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24 March 2023
Grand Island Woman Sentenced for Distribution of MethamphetamineRead the Press Release
United States Attorney Steven Russell announced that Kendra R. Baker, 37, of Grand Island, Nebraska, was sentenced today in federal court in Lincoln. Senior United States District Judge John M. Gerrard sentenced Baker to 54 months in prison for distribution of 50 grams or more of methamphetamine mixture and 5 grams or more of methamphetamine actual. After serving her sentence, Baker will serve a 3-year term of supervised release. There is no parole in the federal system.
In March and April of 2021, drug investigators used a confidential informant to arrange the controlled purchase of methamphetamine from Baker. Four methamphetamine purchases were conducted during that time period at various locations in Grand Island and Hastings. The quantities purchased during those buys ranged from a half ounce to two ounces of methamphetamine. Baker sold in total over 125 grams of lab-confirmed methamphetamine. Some of that methamphetamine was tested for purity and determined to contain at least 74 grams of actual methamphetamine.
This case was investigated by the Tri-City Drug Enforcement Team (TRIDENT). TRIDENT is a task force with law enforcement personnel from the Adams County Sheriff’s Office, Buffalo County Sheriff’s Office, Federal Bureau of Investigation, Grand Island Police Department, Hall County Sheriff’s Office, Hastings Police Department, Homeland Security Investigations, Kearney Police Department, and the Nebraska State Patrol.
Glasford, Illinois, Man Sentenced to 50 Years in Prison for Production of Child Pornography and Possession of Child PornographyRead the Press Release
PEORIA, Ill. – Benjamin C. Lascelles, 36, of the 600 block of Main Street in Glasford, Illinois, was sentenced on March 23, 2023, to 360 months’ imprisonment for producing child pornography, to be served consecutive to a 240-month prison sentence for possession of child pornography. In total, Lascelles was sentenced to 50 years’ imprisonment, to be followed by a lifetime term of supervised release. Lascelles must also register as a sex offender once he is released. His sentence will be served concurrently with a case filed in Peoria County, where he pleaded guilty to predatory criminal sexual assault and aggravated criminal sexual assault and was sentenced to 48 years and 7 years in prison, respectively.
At the sentencing hearing before U.S. District Judge James E. Shadid, the government presented evidence that Lascelles video recorded and photographed himself sexually assaulting two children, ages 8 and 6, on multiple occasions in December 2019. In February 2020, law enforcement officers with the Peoria County Sheriff’s Office and the United States Secret Service executed a search warrant at Lascelles’ residence in Glasford and seized his electronic devices, including computers, cameras, mobile devices, and electronic storage devices. A forensic review of the devices revealed that Lascelles had produced 90 images and 8 videos of minors engaged in sexually explicit conduct, including videos of himself engaged in sex acts with a prepubescent minor.
Also at the hearing, Judge Shadid discounted Lascelles’ continued insistence that he was not sexually interested in children and had no recollection of the conduct for which he was being sentenced due to his excessive alcohol use.
Lascelles was arrested on a criminal complaint in the federal case in February 2020. An indictment was filed in March 2020. He pleaded guilty to sexual exploitation of a minor and possession of child pornography in November 2022. He has remained in custody throughout the pendency of his case.
The statutory penalties for sexual exploitation of a minor are 15 to 30 years’ imprisonment and the penalties for possession of child pornography are up to 20 years’ imprisonment. Each of the charges carries a minimum five-year term of supervised release and a possible fine of up to $250,000. Special assessments under the Justice for Victims of Trafficking Act are also possible.
The United States Secret Service, assisted by the Canton Police Department, the Peoria County Sheriff’s Department, and the Internet Crimes Against Children Task Force investigated the case. Assistant U.S. Attorney Ronald L. Hanna represented the government in the prosecution.
The case against Lascelles 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.
German Man Charged with Travel with Intent to Engage in Illicit Sexual ConductRead the Press Release
NEWARK, N.J. – A German man will make his initial court appearance today on charges that he traveled to New Jersey for the purpose of engaging in sexual conduct with a minor, U.S. Attorney Philip R. Sellinger announced.
Christian Stefan Walther, 38, of Erfurt, Germany, is charged by complaint with one count of travel with intent to engage in illicit sexual conduct. Walther is scheduled to make his initial appearance this afternoon before U.S. Magistrate Judge Edward S. Kiel in Newark federal court.
According to documents filed in this case and statements made in court:
Law enforcement authorities have been investigating Walther since January 2023 for child exploitation offenses. Two undercover officers communicated with Walther via email, phone, and an encrypted messaging app concerning Walther’s desire for sexual encounters with young children. During the investigation Walther sent an undercover officer two videos, each of which depicted an adult male sexually assaulting a prepubescent female child. Walther also expressed his desire to engage in sexual conduct with children aged 8 to 12, and explained that he had lied to his friends in Germany about the purpose of his trip to the United States. On March 23, 2023, Walther traveled from Germany to New Jersey to meet the undercover officers in advance of what he believed would be a sexual encounter with one or more children at a hotel.
The charge of interstate travel with intent to engage in illicit sexual conduct carries a maximum statutory penalty of 30 years in prison and a maximum fine of $250,000.
U.S. Attorney Sellinger credited special agents of the Department of Homeland Security, Homeland Security Investigation, under the direction of Special Agent in Charge Ricky J. Patel in Newark, with the investigation leading to the charge. He also thanked officers of the New Jersey State Police, under the leadership of Col. Patrick J. Callahan, for its assistance.
The government is represented by Assistant U.S. Attorney Matthew Specht of the General Crimes Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
walther.complaint.pdfFraudulent Tax Return Preparer Sentenced in San AntonioRead the Press Release
SAN ANTONIO – A San Antonio man was sentenced in a federal court in San Antonio Thursday to 12 months and one day in prison for preparing false tax returns.
According to court documents, Eden Garza, 43, prepared numerous false income tax returns for clients between tax years 2014 and 2019. IRS-Criminal Investigation agents determined that Garza aided and assisted in the preparation of 49 false income tax returns by falsifying filing statuses, itemized deductions, income and expenses, and residential energy credits. The fraudulent refunds resulted in a criminal tax loss of $255,967. The investigation also revealed that Garza had received a preparation fee from his clients, which was usually 10% of the refund received.
In addition to the prison sentence, Garza was ordered to serve one year of supervised release and pay restitution equal to the criminal tax loss of $255,967.
“This case serves as an important reminder—especially at this time of the year—to be aware of those who commit tax fraud,” said U.S. Attorney Jaime Esparza of the Western District of Texas. “The preparers of false income tax returns do untold damage to our nation, and hopefully this sentencing will serve to deter others from preparing false returns for financial gain.”
“Federal prison is a fitting home for this tax criminal who flaunted his criminal enterprise by placing advertising stickers on the false tax returns he prepared,” said Acting Special Agent-in-Charge Rodrick J. Benton of IRS-CI’s Houston Field Office. “Approximately 98% of investigated tax returns he prepared were egregiously false. As we wind down tax season, know that criminals like him will go to prison for stealing from our nation.”
IRS-CI investigated the case.
Assistant U.S. Attorneys Bill Harris and Kelly Stephenson prosecuted the case.
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Former investment advisor pleads guilty to multimillion-dollar Ponzi schemeRead the Press Release
ATLANTA - John J. Woods, the former President of Southport Capital and manager of Horizon Private Equity, III, LLC, has pleaded guilty to operating a Ponzi scheme that defrauded hundreds of investors out of more than $25 million.
“Woods promised investors low-risk investments, profitable returns, and a diversified portfolio, all while secretly using money raised from new investors to primarily pay earlier investors,” said U.S. Attorney Ryan K. Buchanan. “Investors should respond with caution to financial offers that sound too good to be true and are cloaked in the promise of low risk and high rates of return.”
“It is the FBI’s hope that today’s guilty plea will provide some sense of relief to those victims that have suffered so much by Mr. Woods greed- fueled conduct,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “This case serves as another reminder that investors need to be careful, and do their research, when deciding who to trust with their hard-earned money.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Woods operated a Ponzi scheme until being shut down by the U.S. Securities and Exchange Commission in 2021. Woods solicited investors to invest in a fund called, “Horizon Private Equity.” Woods, and other investment adviser representatives acting under his direction, promised potential Horizon investors rates of return of six to seven percent on their investment and that Horizon would earn a return by investing their money in, for example, government bonds, stocks, or small real estate projects. Woods and his confederates also assured investors that Horizon investments carried minimal risk and were safe because Horizon had a diverse portfolio.
Contrary to these representations, the money received from new investors was not invested in a diverse portfolio; and money collected from new investors was used largely to pay returns to previous investors. In fact, Horizon was able to pay guaranteed returns to investors only by raising and using new investor money. As a part of the scheme, Woods caused Horizon to issue monthly statements to investors that fraudulently misled investors by failing to disclose that the Horizon investments had not generated a positive percentage of return sufficient to cover the interest.
As of the end of July 2021, Horizon investors were owed more than $110,000,000 in principal investment amounts. And over 400 investors, residing in at least 20 different states, held investments in Horizon. Losses are still being calculated, but investors have lost more than $25 million because of Woods’s scheme to defraud.
Sentencing for John J. Woods, 58, of Marietta, Georgia, has not yet been scheduled. He pleaded guilty to a criminal information charging a single offense of wire fraud, in violation of Title 18, U.S. Code, Section 1343.
This case is being investigated by the Federal Bureau of Investigation. The SEC provided valuable assistance. The SEC’s separate civil case is SEC v. Woods et al., No. 1:21-CV-03413-SDG (N.D. Ga.).
Assistant U.S. Attorneys Angela Adams and Stephen H. McClain are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former U.S. Serviceman Pleads Guilty to Exporting Defense Items Such as Night Vision Goggles to Russia in Violation of Federal LawRead the Press Release
LOS ANGELES – A former member of the United States military pleaded guilty today to conspiring to unlawfully export to Russia defense articles – including thermal imaging riflescopes and night vision goggles – without a license in violation of the Arms Export Control Act.
Igor Panchernikov, 41, a former Corona resident who once served in the United States Air Force Reserves, pleaded guilty to one count of conspiracy to violate the Arms Export Control Act. He has been in federal custody since July 2022 after being extradited to the United States from Israel.
According to his plea agreement, from December 2016 to May 2018, Panchernikov conspired with other individuals to knowingly export from the United States to Russia defense articles without obtaining from the State Department a valid license or other approval for such exports.
Panchernikov’s accomplices purchased defense articles – including thermal riflescopes, weapons sights, monoculars, and night vision googles – from various online sellers located in the United States and directed the sellers to mail those items to Panchernikov’s residence in Corona.
At his Corona residence, Panchernikov received at least 19 defense articles that his co-conspirators purchased from online sellers. After receiving these items, Panchernikov inspected the items to ensure that they were undamaged and operational. Pursuant to his co-conspirators’ instructions, Panchernikov then mailed two of the items to accomplices in Russia and mailed 17 defense articles to Elena Shifrin, 61, of Mundelein, Illinois, who then mailed these items to Russia.
To conceal his unlawful activities, when Panchernikov exported the two defense articles to Russia, he listed fictitious sender names on the packages containing the items. He also falsely identified the items in the packages as non-export-controlled items, such as clothing. Finally, he concealed the defense articles in other items, including a drill press.
United States District Judge André Birotte Jr. scheduled a June 23 sentencing hearing, at which time Panchernikov will face a statutory maximum sentence of 20 years in federal prison.
Shifrin pleaded guilty in February 2022 to one count of conspiracy to violate the Arms Export Control Act. Her sentencing hearing is expected in the coming months.
Vladimir Pridacha, 57, of Volo, Illinois, has pleaded not guilty to criminal charges in this case and has an August 29 trial date scheduled.
Two other defendants charged in this case – Boris Polosin, of Russia, and Vladimir Gohman, of Israel – are fugitives.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The FBI’s Los Angeles and Chicago field offices investigated this matter, with substantial assistance from the United States Postal Inspection Service and Homeland Security Investigations.
Assistant United States Attorney David T. Ryan, Chief of the Terrorism and Export Crimes Section, and Assistant United States Attorney Wilson Park of the Terrorism and Export Crimes Section are prosecuting this case.
Former Tampa Area Real Estate Professional Sentenced to 24 Months for Money Laundering ConspiracyRead the Press Release
Tampa, Florida – U.S. District Judge Mary S. Scriven has sentenced Frank Sebastian Visicaro (63, Trinity) to 24 months in federal prison for conspiracy to commit money laundering. As part of his sentence, the court also ordered Visicaro to pay restitution in the amount of $1,088,440, the proceeds of funds laundered through bank accounts he controlled. Visicaro had pleaded guilty on December 9, 2021.
According to the plea agreement, Visicaro used his real estate company, two shell companies, and bank accounts in the companies’ names to launder the proceeds of an international boiler room fraud scheme, which defrauded foreign victims via the sale of worthless investments. Visicaro used the companies and bank accounts to receive fraud proceeds. Some of the fraud proceeds were wired directly from victims overseas into these accounts. More often, fraud proceeds from the victims were wired to United States-based accounts controlled by other conspirators and then later wired to accounts controlled by Visicaro. In such instances, Visicaro’s accounts served as “buffer” accounts, that is, secondary bank accounts used to transfer and conceal foreign victims’ money and avoid detection by banks.
