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22 March 2023
Ponca City Man Sentenced to Serve 15 Years in Federal Prison for Sexual Abuse of a Minor in Indian CountryRead the Press Release
OKLAHOMA CITY – Yesterday, JALEN WOLFELKINS HARRIS, 29, of Ponca City, Oklahoma, was sentenced to serve 15 years in federal prison for sexual abuse of a minor in Indian country, announced United States Attorney Robert J. Troester.
On January 18, 2022, a federal grand jury returned a one-count Indictment against Harris for sexual abuse. The Indictment alleged Harris knowingly engaged in a sexual act with a victim who was physically incapable of declining participation in that sexual act. On February 16, 2022, a Superseding Information charged Harris with one count of sexual abuse of a minor in Indian country. On March 2, 2022, Harris pleaded guilty to the Superseding Information.
At a sentencing hearing yesterday, U.S. District Judge Bernard M. Jones sentenced Harris to serve 180 months in federal prison. In support of his sentence, Judge Jones cited, among other things, the serious nature of the offense and the fact that the victim was under Mr. Harris’s care. Judge Jones also ordered that upon release from prison, Harris must serve five years of supervised release. Additionally, upon his release from prison, Harris will be required to register as a sex offender. Harris has been in federal custody since December 30, 2021.
This case was the result of an investigation by the FBI Oklahoma City Field Office, the Bureau of Indian Affairs, White Eagle Police Department, and the Ponca Tribe. Assistant U.S. Attorney D.H. Dilbeck prosecuted this case.
Reference is made to court filings for further information.
Pittsburgh Man Admits Stealing FBI Agent’s Unmarked Vehicle near the Schenley Park OvalRead the Press Release
PITTSBURGH, PA – A former resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to a charge of theft of government property, Acting United States Attorney Troy Rivetti announced today.
Lashawn Norwood, 57, of the City’s Middle Hill neighborhood, pleaded guilty to theft of government property before Chief United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that on Sept. 28, 2021, an unmarked 2021 Ford Explorer owned by the Federal Bureau of Investigations and containing firearms assigned to a special agent, was stolen as it was parked near the Schenley Park Oval. The vehicle was recovered a short time later in the Hill District section of the City of Pittsburgh, where it was discovered that one of the special agent’s service weapons had been stolen from the vehicle. The recovered Ford Explorer was forensically processed by the FBI. Analysis of processed DNA evidence recovered from the Ford Explorer revealed that Norwood’s DNA was detected on both the driver’s side exterior door handle and the steering wheel. During an interview with the FBI, Norwood denied stealing the vehicle and denied ever being inside of the vehicle.
The stolen FBI service weapon was ultimately recovered by the Pittsburgh Bureau of Police on Nov. 12, 2021, after it was discovered in a post office box by a mail carrier in the Allegheny West section of the City of Pittsburgh.
Chief Judge Hornak has not yet scheduled a sentencing date. The law provides for a maximum total sentence 10 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history,
if any, of the defendant. Norwood remains detained pending sentencing.
Assistant United States Attorney Michael R. Ball is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the City of Pittsburgh Bureau of Police conducted the investigation leading to the Indictment in this case.
Philadelphia Man Sentenced to 5 Years for Possessing Crack CocaineRead the Press Release
PITTSBURGH, PA- A resident of Philadelphia, PA, has been sentenced in federal court to a term of imprisonment of 60 months on his conviction for violating federal narcotics laws, Acting United States Attorney Troy Rivetti announced today.
United States District Judge Robert J. Colville imposed the sentence on Zion Elam-Sturgis, 24.
According to information presented to the Court, Elam-Sturgis conspired to possess with intent to distribute and distribute 28 grams or more of a mixture and substance containing a detectible amount of cocaine base and possessed with intent to distribute 28 grams or more of a mixture and substance containing a detectible amount of cocaine base, in Butler, Pennsylvania.
Assistant United States Attorneys Craig W. Haller and Yvonne M. Saadi prosecuted this case on behalf of the government.
