the courage and creativity to protect competition for our generation and generations to come.
Look around you. We are surrounded by enforcers who are confronting the necessity and boundless opportunities of modernization on a daily basis. Not just through papers and panels, but through the hard work of investigation and enforcement.
This is not an academic conference: it is an enforcers summit.
In the United States, we are invigorating monopolization and merger enforcement. The deterrent effect is powerful and the results are tangible.
Simply put — most anticompetitive deals are no longer getting out of the boardroom.
And the ones that do are facing a sophisticated and empowered team of career enforcement officials who are ready to examine market realities and are up to the tough but noble task or protecting our fellow citizens from the ills of anticompetitive mergers.
And would-be monopolists know that the antitrust agencies are standing by to challenge exclusionary conduct.
When it comes to monopolization, we have more active litigation and investigations than several prior decades combined.
As a result, the economy is rebuilding itself all around us. Little by little, day by day, the natural forces of competition are taking root and rebuilding competitive markets.
That was the genius of our respective legislators in passing competition laws in the first place. When we stop anticompetitive conduct; prohibit exclusion; and stop mergers that risk lessening competition, we let the natural forces of free and fair competition elevate our economies and democracies.
So let me open this conference with a note of optimism. Our work is making a difference.
We have already changed the calculus for businesses contemplating preserving their power through mergers or exclusionary conduct or cartel behavior. And as a result, we have reopened markets for competition to gradually reappear and to flourish.
As we confront the pivot to AI and to new paradigms of health care, finance and agriculture, I am incredibly hopeful.
So long as we continue to build on and maintain an aggressive enforcement posture that accounts for modern market realities, new technology will bring a new competitive reality to our economies.
Today, I hope we can learn from each other how to continue that success. We will open the morning with publicly-broadcast interviews and panels. I want to make a request about that — I want the audience of our fellow enforcers to be part of this event.
We will have time for Q&A at each session, and I want to encourage you to actively participate and to share your ideas.
Before we begin, I want to acknowledge that a lot of effort goes into pulling off an event like this. I want to thank the staff of the Antitrust Division and FTC who worked tirelessly to make today’s event happen. In particular, our International Section Chief Lynda Marshall, Competition Policy and Advocacy Chief Karina Lubell, Special Counsel for State Relations Sarah Allen and international counsel Becky Valentine.
If you had a hand in planning this event, can you please stand up so we can all give you a round of applause.
Also if you will indulge me, we are joined by the Antitrust Division’s newest Deputy Assistant Attorney General, Manish Kumar, who is responsible for criminal enforcement. Welcome, Manish.
With that, it’s my honor to introduce my co-host, FTC Chair Lina Khan. We all know Lina is a rockstar, and she’s joined by another rockstar, former U.K. Competition and Markets Authority head Andrea Coscelli. Lina and Andrea, I’m looking forward to your discussion.
It is truly my privilege to officially kick off our second annual Enforcers Summit.
24 March 2023
“Ghost Preparer” Charged with Tax Fraud Appears in Federal CourtRead the Press Release
CHARLOTTE, N.C. – Tijan Mboob, a/k/a “TJ,” a/k/a “Teejay McBoob,” a/k/a “Sheikhtijan,” 58, of Charlotte, appeared in federal court today on tax fraud charges, announced Dena J. King U.S. Attorney for the Western District of North Carolina. Mboob was arrested on Thursday, after a federal grand jury returned a 20-count criminal indictment charging him with aiding and assisting in the preparation and filing of false tax returns over a five-year span.
Donald “Trey” Eakins, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division, Charlotte Field Office (IRS-CI) joins U.S. Attorney King in making today’s announcement.
“With tax season upon us, I urge taxpayers to exercise caution and use tax preparers who are qualified and authorized to prepare and file tax returns,” said U.S. Attorney King. “Federal prosecutors and IRS criminal investigators work closely to uncover tax fraud and identify fraudulent tax preparers who violate our tax laws and compromise the integrity of our tax system.”
“As we approach the April 15 tax deadline, those who consider preparing false tax returns should be aware of the extremely negative consequences as evidenced today,” said Special Agent in Charge Eakins. “It is important for people to have confidence that when they pay their taxes, their neighbors and co-workers are doing the same. Today's indictment emphasizes that the Internal Revenue Service and U.S. Attorney’s office will continue their aggressive pursuit of those who would attempt to defraud America's tax system."
According to allegations in the indictment, beginning in at least 2014 through 2021, Mboob prepared or caused to be prepared hundreds of fraudulent tax returns that were submitted to the IRS. The indictment alleges that Mboob was a “ghost preparer,” who failed to identify himself as a paid tax preparer on tax returns he prepared or submitted as required by the IRS, despite receiving payment from clients for his tax services. The indictment further alleges that Mboob prepared income tax returns for clients that included fabricated and fraudulent items, including false filing status, false American Opportunity and education credits, false itemized deductions and false reforestation credits, among others. Mboob’s alleged inclusion of the fabricated and fraudulent items resulted in the reduction of his clients’ tax liabilities and inflated refunds totaling more than $4.7 million. The indictment also alleges that Mboob refused to assist clients who received correspondence from the IRS questioning items on their tax returns that Mboob had prepared and filed.
As alleged in the indictment, Mboob also failed to report any preparation fees he earned as income for tax years 2017 and 2020 and did not file any tax returns for tax years 2018 and 2019.
Following his initial appearance in federal court, Mboob was released on bond. Each charge of aiding and assisting in the preparation and filing of false tax returns carries a maximum prison term of three years and a $250,000 fine.
The charges against Mboob are allegations. The defendant is innocent until proven guilty beyond reasonable doubt in a court of law.
In making today’s announcement U.S. Attorney King thanked IRS-CI for their investigation of the case.
Assistant U.S. Attorneys Cassye Cole and Graham Billings of the U.S. Attorney’s Office in Charlotte are prosecuting the case.
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This week, the IRS began its annual Dirty Dozen Tax Scams campaign, which lists the worst of the worst tax schemes that taxpayers may encounter and typically peak during filing season. To learn more about the Dirty Dozen scams and for help with recognizing and avoiding abusive tax schemes, the IRS offers educational material at IRS.gov. Suspected tax fraud can be reported to the IRS using Form 3949-A found on the IRS.gov website. If you have been financially impacted by a tax return preparer’s misconduct or improper tax preparation practices you can file a complaint here.
Zachary Louisiana Man Indicted for Gun OffenseRead the Press Release
NEW ORLEANS, LOUISIANA – TERRANCE PICKETT, age 27, a resident of Zachary, Louisiana, was charged on March 24, 2023, in a one-count indictment for violating the Federal Gun Control Act, announced United States Attorney Duane A. Evans.
PICKETT is charged with possession of a firearm by a convicted felon, in violation of Title 18, United States Code, Section 922(g)(1).
PICKETT faces a maximum term of imprisonment of 15 years, up to a $250,000 fine, up to three years of supervised release, and a mandatory special assessment fee of $100.
U.S. Attorney 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 New Orleans Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Mark A. Miller of the Violent Crime Unit is in charge of the prosecution.
White Hall Man Sentenced to Ten Years for Distribution of MethamphetamineRead the Press Release
SPRINGFIELD, Ill. – A White Hall, Illinois, man, Adam Dahl, 37, of the 300 block of Higbee Street, was sentenced to 120 months in prison, to be followed by eight years of supervised release, for possessing with the intent to distribute methamphetamine.