In total, more than $1 million in victims’ funds flowed into Visicaro-controlled accounts. Thereafter, at the direction of other conspirators, Visicaro wired most of the funds to multiple other financial institutions—held by, among others, boiler room sales agents or other conspirators—in order to promote the scheme and to conceal and disguise the source of, and to hinder any efforts to locate, those proceeds. Visicaro was compensated, via a percentage of the amount of funds he helped to launder, for his role in the conspiracy.
“We are committed to stopping transnational criminal organizations from targeting unsuspecting victims with fraudulent investment schemes that use high-pressure tactics,” said HSI Tampa Assistant Special Agent in Charge John Dumas. “HSI Tampa and the Internal Revenue Service – Criminal Investigation (IRS-CI) are formidable investigative partners working together with our international partners to stop these fraudsters from taking peoples’ hard-earned money.”
“Illegal activity involving the investment industry has brought financial ruin to many people,” said IRS-CI Acting Special Agent in Charge Ronald A. Loecker. “IRS Criminal Investigation is determined to attack these fraud schemes by utilizing our forensic accounting skills and working side by side with Homeland Security Investigations and put a stop to this and other types of financial crime.”
This case was investigated by the Homeland Security Investigations (HSI) and the Internal Revenue Service – Criminal Investigation. It was prosecuted by Assistant United States Attorneys Rachelle DesVaux Bedke and David W.A. Chee.
Former Servicemember Sentenced to 30 Years for Directing Minors to Produce Child PornographyRead the Press Release
NEWPORT NEWS, Va. – A Surprise, Arizona, man was sentenced this week to 30 years in prison and a lifetime of supervised release for production of child sexual abuse material (CSAM).
According to court documents, from summer of 2021 through March 2022, Elliott Velez, 38, used over 28 known fictitious social media accounts across multiple platforms to engage in sexually graphic conversations with girls under the age of 18. During these conversations with the victims, Velez would instruct them to engage in sexually explicit conduct, take photos or videos, and send the images to him. Velez would give explicit instructions on what he wanted them to do and who he wanted them to engage in sexually explicit conduct with, including other underage individuals. Review of just one account during the span of just one week Velez had engaged in over 7,000 lines of sexually graphic conversations with minors. Velez would use a recording device on his phone to ensure that he could keep these videos and images without the victim’s knowledge.
Velez was an active-duty Senior Master Sergeant in the Air Force who was located in Newport News during the time of his illegal conduct.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office; Derek W. Gordon, Acting Special Agent in Charge of U.S. Homeland Security Investigations (HSI) Washington, D.C.; and Steve R. Drew, Chief of Newport News Police, made the announcement after sentencing by Senior U.S. District Judge Raymond A. Jackson.
Assistant U.S. Attorney Devon Heath prosecuted the case.
This case was investigated by the FBI’s Norfolk Child Exploitation Task Force (NCETF), as part of Project Safe Childhood. The NCETF is composed of FBI agents and detectives from the Chesapeake Police Department, Hampton Police Division, and Newport News Police Department. Assistance in this matter was also provided by federal agents from Homeland Security Investigations. The task force is charged with investigating and bringing federal charges against individuals engaged in the exploitation of children. Tips regarding child exploitation can be provided to the task force at 1-800-CALL-FBI or tips.fbi.gov.
In 2021, EDVA launched “UnMasked,” a community-based educational outreach and prevention program in Virginia dedicated to raising awareness and educating the community about the prevalence of online sexual exploitation involving children and young adults. UnMasked is a multi-disciplinary partnership of local, state, federal, and non-profit stakeholders. The core curriculum is provided by the National Center for Missing and Exploited Children’s (NCMEC) NetSmartz program. To report an incident involving online sexual exploitation, call 1-800-843-5678 or submit a report at report.cybertip.org. To request an UnMasked event at your school or organization, please contact EDVA’s Community Outreach Coordinator at [email protected].
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. 4:22-cr-28.
Florida Woman Sentenced to Prison for Embezzling over $270,000 from Non-Profit OrganizationRead the Press Release
WASHINGTON – Kristina Ann Ballard, 53, of Largo, Florida, was sentenced today to three years in prison for embezzling more than $270,000 from her former employer, a nonprofit organization in Washington, D.C.
The announcement was made by U.S. Attorney Matthew M. Graves and Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office’s Criminal Division.
In March 2022, Ballard pleaded guilty to wire fraud in the U.S. District Court for the District of Columbia. In addition to the prison term, the Honorable Royce C. Lamberth ordered that she serve three years of supervised release and pay $271,465.86 in restitution and an identical amount in a forfeiture money judgment.
Ballard worked for the nonprofit organization between August 2014 and December 2020, at which point she was fired for poor performance. She served as the organization’s Director of Finance. From January 2015 through December 2020, she embezzled $271,465.86.
Ballard started embezzling from the D.C. non-profit just four days after she was indicted in Arlington County, Virginia, for embezzling from a previous employer. In July 2015, a Virginia court sentenced her to four years of probation. In conjunction with her sentencing in that case, Ballard said she had learned from her mistakes and would “never let [something like this] happen again.” In fact, between the time she was indicted in Virginia in January 2015 and sentenced in July 2015, she had embezzled more than $30,000 from the D.C. employer. Following the imposition of the probationary sentence, Ballard went on to steal approximately $240,000 more from the D.C. non-profit.
Ballard stole from the D.C. non-profit by wiring organization funds to bank accounts that she controlled, intercepting credit card rewards checks issued to the organization and then depositing them into a bank account she controlled, and fraudulently charging personal purchases on the organization’s credit card. On Nov. 5, 2020, she used the organization’s credit card to pay $24,694 in restitution to the Virginia court for her prior embezzlement scheme.
Ballard concealed her fraud from the D.C. employer by listing various beneficiary names on wire transfers and creating fake invoices, often using fake company names. She also forged the Executive Director’s signature on the credit card rewards checks before she deposited them.
This case was investigated by the FBI’s Washington Field Office and prosecuted by Assistant U.S. Attorney Kondi Kleinman with assistance from Paralegal Specialist Michon Tart and former Paralegal Specialist Angeline Thekkumthala.
Firearms Trafficker Linked to Cartel Sentenced to 10 Years in PrisonRead the Press Release
A Fort Worth man who attempted to traffic a military-grade machine gun to a Mexican drug cartel was sentenced today to 10 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Daniel Loyola, Jr., 24, pleaded guilty in December 2022 to possession of a machinegun. He was sentenced Friday by U.S. District Judge Reed O’Connor.
“Thanks to excellent undercover work by ATF and Texas DPS, we have thwarted a firearms trafficker intent on sending dangerous guns to a drug cartel,” said U.S. Attorney Leigha Simonton. “The Justice Department is committed to stemming the flow of firearms across the southern border.”
“The fight to keep high powered weapons out of the hands of drug cartels and narco-terrorists is real and here in North Texas. ATF and our partners are working tirelessly to protect both the citizens of the United States and Mexico from the scourge of violence perpetrated by weapons like this. Mr. Loyola’s ten-year sentence should serve as a warning to others looking to get into the firearms trafficking business,” stated ATF Dallas Field Division Special Agent in Charge Jeffrey C. Boshek II.
According to court documents, Mr. Loyola posted on Instagram that he possessed a potential machinegun, a potential silencer, and a .50 caliber rifle – a firearm commonly sought by Mexican drug cartels – and that he wished to buy a high-caliber machine gun.
Seeing these posts, an undercover agent initiated a conversation. Ultimately, Mr. Loyola agreed to purchase an M-60 from the undercover for $20,000 cash, and mentioned that the payment would be coming from Mexico.
On Oct. 25, 2022, Mr. Loyola met with two undercover agents in a parking lot in Fort Worth. He handed over the money, and they presented him with a cardboard box containing an M-60 in three pieces, the frame/receiver and two barrels.
One of the undercover agents explained that the firearm was fully automatic; Mr. Loyola responded, “yeah, I know.” After paying over $20,000 in cash for the firearm, Mr. Loyola began to take possession of the machinegun and was immediately taken into custody.
Following his arrest, Mr. Loyola admitted that he had purchased the M-60 on behalf of an individual who worked for a Mexican drug cartel. He stated that he’d sold multiple firearms to the man before, and that the .50 caliber rifle he’d posted on Instagram was also purchased on the individual’s behalf.
At Friday’s sentencing hearing, Judge O’Connor found that the defendant was engaged in the trafficking of firearms, and applied an enhancement to his sentence based on that finding.
The Bureau of Alcohol, Tobacco, Firearms & Explosives’ Dallas Field Division and the Texas Department of Public Safety conducted the investigation with the assistance of the Fort Worth Police Department. Assistant U.S. Attorney Levi Thomas prosecuted the case.
Federal Jury Convicts Registered Sexual Predator of Attempting to Entice A 14-Year-Old Child to Produce Sexual Abuse Videos Using A Smart PhoneRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces that a federal jury has found Paul Edward Lee, Jr. (43, Jacksonville) guilty of attempting to entice a 14-year-old child to produce and send him pornographic videos and images depicting her own sexual abuse. In 2011, Lee was convicted of lascivious molestation and exhibition of a 10-year-old child and was required to register as a sexual predator. Because of these prior child sex convictions, at sentencing Lee faces an enhanced minimum mandatory penalty of 25 years, up to 50 years, in federal prison and a potential life term of supervised release. Lee was arrested in Jacksonville on May 2, 2018. His sentencing hearing is set for July 10, 2023.
According to evidence and testimony introduced at trial, in April 2018, an FBI agent in Illinois discovered that a 14-year-old child was having online contact with an adult male in Florida through a smart phone gaming application (app) designed for use by children. The messages sent to the child by the adult male were increasingly graphic and sexually explicit. The FBI was able to identify this individual as Paul Edward Lee, Jr., a registered sexual predator living in a residence in Jacksonville along with eight other registered sex offenders. On April 25, 2018, an undercover FBI agent in Jacksonville, posing as the 14-year-old child, resumed text messaging with Lee. During these communications, Lee told the “child” in graphic terms how he wanted to have sex with the “child,” and he sent several images and videos of his own genitalia to the “child.” On April 27, 2018, Lee repeatedly texted and solicited the “child” to produce and send him graphic images and videos of “her” genitalia. When FBI agents executed a federal search warrant at his residence on May 2, 2018, Lee damaged his cellphone in an effort to conceal evidence of his criminal activity.
This case was investigated by the Federal Bureau of Investigation and the Jacksonville Sheriff’s Office. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Federal Inmate Pleads Guilty to Mailing Threat Letters to Federal Judge and Members of CongressRead the Press Release
SYRACUSE, NEW YORK – Dennis J. Nelson, age 51, currently incarcerated in Federal Bureau of Prisons Federal Correctional Facility in Devens, Massachusetts (FCI Devens) pled guilty today to mailing threat letters in 2018 and 2019, while incarcerated in State of New York correctional facilities, to a Federal Judge and to two members of Congress.
United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI) made the announcement.
As part of his guilty plea, Nelson admitted that on August 1, 2018, while incarcerated in a New York State correctional facility, Nelson mailed a threat letter containing a bomb threat to the chambers of United States District Judge Thomas J. McAvoy in Binghamton, New York, threatening to kill Judge McAvoy and those at the federal courthouse with a bomb. As further part of his guilty plea, Nelson admitted that on July 15, 2019, while incarcerated in a New York State correctional facility, Nelson mailed threat letters to the offices of then United States representative Anthony Brindisi, containing a bomb threat to kill Representative Brindisi, and to United States Senator Charles Schumer, containing a bomb threat to kill Senator Schumer.
At sentencing on a date yet to be determined, Nelson faces a term of imprisonment of 84 months, a fine of up to $250,000, and a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors. In this case, if the plea agreement is accepted by the Court, Nelson will be sentenced to an agreed upon sentence of incarceration of 84 months.
The Federal Bureau of Investigation Joint Terrorism Task Force (FBI JTTF), the New York State Department of Corrections and Community Supervision’s Office of Special Investigation (NYS DOCCS OIG), and the United States Capitol Police are investigating the case. Assistant U.S. Attorney Carl G. Eurenius is prosecuting the case.
Federal Grand Jury Indicts Two Peoria, Illinois, Residents for Fraud Related to COVID Relief Funds and Unemployment InsuranceRead the Press Release
PEORIA, Ill. – A grand jury returned indictments on March 21, 2023, against two Peoria, Illinois, residents, charging them with fraudulently obtaining pandemic related and unemployment benefits via the Paycheck Protection Program (PPP) administered through the Small Business Administration (SBA).
Andre Johnson, 25, was charged with three counts of wire fraud and one count of making a false statement. The indictment alleges the offenses occurred from May 2020 through September 2021 in Peoria County, Illinois.
Shon Smith, 33, was charged with one count of mail fraud, one count of wire fraud, and one count of making a false statement. The indictment alleges the offenses occurred from June 2020 through June 2021 in Peoria County, Illinois.
Each of the individuals has been issued a summons to appear in federal court in Peoria for arraignment on April 12, 2023.
If convicted, the maximum statutory penalty for each offense of wire fraud or mail fraud is 20 years’ imprisonment, a three-year term of supervised release, and restitution. The statutory maximum penalty for making a false statement is five years’ imprisonment, a three-year term of supervised release, and restitution.
The investigation was conducted by the Department of the Treasury, Internal Revenue Service, Criminal Investigation, and the Federal Bureau of Investigation, Springfield Field Office. Criminal Chief Darilynn J. Knauss is representing the government in the prosecutions.