Acting United States Attorney Rivetti commended the Pennsylvania State Police, the Federal Bureau of Investigation, and the Butler County District Attorney’s Drug Task Force for the investigation leading to the successful prosecution of Elam-Sturgis.
Pensacola Man Sentenced to More Than 12 Years in Prison for CarjackingRead the Press Release
MOBILE, AL – A Pensacola, Florida man was sentenced to 150 months in prison for a carjacking in Baldwin County.
According to court documents, Billy Joe Burns, 34, was arrested by deputies with the Baldwin County Sheriff’s Office on July 12, 2022, after he carjacked a woman in Miflin, Alabama, and led deputies on a high-speed chase that ended in Gulf Shores. Deputies initially encountered Burns as he fled from the scene of an alleged assault at a gas station in Foley. In the course of fleeing from that scene, Burns wrecked the car that he was driving in the front yard of a house on County Road 83. Burns got out of the wrecked car, jumped a fence, and fled into nearby woods toward County Road 20 in Miflin.
As a nearby resident rounded the corner on County Road 20 in a 2015 Dodge Grand Caravan, Burns emerged from the woods and carjacked her. Armed with a broken piece of cinder block, Burns threatened the victim, reached into her open window, unlocked the door, and pulled her from the van. He then took off in the stolen van on County Road 20. Deputies pursued Burns in the stolen van for several miles down the Foley Beach Express. Burns eventually wrecked the van into a bystander truck on County Road 8 in Gulf Shores. The truck was occupied by a couple and their two-year-old child. Both the stolen van and the truck were totaled. Burns attempted to flee into a nearby field but deputies caught up to him and took him into custody.
Senior United States District Judge William H. Steele ordered Burns to serve 150 months’ imprisonment and a three-year term of supervised release upon his release from prison, during which time he will undergo drug testing and treatment, will receive mental health evaluation and treatment, and will be subject to credit restrictions. The court did not impose a fine, but Judge Steele ordered Burns to pay $25,018.41 in victim restitution and $100 in special assessments.
U.S. Attorney Sean P. Costello of the Southern District of Alabama made the announcement.
The Federal Bureau of Investigation and the Baldwin County Sheriff’s Office investigated the case.
Assistant U.S. Attorney Justin Roller prosecuted the case on behalf of the United States.
Pensacola Insurance Company Owner Sentenced to 168 Months in Prison for Wire Fraud and Money Laundering OffensesRead the Press Release
PENSACOLA, FLORIDA – John Thomas, 52, of Pensacola was sentenced to 168 months in federal prison for wire fraud and money laundering charges related to selling fraudulent insurance policies. In addition to his prison sentence, he was ordered to pay $8,340,153.34 in restitution. Jason R. Coody, United States Attorney for the Northern District of Florida announced the sentence.
“This sentence should serve as a significant deterrent to those who would defraud our citizens, in this case depriving them of critical insurance coverage, simply to unlawfully enrich themselves,” said U.S. Attorney Coody. “Our law enforcement partners are to be commended for their tireless dedication during this investigation and prosecution. Through their collective efforts, the defendant has been held accountable and justice has been obtained for his victims.”
Between September 2013 and February 2021, Thomas operated an insurance business known as Thomas Insurance, LLC. and defrauded customers over $4.8 million in insurance premium payments through a type of insurance fraud known as premium diversion. Thomas executed this scheme by collecting insurance premiums from customers and keeping the funds for personal use instead of producing insurance policies. To conceal his acts, Thomas gave the customers fraudulent documents referencing insurance policies that did not exist.
“Today’s sentencing should serve as a warning to anyone who uses illegal means and criminal behavior to take advantage of others,” said Sherri E. Onks, Special Agent in Charge of the FBI Jacksonville Division. “The victims in this case suffered significant loss and pain as a result of this deception, never knowing they were without insurance coverage until disaster struck. The FBI and our law enforcement partners will continue to work on behalf of innocent victims and investigate and pursue those who selfishly commit fraud for personal gain at the expense of others.”