At the sentencing hearing the government presented evidence that Dahl possessed 30.6 grams of methamphetamine. During the hearing, Senior U.S. District Judge Sue E. Myerscough found that Dahl was a career offender, having previously been convicted of seven prior drug related offenses in the state of Illinois. She also found that Dahl was eligible for and received a sentencing enhancement for possessing a firearm at the time of the offense.
Dahl has been in the custody of the U.S. Marshals Service since his arrest in October of 2021.
The statutory penalties for possessing with the intent to distribute five grams of more of methamphetamine after having previously been convicted of a qualifying prior offense, are not less than ten years and not more than life in prison, not more than a $8,000,000 fine, and not less than eight years of supervised release.
The Drug Enforcement Administration, Illinois State Police, and Jacksonville Police Department investigated the case. Assistant U.S. Attorney Matthew Z. Weir represented the government in the prosecution.
The case against Dahl 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.
West Georgia Man, Under Investigation for Allegations of Drugging Women, Pleads Guilty to Illegally Possessing 26 FirearmsRead the Press Release
COLUMBUS, Ga. – A Talbot County, Georgia, resident who was under investigation for allegedly drugging women admitted to illegally possessing numerous firearms in federal court today.
David Gibson, 59, of Talbotton, Georgia, pleaded guilty to possession of a firearm by a prohibited person today before U.S. District Judge Clay Land. Gibson faces a maximum sentence of 15 years in prison and a $250,000 fine. Sentencing is scheduled for June 14.
According to court documents and other evidence presented in court, as part of a larger investigation—including into allegations that Gibson was drugging women—FBI conducted a lawful search of his residence in Talbot County on Nov. 17, 2022. Agents seized 26 firearms, which consisted of a mix of pistols, shotguns and rifles. The weapons include, but are not limited to, a .45 colt/.410 caliber revolver called “The Judge,” a 9mm semi-automatic pistol, a .22 caliber semi-automatic pistol and a semi-automatic rifle. Gibson admits he is an unlawful user of illegal drugs, making him a prohibited person.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the FBI, DEA, Meriwether County Sheriff’s Office, Harris County Sheriff’s Office and Talbot County Sheriff’s Office.
Assistant U.S. Attorney Chris Williams is prosecuting the case for the Government.
Violent Fayetteville Pimp and Drug Dealer Sentenced to More Than 32 Years in Prison for Kidnapping, Drug and Gun OffensesRead the Press Release
WILMINGTON, N.C. – A Fayetteville man was sentenced today to 390 months in prison for charges associated with kidnapping and possession of illegal substances and firearms between 2018 and 2019. On May 3, 2022, Yomere Juan Busbee, 38, also known as “Ram,” pled guilty to the charge of possession with the intent to distribute several drugs and was later found guilty on September 2, 2022, following a three-day jury trial, of multiple charges involving kidnapping, a drug conspiracy, and firearms.
“The defendant drove violence and exploitation in the Fayetteville community,” said U.S. Attorney Michael Easley. “Busbee led a prostitution and drug ring using physical violence, threats, or drugs to cause women to engage in commercial sex and keep all their profits. He will now spend the next 32 years in prison.”
"It is heartbreaking to know the violence the victims suffered at the hands of Yomere Juan Busbee. We hope this federal prison sentence provides some sense of comfort. The FBI is committed to holding offenders accountable for the violent crimes they commit," said Special Agent in Charge Robert M. DeWitt.
According to court documents and other information presented in court, Busbee and two co-defendants, James Calvin McEachern, Jr. and Merianda Gray held three adult victims, along with a two-year-old child, against their will in a motel room in December of 2018 after Busbee accused the victims of stealing several hundred dollars from him. At the time, Busbee was a convicted felon engaged in dealing drugs and prostituting women, assisted by McEachern. The victims were physically and/or sexually assaulted throughout the several-hour incident during which they also witnessed Busbee brandish a firearm and McEachern brandish a taser to coerce the cooperation of the victims. One of the victims was eventually able to get a message to a family member who called 911. Upon learning that Fayetteville Police Officers were responding to the incident, Busbee and McEachern fled the motel.
Weeks later, in January of 2019, Fayetteville Police Department detectives investigating the kidnapping apprehended Busbee at another Fayetteville motel. A search of the motel room and Busbee’s vehicle revealed two handguns (one of which was stolen) and large amounts of heroin, cocaine, and crack. Gray previously pled guilty to conspiracy to commit kidnapping and was sentenced to 90 months custody, five years of supervised release, and $2,000 in restitution. McEachern also pled guilty to conspiracy to commit kidnapping and was sentenced today to 108 months in prison and 5 years of supervised release for his role in the kidnapping.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II. The Federal Bureau of Investigation and the Fayetteville Police Department investigated the case and former Assistant U.S. Attorney Erin Blondel and Assistant U.S. Attorney Bryan M. Stephany prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:20-cr-00393-M.
U.S. Attorney’s Office Collects over $50 Million in Civil and Criminal Actions in Fiscal Year 2022Read the Press Release
COLUMBIA, SOUTH CAROLINA – The U.S. Attorney’s Office for the District of South Carolina collected $50,690,774.37 in criminal and civil actions in Fiscal Year 2022. Of this amount, $11,935,768.98 was collected in criminal actions and $38,755,005.39 was collected in civil actions. The District of South Carolina also worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect $10,438,936.69 in criminal and civil cases pursued jointly by these offices.
“Making crime victims whole, forfeiting property used to commit crimes, and recovering money bilked from our taxpayers are critical components of our justice system,” said U.S. Attorney Adair F. Boroughs. “Our Criminal Division, Civil Division, Asset Forfeiture Unit, and Financial Litigation Unit work day in and day out to claw back ill-gotten gains and ensure victims are compensated, and we will continue to dedicate resources to holding wrongdoers financially accountable.”
In August 2022, Philips RS North America, LLC, formerly known as Respironics, Inc., agreed to pay a total of $24,750,000 to resolve False Claims Act allegations that it provided kickbacks to durable medical equipment (DME) suppliers to induce them to choose Respironics’ respiratory equipment for federal healthcare program beneficiaries. Of the $24,750,000 settlement, state Medicaid programs received $2.13 million. A relator (also known as a whistleblower) disclosed the alleged fraud by filing a qui tam action and received approximately $4.3 million of the federal settlement amount. Additionally, Respironics entered into a Corporate Integrity Agreement with HHS-OIG.
The matter was handled by Senior Trial Counsel Daniel A. Spiro of the Fraud Section of the Civil Division and Assistant U.S. Attorneys Beth Warren and Johanna Valenzuela of the District of South Carolina. The lawsuit resolved by this settlement is captioned United States, et al., ex rel. Respiratory Care., LLC v. Respironics, Inc., et al., Case No. 2:19-cv-02913-BHH (D.S.C). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Additionally, in United States v. Lavoie et al, Case No. 4:21-cr-00585-RBH (D.S.C.), the U.S. Attorney’s Office recovered $586,805 in restitution owed to the IRS for tax violations. Daniel A. Lavoie and Enrique R. Reyes pleaded guilty to charges related to employment tax fraud and hiring unauthorized aliens. They operated or assisted in the operation of a construction company that used unlicensed check cashers to facilitate under-the-table cash payments to employees, many of whom were unauthorized aliens. The off-the-books payments defrauded the United States out of applicable employment taxes on the employees. Lavoie and Reyes were each ordered to pay $293,402.50 in restitution for tax violations, all of which has been recovered. The matter was handled by Assistant U.S. Attorneys Carrie Fisher Sherard and Anne Hunter Young of the District of South Carolina.