COVID-19 disaster relief and enhanced unemployment benefits are intended to help people and businesses suffering as a result of the pandemic. If members of the public suspect anyone fraudulently obtained or misused benefits, they should contact the National Center for Disaster Fraud (NDCF) Hotline at 1-866-720-5721 or submit the NCDF Web Complaint Form. The NCDF is a national coordinating agency within the Department of Justice’s Criminal Division dedicated to improving the detection, prevention, investigation, and prosecution of criminal conduct related to natural and man-made disasters and other emergencies, such as the coronavirus (COVID-19). Hotline staff will obtain information regarding complaints, which will then be reviewed by law enforcement officials. More information is available at https://www.justice.gov/disaster-fraud.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Former Baptist Paramedic Sentenced for Tampering with OpioidsRead the Press Release
OXFORD, MS – An Oxford man was sentenced on Thursday, March 23, 2023, to three years supervised release and ordered to pay $30,405 in restitution for tampering with opioids while working as a paramedic with Baptist Ambulance.
According to court documents, Richard Fox Bowen, 35, of Oxford, Mississippi, a former Baptist Ambulance employee, tampered with vials of Morphine and Fentanyl on or around October 2021, and at other times thereafter, while working his shift as a paramedic. The defendant injected himself with Fentanyl and Morphine from the vials and disguised his theft of the drugs by refilling the vials with saline solution. The defendant acted with reckless disregard by placing the tampered-with vials back into service, which put Baptist Ambulance patients in danger of bodily injury, and under the circumstances, manifested extreme indifference to this risk.
“Our office is committed to protecting the health and safety our citizens,” said United States Attorney Clay Joyner. “Actions like the ones committed by the defendant place citizens in grave danger of harm and bodily injury and cannot be tolerated.”
“Patients rely on the knowledge that they will receive FDA-approved medications to manage their conditions,” said Special Agent in Charge Justin Fielder, FDA Office of Criminal Investigations Miami Field Office. “When health care professionals tamper with those needed medications, we will pursue and bring them to justice.”
The FDA Office of Inspector General investigated the case, working with Priority Ambulance Diversion Task Force.
Assistant U.S. Attorney Philip Levy prosecuted the case.
Eucha Man Sentenced for Strangling an Intimate PartnerRead the Press Release
A man was sentenced Friday in federal court for strangling an intimate partner in 2021.
“Daniel Jumper strangled the victim and threatened to kill her,” said U.S. Attorney Clint Johnson. “Since taking on a significant increase in domestic violence cases in 2020, federal prosecutors in the Northern District of Oklahoma have proven they are fully capable and have the will to ensure perpetrators of family violence are held accountable for their crimes. I am proud of their pursuit of justice in these cases.”
Chief U.S. District Judge John F. Heil III sentenced Daniel Lee Jumper, 27, of Eucha, to 20 months in federal prison for assault of an intimate/dating partner by strangling and attempting to strangle in Indian Country. Following his term of imprisonment, he will serve three years on supervised release.
In a plea agreement, Jumper admitted that he threatened to kill his spouse after becoming angry with her on Dec. 6, 2021. He then threatened to “rip her head off,” grabbed the victim’s throat and strangled her.
According to court documents, Jumper also punched two individuals who tried to intervene. When he did so, he caused one of them to drop an 8-month-old child .
The FBI and the Delaware County Sheriff’s Office conducted the investigation. Assistant U.S. Attorney William Rubens prosecuted the case.
Dixmont Woman Faces 10+ Years for Role in Penobscot and Aroostook County Drug TraffickingRead the Press Release
BANGOR, Maine: A Dixmont woman pleaded guilty in U.S. District Court in Bangor today to conspiracy to distribute and possess with intent to distribute methamphetamine and fentanyl and one count of conspiracy to make false statements to federal firearms dealers.
According to court records, between January 2018 and December 2021, Sarah McBreairty, 33, conspired with others to traffic methamphetamine and fentanyl in Penobscot and Aroostook counties. As part of the conspiracy, McBreairty obtained large quantities of the drugs from a source and distributed them to area dealers. In June 2021, McBreairty conspired with others to make false statements to a federal firearms licensee in Holden to obtain firearms for her drug source. The attempted purchase was denied by the National Instant Criminal Background Check System (NICS) background check center.
McBreairty faces 10 years to life in prison, a $10 million fine and five years of supervised release for the drug conspiracy offense. She faces a maximum of five years in prison, a $250,000 fine and three years of supervised release on the firearms charge. She will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The U.S. Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, and Maine Drug Enforcement Agency investigated the case. Assistance was provided by the Old Town and Bangor police departments.
Organized Crime Drug Enforcement Task Forces: 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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District Man Sentenced to 35 Years in Prison in Slaying of 71-Year-Old ManRead the Press Release
WASHINGTON – Edward Brown, 60, of Washington, D.C., was sentenced today to 35 years in prison for slaying of 71-year-old man in an apartment building in Northwest Washington announced by U.S. Attorney Matthew M. Graves and Chief Robert J. Contee III, of the Metropolitan Police Department (MPD).
Brown was found guilty of first degree-murder while armed and second-degree murder while armed arising from the same set of facts. Each charge also carried a senior citizen enhancement. The verdict followed a trial in Superior Court of the District of Columbia. He was sentenced by the Honorable Rainey Brandt.
Brown was arrested on February 27, 2018. He has been in custody ever since.
On the morning of Feb. 5, 2018, the Metropolitan Police Department was called to an apartment in the 2300 block of 11th Street NW for a report of an unconscious person. They discovered the victim, Michael Mahoney, inside his apartment, fatally stabbed in the neck. Brown, who was temporarily staying in the apartment, was the last person to be seen on video surveillance going into and out of the apartment before Mr. Mahoney’s body was discovered by his concerned and vigilant senior friends.
Brown was arrested Feb. 27, 2018. He has been in custody ever since.
In announcing the verdict, U.S. Attorney Graves and Chief Contee commended the work of those who investigated the case from the Metropolitan Police Department. They expressed appreciation for the assistance provided by the Capital Area Regional Fugitive Task Force. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S Attorneys John Giovannelli, Sharon Donovan, Daniel Lenerz, and Jeffrey Wojcik; former AUSA Puja Bhatia, Paralegal Specialists Grazy Rivera, Kelly Blakeney, and Stephanie Siegerist; Investigative Analyst Zachary McMenamin; Supervisory Litigation Technology Specialist Leif Hickling; Litigation Technology Specialist Charlie Bruce; Katina Adams-Washington, LaJune Thames, and Nikiya Burnette of the Victim/Witness Assistance Unit; former Victim/Witness Advocate Diana Lim, sand Victim/Witness Advocate Karina Hernandez.
Finally, they commended the work of Assistant U.S. Attorneys Monica Trigoso and Prava Palacharla, who investigated and prosecuted the case.
District Man Sentenced for Second-Degree Murder for Killing Woman in Her ApartmentRead the Press Release
WASHINGTON – Darnell Sterling, 57, of Washington, D.C., was sentenced today to 27 years in prison on charges stemming from the murder of his girlfriend, whose body has never been recovered, announced U.S. Attorney Matthew M. Graves and Robert J. Contee III, Chief of the Metropolitan Police Department (MPD).
Sterling was found guilty on October 3, 2022, following a trial in the Superior Court of the District of Columbia, of second-degree murder and a related charge of contempt. In addition to the prison term, Superior Court Judge Maribeth Raffinan ordered five years of supervised release.
According to the government’s evidence, in the early morning hours of July 17, 2020, Sterling fatally attacked the victim, Olga Ooro, 34, inside her apartment in the 300 block of Massachusetts Avenue NW. Ms. Ooro’s body has never been found. Sterling killed Ms. Ooro while her seven-year-old son was asleep, in the apartment, in his own bedroom. He cleaned up the crime scene and left the building. He then returned the next night and used Ms. Ooro’s keys to enter the building and retrieve the body from a hidden location. He then loaded the body into his car and disposed of it.
Ms. Ooro was reported missing after her son was found wandering the apartment building.
At the time of the murder, Sterling was under a court order to stay away from Ms. Ooro, following his arrest for assaulting her on April 20, 2020. Sterling was arrested in the murder case on July 23, 2020. He has been in custody ever since.
In announcing the sentence, U.S. Attorney Graves and Chief Contee commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the assistance provided by the FBI, the Maryland State Police, the Ocean City, Maryland, Police Department, the District of Columbia Department of Forensic Sciences, and Bode Technology. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Supervisory Paralegal Specialist Tasha Harris; Paralegal Specialist Stephanie Gilbert; Investigative Analyst Zachary McMenamin; Victim/Witness Advocate Christina Bloodworth; former Victim/Witness Advocate Marcia Rinker; Maenylie Watson, Tonya Jones, and Katina Adams-Washington, of the Victim/Witness Assistance Unit; Supervisory Litigation Technology Specialist Leif Hickling; Litigation Technology Specialist Maisha Treadwell, and Intern Ahna Halpern.
Finally, they commended the work of Assistant U.S. Attorneys Michael Liebman and Kristian Hinson, who investigated and prosecuted the case.
District Man Found Guilty of Murder and Related Charges for Killing Man in Apartment Building Lobby in Southeast WashingtonRead the Press Release
WASHINGTON – Shaka Haltiwanger, 23, of Washington, D.C., has been found guilty by a jury of second-degree murder while armed and related charges stemming from a mid-morning shooting that took place on September 10, 2021 in an apartment building lobby in Southeast Washington, announced U.S. Attorney Matthew M. Graves and Chief Robert J. Contee III, of the Metropolitan Police Department (MPD).
Haltiwanger was found guilty by a jury on Mar. 22, 2023, following a trial in the Superior Court of the District of Columbia, of second-degree murder while armed, possession of a firearm during a crime of violence, carrying a pistol without a license, and possession of a large capacity ammunition feeding device. The Honorable Rainey Brandt scheduled sentencing for May 23, 2023.
According to the government’s evidence, on Sept. 10, 2021, just before 11:30 a.m., the victim, Anthony Kelley, 39, arrived at his father’s apartment building at 1400 29th Street SE to take his father—who had suffered a stroke and could not drive—to the grocery store. When Mr. Kelley entered his father’s apartment, he found Haltiwanger on the living room couch. Haltiwanger had been regularly selling crack cocaine to Mr. Kelley’s father. Mr. Kelley confronted Haltiwanger and physically removed him from the apartment. Haltiwanger and Mr. Kelley continued to argue in the hallway and stairwell of the apartment building until Mr. Kelley separated himself and began to walk away toward the building’s front door. Haltiwanger then removed a 9 mm “ghost gun” equipped with a 50-round magazine drum from his backpack and shot Mr. Kelley once in the back. The gun jammed after the first shot, and Haltiwanger fled the scene. Haltiwanger and others then proceeded to call multiple eyewitnesses to the shooting more than a dozen times using blocked phone numbers while the eyewitnesses were speaking to law enforcement on scene.
Haltiwanger was arrested in the murder case on September 30, 2021. He has been in custody ever since. At the time of the murder, Haltiwanger was on release in a pending gun and drug case in the Superior Court of the District of Columbia.
In announcing the verdict, U.S. Attorney Graves and Chief Contee commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the assistance provided by the U.S. Marshals Service and FBI CAST team. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Sharon Donovan, Deputy Chief of the Homicide Section, and Dan Lenerz of the Appellate Section; Investigative Analyst Zachary McMenamin; Victim/Witness Advocate Jennifer Allen; Victim/Witness Security Specialists Robert Cephas, Marlon Hernandez, and Lesley Slade; Supervisory Victim/Witness Service Coordinator Katina Adams-Washington; Paralegal Specialists Meridith McGarrity and Grazy Rivera; and Supervisory Litigation Technology Specialist Leif Hickling.
Finally, they commended the work of Assistant U.S. Attorneys Gregory Kimak and Charles R. Jones, who investigated, indicted, and prosecuted the case.
Deputy U.S. Marshal Convicted of Conspiracy, Cyberstalking, Perjury, and ObstructionRead the Press Release
A federal jury convicted a deputy U.S. Marshal yesterday for conspiracy to commit cyberstalking, cyberstalking, perjury, and obstruction of a federal matter.
According to court documents and evidence presented at trial, Ian R. Diaz, 44, of Brea, California, and his then-wife, an unindicted co-conspirator (CC-1), posed as a person with whom Diaz was formerly in a relationship (Jane Doe). In that guise, they sent themselves harassing and threatening electronic communications that contained apparent threats to harm CC-1; solicited and lured men found through Craigslist “personal” advertisements to engage in so-called “rape fantasies” in an attempt to stage a purported sexual assault on CC-1 orchestrated by Jane Doe; and staged one or more hoax sexual assaults and attempted sexual assaults on Diaz’s former wife. Diaz and CC-1 then reported this conduct to local law enforcement, falsely claiming that Jane Doe posed a genuine and serious threat to Diaz and CC-1. Their actions caused local law enforcement to arrest, charge, and detain Jane Doe in jail for nearly three months for conduct for which Diaz and CC-1 framed her.
“Ian Diaz abused his position as a deputy U.S. Marshal to execute an intricate cyberstalking scheme that framed an innocent person for sexual assault, leading to her unjust imprisonment for 88 days,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “As this prosecution demonstrates, the Criminal Division is committed to preserving the public’s confidence in law enforcement by holding accountable any official who violates their oath of office and victimizes the community they are sworn to serve.”
In addition, Diaz and CC-1 took steps to conceal their conduct, including using falsely registered email accounts, using virtual private networks to access the internet anonymously, and communicating with each other using encrypted messaging services. Diaz also deleted email accounts used to communicate in furtherance of the scheme.