Florida CFO Jimmy Patronus said, “Insurance fraud is a serious crime that causes rates to go up for every hard-working family and business owner in Florida.” “Unfortunately, there are bad actors who think they can use fraud schemes like this to line their own pockets. I hope this case serves as a warning that if you commit fraud in Florida, you will be caught and held accountable. Thank you to the U.S. Department of Justice, the FBI, the U.S. Attorney’s Office and my dedicated insurance fraud detectives for helping put an end to this costly fraud scheme.”
This case resulted from a joint investigation by the Federal Bureau of Investigations and the Florida Department of Financial Services, Division of Investigative & Forensic Services, Bureau of Insurance Fraud. The case was prosecuted by Assistant United States Attorney Jeffrey M. Tharp.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Orleans Parish Man Pleads Guilty to Violations of the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS – THEODORE TARDIE, age 53, pled guilty on March 21, 2023, before United States District Court Judge Jay C. Zainey to a one-count superseding bill of information charging him with conspiracy to distribute and possess with the intent to distribute five hundred (500) grams or more of methamphetamine in violation of 21 U.S.C. §§ 841(a)(1), (b)(1)(A), and 846, announced U.S. Attorney Duane A. Evans.
According to court documents, TARDIE conspired with others to distribute a quantity of methamphetamine within the Eastern District of Louisiana and elsewhere on or about January 22, 2020 and continuing to on or about July 29, 2020.
TARDIE is scheduled to be sentenced on June 20, 2023. TARDIE faces a mandatory minimum term of imprisonment of ten (10) years up to life, a fine of up to $10,000,000, at least 5 years of supervised release, and a $100 mandatory special assessment fee.
This case was investigated by the Drug Enforcement Administration, Louisiana State Police, Jefferson Parish Sheriff’s Office, Gretna Major Crimes Task Force, and the Kenner Police Department. The prosecution is being handled by Assistant United States Attorney Lynn E. Schiffman of the Narcotics Unit.
Oklahoma City Man Charged with Attempted Enticement and Coercion of a Minor to Engage in Sexual ActivityRead the Press Release
OKLAHOMA CITY — Today, STEVEN NEEL HARRY, 61, of Oklahoma City was arrested on a charge of attempted coercion and enticement of a minor to engage in sexual activity, announced United States Attorney Robert J. Troester.
A criminal complaint filed today charges Harry with one count of attempt to persuade, induce, entice and coerce an individual who had not reached the age of 18 to engage in sexual activity. An affidavit filed in support of the criminal complaint indicates that Harry started communicating with an undercover law enforcement officer in September 2022. During those conversations, Harry discussed meeting an individual at a hotel in Oklahoma City to engage in sexual activity with a person whom Harry believed was a 12-year-old girl. FBI agents arrested Harry after he arrived at the metro hotel this morning.
This afternoon, Harry had his initial appearance on the complaint in federal court in Oklahoma City. Harry is detained in federal custody pending further proceedings in the case.
If found guilty of attempted coercion and enticement of a minor, the defendant faces no less than 10 years and up to life in federal prison, a fine of $250,000, and a special assessment of $55,100. The defendant would also be required to serve a term of supervised release of at least five years and up to life.
This case is the result of an investigation by the FBI Oklahoma City Field Office. Assistant U.S. Attorneys Allison Christian and Brandon Hale are prosecuting the case.
This case is part of Project Safe Childhood (PSC), a nationwide initiative by the Department of Justice (DOJ) to combat child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the DOJ Child Exploitation and Obscenity Section, PSC 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 PSC, please visit www.justice.gov/psc.
The public is reminded that these charges are merely allegations, and that the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt. Reference is made to public records for more information. The criminal complaint filed in this case is attached.
Ocean County Man Admits Online Enticement of Minor, Distribution and Possession of Child PornographyRead the Press Release
TRENTON, N.J. – An Ocean County, New Jersey, man today admitted possessing and distributing images of child sexual abuse and inducing a minor to send him sexually explicit images and engage in sexually explicit conduct over an online messaging service, U.S. Attorney Philip R. Sellinger announced.