The U.S. Attorneys’ Offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
The U.S. Attorney’s Office in South Carolina, working with partner agencies and divisions, also collected $6,130,476 in asset forfeiture actions in FY 2022. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
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Two Walton County Men Sentenced to Federal Prison for Drug Trafficking ChargesRead the Press Release
PENSACOLA, FLORIDA – Jason R. Coody, United States Attorney for the Northern District of Florida announced the sentencings of Kenneth Ingram, 62, and Kadeem Ingram, 32, both of DeFuniak Springs. Kenneth Ingram was sentenced to 70 months in federal prison followed by 5 years of supervised release. Kadeem Ingram was sentenced to 150 months in federal prison followed by 5 years supervised release.
Ingrams’ sentences were the result of being convicted following a jury trial on August 17, 2022, for the offenses of conspiracy to distribute and possession with intent to distribute 500 grams or more of cocaine and 28 grams or more of cocaine base and possession with intent to distribute 500 grams or more of cocaine. Kadeem Ingram was also convicted of distribution of cocaine or cocaine base which occurred on two occasions in July 2019.
“This prosecution demonstrates the collaborative efforts of our local, state, and federal law enforcement partners, who work tirelessly to remove addictive and deadly controlled substances from our communities,” stated U.S. Attorney Coody. “We are grateful for their dedicated public service and remain committed in our efforts to investigate and vigorously prosecute criminals bringing drugs into North Florida.”
Evidence introduced at trial revealed that the Ingrams conspired with others to possess with the intent to distribute cocaine and cocaine base. In 2019, the Ingrams took monthly trips to South Florida to procure large quantities of cocaine. The cocaine purchased, which was, in part, converted to cocaine base, was then distributed by Kadeem Ingram and a co-conspirator. A months-long investigation culminated in law enforcement seizing approximately 1.5 kilograms of cocaine from a vehicle the Ingrams possessed on July 13, 2019.
"Let these sentences be a warning to those who are participating in the attempted destruction of our communities by selling this poison," said Walton County Sheriff Michael Adkinson. "Our agency continues our effort not only to make drug arrests but to ensure these dangerous dealers are prosecuted and stay behind bars."
“The success of this investigation is a direct result of the hard work and dedication of the men and women of the DEA in collaboration with our local, state, and federal law enforcement partners,” said DEA Miami Field Division Special Agent in Charge Deanne Reuter. “DEA remains committed to these important partnerships to keep these dangerous drugs out of our North Florida communities and hold those who bring this poison into our neighborhoods accountable for their actions.”
The case was investigated by the Drug Enforcement Administration and the Walton County Sheriff’s Office with the assistance of the Office of Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Florida Department of Law Enforcement, the Bay County Sheriff’s Office, the Washington County Sheriff’s Office, the Lynn Haven Police Department, the Panama City Police Department, and the Panama City Beach Police Department. First Assistant United States Attorney Michelle Spaven prosecuted the case.
The prosecution, part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF) OCDETF, is a joint federal, state, and local cooperative approach tocombat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to take down criminal organizations and seize assets.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Two Maryland Men Each Sentenced to More Than 12 Years in Federal Prison on Charges Related to a Washington County Armed Heroin and Fentanyl Distribution ConspiracyRead the Press Release
Baltimore – U.S. District Judge Deborah K. Chasanow today sentenced Jarvis Antonio Coleman-Fuller, age 35, of Hagerstown, Maryland and Eric Tyrell Johnson, a/k/a “E,” age 39, of Owings Mills, Maryland, to 156 months and 150 months in federal prison, respectively, each followed by five years of supervised release, on charges related to a conspiracy to distribute controlled substances, specifically fentanyl and heroin in Washington County, Maryland. A federal jury convicted the defendants on November 17, 2022, after a two-week trial
The sentences were announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Jarod Forget of the Drug Enforcement Administration - Washington Division; Special Agent in Charge James C. Harris of Homeland Security Investigations (HSI) Baltimore; Washington County Sheriff Brian K. Albert; Chief Paul “Joey” Kifer of the Hagerstown Police Department; and Washington County States’ Attorney Gina Cirincion.
According to the evidence presented at trial, beginning in about April 2019 and continuing to about November 2019, the defendants and their co-conspirators conspired to distribute heroin and fentanyl in the Washington County area. During the investigation, law enforcement seized narcotics, including at least 1.3 kilograms of fentanyl, five firearms, hundreds of rounds of ammunition, and more than $12,534 in cash. Witnesses testified that Johnson and Coleman-Fuller distributed fentanyl and illegally possessed firearms. Johnson and Coleman-Fuller both had previous felony convictions and were prohibited from possessing firearms and ammunition. The trial evidence also proved that Coleman-Fuller possessed a firearm in furtherance of his drug trafficking crimes.
Eight co-defendants previously pleaded guilty to their roles in the conspiracy and were sentenced to between 10 years in prison and time served.
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 Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
United States Attorney Erek L. Barron commended the DEA, HSI, the Washington County Sheriff’s Office, the Washington County Narcotics Task Force, and the Washington County State’s Attorney’s Office for their work in the investigation and prosecution Mr. Barron also thanked the Baltimore County Police Department and the Baltimore County State’s Attorney’s Office for their assistance in the case. Mr. Barron commended Assistant U.S. Attorneys Joan C. Mathias and Adeyemi Adenrele, who are prosecuting this case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md and https://www.justice.gov/usao-md/project-safe-neighborhoods-psn.
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Two Individuals Charged with Operating Multimillion-Dollar Pyramid SchemesRead the Press Release
A federal grand jury in Wisconsin returned an indictment that was unsealed yesterday charging an Illinois woman and man with running illegal multimillion-dollar pyramid schemes in at least four different states.
According to court documents, Candice V. Cunningham, 35, and Joseph E. Johnson Jr., 50, both of Chicago, allegedly operated a series of pyramid schemes that were advertised to potential victim-participants under various names, including Wealth Partners Publishing, Wealth Wise, Zero to Profit, 30 Day Success Formula, Lav Label, Beckett Group, and DTR Group. Marketing materials for the pyramid schemes allegedly misrepresented that if a victim-participant invested money in one of the schemes, that victim-participant would receive payments from other participants he or she recruited. The materials also are alleged to have falsely promised that if a victim-participant did not receive payments from other participants, the victim-participant was guaranteed that his or her initial investment would be fully refunded. Most victim-participants allegedly did not receive any payments from other participants and were denied the return of their initial investment. Cunningham, Johnson, and others obtained millions of dollars as a result of their alleged scheme.
Cunningham and Johnson are each charged with one count of conspiracy to commit mail fraud and seven counts of mail fraud. If convicted, they each face a maximum penalty of 20 years in prison for each count.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Gregory J. Haanstad for the Eastern District of Wisconsin, Special Agent in Charge Michael E. Hensle of the FBI Milwaukee Field Office, and Inspector in Charge Ruth Mendonca of the U.S. Postal Inspection Service (USPIS) Chicago Division made the announcement.
The FBI and USPIS are investigating the case.
Trial Attorneys Amanda Swanson and Della Sentilles of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Farris Martini for the Eastern District of Wisconsin are prosecuting the case.