“Yesterday’s verdict is the culmination of unrelenting investigative work that began in 2017 when the Cyber Investigations Office initiated this case,” said Special Agent in Charge Harry A. Lidsky of the Department of Justice Office of the Inspector General (DOJ-OIG) Cyber Investigations Office. “Diaz’s egregious actions and lies to law enforcement stripped a woman of her freedom and liberty. This kind of stalking, harassment, and obstruction is unconscionable, and yesterday, the jury held Diaz accountable for his crimes. I would like to thank the jury for their time, attention, and careful consideration of the facts of this case.”
“The evidence presented at trial exposed a harrowing scheme concocted by Diaz to frame someone for crimes they didn’t commit,” said Special Agent in Charge Zachary Shroyer of the DOJ-OIG Los Angeles Field Office. “Our investigators worked tirelessly to reveal the truth about the conspiracy, lies, and stalking he committed, and to find justice for his victim.”
Diaz was convicted of one count of conspiracy to commit cyberstalking, one count of cyberstalking, one count of perjury, and one count of obstructing a federal proceeding. He is scheduled to be sentenced on June 30 and faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The DOJ-OIG investigated the case.
Senior Litigation Counsel Marco A. Palmieri and Trial Attorney Rebecca G. Ross of the Criminal Division’s Public Integrity Section and Senior Trial Attorney Mona Sedky of the Computer Crime and Intellectual Property Section are prosecuting the case.
Depew Man Convicted of Sex CrimesRead the Press Release
A Depew man who used Snapchat to coerce and entice a minor to commit sexual acts was convicted Thursday in federal court, announced U.S. Attorney Clint Johnson.
Johnny Lee Summers, 23, was found guilty of coercion and enticement of a minor; sexual abuse of a minor in Indian Country; and abusive sexual contact with a minor in Indian Country.
“The coercive and manipulative conduct perpetrated by Johnny Summers against a teenage girl is criminal and inexcusable,” said U.S. Attorney Clint Johnson. “This week, the victim took a stand against her abuser, joined by two previous child victims of the defendant. Their compelling testimony helped to ensure Summers was held accountable. I want victims to know that the law enforcement community supports them. We will fully investigate accusations of child sexual abuse and work tirelessly to bring abusers to justice.”
Prosecutors showed that Summers coerced a 14-year-old to engage in sexual activity with him from February 2021 to January 2022. Summers sent thousands of sexually inappropriate messages to the victim on Snapchat and convinced her to engage in sexual activity. He also solicited nude images of the victim and sent her nude images of himself.
Summers’ conduct continued to escalate when he regularly isolated the victim in a bathroom and touched the her in a sexual manner. His crimes culminated when Summers attempted to have sex with her in the bathroom.
During trial, two previous victims of Summers testified that he had solicited nude images and videos of them over Snapchat and Facebook messenger when they were underage.
During closing, Assistant U.S. Attorney Luster told the jury that Summers had manipulated the victim, as well as the victim’s older sister, and his attempts to blame others for his conduct should fall on deaf ears, as he needed to be held responsible for his conduct.
The FBI and Tulsa Police Department conducted the investigation. Assistant U.S. Attorneys Valeria G. Luster and Steven J. Briden are prosecuting the case.
Denver Felon Sentenced to 10 Years in Federal Prison for Weapons ViolationRead the Press Release
DENVER - The United States Attorney’s Office for the District of Colorado announces Dedric Mayfield, age 46, of Denver, was sentenced today to 10 years in federal prison after a jury convicted him of possession of ammunition by a convicted felon.
According to facts presented at trial, on August 27, 2021, Mayfield was caught on surveillance cameras firing multiple shots at a man fleeing down an alley near the 1500-block of North Verbena Street in broad daylight in a busy area. After engaging in what appeared to be drug transactions on the street, Mayfield got into an argument with a man who arrived in the area. Mayfield went to a Ford Explorer, got in the passenger seat, and his girlfriend drove the two of them away. Officers responded to the scene within minutes. They found five spent .40 caliber shell casings at the mouth of the alley. They later found a sixth spent .40 caliber shell casing near where the Ford Explorer had been parked. One bullet pierced a window at a gas station located downstream from the alley and shattered a refrigerator door inside. The gas station clerk testified that the path of the bullet from the window to the refrigerator essentially split the distance between two customers waiting in line. Officers later recovered a bullet fragment from the refrigerator. Through the Ford Explorer’s license plate, visible on camera, officers were able to identify Mayfield’s girlfriend, which led them to Mayfield. There was no dispute that he was the man on video. Officers eventually arrested Mayfield and searched his residence. They found clothing that matched what he was wearing during the shooting.
Judge William J. Martinez presided over the two-day trial in April 2022 and sentenced the defendant on March 24, 2023. Judge Martinez also sentenced the defendant to three years of supervised release.
“This dangerous felon posed a significant danger to the public after three decades of guns, violence, and general disregard for the law,” said United States Attorney Cole Finegan. “He will spend the next decade coming to the realization that we will not tolerate such unlawful behavior and will vigorously prosecute those who violate our gun laws."
“Resolving any dispute with firearms is reckless and dangerous,” said ATF Acting Special Agent in Charge Kirk Howard. “Armed felons often commit violent crimes, and we are grateful he will no longer pose a threat to our communities while in prison.”
“Our community is safer today because of the steadfast commitment of the partnering agencies to seek the greatest legal consequences for armed felons causing harm in our community,” said Denver Chief of Police Ron Thomas. “I applaud the efforts of all the investigators and prosecutors and their efforts that resulted in this outcome.”
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Denver Division investigated this case, with assistance from the Denver Police Department. Assistant United States Attorneys Rajiv Mohan and Celeste Rangel and 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.
CASE NUMBER: 21-cr-00341
Court exhibitCouncil Bluffs Man Sentenced for Meth, Firearm, and Escape OffensesRead the Press Release
COUNCIL BLUFFS, IA – A Council Bluffs man was sentenced on March 22, 2023, to a total of 144 months in prison, following his guilty pleas to possession with intent to distribute a controlled substance, possession of a firearm in furtherance of drug trafficking, and escape.
According to court documents, Keven Leroy Spanel, 59, distributed methamphetamine in the Council Bluffs and Omaha metro areas. In early 2022, Spanel was arrested carrying a firearm, which he used to protect himself and his drug trafficking activities. In July 2022, while on temporary release to attend a doctor’s appointment, Spanel escaped on foot by threatening the transportation driver with a screwdriver. Spanel was apprehended five days later by the Council Bluffs Police Department. After his prison term, Spanel will be on supervised release for five years.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Southwest Iowa Narcotics Enforcement Task Force, Council Bluffs Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, and United States Marshal Service investigated the case.
Coral Springs Resident Sentenced to 51 Months for Embezzlement Scheme Against Former Employer and Submission of Fraudulent CARES Act Loan ApplicationRead the Press Release
MIAMI - Jennifer Pamela Izzo, 35, of Coral Springs, Florida, has been sentenced to 51 months in prison for embezzling $94,500 from her former employer, a trucking maintenance company based in Fort Lauderdale. She also exploited her position at the company when filing a COVID-19 assistance loan on its behalf, attempting to fraudulently divert government funds for her own personal benefit. Although the loan was never granted, she stood to gain as much as $150,000 in additional illicit funds.
In August 2019, the auto-maintenance company hired Izzo as its financial bookkeeper, entrusting her with direct access to the vendor accounts and the company credit cards, including the cards issued in the names of individual employees. However, from October 2019 through April 2020, Izzo orchestrated a sophisticated scheme to defraud her employer by creating fictitious vendor accounts that she secretly controlled.] Throughout her employment, she carried out dozens of unauthorized transactions using the company’s credit cards, re-routing the stolen funds from the fake vendors, and ultimately into her own bank account.
During the start of the COVID-19 pandemic, Izzo also abused her position of trust when she was asked to file an Economic Injury Disaster Loan (EIDL) on behalf of the company, seeking federal funds to help cover its payroll expenses. But rather than listing the company’s bank account in the unsuccessful application, Izzo listed her own personal bank account as the intended beneficiary.
Izzo pled guilty on December 20, 2022, to two counts of wire fraud and one count of aggravated identity theft. While awaiting sentencing, Izzo’s bond was revoked and she was remanded into federal custody when the district court found probable cause to believe that Izzo had stolen money from yet another company that had just recently hired her. In addition to her sentence, Izzo has been ordered to pay back in the form of restitution all of the $94,500 stolen from her previous employer.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Rafael Barros of the U.S. Secret Service (USSS), Miami Field Office, and Chief of Police Patrick Lynn of the Fort Lauderdale Police Department (FLPD) announced the sentence imposed by U.S. District Robin L. Rosenberg.
USSS Miami and FLPD investigated the case, with assistance from the Small Business Administration Office of Inspector General (SBA-OIG). Assistant U.S. Attorney Eduardo Gardea Jr. prosecuted the case. Assistant U.S. Attorneys Emily Stone and Sara Klco are handling asset forfeiture.
In March 2020, the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was enacted. It was designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. Among other sources of relief, the CARES Act authorized and provided funding to the Small Business Administration (“SBA”) to provide Economic Injury Disaster Loans (“EIDLs”) to eligible small businesses, including sole proprietorships and independent contractors, experiencing substantial financial disruptions due to the COVID-19 pandemic to allow them to meet financial obligations and operating expenses that could otherwise have been met had the disaster not occurred. EIDL applications were submitted directly to the SBA via the SBA’s on-line application website, and the applications were processed and the loans funded for qualifying applicants directly by the SBA.
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.
On September 15, 2022, the Attorney General selected the Southern District of Florida’s U.S. Attorney’s Office to head one of three national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. For more information on the department’s response to the pandemic, please click here.
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.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 22-cr-60155.
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Columbia Man Pleads Guilty to Illegally Possessing a FirearmRead the Press Release
COLUMBIA, SOUTH CAROLINA —Shondel Antwan Crim, 47, of Columbia, has pleaded guilty in federal court to being a felon in possession of a firearm.
Evidence obtained in the investigation revealed that on December 15, 2021, Richland County Sheriff’s Deputies were dispatched to the home of a victim. The victim stated that she and Crim had stopped dating. She saw him at a gas station, they talked, and he tried to rekindle their relationship. She declined and left the gas station. Crim followed her and fired into her car at least 2 times, striking her car. An arrest warrant was issued for Crim.
A week later, the police saw Crim at a gas station and arrested him. They found a loaded Glock pistol in a holster inside his waistband. A search warrant was issued for his house, where they found additional ammunition along with a small amount of crack cocaine.
Crim was taken to police headquarters and given his Miranda warnings. He admitted that the gun found on him was the gun he had during the shooting into the victim’s car.
Federal law prohibits Crim from possessing a firearm based upon prior convictions for possession of crack, possession of a stolen car, possession of crack cocaine with intent to distribute in proximity of school, possession with the intent to distribute crack cocaine, and burglary.
Crim faces a maximum penalty of 10 years in federal prison. He also faces a fine of up to $250,000, restitution, and 6 years of supervision to follow the term of imprisonment. United States District Judge Mary Geiger Lewis accepted the guilty plea and will sentence Crim 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 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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Columbia Man Pleads Guilty to Federal Drug ChargeRead the Press Release
COLUMBIA, SOUTH CAROLINA — Arma Victor Strong, III, 33, of Columbia, pleaded guilty in federal court to possession with intent to distribute a quantity of methamphetamine, cocaine, and marijuana.
Evidence presented to the court showed that on July 8, 2021, a Richland County Sheriff’s Department investigator on surveillance in an unmarked car in a parking lot of a motel on Nates Road saw a person walk over to an occupied car and then saw a drug deal take place. As the person walked away from the car, the deputy saw and took a photo of what appeared to be narcotics in the person’s hand. As the car left the area, the deputy radio’ed a marked patrol unit, which conducted a traffic stop of the car on Two Notch Road after seeing traffic violations. Due to the strong smell of marijuana coming from the car, the car was searched, and a shoebox containing marijuana and pills containing methamphetamine and cocaine was found in the backseat. Strong, the driver, admitted to possessing the drugs and having distributed some earlier.
Federal law prohibits Strong from possessing firearms and ammunition based on his prior felony state convictions, which include auto breaking, possession of cocaine, domestic violence 2nd degree, assault & battery 2nd degree, and possession with intent to distribute cocaine.
Strong faces a maximum penalty of 30 years in federal prison and a fine of $2,000,000 on the drug charge. After service of the term of imprisonment, Strong will also face a term of supervision of at least 6 years. United States District Judge Mary Geiger Lewis accepted the guilty plea and will sentence Strong after receiving and reviewing a sentencing report prepared by the United States 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 Stacey D. Haynes is prosecuting the case.
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Colorado Pharmacy and Pharmacist Agree to Resolve Allegations that They Unlawfully Filled Dangerous Prescriptions for Controlled SubstancesRead the Press Release
DENVER—The United States Attorney’s Office for the District of Colorado announced that People’s Pharmacy, Inc. and its owner and pharmacist-in-charge, Mahnaz Abharian, have agreed to resolve allegations that the pharmacy unlawfully dispensed controlled substances, including dangerous opioids and drug combinations.
People’s Pharmacy operated a pharmacy located in Lakewood, Colorado until July 2020. Ms. Abharian is the sole owner of People’s Pharmacy and served as the pharmacist-in-charge at the Lakewood location.