Kevin Van Pelt, 33, of Lakehurst, New Jersey, pleaded guilty before U.S. District Judge Georgette Castner to an information charging him with one count each of online enticement of a minor to engage in criminal sexual conduct, distribution of child pornography, and possession of prepubescent child pornography.
According to documents filed in this case and statements made in court:
From August 2018 to October 2018, Van Pelt used multiple online messaging services to communicate with a minor victim, including repeatedly requesting that the minor send him sexually explicit images. Van Pelt also distributed images and videos of child sexual abuse over several online social media applications between December 2017 and March 2019. Van Pelt possessed images and videos of prepubescent child sexual abuse on his cellular phone when he was arrested by local authorities on May 1, 2019.
The charge of online enticement carries a mandatory minimum sentence of 10 years in prison, a maximum potential penalty of life in prison, and a $250,000 fine. The charge of distribution of child pornography carries a mandatory minimum sentence of five years in prison, a maximum potential penalty of 20 years in prison, and a $250,000 fine. The charge of possession of prepubescent child pornography carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for July 20, 2023.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; and members of the Gloucester County Prosecutor’s Office, under the direction of Acting Prosecutor Christine Hoffman, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Ian D. Brater of the U.S. Attorney’s Office Criminal Division in Trenton.
vanpelt.information.pdfNigerian National Indicted for Wire and Copyright Fraud SchemeRead the Press Release
NEWARK, N.J. – A Nigerian man was charged today for his role in a fraud scheme that targeted a New Jersey-based audiobook and podcast service, U.S. Attorney Philip R. Sellinger announced.
Anyanwu Benjamin Chizitere, 30, of Enugu, Nigeria, is charged by indictment with one count of conspiracy to commit wire fraud, six counts of wire fraud, and three counts of copyright fraud.
According to the indictment:
Between February 2018 and April 2022, Chizitere conspired with others to defraud a New Jersey company and others. He posed as the rights holder for more than 800 books and contracted with more than 600 voice actors to produce audiobooks of the written works. Chizitere misrepresented that he was legally entitled to make the audiobooks available for production and distribution because he was either the author of the books or a person to whom the author of the books transferred production and distribution rights. Chizitere created hundreds of accounts through a service provided by the victim company and, using the accounts, published the infringing audiobooks on the company’s platforms, including its website and mobile application.
Chizitere and others were paid more than $250,000 in royalties based on downloads of the infringing audiobooks. The voice actors who produced the audiobooks at Chizitere’s direction were never compensated and suffered hundreds of thousands of dollars in aggregate losses.
Chizitere also directed others to purchase the infringing audiobooks using promotional codes provided to Chizitere upon opening accounts with the victim company. Chizitere directed others to leave positive reviews of the infringing audiobooks on the company’s platform to increase the likelihood that others would download the content, resulting in greater royalty payments to Chizitere.
The counts of conspiracy to commit wire fraud and wire fraud each carry a maximum potential punishment of 20 years in prison and a fine of $250,000, or twice the gross loss or gain caused by the offense, whichever is greatest. The counts of copyright fraud each carry a maximum penalty of up to one year in prison and a fine of $100,000.
U.S. Attorney Sellinger credited special agents of the FBI under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Anthony P. Torntore, Chief of the U.S. Attorney’s Office’s Cybercrime Unit.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
achizitere.indictment.pdfNew York Alleged Fraudster Arrested and Charged for a $47,000 Bank Scheme Involving Six Utah Bank Locations and VictimsRead the Press Release
Salt Lake City, Utah – A federal grand jury in Utah returned an indictment charging a New York man with bank fraud and aggravated identity fraud throughout the District of Utah.