If you believe you are a victim in this case, please contact the Fraud Section’s Victim Witness Unit toll-free at (888) 549-3945 or by email at [email protected]. Victims can find case updates and additional information at https://www.justice.gov/criminal-vns/case/united-states-v-candice-v-cunningham-et-al.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Two Individuals Charged with Operating Illegal Multimillion-Dollar Pyramid SchemesRead the Press Release
United States Attorney Gregory J. Haanstad of the Eastern District of Wisconsin joined Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, and other federal officials in announcing that on March 21, 2023, a federal grand jury in Wisconsin returned an indictment that was unsealed charging an Illinois woman and man with running illegal multimillion-dollar pyramid schemes in at least four different states.
According to court documents, Candice V. Cunningham, 35, and Joseph E. Johnson Jr., 50, both of Chicago, allegedly operated a series of pyramid schemes that were advertised to victim-participants under various names including Wealth Partners Publishing, Wealth Wise, Zero to Profit, 30 Day Success Formula, Lav Label, Beckett Group, and DTR Group. Marketing materials for the pyramid schemes allegedly misrepresented that if a victim-participant invested money in one of the schemes, that victim-participant would receive payments from other participants he or she recruited.
The materials also are alleged to have falsely promised that if a victim-participant did not receive payments from other participants, the victim-participant was guaranteed that his or her initial investment would be fully refunded. Most victim-participants allegedly did not receive any payments from other participants and were denied the return of their initial investment. Cunningham, Johnson, and others obtained millions of dollars as a result of their alleged scheme.
Cunningham and Johnson are each charged with one count of conspiracy to commit mail fraud and seven counts of mail fraud. If convicted, they each face a maximum penalty of 20 years in prison for each count.
The FBI and U.S. Postal Inspection Service are investigating the case.
Trial Attorneys Amanda Swanson and Della Sentilles of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Farris Martini for the Eastern District of Wisconsin are prosecuting the case.
If you believe you are a victim in this case, please contact the Fraud Section’s Victim Witness Unit toll-free at (888) 549-3945 or by email at [email protected]. Victims can find case updates and additional information at https://www.justice.gov/criminal-vns/case/united-states-v-candice-v-cunningham-et-al.
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Teacher accused of child pornography offensesRead the Press Release
HOUSTON – A 29-year-old College Station resident has been arrested for distribution and possession of child pornography, announced U.S. Attorney Alamdar S. Hamdani.
Daniel Byrd is expected to make his initial appearance before U.S. Magistrate Judge Andrew M. Edison at 2 p.m. today. Authorities took him into custody yesterday.
Byrd is employed as a teacher at Navasota High School.
The criminal complaint, filed today, alleges Byrd came to the attention of law enforcement upon discovery of a folder containing child pornography shared in a Kik chat group. Byrd was allegedly in control of that folder.
According to the complaint, Byrd used Kik and Telegram to view and download child pornography. He allegedly joined groups dedicated to sharing child pornography and would download content to his MEGA account. Byrd then posted links from his MEGA account into Kik groups, thereby allowing others to access folders containing child pornography, according to the charges.
If convicted, Byrd faces up to 20 years for distribution of child pornography as well a maximum of 10 years for possessing it.
The FBI - Bryan resident agency conducted the investigation with the assistance of College Station Police Department.
Assistant U.S. Attorney Kimberly Ann Leo 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.
A criminal complaint is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Tampa Man Pleads Guilty to Carrollwood Bank RobberyRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that Timothy Paul Longworth (43, Tampa) has pleaded guilty to bank robbery. Longworth faces a maximum penalty of 20 years in federal prison. A sentencing date has not yet been set.
According to court documents, at approximately 9 a.m. on July 8, 2022, Longworth entered a bank on Dale Mabry Highway in Tampa, jumped over the teller’s counter, and demanded that the bank’s employees open their cash drawers. After obtaining approximately $4,000 from the bank, Longworth fled the scene and escaped in a van driven by an indicted co-conspirator, John Kennedy Braun. Braun is awaiting trial for his alleged role in the robbery.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Hillsborough County Sherriff’s Office and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney David P. Sullivan.
St. Paul Man Sentenced to Prison for Straw Purchasing Multiple FirearmsRead the Press Release
MINNEAPOLIS – A St. Paul man has been sentenced to 24 months in prison followed by three years of supervised release for making a false statement during the purchase of a firearm, announced U.S. Attorney Andrew M. Luger.
According to court documents, on March 20, 2021, Clifton Earl Jiles, 31, purchased a Glock Model 27, 40 caliber, semi-automatic pistol, stating on the ATF Form 4473 that he was the actual buyer of the firearm, however he was not. Jiles admitted to making false statements to purchase at least nine firearms. Jiles also admitted he gave one of the firearms to an individual who was legally unable to possess it.
Jiles pleaded guilty on October 20, 2022, to one count of false statement during the purchase of a firearm. Jiles was sentenced yesterday before Senior Judge Michael J. Davis.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case was prosecuted by Assistant U.S. Attorney David P. Steinkamp.
Springfield Woman Pleads Guilty to Stealing Social Security BenefitsRead the Press Release
BOSTON – A Springfield woman pleaded guilty today to stealing Social Security benefits.
Hilda Griffin, 41, pleaded guilty one count of false representations to Social Security Administration. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for June 30, 2023.
Griffin served as the representative payee for three individuals who were receiving Social Security benefits. Griffin failed to disclose that the individuals stopped living with her in October 2014, and she continued to receive benefits on the individuals’ behalf through December 2014, when she stopped serving as the personal representative. In October 2016, Griffin reapplied to receive Social Security benefits on behalf of the three individuals, despite the fact that they were not in her custody. Griffin then improperly received benefits for two of the individuals through March 2017, and through May 2018 for the third individual. In total, Griffin stole more than $26,970 in benefits intended for the three individuals
The charge of false representations to the Social Security Administration provides for a sentence of up to one year in prison, one year of supervised release and a fine of $1,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins and Sharon MacDermott, Special Agent in Charge of the Social Security Administration, Office of the Inspector General, Office of Investigations, Boston Field Division, made the announcement today. Assistant U.S. Attorney Christopher Morgan of Rollins’ Springfield Branch Office is prosecuting the case.
Springfield Illinois Man Sentenced to 96 Months in Prison for Distribution and Possession of Child PornographyRead the Press Release
SPRINGFIELD, Ill. – A Springfield, Illinois man, Robert Merriman, 25, of the 1000 block of South Fourth Street, has been sentenced to 96 months imprisonment followed by a lifetime term of supervised release, for distribution and possession of child pornography. Merriman was arrested and indicted in March of 2020 and pleaded guilty in October of 2022.
At the sentencing hearing, the government presented evidence that between April of 2019 and August of 2019 the defendant engaged in the receipt, distribution, and trading of child pornography of prepubescent children using multiple online applications. According to the defendant’s own statements, he “owned” a group on Reddit with 900 members where he posted child pornography.
During the hearing, Senior U.S. District Judge Sue E. Myerscough found that the defendant’s conduct included distributing and receiving over six hundred images or videos of child pornography, and that at least one of the images included sexually explicit conduct involving a toddler or portrayed sadistic or masochistic conduct.
The statutory penalties for distribution of child pornography are not less than five years but not more than twenty years in prison, up to life of supervised release, and a $250,000 fine. The statutory penalties for possession of child pornography are not more than ten years in prison, up to life of supervised release, and a $250,000 fine.
The United States Department of Homeland Security, Homeland Security Investigations investigated the case, with assistance from the National Center for Missing and Exploited Children (NCMEC). Assistant United States Attorney Tanner K. Jacobs represented the government in the prosecution.