The United States alleges that People’s Pharmacy violated the Controlled Substances Act between January 2014 and July 2020 by unlawfully filling prescriptions despite the presence of red flags indicating that the prescriptions were not issued for legitimate medical purposes. The prescriptions filled included exceptionally high opioid dosages and dangerous drug combinations, which can depress the central nervous system and the ability to breathe. The United States alleges that these violations resulted in serious harms, including both overdose deaths and the unlawful diversion of prescription drugs onto the street.
As part of the settlement, People’s Pharmacy agreed to a $3.5 million civil penalty, which required it to pay all of its remaining assets. The pharmacy also agreed to permanently forgo holding a pharmacy license or Drug Enforcement Administration (DEA) registration, which will prevent it from dispensing any controlled substances in the future. Ms. Abharian agreed that she will not dispense any controlled substances again in the future.
“Pharmacies and pharmacists are the last line of defense against unlawful prescriptions,” said U.S. Attorney Cole Finegan. “They have an obligation to spot, and refuse to fill, unlawful prescriptions for dangerous drugs. When a pharmacist ignores red flags indicating that a prescription lacks a legitimate medical purpose, and fills the prescription anyway, there can be deadly consequences. We will protect our community by vigorously pursuing pharmacies and pharmacists that fail to follow the law, just as we do with prescribers who issue unlawful prescriptions.”
“People’s Pharmacy perpetuated the opioid crisis by ignoring red flags and knowingly and unlawfully dispensing Oxycodone that led to addiction and in some cases death. Pharmacists have a corresponding responsibility to ensure the legitimacy of the prescriptions they fill,” said DEA Rocky Mountain Division Acting Special Agent in Charge David Olesky. “This case highlights the DEA Rocky Mountain Division’s commitment and capabilities when it comes to investigating those believed to be improperly dispensing controlled substances and our efforts to reverse the poisoning and overdose crisis plaguing our region.”
The claims against People’s Pharmacy and Ms. Abharian are allegations, and in agreeing to settle this matter, they did not admit to any liability.
This matter was investigated by the DEA’s Rocky Mountain Division and handled by Assistant United States Attorney David Moskowitz.
Clarion County Man Sentenced to Prison for Drug and Gun CrimesRead the Press Release
ERIE, Pa. - A resident of Lucinda, Pennsylvania, has been sentenced in federal court to 84 months in prison on his conviction of violating federal drug laws, Acting United States Attorney Troy Rivetti announced today.
United States District Judge Susan Paradise Baxter imposed the sentence on Kevin Wayne Huet, 35,of Lucinda, Pennsylvania.
According to information presented to the court, from in and around June 2018, to on or about February 28, 2020, Huet conspired with co-defendants to possess with intent to distribute and distributed five hundred grams or more of a mixture or substance containing a detectable amount of methamphetamine as they participated in a methamphetamine distribution network that trafficked methamphetamine from Akron, Ohio and Erie, Pennsylvania into Crawford, Venango and Warren Counties. Huet also possessed a firearm in furtherance of the drug distribution conspiracy.
Assistant United States Attorney Paul S. Sellers prosecuted this case on behalf of the government.
Acting United States Attorney Rivetti commended the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pennsylvania State Police, Troop E, Vice Unit, the Titusville Police Department, the Warren County Drug Task Force, the Warren County Sherriff’s Office and the Crawford County Sherriff’s Office for the investigation leading to the successful prosecution of Huet.
California Man Pleads Guilty to Assaulting Two Female Passengers on Flight to BostonRead the Press Release
BOSTON – A California man has pleaded guilty in federal court in Boston to assaulting two women aboard a redeye flight from Los Angeles to Boston.
Jairaj Singh Dhillon, 43, of Modesto, Cal., pleaded guilty on March 20, 2023 to two counts of assault while in the special aircraft jurisdiction of the United States. U.S. District Court Magistrate Judge Paul G. Levenson scheduled sentencing for June 14, 2023. Dhillon was charged in June 2022.
During an overnight flight from Los Angeles to Boston on May 31, 2022, Dhillon engaged in unwanted sexual contact with two female passengers sitting next to him. The first victim reported that Dhillon, seated in the aisle seat next to her, touched her thigh and groin area while she was taking care of her infant child who was in a car seat in the window seat next to her. The first victim called for help and stated out loud, “this man just groped me.” The second victim, who was seated in the aisle seat opposite Dhillon, reported that Dhillon reached out with both hands and simultaneously grabbed her groin and buttocks when she was standing in the aisle. Flight crew intervened and moved Dhillon to another part of the plane for the duration of the flight. Dhillon was immediately taken into custody upon the flight’s arrival in Boston.
The charge of assault while in the special aircraft jurisdiction of the United States provides for a sentence of up to six months in prison, up to one year of supervised release and a fine of up to $5,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and John E. Mawn Jr., Interim Colonel of the Massachusetts State Police made the announcement today. Assistant U.S. Attorney Charles Dell’Anno of Rollins’ Major Crimes Unit is prosecuting the case.
California Man Indicted for Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – DANIEL STEPHEN WRAY, a/k/a “Danny,” a/k/a “Tubs,” a/k/a “El Gordo,” age 34, a resident of Chula Vista, California, was charged March 24, 2023, in a one-count indictment by a federal grand jury with conspiracy to distribute and possess with intent to distribute 500 grams or more of methamphetamine in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(A), and 846, announced U.S. Attorney Duane A. Evans.
If convicted, WRAY faces a statutory mandatory minimum sentence of ten years, up to life imprisonment, a fine of up to $10,000,000, at least five years of supervised release following any term of imprisonment, and a $100 mandatory special assessment fee.
U.S. Attorney Evans reiterated that the indictment is merely a charging document and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was investigated by the Drug Enforcement Administration and the Louisiana State Police. The prosecution is being handled by Assistant United States Attorney J. Benjamin Myers of the Narcotics Unit.
CEO of Titanium Blockchain Sentenced for $21M Cryptocurrency Fraud SchemeRead the Press Release
The CEO and founder of Titanium Blockchain Infrastructure Services Inc. (TBIS) was sentenced today to four years and three months in prison for his role in a cryptocurrency fraud scheme involving TBIS’s initial coin offering (ICO) that raised approximately $21 million from investors in the United States and overseas.
According to court documents, Michael Alan Stollery, 54, of Reseda, California, touted TBIS – a purported cryptocurrency investment platform – as a cryptocurrency investment opportunity, luring investors to purchase “BARs,” the cryptocurrency token or coin offered by TBIS’s ICO, through a series of false and misleading statements. Although he was required to do so, Stollery did not register the ICO regarding TBIS’s cryptocurrency investment offering with the U.S. Securities and Exchange Commission (SEC), nor did he have a valid exemption from the SEC’s registration requirements.
To entice investors, Stollery falsified aspects of TBIS’s white papers, which purportedly offered investors and prospective investors an explanation of the cryptocurrency investment offering, including the purpose and technology behind the offering, how the offering was different from other cryptocurrency opportunities, and the prospects for the offering’s profitability. Stollery also planted fake client testimonials on TBIS’s website and falsely claimed that he had business relationships with the Federal Reserve and dozens of prominent companies to create the false appearance of legitimacy. Stollery did not use the invested money as promised but instead commingled the ICO investors’ funds with his personal funds, using at least a portion of the offering proceeds for expenses unrelated to TBIS, such as credit card payments and the payment of bills for his Hawaii condominium.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division; and Acting Special Agent in Charge Cory Nootnagel of the Office of Inspector General (OIG) for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau, Western Region, made the announcement.
The FBI Los Angeles Field Office and the Federal Reserve Board OIG Western Region, San Francisco Office investigated the case.
Trial Attorneys Tian Huang and Andrew Tyler of the Criminal Division’s Fraud Section prosecuted the case.
Bridgeport Gang Member involved in 2019 Murder Sentenced to More Than 21 Years in Federal PrisonRead the Press Release
ZIARE DEDRICK, also known as “Zi” and “Hb Zi,” 21, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to 255 months of imprisonment, followed by five years of supervised release, for his participation in a violent Bridgeport street gang, including his involvement the murder of Ty’Quess Moore in December 2019.
Today’s announcement was made by Vanessa Roberts Avery, United States Attorney for the District of Connecticut; Joseph T. Corradino, State’s Attorney for the Fairfield Judicial District; Bridgeport Police Chief Roderick Porter; Robert Fuller, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation; James Ferguson, Special Agent in Charge, ATF Boston Field Division; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England, and Acting U.S. Marshal Lawrence Bobnick.
According to court documents and statements made in court, the FBI, ATF, DEA, U.S. Marshals Service, Connecticut State Police and Bridgeport Police have been investigating multiple Bridgeport-based gangs whose members are involved in narcotics trafficking, murder and other acts of violence. Dedrick was a member of the Original North End (“O.N.E.”), a gang based in the Trumbull Gardens area of Bridgeport that committed acts of violence against rival gangs, including the East End gang, the East Side gang, and the PT Barnum gang. O.N.E. members also robbed drug dealers, customers and others, sold narcotics, and stole cars from inside and outside Connecticut, often using the cars to commit crimes. They frequently used social media to promote and coordinate their criminal activities.
In early December 2019, Dedrick and other O.N.E. members were involved in multiple shots-fired incidents in Bridgeport. In one incident, the mother of two East End gang members was shot outside of her Bridgeport home. After firing shots in the P.T. Barnum Housing Complex on December 8, 2019, Dedrick drove a stolen Lexus to Newfield Avenue in Bridgeport, considered the turf of the East End/East Side gang, where two other O.N.E. members in the car shot and killed Ty’Quess Moore, also known as “Breezo,” 18.
Dedrick has been detained since December 10, 2019. On November 23, 2022, he pleaded guilty to one count of racketeering conspiracy.
This ongoing investigation is being conducted by the FBI’s Safe Streets and Violent Crimes Task Forces, ATF, DEA, U.S. Marshals Service, Bridgeport Police Department, Connecticut State Police and the Bridgeport State’s Attorney’s Office, with the assistance of the U.S. Postal Inspection Service, Connecticut Forensic Science Laboratory and the Naugatuck Police Department. The case is being prosecuted by Assistant U.S. Attorneys Karen L. Peck, Rahul Kale, Jocelyn C. Kaoutzanis and Tara E. Levens.
This prosecution is a part of the Justice’s Department’s Project Safe Neighborhoods (PSN), Project Longevity and Organized Crime Drug Enforcement Task Forces (OCDETF) programs.
PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Project Longevity is a comprehensive initiative to reduce gun violence in Connecticut’s major cities. Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to commit violence and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it. If a group member elects to engage in gun violence, the focused attention of federal, state and local law enforcement will be directed at that entire group.
OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Box Elder man admits to assault crime in strangling partner on Rocky Boy’s Indian ReservationRead the Press Release
GREAT FALLS — A Box Elder man on March 23 admitted to an assault charge for strangling a woman on the Rocky Boy’s Indian Reservation, U.S. Attorney Jesse Laslovich said today.
Alex George Deserly, 43, pleaded guilty to assault resulting in substantial bodily injury to an intimate partner. Deserly faces a maximum of five years in prison, a $250,000 fine and three years of supervised release.
Chief U.S. District Judge Brian M. Morris presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. A sentencing date was set for Aug. 17. Deserly was detained pending further proceedings.
The government alleged in court documents that on June 25, 2022, medical personnel and law enforcement responded to the victim’s home for a report of a domestic assault. Deserly had left the home prior to the police arriving. The victim told law enforcement that she had confronted Deserly over messages she had seen and asked him how long he had been using methamphetamine. Deserly grabbed the victim, shoved her into a wall and strangled her. The victim tried to escape, but Deserly continued to assault and strangle her until he eventually stopped. The victim was treated for injuries.
Assistant U.S. Attorneys Jessica A. Betley and Kalah A. Paisley are prosecuting the case, which was investigated by the FBI and Rocky Boy’s Police Department.
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Boston Man Sentenced to 15 Years in Prison for Racketeering ConspiracyRead the Press Release
BOSTON – A Boston man was sentenced today for racketeering (RICO) and drug trafficking conspiracies stemming from his involvement in the Boston-based street gang, NOB.
Ricky Pina, a/k/a “Blake,” 26, was sentenced by U.S. District Court Judge Leo T. Sorokin to 15 years in prison and three years of supervised release. In June 2022, Pina pleaded guilty to one count of RICO conspiracy.
Pina is one of 10 defendants indicted on various federal charges in June 2020, as part of a broader federal sweep targeting numerous NOB members and associates in which 31 total defendants were charged. All of Pina’s co-defendants have pleaded guilty to various charges and have been sentenced.
“For years, the NOB gang was responsible for brutal and senseless violence that terrorized neighborhoods in and around Dorchester. At the center of it all was Mr. Pina, who personally committed, planned, and supported the gang’s vicious crimes and illegal operations,” said First Assistant United States Attorney Joshua S. Levy. “Mr. Pina played a critical role in the brutal execution of a young man who was just getting a haircut. Mr. Pina’s conduct left behind a devastated family who lost a precious loved one. Dismantling these types of dangerous criminal enterprises – and prosecuting the individuals who run them – remains of the highest priorities of this office. This lengthy sentence should send a clear and direct message that those participate in gang violence will be identified, prosecuted and put behind bars.”
“ATF is proud to work shoulder to shoulder with BPD and many other agencies to be a force multiplier in the fight against violent crime. Together we partner to focus on making our communities safer,” said James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division.
“Ricky Pina engaged in a ruthless campaign of gang-related violence, and trafficked deadly drugs, including fentanyl, to gain respect, reputation, and rank within this criminal enterprise. Today he learned his fate for victimizing the people of Dorchester, and beyond,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “While Mr. Pina spends the next 15 years behind bars, the FBI will continue to leverage our law enforcement partnerships to keep sustained pressure on gangs like NOB, and others who are the primary drivers of violent crime in our communities.”