According to court documents, Clemente Castracucco, 61, of the Bronx, New York, planned and executed a scheme to defraud Bank of Utah, First Utah Bank, First Community Bank, and Zions Bank of at least of $47,000 between November 9, 2022, and December 16, 2022. The purpose of the scheme was to defraud financial institutions by depositing counterfeit checks into accounts at the victims’ banks, then proceed to fraudulently withdraw funds from the bank accounts using account information and identification that was not Castracucco’s. On one occasion, according to the complaint and law enforcement affidavit, Castracucco entered a First Utah Bank branch in Salt Lake City and deposited a $4,500 fraudulent check, which was drawn on the account of two individuals and made payable to a Utah business. Castracucco then withdrew $7,500 from the First Utah Bank account and presented a fraudulent United States passport card purporting to be a signer on the business account and forged the signature on the check. The signer, a Utah resident, was unaware of the transaction and did not authorize it. Castracucco was arrested by the Saratoga Police Department after officers responded to a call at a Zions Bank branch to report a male attempting to cash a check not made out him. He later self-identified as Castracucco.
Castracucco is charged with six counts of bank fraud and six counts of aggravated identity fraud. The defendant is scheduled for his initial court appearance on the indictment March 23, 2023, at 1:30 p.m. in courtroom 8.4 before a U.S. Magistrate Judge at the Orrin G. Hatch United States District Courthouse in Salt Lake City, Utah.
U.S. Attorney Trina A. Higgins for the District of Utah made the announcement.
The case is being investigated jointly by the United States Department of State Diplomatic Security Service (DSS) and numerous local police departments.
Assistant U.S. Attorney, Jamie Z. Thomas, of the District of Utah prosecuted the case.
New Hampshire Man Sentenced for Possessing Fentanyl Intended for DistributionRead the Press Release
BOSTON – A Manchester, N.H., man was sentenced in federal court in Boston for possessing fentanyl with intent to distribute.
Michael Warner, 30, was sentenced by U.S. District Court Judge Indira Talwani to 77 months in prison and four years of supervised release. On Dec. 19, 2022, Warner pleaded guilty to one count of possession with intent to distribute 40 grams or more of fentanyl.
In August 2020, Warner was observed leaving a known drug source location in Lawrence. Once on the highway, law enforcement stopped Warner, who admitted to buying 70 grams of fentanyl, an amount consistent with narcotics distribution. Additionally, Warner committed this offense while on parole following a state robbery conviction.
United States Attorney Rachael S. Rollins and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement today. Assistant U.S. Attorney Philip C. Cheng of Rollins’ Organized Crime & Gang Unit 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.
Mission Man Sentenced for ArsonRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange, U.S. District Court, has sentenced a Mission, South Dakota, man convicted of Arson. The sentencing took place on March 13, 2023.
Tommy Vargas, a/k/a Tommy Lee Spotted Eagle, age 33, was sentenced to two years in federal prison, followed by three years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund and $74,633.15 restitution.
Vargas was indicted for Arson and Burglary by a federal grand jury in July of 2022. He pleaded guilty on December 8, 2022.
In the early morning hours of February 27, 2022, Vargas entered the Sinte Gleska University maintenance building without permission. Vargas freely moved within the building for approximately one hour, entering various rooms in the building. Vargas collected numerous items and removed them from the building. Vargas also found a gas can in the building and poured gas on the floor of building before disconnecting the surveillance system. Vargas then ignited the gas and exited the building. First responders were able to suppress the fire within 20 minutes, but the fire still caused damage to the building.
This case was investigated by Rosebud Sioux Tribe Law Enforcement Services and the South Dakota Fire Marshal. Assistant U.S. Attorney Abby Roesler prosecuted the case.
Vargas was immediately remanded to the custody of the U.S. Marshals Service.
Meridian Man Sentenced to over Six Years in Prison for Possession of a Firearm by a Convicted FelonRead the Press Release
Jackson, Miss. – A Meridian, Mississippi man was sentenced to 77 months in prison for possession of a firearm by a convicted felon, announced U.S. Attorney Darren J. LaMarca of the Southern District of Mississippi and Special Agent in Charge Kurt H. Thielhorn of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
According to court documents, Billy Ray Craven, 55, was found in possession of a firearm in his vehicle by officers of the Lauderdale County Sheriff’s Office on August 6, 2019 during a traffic stop. Craven was stopped in connection with a narcotics investigation.