The case was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Six Erie Residents Indicted on Drug ChargesRead the Press Release
ERIE, Pa. – Six residents of Erie, Pennsylvania have been indicted by a federal grand jury in Erie on charges of violating federal drug laws, Acting United States Attorney Troy Rivetti announced today.
The two-count Indictment returned on March 14th and unsealed today, named: Larry Tremel Alexander, 46; Dennis Levar Jones, 45; Pernell Tequin Orr, 33; Nicole Grace Fox, 33; Shalin Nicole Pepperman, 41; and Malissa Mae Perry, 41, all of Erie, Pennsylvania.
According to the Indictment presented to the court, from in and around March 2019, and continuing thereafter to in and around October 2022, Larry Alexander, Dennis Jones, Pernell Orr, Nicole Fox, Shalin Pepperman, and Malissa Perry engaged in a conspiracy to distribute methamphetamine, cocaine, heroin, and hydrocodone in the Western District of Pennsylvania and elsewhere. During that same time, Larry Alexander and Malissa Parry conspired to engaged in interstate money laundering transactions intended to promote the drug conspiracy and conceal the proceeds of the drug conspiracy.
The law provides for a maximum total sentence of 120 years in prison, a fine of $8,500,000, or both for Alexander; a maximum total sentence of 60 years in prison, a fine of $5,500,000, or both for Jones and Orr; a maximum total sentence of 20 years in prison, a fine of $1,000,000, or both for Fox and Pepperman; and a maximum total sentence of 40 years in prison, a fine of $1,500,000, or both for Perry. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Paul S. Sellers is prosecuting this case on behalf of the government.
The Pennsylvania State Police Drug Law Unit, Drug Enforcement Administration, Erie Police Department, and Erie County Detectives conducted the investigation leading to the Indictment in this case.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The investigation was also conducted in association with the Northwest Pennsylvania Drug Initiative which was formed following Erie County’s designation as a High Intensity Drug Trafficking Area (HIDTA) in 2021. The HIDTA program was created by Congress in 1988 to coordinate and assist Federal, State, and Local law enforcement agencies in addressing regional drug threats with the purpose of reducing drug trafficking and drug production in the United States. The Northwest Pennsylvania Drug Initiative coordinates personnel and resources between multiple agencies including the Pennsylvania State Police, Federal Burau of Investigation, Erie Police Department, Erie County District Attorney’s office, Erie County Detectives, United States Postal Inspection Service, the Federal Bureau of Investigation Safe Streets Task Force, and other participating agencies.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Russian National “Illegal” Charged with Acting as Agent of a Russian Intelligence Service in the United StatesRead the Press Release
Russian National Fraudulently Obtained Entry to the United States Using Brazilian Alias to Attend a University in the District of Columbia and Obtain Information
WASHINGTON – Sergey Vladimirovich Cherkasov (“Cherkasov”), 37, a national of the Russian Federation who operated as an “Illegal” agent for a Russian Intelligence Service (“RIS”) under the Brazilian alias of Victor Muller Ferreira, was charged today for acting as an agent of a foreign power, visa fraud, bank fraud, wire fraud, and other charges stemming from his illegal activities in the United States. Cherkasov started acting as an Illegal agent in 2012 in Brazil using the Ferreira name, and he moved to the United States in 2018 after obtaining admission to a graduate school program at a University 1, a university located in the District of Columbia. Cherkasov is currently incarcerated in Brazil on fraud charges.
According to a Criminal Complaint filed on March 24, 2023, in the United States District Court for the District of Columbia, between 2012 and April 2022. Cherkasov acted as an illegal agent of a RIS using a Brazilian cover identity. In October 2017, Cherkasov maintained his cover as a Brazilian national to apply to graduate programs in the United States, including University 1, and he obtained admission to University 1 at the behest of the RIS. Using that same fraudulent cover, Cherkasov fraudulently applied for, and obtained, a visa to enter the United States in 2017. In March 2018, Cherkasov obtained admission to University 1, and again fraudulently applied for, and obtained, a student visa to enter the United States. According to the complaint, after entering the United States, Cherkasov fraudulently opened bank accounts at a U.S. bank under the Brazilian alias Victor Muller Ferreira and obtained a U.S. driver’s license from the Commonwealth of Virginia. Cherkasov further made connections to persons of interest in the United States and maintained communications with his RIS handlers. While in the United States, Cherkasov obtained information about U.S. persons that he passed to his RIS handlers. Cherkasov obtained his graduate degree using the fraudulent Ferreira identity from University 1, and left the United States in or about May 2020. Cherkasov continued his activities for the RIS after leaving the United States, and he continued to use his connections from University 1 to obtain information about U.S. foreign policy to provide to the RIS in 2021 and 2022. Cherkasov attempted to obtain employment at the International Criminal Court in The Hague, Netherlands, in April 2022. After being turned away by Dutch officials, Cherkasov returned to Brazil where he was arrested on fraud charges stemming from his use of the false Ferreira identity.
“When foreign adversaries, such as Russia, send undercover operatives into the United States, we will find them and prosecute them to the fullest extent of the law,” said US Attorney Matthew M. Graves. “Such adversaries seek to operate in secret to undermine our national security in ways that could jeopardize the safety of our citizens. With our partners in the FBI, we will root out anyone who intends to do harm to the United States and bring them to justice.”
“For years, Cherkasov worked as an illegal agent for a Russian intelligence service and committed fraud against the United States,” said David Sundberg, Assistant Director in Charge of the FBI’s Washington Field Office. “Today’s criminal complaint is a result of the hard work, determination, and collaborative efforts of the FBI and our international partners in a complex investigation holding him accountable for his attempts to collect intelligence on the United States at the behest of the Russian government.”
This investigation was conducted by the FBI’s Washington Field Office and coordinated by the FBI’s Counterintelligence Division.
Assistant U.S. Attorney Tejpal S. Chawla and Trial Attorney Heather Schmidt of the National Security Division’s Counterintelligence and Export Control Section prosecuted the case, with support from Paralegals Michael Watts and Mariela Andrade.
Recruiter and Director of Money Mule Sentenced to Two Years in Prison for Participation in Business Email Compromise SchemeRead the Press Release
TRENTON, N.J. – An Essex County, New Jersey, woman was sentenced to 24 months in prison for her role in a business email compromise (BEC) scheme that affected numerous corporate and individual victims throughout the nation, U.S. Attorney Philip R. Sellinger announced today.
Lucy Beswick, 31, of Newark, previously pleaded guilty before U.S. District Judge Peter G. Sheridan to an information charging her with one count of conspiracy to commit wire fraud. Judge Sheridan imposed the sentence on March 23, 2023, in Trenton federal court.
According to documents filed in this case and statements made in court:
From July 2017 to March 2018, Beswick and others participated in a BEC scheme designed to enrich its conspirators financially by stealing more than $400,000 in proceeds from individual and corporate victims. Conspirators recruited money mules to provide their personal identifying information in connection with the incorporation of sham businesses with the New Jersey Department of the Treasury under the money mules’ names. Under the instruction of conspirators, including Beswick, the money mules then opened bank accounts under the names of the sham corporations.