According to court documents, NOB – an abbreviation for the Norton/Olney/Barry Streets in Dorchester – is a violent criminal enterprise whose members and associates are involved in numerous types of criminal activities throughout Massachusetts, including murders, attempted murders, armed robberies, drug trafficking, sex trafficking and illegal firearms offenses. In addition to multiple firearms and drugs being recovered during the investigation, numerous contraband items were also seized, including: 11 firearms; over one kilogram of fentanyl (including over 2,000 fentanyl pills manufactured to appear as commercial oxycodone pills); a commercial pill press; over 15 pounds of marijuana; and approximately $36,000 in cash.
Pina was an active, central and violent member of the gang who personally committed, planned and supported various crimes on behalf of the NOB. At sentencing, Pina was found responsible for the Sept. 5, 2017 murder of a young man in a Boston barbershop. On that date, at approximately 10:46 a.m., a hooded and masked individual shot and killed the victim, who was getting a haircut inside the barbershop. The shooter fled with another accomplice on a scooter.
At the time, Pina was subject to GPS monitoring for a state criminal case. GPS data for Pina’s location on the date of the shooting, corroborating images from various video cameras over several blocks near the shooting, witness interviews and analysis of several phones associated with NOB members/associates determined that the murder of the victim was a gang-related murder which Pina supported by providing the location of the victim to the shooter. Specifically, Pina repeatedly traveled to the barbershop in a relatively short period of time leading up to the murder, consistent with Pina gathering information about the victim. Pina’s final pass by the barbershop occurred within minutes of the victim being shot.
FAUSA Levy; Boston Police Commissioner Michael Cox; ATF SAC Ferguson; FBI SAC Bonavolonta; Brian Kyes, U.S. Marshal for the District of Massachusetts; Colonel John E. Mawn Jr., Interim Colonel of the Massachusetts State Police; New Bedford Police Chief Paul Oliveira; Quincy Police Chief Paul Keenan; Randolph Police Chief Anthony Marag; Brockton Police Chief Brenda Perez; Stoughton Police Chief Donna McNamara; Suffolk County District Attorney Kevin Hayden; Suffolk County Sheriff Steven W. Tompkins; Plymouth County Sheriff Joseph D. McDonald, Jr.; Bristol County District Attorney Thomas M. Quinn III; and Norfolk County Sheriff Patrick W. McDermott made the announcement today. Assistant U.S. Attorneys Michael Crowley and Sarah Hoefle of the Organized Crime & Gang Unit prosecuted the case.
Benson Man Arrested for Unlawful Possession of an Unregistered MachinegunRead the Press Release
TUCSON, Ariz. – Dillyn Anthony Dust, 19, of Benson, Arizona, was charged by criminal complaint last week for Unlawful Possession of an Unregistered Machinegun.
The complaint alleges that, in January 2023, Special Agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), were alerted about an individual named Dillyn Anthony Dust possessing two machinegun conversion devices. Machinegun conversion devices are designed to convert a semi-automatic firearm into a fully automatic firearm or machinegun, with the single pull of the trigger. The devices, by themselves, are machineguns. All machineguns are required to be registered with the National Firearms Registration and Transfer Record.
On February 15, 2023, an undercover ATF Special Agent attempted to arrange for the purchase of two firearms from Dust. Although Dust sent the undercover agent a video of himself with numerous weapons including two Glock-type firearms with machinegun conversion devices attached, he refused to sell them to the undercover agent. On March 15, 2023, ATF executed a federal search warrant for Dust’s residence and located two machinegun conversion devices inside the residence.
ATF Special Agents examined the machinegun conversion devices at the scene and determined the devices met the definition of a machinegun requiring registration. After further investigation, the agents learned that the machinegun conversion devices were not registered to anyone, and that Dust did not have firearms registered to his name.
A conviction for Possession of an Unregistered Machinegun carries a maximum penalty of 10 years in prison, a $10,000 fine, or both.
A criminal complaint is merely an allegation of criminal conduct, not evidence. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
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 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. Attorneys’ 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.
ATF is conducting the investigation in this case. Assistant United States Attorney Adam Rossi, District of Arizona, Tucson, is handling the prosecution.
CASE NUMBER: MJ-23-02948-N/A-MSA
RELEASE NUMBER: 2023-043_Dust# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Baltimore Man Pleads Guilty to Federal Charge for Fraudulently Obtaining More Than $1.2 Million in COVID-19 CARES Act LoansRead the Press Release
Baltimore, Maryland – Alexander Barabash, age 52, of Baltimore, Maryland, pleaded guilty today to wire fraud, relating to the submission of fraudulent Coronavirus Aid, Relief, and Economic Security (“CARES”) Act loan applications. The CARES Act was enacted in March 2020 to provide emergency financial assistance to Americans suffering from the economic effects caused by the COVID-19 pandemic.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Acting Special Agent in Charge Kareem A. Carter of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Special Agent in Charge Ross Luciano of the United States Secret Service - Baltimore Field Office.
“Barabash fraudulently obtained more than $1.2 million in CARES Act loans intended to assist struggling businesses,” said Erek L. Barron, United States Attorney for Maryland. “CARES Act fraud is a continuing priority for this office and fraudsters will be held accountable for their actions.”
“Investigating those who fraudulently acquired Coronavirus Aid, Relief, and Economic Security (CARES) Act relief funds will continue to be a focus of IRS-CI,” said Kareem A. Carter, Acting Special Agent in Charge, Washington, D.C. Field Office. “The CARES Act was put into place to assist those struggling financially due to the unprecedented COVID-19 pandemic, not for bad actors to buy cars and houses.”
Financial assistance offered through the CARES Act included forgivable loans to small businesses for job retention and certain other expenses, through the Paycheck Protection Program (“PPP”), administered through the Small Business Administration (“SBA”) and participating lenders.
According to his plea agreement, between April 2020 and January 2021, Barabash submitted three fraudulent PPP loan applications on behalf of his construction company iDesignbuild LLC (“iDesignBuild”). Barabash is the sole owner and CEO of iDesignBuild and was the sole authorized signer of the company’s business bank account.
As detailed in the plea agreement, on April 9, 2020, Barabash submitted a PPP loan application falsely stating that iDesignBuild had four employees and an average monthly payroll of $18,750. In fact, the company did not have any employees, but engaged independent contractors for work-related matters. Based on the representations made in the fraudulent application, on April 23, 2020, Barabash received $46,800 in PPP loan proceeds in the iDesignBuild bank account. On April 25, 2020, Barabash submitted a second fraudulent PPP loan application on behalf of iDesignBuild, stating that the company had seven employees and an average monthly payroll of $38,777.60. In support of the application, Barabash submitted IRS Forms 941 for each quarter of 2019 and a 2019 IRS Form 940 for iDesignBuild, signed by Barabash and his tax preparer, knowing that they had never been filed with IRS.
Barabash admitted that on January 20, 2021, he submitted a third fraudulent loan application on behalf of iDesignBuild, representing that the company had 37 employees and an average monthly payroll of $525,227. In support of the application, Barabash again submitted fraudulent IRS Forms 941 for each quarter of 2019 and a fraudulent 2019 IRS Form 940. Compared to the fraudulent forms submitted with the unsuccessful April 25, 2020 PPP loan application, the forms submitted in January 2021 reported more than six times the number of employees and nearly $1.5 million more in wages in each quarter. The forms were again signed by Barabash and his tax preparer. Barabash knew that the forms did not accurately reflect iDesignBuild’s wages or revenues, nor had they been filed with the IRS. Based on Barabash’s false representations, the bank funded a PPP loan of $1,295,000, which was credited to iDesignBuild’s bank account on February 26, 2021.
Barabash used the fraudulently obtained loans to facilitate the purchase of two properties in Sparks Glencoe, Maryland, and to purchase a 2016 Chevrolet Corvette. Barabash admitted that he knew those were not permissible uses of PPP funds and the transactions would not have been made
Barabash faces a maximum sentence of 30 years in federal prison for wire fraud. As part of his plea agreement, Barabash will be required to pay a money judgment in the amount of $1,295,000 and forfeit $504,869.54 in funds seized from the iDesignBuild business bank account. Barabash has also agreed to forfeit his interest in property located at 14044 Fox Hill Road in Sparks Glencoe, Maryland as a substitute asset, the net proceeds of which will be applied to the money judgment. Chief U.S. District Judge James K. Bredar has scheduled sentencing for June 26, 2023 at 12:00 p.m.
The District of Maryland Strike Force is one of three strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud, including fraud relating to the CARES Act. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.
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.
United States Attorney Erek L. Barron commended the IRS-CI and U.S. Secret Service for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Darryl L. Tarver, who is prosecuting the case. He also recognized the assistance of the Maryland COVID-19 Strike Force Paralegal Specialist Joanna B.N. Huber and Paralegal Specialist Juliette Frase.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao/md.
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Baltimore Felon Pleads Guilty to Federal Charge for Illegal Possession of a Firearm and AmmunitionRead the Press Release
Baltimore, Maryland – Robert Hopewell, age 27, of Baltimore, Maryland, pleaded guilty today to a federal charge for being a felon in possession of a firearm.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Commissioner Michael Harrison of the Baltimore Police Department.
According to his guilty plea, on February 8, 2022, Baltimore Police Department officers performed a traffic stop after noticing that a vehicle, later found to be driven by Hopewell, had and illegally tinted windshield. After stopping the car, officers noted a strong odor of marijuana emanating from the vehicle and ordered Hopewell to exit the vehicle. A search of the vehicle revealed shavings of suspected marijuana on the front passenger side of the vehicle and a plastic bag of suspected cocaine on the front driver’s side floorboard. In the backseat area, the detectives noticed that the rear plastic plate cover for the center console appeared to be loose and readily removable. Once the plate cover was removed, the detectives recovered a 9mm caliber pistol loaded with approximately 17 rounds of 9mm ammunition. Hopewell admitted that he knew he was prohibited from possessing a firearm and ammunition as a result of a previous felony conviction.
Hopewell and the government have agreed that, if the Court accepts the plea agreement, Hopewell will be sentenced to no more than 78 months in federal prison. Chief U.S. District Judge James K. Bredar has scheduled sentencing for June 6, 2023 at 10:00 a.m.
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.
United States Attorney Erek L. Barron commended the ATF and the Baltimore Police Department for their work in the investigation. Mr. Barron thanked Special Assistant U.S. Attorney Jonathan Tsuei, who is prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psn and https://www.justice.gov/usao-md/community-outreach.
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Anchorage Man Sentenced to 21 Years for Role in Multistate Drug Trafficking OrganizationRead the Press Release
ANCHORAGE, ALASKA – A federal District Court judge sentenced an Anchorage man to 21 years imprisonment followed by six years of supervised release on March 22, 2023, for his role in a drug trafficking organization that spanned multiple states.
According to court documents, Dustin Noonan pleaded guilty to drug conspiracy and money laundering conspiracy for his role in a lucrative drug trafficking and distribution organization that stretched from Alaska to Arizona, California, Massachusetts, Michigan, Nevada, New Mexico, New York, Ohio, and Pennsylvania. From March 2018 through October 2020, the leaders of the organization regularly mailed large amounts of drugs to distributors throughout the country, including mailing parcels to Noonan in Anchorage, and deposited hundreds of thousands of dollars of drug proceeds into various bank accounts. During the nearly three-year investigation, law enforcement officers recovered about six kilograms of heroin, four kilograms of methamphetamine, and four kilograms of fentanyl. Over several months in 2020, investigators intercepted five drug parcels intended for Noonan, which together contained one kilogram of fentanyl and nearly 800 grams of heroin that Noonan planned to distribute throughout Alaska. The kilogram of fentanyl that Noonan intended to distribute was enough to kill 500,000 people.
Anchorage Police arrested Noonan on June 12, 2020, after they responded to a call of a domestic disturbance. As detailed in court documents, Noonan barricaded himself inside his residence and refused officer commands to come outside. He then crawled out of a window, fled on foot, and struggled with the arresting officers. Inside his vehicle, officers found a Springfield Arms XD .45 caliber semiautomatic firearm in the center console. Noonan, who had been convicted of robbing a series of pharmacies at knifepoint in and around St. Petersburg, Florida in 2006, was legally prohibited from possessing a firearm.
Noonan was indicted in April 2021 along with 9 other members of the conspiracy located in Anchorage, San Diego, and Tucson, Arizona. Tyler Landroche was sentenced to 70 months imprisonment on February 23, 2023. Kimberly Renee Mackey was sentenced to 48 months imprisonment on February 22, 2023. Jessica Twigg was sentenced to time served on May 16, 2022. Rene Pompa-Villa, Carlos Camacho, Christopher Pompa-Villa, Kyle Redpath, and Heydimar Marrero are awaiting sentencing. Victor Pompa-Villa remains at large.
“Preventing the influx of deadly fentanyl and heroin is integral to protecting this community,” said U.S. Attorney S. Lane Tucker. “We will continue to aggressively target drug trafficking organizations to disrupt the flow of these dangerous drugs into Alaska.”“The shipment of illegal narcotics has no place in the U.S. Postal Service and the State of Alaska. This should serve as a reminder of the Inspection Service’s continuous efforts to bring large scale dealers like Noonan to justice,” said Inspector in Charge Anthony Galetti. “Through the efforts of the law enforcement agencies involved, this sentencing will have a clear and lasting impact on the communities of Alaska. We thank our state, local and federal partners for their support and efforts in this investigation.”