Craven was indicted by a federal grand jury on June 23, 2020 and he pled guilty on August 10, 2022 to possession of a firearm by a convicted felon.
The Lauderdale County Sheriff’s Office and the ATF are investigating the case.
Assistant U.S. Attorney Charles W. Kirkham prosecuted the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Medical Doctor and Treatment Facility Ordered to Pay Civil Penalties for Alleged Violations of the Opioid Addiction Recovery Fraud Prevention Act and Federal Trade Commission ActRead the Press Release
The Department of Justice, together with the Federal Trade Commission (FTC), today announced that the government will collect $100,000 in civil penalties from Defendants Dalal Akoury MD, PLLC, AWAREmed Wholistic Urgent Care, PLLC, and medical provider Dalal Akoury as part of a settlement to resolve alleged violations of the Opioid Addiction Recovery Fraud Prevention Act of 2018 and the FTC Act in connection with the advertising of treatment services of AWAREmed Health and Wellness Resource Center (AWAREmed).
In a complaint filed in the U.S. District Court for the Eastern District of Tennessee, the government alleged that, beginning since at least 2018 and continuing until at least June 16, 2022, the defendants made misleading and unsubstantiated advertising claims about the effectiveness of AWAREmed’s treatments for various illnesses, including substance use disorder, cancer, Parkinson’s Disease, and Alzheimer’s Disease. Among other things, the defendants allegedly claimed that virtually every patient at any stage of illness improved after visiting AWAREmed’s clinic, including through the remission of illnesses considered by most to be incurable. The complaint alleged these advertising claims were misleading and unlawful because they were not supported by competent and reliable scientific evidence.
“The Justice Department is committed to halting deceptive health marketing claims directed at consumers,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Department of Justice’s Civil Division. “Misleading advertisements touting unproven medical treatments prevent consumers from making informed decisions about their health and wellness.”
“The opioid crisis claims lives and destroys communities all across the United States but especially in rural areas,” said Director Samuel Levine of the FTC’s Bureau of Consumer Protection. “Doctors peddling phony promises should know that the FTC will use its strengthened authority from Congress to stop them from exploiting Americans struggling with addiction.”
In addition to civil penalties, the stipulated order entered by the court today prohibits the defendants from making similar advertising claims in the future. It also requires the defendants to notify affected consumers and to submit compliance reports to the FTC for over a decade.
This matter is being handled by Trial Attorneys Zachary L. Cowan and Amy P. Kaplan from the Civil Division’s Consumer Protection Branch, as well as Assistant U.S. Attorneys Ben D. Cunningham and Alexa Ortiz Hadley for the Eastern District of Tennessee. James Prunty, Shira Modell, and Elizabeth Sanger represent the FTC.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch. For more information about the FTC, visit its website at https://www.FTC.gov.
McLaughlin Man Acquitted of Assault ChargesRead the Press Release
ABERDEEN - United States Attorney Alison J. Ramsdell announced that a McLaughlin, South Dakota, man was acquitted of Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury as a result of a federal jury trial in Aberdeen, South Dakota, on March 21, 2023.
Raymond Earl Otter Robe, age 47, was indicted by a federal grand jury in August of 2022.
The charges related to the alleged stabbing of two individuals in McLaughlin.
The investigation was conducted by the Bureau of Indian Affairs, and the U.S. Attorney's Office prosecuted the case.
Maui Physician Charged with Unlawful Distribution of Hydrocodone and Other Controlled SubstancesRead the Press Release
HONOLULU – Chris A. Boulange, 74, a medical doctor and resident of Wailuku, Maui, was arrested yesterday pursuant to a criminal complaint with four counts of unlawful distribution of controlled substances, including hydrocodone, alprazolam (also known as Xanax), and diazepam (also known as Valium). Boulange made his initial appearance today before Magistrate Judge Wes Reber Porter.