A related cyber-attack arm of the scheme involved the creation of email addresses mimicking, but differing slightly from, legitimate email addresses of supervisory employees of various victim companies, of vendors that did business with those victim companies, of mortgage lenders and brokers that dealt with individual victims in connection with real estate purchases, and of advisors and accountants who performed financial services for their clients. Conspirators sent emails from these addresses to several victims, which appeared to request the payment of legitimate invoices or debts owed by the victims, but in actuality deceived the victims into transferring funds by wire into the bogus bank accounts. After the victims complied with the fraudulent wiring instructions, Beswick and others, under the direction of other conspirators, quickly debited from the bank accounts they had opened and which they controlled, thousands of dollars in cash through in-person and ATM withdrawals and debit card purchases, while also transferring by wire from the bogus bank accounts to foreign bank accounts controlled by conspirators hundreds of thousands of dollars in stolen funds. Beswick ordinarily kept a fraction of the ill-gotten proceeds as compensation.
In addition to the prison term, Judge Sheridan sentenced Beswick to three years of supervised release and ordered her to pay $328,467 in restitution and $15,000 in forfeiture.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James D. Dennehy in Newark, and special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Jose Riera, with the investigation leading to the sentencing.
The government is represented by Eric A. Boden, Attorney in Charge of the Trenton Office of the U.S. Attorney’s Office.
Raleigh County Woman Sentenced for Role in Beckley-to-Philadelphia Firearms Trafficking ConspiracyRead the Press Release
BECKLEY, W.Va. – Sequoyah Swain, 22, of Beckley, was sentenced today to five years of federal probation for her role in a conspiracy to traffic over 140 firearms from the Beckley area to Philadelphia, Pennsylvania.
According to court documents and statements made in court, Swain admitted to recruiting straw purchasers to obtain firearms for a trafficking conspiracy led by Bisheem Jones, also known as “Bosh,” 37, of Philadelphia. Between early 2020 and mid-2021, Jones and his co-conspirators obtained over 140 firearms purchased in the Beckley area which they took back to Philadelphia to sell for profit. Approximately 45 of the trafficked firearms have been recovered at crime scenes primarily in Philadelphia and have been connected to two homicides, crimes of domestic violence, and other violent offenses.
Jones paid Swain with drugs and money to recruit straw purchasers. Swain also acted as an intermediary for Jones by accompanying straw purchasers to Beckley-area stores, telling them which firearms to buy, and taking the purchased firearms to Jones.
Jones or an intermediary would provide the money for the firearms purchases. The straw purchasers falsely certified on the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Federal Firearms Transaction Record Form 4473 that they were purchasing the firearms for themselves when they knew they were buying them for Jones and his trafficking conspiracy.
Swain pleaded guilty to aiding and abetting another individual in making false statements in acquisition of firearms, for the straw purchase of a Ruger Model Ruger 57, 5.7x28mm 5.7 caliber pistol for Jones in Beckley on April 18, 2021.
Swain is among 18 defendants who pleaded guilty in connection with the firearms trafficking. After five days of trial, a federal jury found Jones guilty on December 16, 2022, of conspiracy to travel interstate with the intent to deal in firearms without a license, conspiracy to commit money laundering, and interstate travel with the intent to deal in firearms without a license. Jones is scheduled to be sentenced on April 28, 2023, and faces a maximum penalty of 35 years in prison.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Philadelphia Police Department.
United States District Judge Frank W. Volk imposed the sentence. Assistant United States Attorneys Negar M. Kordestani and Steve Loew prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:22-cr-81.
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Raleigh County Man Sentenced to Prison for Federal Drug CrimeRead the Press Release
BECKLEY, W.Va. – Treyvon Pankey, 22, of Beckley, was sentenced today to three years and 10 months in prison, to be followed by three years of supervised release, for distributing methamphetamine.
According to court documents and statements made in court, on February 17, 2022, Pankey sold approximately 27 grams of methamphetamine to a confidential informant at a Beckley residence. Pankey admitted to the transaction and also admitted to selling approximately 44 grams of methamphetamine and an AR-15, .223-caliber semi-automatic rifle to a confidential informant at a Beckley residence on March 8, 2022.
On June 8, 2022 law enforcement officers executed a search warrant at a Beckley residence where Pankey was staying. Officers found a quantity of fentanyl, a digital scale, and a Glock model 41, .45-caliber semi-automatic pistol. Pankey admitted to officers that he possessed the firearm and had been selling approximately 3.5 grams of methamphetamine daily from January 22, 2022, until his arrest on June 8, 2022. Pankey further admitted that he sold approximately 3.5 grams of cocaine base, also known as “crack,” daily for an unknown period of time.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Beckley/Raleigh County Drug and Violent Crime Unit.
United States District Judge Frank W. Volk imposed the sentence. Assistant United States Attorneys Andrew D. Isabell and Alex Hamner prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:22-cr-116.
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Petersburg Armed Drug Trafficker Convicted by Federal JuryRead the Press Release
RICHMOND, Va. – A federal jury convicted a Petersburg man today of possessing 50 grams or more of methamphetamine and cocaine hydrochloride, possession of firearms in furtherance of that drug trafficking crime, and possession of firearms by a convicted felon.
According to court records and evidence presented at trial, Melvin Leon Myrick, 24, crashed a Silver Nissan near Pine Forest Drive in Colonial Heights after fleeing an attempted traffic stop. When a Colonial Heights Police Department officer came upon the scene, Myrick exited the driver side door, went to the rear of the car, and then ran to the passenger door before fleeing into the woods.
An inventory search of the car resulted in the recovery of over 130 grams of methamphetamine and 45 grams of cocaine hydrochloride from passenger side floorboard, two loaded Glock, Model 22 semiautomatic pistols, an AK-style pistol, and digital scales. A search warrant obtained and executed on Myrick’s cellular phone revealed ongoing drug trafficking and connection to the firearms recovered from the Silver Nissan.
Myrick faces a mandatory minimum of 10 years in prison for the possession with intent to distribute methamphetamine and a maximum penalty of life in prison. For the conviction of possession of firearms in furtherance of drug trafficking, Myrick faces a mandatory minimum of 5 years in prison and maximum of life in prison. For the possession of firearms by a convicted felon he faces a maximum of 10 years in prison. Myrick will be sentenced on July 28. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Mike Weddel, Acting Special Agent in Charge of the ATF’s Washington Field Division; and William Anspach, Chief of Colonial Heights Police, made the announcement after Senior U.S. District Judge Henry E. Hudson accepted the verdict.
Assistant U.S. Attorneys Kenneth R. Simon, Jr. and Peter S. Duffey are prosecuting the case.
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. 3:22-cr-148.
Pawn Shop Owner Pleads Guilty to $744,000 Scheme to Sell over 14,000 Stolen Items OnlineRead the Press Release
KANSAS CITY, Mo. – The owner of a Kansas City, Mo., pawn shop pleaded guilty in federal court today to engaging in a $744,000 scheme to fence more than 14,000 stolen items and sell them on eBay.
Dennis G. Russell, 65, waived his right to a grand jury and pleaded guilty before U.S. District Judge Howard F. Sachs to a federal information that charges him with one count of conspiracy to transport stolen property across state lines.
During the scheme, Russell was one of two members of the board of directors of Rison of KC, Inc., which does business as National Pawn at 6223 E. Truman Road in Kansas City, Mo. Rison of KC is also charged with the same offense but has entered into a deferred prosecution agreement with the U.S. Attorney’s Office.
By pleading guilty today, Russell admitted that he participated in a conspiracy from Jan. 1, 2017, to July 27, 2021, to purchase items he knew had been stolen from various retail locations in the Kansas City metropolitan area, then sell those items on eBay. Russell shipped approximately 14,672 stolen items across state lines, resulting in gross proceeds of approximately $744,222.