“The severe sentence handed down underscores the dangerousness of fentanyl and reaffirms the DEA’s commitment to tirelessly investigate and prosecute those who would traffic this poison in our communities,” said Jacob D. Galvan, Acting Special Agent in Charge, DEA Seattle Field Division.
“Learning the metric system should be a result of a good education, not because of drug trafficking,” said Special Agent in Charge Bret Kressin, IRS Criminal Investigation (IRS:CI), Seattle Field Office. “Keeping the kilogram of fentanyl and additional heroin Mr. Noonan intended to distribute off of our streets is a win, but fighting the opioid crisis takes constant vigilance from all of us. IRS:CI will continue to work with our partners in the community and in law enforcement to help keep our communities safe.”
U.S. Attorney S. Lane Tucker of the District of Alaska made the announcement.
The U.S. Postal Inspection Service (USPIS); U.S. Department of Drug Enforcement Administration (DEA); the Internal Revenue Service (IRS); Alaska State Troopers, and the Anchorage Police Department investigated the case. The U.S. Marshals had a significant role in making the arrests, and the U.S. Attorney’s Offices in Tucson and San Diego played a critical role in the indictment of this case.
Assistant U.S. Attorneys Christopher D. Schroeder and Karen Vandergaw prosecuted the case.
This investigation and prosecution are part of the Organized Crime Drug Enforcement Task Force (“OCDETF”), which 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.
Beware of pills bought on the street: One Pill Can Kill. Fentanyl, a Schedule II controlled substance, is a highly potent opiate that can be diluted with cutting agents to create counterfeit pills that purport to mimic the effects of Oxycodone, Percocet, and other drugs, but can be obtained at a lower cost. However, very small variations in the amount or quality of fentanyl create huge effects on the potency of the counterfeit pills and can easily cause death. Fentanyl has now become the leading cause of drug overdose deaths in the United States. Counterfeit, fentanyl-laced pills are usually shaped and colored to resemble pills that are sold legitimately at pharmacies. For example, the counterfeit pills involved in this case, known as M30s, mimic Oxycodone, but when sold on the street they routinely contain fentanyl. These tablets are round and often light blue in color, though they may be made in many colors, and have “M” and “30” imprinted on opposite sides of the pill.
75-Year-Old South Florida Man Charged in $3 Million Check Diversion SchemeRead the Press Release
MIAMI – A Miami federal grand jury has charged Alan Paul Brooks, of Aventura, with mail fraud and money laundering.
According to the indictment, from June to December 2022, Brooks engaged in a scheme to steal funds payable to a health system in Louisiana. As alleged, Brooks caused a change of mail address to be filed for a U.S. post office box that received checks for the Louisiana health system. The address change diverted checks that were mailed to the post office box to the defendant’s home in Aventura.
It is also alleged that Brooks created fictitious operating names for a Florida shell company that he controlled. These fictitious operating names matched those of the Louisiana health system’s regional medical centers. Brooks also opened bank accounts in Aventura using the fictitious operating names and deposited into those accounts over $3 million in checks that were payable to the actual regional medical centers, according to the charges. After depositing the checks, Brooks moved the funds to other accounts that he controlled.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida; Special Agent in Charge Kyle A. Myles of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG), Atlanta Region; Special Agent in Charge Rafael Barros of the U.S. Secret Service (USSS), Miami Field Office; acting Inspector in Charge Juan A. Vargas of the U.S. Postal Inspection Service (USPIS), Miami Division; Chief of Police Michael Bentolila of the Aventura Police Department, announced the charges.
FDIC-OIG, USSS Miami, USPIS Miami, and Aventura Police Department investigated this case. Assistant U.S. Attorney Michael N. Berger is prosecuting it. Assistant U.S. Attorney Marx Calderon is handling asset forfeiture.
An indictment contains mere allegations, and all defendants are presumed innocent unless and until proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 23-cr-20117.
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23 March 2023
Wisconsin Man Pleads Guilty to Making Racially-Charged Threats Toward Black ResidentsRead the Press Release
A Wisconsin man pleaded guilty to one felony count and one misdemeanor count of intimidating and interfering with Black residents because of their race and because they were exercising their right to fair housing.
According to court documents, William McDonald, 45, of West Allis, Wisconsin, admitted that in March 2021, he vandalized a Black woman’s vehicle parked outside her apartment by slashing her tires and smashing her windshield. McDonald then left a note on her car, filled with racial slurs, threatening to slash her throat and demanding she move out of West Allis. A week later, McDonald slashed two of her car tires and left another note filled with racial slurs and giving her an ultimatum – move out of the neighborhood or suffer violence. In April 2022, a Black woman and her two minor children moved into McDonald’s apartment complex. Shortly after they moved in, McDonald vandalized her front door with racial graffiti and left her a note, calling her family a racial slur and demanding she get out of the building.
“No one should feel unsafe in their home or be subjected to harmful and derogatory threats because of the color of their skin,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will continue to protect the housing rights of all individuals and vigorously prosecute those who use racially-charged threats to drive people from their homes.”
“The conduct at issue in this case strikes at the very core of the civil rights guaranteed to every American citizen under federal law,” stated U.S. Attorney Gregory J. Haanstad for the Eastern District of Wisconsin. “I commend the courage of those targeted by Mr. McDonald for coming forward. The U.S. Attorney’s Office remains committed to working with all of our federal, state, and local partners to hold individuals who violate the civil rights of others fully accountable under federal law.”
“Hate crimes are not only an attack on the victim, they threaten and intimidate an entire community. Because of their wide-ranging impact, investigating hate crimes is a top priority for the FBI,” said Special Agent in Charge Michael E. Hensle of the FBI Milwaukee Field Office. “As a law enforcement protector of civil right in the U.S., the FBI will continue to collaborate with our local and state law enforcement partners and bring to justice those who commit hate crimes.”
McDonald faces a maximum sentence of up to 11 years in prison. A sentencing date has been set for June 29. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI Milwaukee Field Office and the West Allis Police Department are investigating the case.
Assistant U.S. Attorneys Christopher Ladwig and Philip Kovoor for the Eastern District of Wisconsin and Trial Attorney Nikhil Ramnaney of the Civil Rights Division’s Criminal Section are prosecuting the case.
Wisconsin Man Pleads Guilty to Making Racially Charged Threats Toward Black ResidentsRead the Press Release
United States Attorney Gregory J. Haanstad of the Eastern District of Wisconsin joined Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division in announcing that on March 23, 2023, a Wisconsin man pleaded guilty to one felony count and one misdemeanor count of intimidating and interfering with Black residents because of their race and because they were exercising their right to fair housing.
According to court documents, William McDonald, 45, of West Allis, Wisconsin, admitted that in March 2021, he vandalized a Black woman’s vehicle parked outside her apartment by slashing her tires and smashing her windshield. McDonald then left a note on her car, filled with racial slurs, threatening to slash her throat, and demanding she move out of West Allis. A week later, McDonald slashed two of her car tires and left another note filled with racial slurs and giving her an ultimatum – move out of the neighborhood or suffer violence. In April 2022, a Black woman and her two minor children moved into McDonald’s apartment complex. Shortly after they moved in, McDonald vandalized her front door with racial graffiti and left her a note, calling her family a racial slur and demanding she get out of the building.
“No one should feel unsafe in their home or be subjected to harmful and derogatory threats because of the color of their skin,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will continue to protect the housing rights of all individuals and vigorously prosecute those who use racially-charged threats to drive people from their homes.”
“The conduct at issue in this case strikes at the very core of the civil rights guaranteed to every American citizen under federal law,” stated U.S. Attorney Haanstad. “I commend the courage of those targeted by Mr. McDonald for coming forward. The U.S. Attorney’s Office remains committed to working with all our federal, state, and local partners to hold individuals who violate the civil rights of others fully accountable under federal law.”
McDonald faces a maximum sentence of up to 11 years in prison. A sentencing date has been set for June 29, 2023.
This case was investigated by the FBI Milwaukee Field Division and the West Allis Police Department.
Assistant U.S. Attorneys Christopher Ladwig and Philip Kovoor for the Eastern District of Wisconsin and Trial Attorney Nikhil Ramnaney of the Civil Rights Division’s Criminal Section are prosecuting the case.
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West Haven Woman involved in Scheme to Steal COVID-19 Relief Funds from the City Sentenced to PrisonRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that LAUREN DiMASSA, formerly known as LAUREN KNOX, 38, of West Haven, was sentenced today by U.S. District Judge Omar A. Williams in Hartford to six months of imprisonment, followed by five years of supervised release, for participating in a scheme to steal COVID-19 relief funds from the City of West Haven. Judge Williams also ordered DiMassa to serve the first six months of her supervised release in home confinement and to pay $147,776.10 in restitution.
According to court documents and statements made in court, in April 2020, the State of Connecticut was allocated money by the U.S. Department of the Treasury through the Coronavirus Relief Fund (“CRF”), which was established by the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) for the purpose of helping local governments pay costs incurred in responding to the COVID-19 pandemic. From July 2020 through September 2021, the City of West Haven received approximately $1,150,257 in financial assistance from this fund. Lauren DiMassa’s now husband, Michael DiMassa, was employed by the City of West Haven, most recently serving as the Administrative Assistant to the City Council, and was also a Connecticut State Representative. Michael DiMassa, who was authorized to approve the designated relief funds for the reimbursement of COVID-related expenditures incurred by West Haven, conspired with Lauren DiMassa, John Bernardo, and John Trasacco to steal these funds and other West Haven funds through the submission of fraudulent invoices, and subsequent payment, for COVID relief goods and services that were never provided.
Between approximately July 2020 and October 2021, Michael DiMassa submitted fraudulent invoices to West Haven for services related to a Youth Violence Prevention Program and for Youth Violence COVID-19 Associated Expenses. These invoices listed charges for in-home counseling, cleaning supplies, special needs hourly service, wi-fi assistance for low/moderate income families, counseling services, license fees, a fall youth clinic, meals, support group supplies, equipment rental, and youth clinic support group. The payment vouchers requested that checks be made out to directly to Lauren DiMassa.
West Haven made 16 payments totaling approximately $147,776.10 to Lauren DiMassa, who never provided any services to the City of West Haven. Michael and Lauren DiMassa used the proceeds for their own benefit.
Lauren DiMassa was arrested on February 18, 2022. On July 14, 2022, she pleaded guilty to one count of conspiracy to commit wire fraud.
Lauren DiMassa, who is released on a $50,000 bond, is required to report to prison on May 23.
On November 1, 2022, Michael DiMassa pleaded guilty to three counts of conspiracy to commit wire fraud. He is awaiting sentencing and has agreed to pay restitution of $1,216,541.80.
On June 14, 2022, Bernardo, a West Haven city employee who with Michael DiMassa formed a company that they used to bill the city for fraudulent COVID-related consulting services, pleaded guilty to one count of conspiracy to commit wire fraud. On March 22, 2023, he was sentenced to 13 months of imprisonment and ordered to pay $58,927.25 in restitution.
On December 2, 2022, a jury found Trasacco, whose companies received approximately $431,982 through this scheme, guilty of one count of conspiracy to commit wire fraud and one count of wire fraud. He is awaiting sentencing.
This matter has been investigated by the Federal Bureau of Investigation and the U.S. Department of Housing and Urban Development – Office of Inspector General for Investigations. The case is being prosecuted by Assistant U.S. Attorneys Ray Miller and David Sheldon.
Individuals with information about allegations of attempted fraud involving COVID-19 are encouraged to report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721, or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Washington man sentenced to more than 11 years in prison for drug trafficking in BillingsRead the Press Release
BILLINGS — A Washington man who admitted to a drug trafficking crime after law enforcement found fentanyl, methamphetamine, cocaine, heroin and a loaded 9mm handgun in a search of his Billings hotel room and truck was sentenced today to 11 years and three months in prison, to be followed by four years of supervised release, U.S. Attorney Jesse Laslovich said.
Joel David Lund, 40, of Seattle, Washington, pleaded guilty in November 2022 to possession with intent to distribute methamphetamine.
U.S. District Judge Susan P. Watters presided.
In court documents, the government alleged that in September 2022, an investigation into an individual caught with a significant amount of fentanyl led to Lund as the person who sold the drug from his Billings hotel room. Agents served a search warrant on Lund’s hotel room, his truck and bags and seized approximately 2,000 fentanyl pills, meth, cocaine, heroin and a loaded 9mm handgun.
Assistant U.S. Attorney Colin M. Rubich prosecuted the case, which was investigated by the Eastern Montana High Intensity Drug Trafficking Area Task Force, Homeland Security Investigations and Billings Police Department.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Washington County Woman Sentenced to 30 Months for Bank Fraud and Aggravated Identity TheftRead the Press Release
ALBANY, NEW YORK – Renee Burnell, age 49, of Hudson Falls, New York, was sentenced today to 30 months in prison for defrauding two banks using the personal information of the customers of her plumbing and heating business.
United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.
Burnell previously pled guilty to a two-count indictment charging bank fraud and aggravated identity theft, and admitted that between August 2019 and January 2020, she defrauded Synchrony Bank and The Bank of Missouri by applying for lines of credit with each bank using her customers’ personal identifiable information and then using the lines of credit to falsify purchases that benefitted her plumbing and heating business. Burnell admitted that her scheme resulted in a loss of $119,264.43 to The Bank of Missouri and a loss of $13,912.00 to Synchrony Bank.