According to the affidavit in support of the criminal complaint, in June 2022, an undercover agent of the Drug Enforcement Administration (“DEA”) sought an appointment with Boulange, posing as a new patient seeking a prescription of opioids. Between July 2022 and November 2022, the undercover agent met with Boulange four times, each time occurring at a restaurant or bar rather than a medical office.
After each of the meetings, Boulange issued prescriptions for the undercover agent to hydrocodone. One of prescriptions also included alprazolam and another included diazepam. The complaint states that each of the prescriptions was issued outside the usual course of professional practice and without a legitimate medical purpose.
Hydrocodone is a moderately potent, orally available opioid that, in combination with acetaminophen, is widely used for treatment of acute or chronic pain. Alprazolam and diazepam belong to a class of medications called benzodiazepines, which are used primarily for sedation. All three medications, both individually and in combination with each other, are in high demand by illicit drug users.
“Licensed physicians have the ability to provide potentially dangerous addictive drugs that are otherwise illegal to possess,” said United States Attorney Clare E. Connors. “Criminally abusing the privilege to prescribe such drugs may result in criminal prosecution.”
“Trusted medical professionals who abuse their medical license to unlawfully distribute opioids ultimately contribute to the deadly opioid epidemic affecting our communities,” said DEA Honolulu District Office Assistant Special Agent in Charge Victor Vazquez. “Whether a street drug dealer or a physician, we will hold any individual accountable who peddle addictive drugs and threaten the safety of American people.”
The charges filed on March 2, 2023, consist of four counts of unlawful distribution of controlled substances, each of which carries a maximum statutory penalty of 20 years and a fine of not more than $1,000,000.
The charges and information contained in the federal complaint are merely accusations, and the defendant is presumed innocent unless and until indicted and proven guilty beyond a reasonable doubt.
This case is being investigated by the Drug Enforcement Administration in partnership with the Hawaii State Sheriff’s Division, Honolulu Police Department, and Maui Police Department. It is being prosecuted by Assistant U.S. Attorney Michael F. Albanese.
Massachusetts Man Sentenced to over 12 Years Imprisonment for Fentanyl Distribution ConspiracyRead the Press Release
CONCORD – Mikael Canario-Batista, 47, of Lawrence, Massachusetts, was sentenced to 151 months in federal prison for conspiring to distribute fentanyl, United States Attorney Jane E. Young announced today.
According to court documents and statements made in court, Canario-Batista was part of a drug-distribution conspiracy operating in Lawrence, Massachusetts that distributed fentanyl into New Hampshire. The defendant provided a stash house for fentanyl imported from an international source of supply and assisted in distributing the fentanyl to other larger distributors. The defendant was intercepted on a court authorized wiretap arranging drug purchases from a co-conspirator who was importing the drugs. The interceptions and other evidence resulted in the execution of a search warrant at the defendant’s residence which resulted in the seizure of over 7 kilograms of fentanyl.
“This is another example of the many people needed to make an international drug conspiracy function” said U.S. Attorney Young. “The defendant operated a critical way station as the dangerous fentanyl traveled from its international source to the New Hampshire streets. We will continue to investigate and prosecute those involved at every level of moving this dangerous drug.”
“DEA is committed to investigating and dismantling Drug Trafficking Organizations and individuals like Mr. Batista who are responsible for distributing lethal drugs like fentanyl to the citizens of New Hampshire,” said DEA Special Agent in Charge Brian D. Boyle. “Today’s substantial sentence not only holds Mr. Batista accountable for his crimes but serves as a warning to those traffickers who are fueling the opioid epidemic with deadly drugs in order to profit and destroy people’s lives. DEA’s top priority is combatting the opioid epidemic by working with our local, county, state and federal partners to bring to justice anyone who distributes this poison.”
“Canario-Batista played an important role in the supply chain that brings deadly opiates like fentanyl into our communities. International drug trafficking is an incredibly complex problem that can only be addressed through collaboration and we are proud to join our partners with the Drug Enforcement Administration as we work together for results like today’s sentence,” said Michael Krol, Acting Special Agent in Charge for Homeland Security Investigations in New England.