Multiple individuals, known as “boosters,” stole items from Target, Walmart, Home Depot, Lowe’s, CVS, Walgreens, and other retail locations. They sold such stolen items as robot vacuum cleaners, textbooks, Roku and Google Chromecast television streaming devices, and Crest Whitestrips to Russell at a fraction of their retail price. Russell then posted the stolen items for sale on eBay, using one of two accounts, and shipped them to purchasers in numerous other states.
On Oct. 21, 2021, law enforcement officers executed a search warrant at National Pawn and seized 3,400 items, which Russell and National Pawn do not contest were stolen property.
Rison of KC has entered into a deferred prosecution agreement with the U.S. Attorney’s Office. Under the terms of that agreement, the business admits to the criminal conspiracy and accepts responsibility for the acts of its officers and employees. The government will defer prosecution of Rison of KC for that conduct during the three-year term of the agreement and will not continue with prosecution if the business fully complies with its obligations under the agreement, which include:
- National Pawn must keep a current list of all employees, all financial accounts, and all auction websites it utilizes;
- National Pawn must obtain and retain a verifiable third-party receipt for any new product purchased;
- Russell must not work at or profit from National Pawn.
Russell must forfeit to the government any property obtained from the proceeds of this offense, including a money judgment of $744,222. Under the terms of his plea agreement, Russell will not work at National Pawn, direct the operations of National Pawn, or profit from National Pawn or any other pawn shop while serving any term of probation or supervised release.
Under federal statutes, Russell is subject to a sentence of up to five years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Nicholas Heberle, Matthew Wolesky, and Anthony Brown. It was investigated by the Kansas City, Mo., Police Department and the U.S. Postal Inspection Service.
Palm Beach County Man Sentenced to Twelve Years in Federal Prison for Possession of A Firearm by A FelonRead the Press Release
GAINESVILLE, FLORIDA – Tzaddi Lamed D’Marcus Allen, 32, of Palm Beach County, Florida, was sentenced to twelve years in federal prison followed by five years’ supervised release for possession of a firearm and ammunition by a convicted felon. The sentence was announced by Jason R. Coody, United States Attorney for the Northern District of Florida.
“The collaborative efforts of our partners in the Gainesville Gun Violence Initiative continue to produce impactful results, and we will continue working tirelessly to make North Florida safer,” said U.S. Attorney Coody. “This sentence ensures that our community will be safer and sends a message that there are real and severe consequences for federal firearm offenses.”
“The Men and Women of the Alachua County Sheriff’s Office, in concert with our local, state and federal partners, will continue to pursue violent criminals who unlawfully possess firearms, to ensure that the citizens and visitors of this great county remain safe,” said Alachua County Sheriff Clovis Watson, Jr.
On the afternoon of January 31, 2022, a traffic stop was conducted by an Alachua County Sheriff’s Office deputy, on a vehicle that Allen was operating. During the traffic stop, deputies confirmed that Allen did not have a valid driver’s license and that the vehicle’s window tint was darker than the legal limit of twenty eight percent. Deputies further detected the odor of marijuana emanating from the vehicle’s interior. During a probable cause search of the vehicle, deputies located marijuana throughout the vehicle and noticed that a piece of center console paneling appeared to have been removed and put back into place. A deputy removed the piece of panel and discovered a bag containing approximately 8 grams of a powdery substance (which was later identified as a combination of fentanyl and synthetic cathinone) sitting on top of a Canik 9-millimeter pistol. The pistol had a live round in the chamber, seventeen additional rounds of ammunition in the magazine, and had previously been reported stolen. Deputies on scene determined that Allen was a multi-time convicted felon and arrested him for state charges of possession of a firearm by a convicted felon and possession of a controlled substance. Upon arrival at the Alachua County Jail, Allen alerted deputies that he had another small baggie of the powdery substance concealed on his person.
Following his arrest, the Bureau of Alcohol, Tobacco, and Firearms adopted the case for federal prosecution and conducted a follow-up investigation. That additional investigation included sending evidence to the Florida Department of Law Enforcement’s crime lab, which recovered DNA consistent with Allen from the firearm. Allen had prior felony convictions including Attempted Robbery, Aggravated Battery on Person 65 Years or Older, Fleeing and Eluding Law Enforcement, Sale of Cocaine, and Sale of Heroin within 1000 feet of a Convenience Business. Allen had only been out of prison for approximately one month when the traffic-stop and arrest occurred.
This federal conviction resulted from the joint efforts of local, state, and federal law enforcement agencies that form the Gainesville Gun Violence Initiative (GVI). The Gainesville GVI was established in April 2019, by the United States Attorney’s Office for the Northern District of Florida in an effort to stem the escalating gun violence in Gainesville and the surrounding area. As GVI partners, the State Attorney’s Office for the Eight Judicial Circuit, the Bureau of Alcohol, Tobacco and Firearms, the Federal Bureau of Investigation, the Florida Department of Law Enforcement, the Gainesville Police Department, the Alachua County Sheriff’s Office, the Alachua Police Department, the University of Florida Police Department, and the Florida Department of Corrections share this commitment to protecting public safety.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Pakistani Hunting Outfitter and Galt Big Game Hunter Charged with Conspiring to Smuggle Endangered Ladakh Urial Trophy into the United StatesRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an indictment yesterday against Pir Danish Ali, 43, of Pakistan, and Jason Keith Bruce, 49, of Galt, charging both defendants with conspiracy to violate the Endangered Species Act, to make false statements, and to smuggle goods into the United States, and charging Bruce with smuggling and violating the Endangered Species Act, U.S. Attorney Phillip A. Talbert announced. The indictment was unsealed upon Bruce’s arrest this morning.
According to court documents, Pir was the CEO of a hunting outfitter and guide company based in Pakistan, and Bruce was a recreational big game hunter who hunted as a client of Pir’s company. Beginning in February 2016, Pir and Bruce conspired to hunt a Ladakh urial, an endangered wild sheep, in Pakistan and smuggle the resulting trophy from Pakistan to the United States. (“Trophy” means a whole animal, or a readily recognizable part of an animal, that is prepared for display.) Shortly before the hunt, Pir told Bruce that a recent survey had shown a local population of only 180 animals. The defendants agreed that the export of the Ladakh urial trophy would be achieved through bribery and fraud by declaring it to Customs and Border Protection and the U.S. Fish and Wildlife Service (FWS) as a different species and presenting forged documents purporting to be issued by Pakistani authorities. Bruce paid Pir $50,000 for the hunt, during which he shot a Ladakh urial.
On March 29, 2018, Bruce flew into San Francisco International Airport from Pakistan carrying eight trophies in his personal baggage, including the Ladakh urial trophy. U.S. Customs and Border Protection agents stopped him and alerted the FWS. After the FWS seized the trophy, Pir and Bruce conspired together to lie and did in fact lie to the FWS agents. Further investigation revealed that, between 2013 and 2018, at least 25 hunters who had hunted with Pir’s company presented forged documents to import at least 97 hunting trophies into the United States.
This case is the product of an investigation by the U.S. Fish and Wildlife Service’s Office of Law Enforcement. Assistant U.S. Attorney Katherine T. Lydon is prosecuting the case.
If convicted of the conspiracy, Pir and Bruce face a maximum sentence of five years in prison and a $250,000 fine. If convicted of the smuggling charge, Bruce faces a maximum statutory penalty of 20 years in prison and a $250,000 fine, and if convicted of the violation of the Endangered Species Act, Bruce faces a prison term of up to one year and a fine of up to $50,000 or both. Any sentence, however, would 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. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Northampton County Man Sentenced to 151 Months in Prison for CyberstalkingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on March 23, 2023, Anthony Elonis, age 39, formerly of Bethlehem, Pennsylvania, was sentenced to 151 months in prison by U.S. District Court Judge Edward G. Smith, in Easton, Pennsylvania, for cyberstalking.