Senior United States District Judge Lawrence E. Kahn ordered full restitution to the banks and also imposed a 3-year term of supervised release to begin after Burnell is released from prison.
The FBI investigated this case and Assistant U.S. Attorney Alexander P. Wentworth-Ping prosecuted the case.
Virginia Man Found Guilty of Charges for Shooting a Man in Northwest WashingtonRead the Press Release
WASHINGTON – A jury found Richard Nduba, 39, of Alexandria, Virginia, guilty of firing multiple shots at a man in August 2022 in Northwest Washington D.C., announced U.S. Attorney Matthew M. Graves and Robert J. Contee III, Chief of the Metropolitan Police Department. The verdict was returned on Wednesday, March 22, 2023. The Honorable Erik Christian scheduled sentencing for April 21, 2023.
Nduba, 39, was found guilty following a three-day trial in the Superior Court of the District of Columbia, of Assault with a Dangerous Weapon and Possession of a Firearm during the Commission of a Crime of Violence.
According to the government’s evidence, on August 10, 2022, the defendant argued with the victim, a friend, outside the Walmart on 99 H Street NW around 7:00pm. After the argument, the victim, who is wheelchair bound, went to the 800 block of 1st street NW next to the Walmart’s loading dock area to speak on the phone. The defendant circled the block in his rental SUV until he found the victim. Upon finding the victim, the defendant lowered his window, pointed a black handgun at the victim, and shot at the victim twice. The defendant stopped shooting only after the victim acted as if he had been hit and played dead in his wheelchair. Both shots, however, missed the victim. A bullet hole was later discovered in Walmart’s loading dock door, next to where the victim had been sitting at the time of the shooting.
This case was investigated by the Metropolitan Police Department. It was investigated, prosecuted. and tried by Assistant U.S. Attorneys Omeed Assefi and Colin Cloherty of the Major Crimes Unit of the U.S. Attorney’s Office for the District of Columbia. Valuable assistance was provided by Assistant U.S. Attorneys Kimberly Nielsen and Kathleen Kern, Paralegal Specialist Debra McPherson, and Litigation Technology Specialist Charlie Bruce.
Utah Man Pleads Guilty to Multiple Counts of Tax EvasionRead the Press Release
A Utah man pleaded guilty today to willfully evading the proper assessment of income tax.
According to court documents and statements made in court, Ashley James Robinson, of Farmington, filed false tax returns for years 2016 through 2019 that did not report a total of approximately $1,163,818 in income. As a result, Robinson caused a tax loss to the IRS of approximately $427,145.
He is scheduled to be sentenced on May 26, 2023, and faces a maximum penalty of five years in prison for each tax evasion count. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Trina A. Higgins for the District of Utah made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorney Boris Bourget of the Justice Department’s Tax Division and Assistant U.S. Attorney Bryan N. Reeves of the District of Utah are prosecuting the case.
Upper Marlboro Fraudster Sentenced to More Than Nine Years in Federal Prison for His Role in a $28 Million Ponzi Scheme Involving “1st Million Dollars”Read the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang today sentenced John Erasmus Frimpong, age 42, of Upper Marlboro, Maryland, to 114 months in federal prison, followed by three years of supervised release, for conspiracy to commit wire fraud, conspiracy to commit securities fraud, and securities fraud, in connection with a $28 million Ponzi scheme involving 1st Million, a purported wealth management and financial literacy company. Judge Chuang also ordered Frimpong to pay restitution, along with his co-defendants, in the full amount of the actual, total loss, including (1) $16,664,020 for the full amount of the victims’ losses relating to the 1st Million scheme to defraud; and (2) $797,775 for the full amount of losses caused by Frimpong’s separate scheme in which he contracted directly with individual victims purporting to invest on their behalf.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; Special Agent in Charge Matthew R. Stohler of the United States Secret Service - Washington Field Office; and Postal Inspector in Charge Damon E. Wood of the U.S. Postal Inspection Service - Washington
According to his plea agreement, Frimpong and his co-conspirators operated a Ponzi scheme through a Delaware incorporated business named The Smart Partners LLC, doing business as 1st Million LLC or 1st Million Dollars (“1st Million”). 1st Million presented itself as a wealth management and financial literacy company. Frimpong acted as 1st Million’s “Managing Partner” and “Chief Marketing Operator” and co-defendant Arley Ray Johnson acted as 1st Million’s “Chief Operating Officer” or “Director of Operations.”
Frimpong admitted that he made false and misleading representations to potential investors as to the nature and safety of the investments in 1st Million, the rates of return, and the experience, training and licensure of 1st Million and its principals. Specifically, Frimpong and his co-conspirators falsely claimed they would be investing victims’ money and that investors were being paid using the profits generated by the trading. Frimpong and other conspirators also falsely promised investors that their principal would be protected in a “trust” and returned in full upon the completion of the investment, regardless of market volatility. Frimpong and his co-conspirators further falsely promised extremely high rates of return. Many of these false promises were repeated not only by Frimpong, but also by “agents” who were given higher rates of return for bringing in investors. Frimpong also falsely told investors that he and 1st Million were “licensed” traders, and in compliance with all laws and U.S. Securities and Exchange Commission regulations.
In reality, Frimpong and his co-conspirators did not use investor funds for trading, nor did they place investor principal—or any investor funds—into a trust account. In fact, victim funds were not placed in a trust account or otherwise guaranteed. Neither Frimpong, nor anyone else at 1st Million had a license to offer securities or trade currency. In addition, Frimpong and his co-defendants falsely claimed that 1st Million was financially healthy and earning astronomical profits, but 1st Million’s accounts were frequently overdrawn and 1st Million had substantial cash flow problems, all of which Frimpong and his co-conspirators concealed from investors.
Frimpong and his co-conspirators used investor funds for personal gain, including cash and cryptocurrency transfers to themselves and family members. Frimpong and the co-conspirators used some investor funds to keep the scheme afloat, including by using investor funds to make payments to existing investors, leading those investors to believe that they were receiving “returns” on their investments as they had been promised. Frimpong and his co-defendant also used investor funds to pay office expenditures and fund lavish events at hotels in order to recruit additional investors.
As detailed in the plea agreement, Frimpong and his co-conspirators fraudulently solicited over $28.3 million from over 1,200 victims across the United States, including in Maryland, Texas, Florida, New York and Georgia.
By Spring 2019, 1st Million’s accounts were often overdrawn by hundreds of thousands of dollars, and some of the checks 1st Million sent to pay investors monthly returns were returned by the bank due to insufficient funds. Nevertheless, Frimpong continued to solicit funds from existing investors, as well as new investors, and failed to tell any of these potential investors of 1st Million’s financial problems. Ultimately, the scheme collapsed in May 2019 and hundreds of 1st Million investors collectively lost millions of dollars.
As the scheme started to collapse in the spring of 2019, Frimpong began his own separate scheme in which he contracted directly with individuals to invest on their behalf, again falsely promising to invest the money in foreign exchange, falsely promising sky-high returns, and falsely telling his clients that he was a duly-licensed trader. Frimpong admitted that he invested very little of these clients’ money and instead used hundreds of thousands of dollars of fraudulently obtained investment proceeds to fund his own lifestyle. Through this separate scheme, Frimpong misappropriated at least $1,499,751 in U.S. currency from individual victim investors.
Arley Ray Johnson, age 63, of Bowie, Maryland, was sentenced in January to78 months in federal prison for his role in the fraud scheme.
Dennis Jali fled the United States in May 2019, but has since been arrested in South Africa.
Separate civil actions filed against Frimpong and his co-defendants by the Securities and Exchange Commission and the U.S. Commodity Futures Trading Commission remain pending.
United States Attorney Erek L. Barron commended the FBI, the U.S. Secret Service, and the U.S. Postal Inspection Service for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Caitlin R. Cottingham and Jennifer L. Wine, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/report-fraud.
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U.S. Attorney’s Office Resolves ADA Complaint Alleging That Local Doctor’s Office Failed to Provide Sign Language InterpreterRead the Press Release
DETROIT –The United States Attorney’s Office for the Eastern District of Michigan resolved its investigation of Dearborn Obstetrics and Gynecology, P.C. The complainant, who is deaf and utilizes American Sign Language (ASL) as her primary means of communication, alleged that Dearborn Obstetrics failed to provide her with free ASL interpretation services and dismissed her as a patient due to her disability. The voluntary resolution agreement between the U.S. Attorney’s Office, the U.S. Department of Health and Human Services Office for Civil Rights, and Dearborn Obstetrics requires the doctor’s office to fully comply with the non-discrimination requirements of the Americans with Disabilities Act of 1990 (ADA).
The ADA protects the rights of all individuals, regardless of disability, to fully and equally enjoy the benefits and services offered by places of public accommodation, which includes medical practices. It requires such places of public accommodation to provide the necessary auxiliary aids and services to ensure that communication with their patients is effective. The agreement emphasizes the practice’s commitment to ADA compliance going forward. Consistent with the ADA, the agreement requires Dearborn Obstetrics to provide ASL interpreters and other auxiliary aids and services free of charge when necessary.
“Individuals who have disabilities should not face additional barriers when accessing medical care,” U.S. Attorney Dawn N. Ison said. “To prevent such barriers, the Americans with
Disabilities Act requires effective communication with patients who are deaf or hard of hearing, such as the ASL interpreter that this patient needed.”Under the agreement, Dearborn Obstetrics will adopt new ADA policies and practices, train its staff on those polices, report any future complaints from individuals who have disabilities to the U.S. Attorney’s Office, and provide monetary compensation to the complainant.
The U.S. Attorney’s Office’s investigation was led by AUSA Michael El-Zein, a member of the Eastern District’s Civil Rights Unit. The full and fair enforcement of the ADA is a priority of the U.S. Attorney’s Office for the Eastern District of Michigan. The Civil Rights Unit was established in 2010 with the mission of prioritizing federal civil rights enforcement. For more information on the Office’s civil rights efforts, including a copy of the agreement, please visit https://www.justice.gov/usao-edmi/programs/civil-rights.
Individuals who believe they have been subjected to discrimination or have experienced a civil rights violation can submit a complaint with the U.S. Attorney’s Office by email at [email protected] or by phone at (313) 226-9151. Complaints can also be submitted to the Civil Rights Division through its complaint portal.U.S. Attorney's Office Hosts Second Community Event as Part of DOJ's United Against Hate InitiativeRead the Press Release
PHOENIX, Ariz. – The United States Attorney’s Office for the District of Arizona held its second United Against Hate event yesterday at the Sandra Day O’Connor College of Law at Arizona State University in Phoenix, Arizona. The event provided an opportunity for an informative and robust discussion with members and leaders from Arizona’s LGBTQIA+ community. Approximately 80 invited guests, including community members and leaders, law enforcement, lawyers who prosecute or litigate hate crimes/incidents and discrimination claims, and a reporter with LookoutPhx.org, were in attendance. The event focused on establishing a dialogue, brainstorming ways to increase trust in law enforcement, and increasing community understanding of the critical importance of reporting hate crimes and hate incidents.
“Hate crimes harm not just individuals, but also traumatize communities and families,” said Gary Restaino, U.S. Attorney for the District of Arizona. “My office is committed to using all the tools in our law enforcement arsenal, both to prosecute acts motivated by hate, and to educate against ignorance and bias.”
Yesterday’s event featured a discussion with a panel comprised of community leaders, law enforcement partners, and members of the U.S. Attorney’s Office. The panel discussion, moderated by the U.S. Attorney’s Office, allowed attendees to hear directly from leaders in the community, who shared their thoughts, concerns, and experiences with hate crimes and incidents. The event also included presentations from the FBI, the Phoenix Police Department, the Maricopa County Attorney’s Office, and the Arizona Attorney General’s office.
The District of Arizona will hold additional United Against Hate events in the coming months to engage with communities across the state. These events will further encourage collaboration, support hate crimes prevention efforts, and encourage more Arizonans to report hate crimes and hate incidents.
RELEASE NUMBER: 2023-042_United Against Hate
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Two Previously Deported Men Charged with Illegal ReentryRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that two previously deported men were indicted separately by a federal grand jury for illegal reentry into the United States.
According to United States Attorney Gerard M. Karam, Santiago-Hernandez, age 40, of Mexico, was indicted by a federal grand jury with illegal reentry into the United States by a previously removed alien. The indictment alleges that Santiago-Hernandez was previously removed from the United States on March 19, 2015, through Laredo, Texas, and it is alleged that he reentered the United States without first obtaining legal permission to do so. The indictment also alleges that on July 2, 2022, Santiago-Hernandez was encountered in Franklin County, Pennsylvania.
The case was investigated by U.S. Immigration Customs and Enforcement (ICE) and the Pennsylvania State Police. The maximum penalty under federal law for this offense is 10 years of imprisonment, a term of supervised release following imprisonment, and a fine.
Jose Serrano-Castillo, age 31, of El Salvador, was indicted by a federal grand jury with illegal reentry into the United States by a previously removed alien. The indictment alleges that Serrano-Castillo was previously removed from the United States on September 2, 2022, through Alexandria, Louisiana, and it is alleged that he reentered the United States without first obtaining legal permission to do so. The indictment also alleges that on March 16, 2023, Serrano-Castillo was encountered in Franklin County, Pennsylvania.
The case was investigated by U.S. Immigration Customs and Enforcement (ICE). The maximum penalty under federal law for this offense is 8 years of imprisonment, a term of supervised release following imprisonment, and a fine.
Assistant U.S. Attorney Jaime M. Keating is prosecuting the cases.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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