According to United States Attorney Gerard M. Karam, Elonis was found guilty after a five-day jury trial in Easton in August 2022, of three counts of cyberstalking involving three separate victims, including a government employee in the Eastern District of Pennsylvania, Elonis’ former girlfriend, and Elonis’ ex-wife. Between 2018 and 2021, Elonis sent numerous threatening, harassing and intimidating emails directly to the governmental employee, and sent or posted numerous threatening, harassing and intimidating communications via Twitter, text message, voice mail or other form of electronic communication regarding the governmental employee, his former girlfriend, and his ex-wife.
The matter was specially assigned to the United States Attorney’s Office in the Middle District of Pennsylvania for prosecution.
The charges resulted from an investigation conducted by the Federal Bureau of Investigation, Allentown Office. Assistant U.S. Attorneys Robert J. O’Hara and Geoffrey MacArthur prosecuted the case.
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Morris County Woman Charged in $10 Million Scheme to Commit Health Care FraudRead the Press Release
NEWARK, N.J. – A Morris County woman has been charged for her role in a conspiracy to commit health care fraud, U.S. Attorney Philip Sellinger announced today.
Aysha Khan, 33, of Kinnelon, New Jersey, is charged by indictment with one count of conspiracy to commit health care fraud and four counts of health care fraud. She was arrested today and will have her initial appearance this afternoon before U.S. Magistrate Judge Edward S. Kiel in Newark federal court.
According to documents filed in this case:
Khan controlled and operated a network of “specialty pharmacies” with locations in New Jersey, New York, Texas, and Florida. These pharmacies processed expensive medications used to treat various conditions, including Hepatitis C, Crohn’s disease, and rheumatoid arthritis.
At Khan’s direction, the pharmacies billed health insurance providers for medications that the pharmacies did not actually provide to patients. While the pharmacies generally provided medications for initial prescriptions it received, it systematically and intentionally billed for refills for those same medications without ever dispensing them. On certain occasions, the pharmacies also billed for initial prescriptions without ever shipping or dispensing them.
From 2015 through 2022, the Khan Pharmacies received over $10 million in reimbursement payments from Medicare for medications the pharmacy not only failed to give patients, but never ordered or had in stock.
The conspiracy to commit healthcare fraud count and the substantive healthcare fraud counts charged are each punishable by a maximum of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest.
U.S. Attorney Sellinger credited special agents and an analyst of IRS – Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy L. Tomlins; postal inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge Daniel B. Brubaker, New York Division; special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; and the Kinnelon Police Department, under the direction of Chief Joseph Napoletano, with the investigation leading to the charges and arrest.
The government is represented by Assistant U.S. Attorney George L. Brandley of the Health Care Fraud Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
khan.indictment_redacted.pdfMorgan County Child Molester Sentenced to 30 Years in Federal Prison for Sexual Exploitation and Distribution of Child Sexual Abuse MaterialRead the Press Release
INDIANAPOLIS- Justin Herrington, 32, of Whitaker, Indiana, has been sentenced to 30 years in federal prison after pleading guilty to sexual exploitation of a child and distributing and possessing child sexual abuse material.
According to court documents, in 2012, Herrington sexually abused Minor Victim 1, a 5-year-old child in his care, custody, or control, in Morgan County, Indiana. Herrington’s abuse of the child was discovered in 2012 and he was arrested and charged in state court. He was convicted of child molestation in 2014 and spent 446 days in prison before being released to serve the remainder of his sentence on probation. Herrington was also ordered to register as a sex offender against children for the remainder of his life.
After his release from prison, Herrington began distributing, receiving, and possessing child sex abuse material—including a previously unknown image he produced of Minor Victim 1 engaged in sexually explicit conduct in approximately 2012, when he was sexually abusing the child.
On March 6, 2019, law enforcement officials received a report from a drugstore employee who believed that Herrington had submitted images of child sexual abuse to the store for photo processing. Law enforcement officers arrested Herrington later that day when he arrived at the store to pick up the images. Further investigation of Herrington’s digital devices uncovered numerous images and videos of child sexual abuse material of prepubescent children under the age of 12, including the image of Minor Victim 1. Many of the images, messages, and search terms located on Herrington’s devices demonstrate a sexual obsession with children in diapers.
Forensic investigation of all of Herrington’s digital devices proved that he belonged to a Russian-based website known by law enforcement for spreading child sexual abuse material. The investigation also revealed that Herrington was in the process of grooming a 13-year-old girl via Chat Hour and Snapchat. Online, Herrington claimed to be an 18-year-old and nearly enticed the girl to send him sexually explicit images of herself and meeting him in person.
At the time of his arrest, Herrington was in a relationship with an individual that had a 5-year-old child, in violation of the terms of his release for child molestation. Information on Herrington’s devices revealed that he attempted to get jobs at local daycares and as a babysitter, and even responded to a Craigslist advertisement seeking a babysitter for a 4-year-old.
On or about August 6, 2019, Herington was charged with federal offenses, and ordered detained pending trial. In August 2021, while in federal custody, Herrington used detention facility mail to send sexually suggestive depictions of children wearing diapers, including Minor Victim 1, that were produced to his attorneys during his state prosecution to at least 19 other inmates around the country.
Zachary A. Myers, United States Attorney for the Southern District of Indiana, John Richards, Chief of Martinsville Police Department, Herbert J. Stapleton, Special Agent in Charge of the FBI’s Indianapolis Field Office, and Doug Carter, Indiana State Police Superintendent made the announcement.
“For years, this insatiable child sex predator demonstrated utter disregard for the safety and dignity of children to satisfy his own sick lusts,” said Zachary A. Myers, United States Attorney for the Southern District of Indiana. “It is especially chilling that he was grooming an additional victim online and repeatedly sought to work in daycares and as a babysitter. The sentence imposed today demonstrates that a civilized society will simply not tolerate these heinous crimes against our children. I commend the Martinsville Police Department, Indiana State Police, and the Indiana Internet Crimes Against Children Task Force for working together to remove this dangerous pedophile from our community.”
Martinsville Police Department, Indiana State Police, the Indiana Internet Crimes Against Children Task Force, and FBI investigated the case. The Morgan County Prosecuting Attorney’s Office prosecuted the related state cases. The sentence was imposed by U.S. District Court Judge James R. Sweeney. Judge Sweeney also ordered that Herrington be supervised by the U.S. Probation Office for life following his release from federal prison. Herrington must continue to register as sex offender where he lives, works, and goes to school as required by law and has been ordered to pay restitution to Minor Victim 1.
U.S. Attorney Myers thanked Assistant United States Attorney Tiffany J. Preston, who prosecuted this case.
This investigation was conducted by the Indiana Internet Crimes Against Children (ICAC) Task Force, a partnership of federal, state, and local law enforcement agencies led by the Indiana State Police. The Task Force is dedicated to investigating and prosecuting crimes involving the technology-facilitated sexual exploitation of children and the trafficking of child sexual abuse material. Each year, Indiana ICAC investigators evaluate thousands of tips, investigate hundreds of cases, and rescue dozens of children from ongoing sexual abuse. In fiscal year 2019, the most recent year for which data is available, the Southern District of Indiana was second out of the 94 federal districts in the country for the number of child sexual exploitation cases prosecuted.
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 U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc
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