This matter was investigated by the Drug Enforcement Administration and Homeland Security Investigations. The case was prosecuted by Assistant U.S. Attorneys Seth Aframe, John Kennedy and Heather Cherniske.
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Martinsburg residents charged in gun trafficking conspiracyRead the Press Release
MARTINSBURG, WEST VIRGINIA – Two West Virginia residents have been charged with the illegal purchase of firearms that were later used in violent crimes.
Nakita Ann Lake, age 33, and Gerald Anthony Tonsil, 31, both of Martinsburg, were indicted today on multiple federal gun charges, to include a conspiracy to transfer firearms to prohibited persons. According to court documents, the defendants visited firearms dealers in Berkeley County where Tonsil provided Lake with cash to purchase guns. Tonsil is prohibited from purchasing and owning firearms because of a prior felony and thus engaged the help of Lake. The investigation revealed that Tonsil sold some of the firearms, two of which were recovered in shooting incidents in New York.
“Gun traffickers endanger the lives of people in West Virginia and throughout the country,” said United States Attorney William Ihlenfeld. “My office will continue to pursue those who profit from putting guns in the hands of those who use them for violence.”
Lake is charged with a total of four counts and Tonsil faces seven counts. If convicted, each faces up to five years in prison for the conspiracy count and up to 10 years on each remaining count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Bureau of Alcohol, Tobacco, Firearms & Explosives investigated the case.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government.
An indictment is merely an allegation, and each defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Man Sentenced to 18 Months in PrisonRead the Press Release
HAMMOND- Antonio Joel Ortiz, 25 years old, was sentenced by United States District Court Chief Judge Jon E. DeGuilio after pleading guilty to being a felon in possession of a firearm, announced United States Attorney Clifford D. Johnson.
Ortiz was sentenced to 18 months in prison followed by 1 year of supervised release.
According to documents in the case, on August 1, 2022, Ortiz possessed a loaded firearm while committing a theft. Law enforcement successfully recovered the firearm Ortiz had thrown over a gate when he saw police as well as the loaded magazine. Ortiz’s criminal history revealed he has prior felony convictions for criminal recklessness and burglary, and as such, is prohibited from possessing the firearm.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives Indiana High Intensity Drug Trafficking Task Force and the Hammond Police Department. This case was prosecuted by Special Assistant United States Attorney Patrick D. Grindlay.
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.
Man Charged with Stealing Guns from Newington Gun StoreRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and James Ferguson, Special Agent in Charge, ATF Boston Field Division, today announced that a federal grand jury in Hartford has returned an indictment charging TROY HARRIS, 28, with firearm offenses stemming from a Newington gun store theft in September 2021.
As alleged in the indictment, on September 7, 2021, Harris stole two Kimber Micro 9 9mm semiautomatic pistols, two Kimber Pro Carry .45 ACP semiautomatic pistols, and one Kimber Super Match .45 ACP semiautomatic pistol from Hoffman’s “Guns for the Good Guys,” a federal firearms licensee located in Newington.
It is alleged that Harris’s criminal history includes convictions in Connecticut state court for escape in the first degree, burglary in the third degree, and robbery in the first degree. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
The indictment, which was returned on March 15, charges Harris with theft of firearms from a licensee, and unlawful possession of firearms by a felon. Harris appeared today before U.S. Magistrate Judge S. Dave Vatti in Bridgeport and pleaded not guilty to the charges. If convicted, he faces a maximum term of imprisonment of 20 years.
Harris has been detained since his arrest on September 7, 2021.
U.S. Attorney Avery stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Newington and Bristol Police Departments. The case is being prosecuted by Assistant U.S. Attorney Daniel E. Cummings through the Justice’s Department’s Project Safe Neighborhoods (PSN) program.
PSN, the centerpiece of the Department of Justice’s violent crime reduction efforts, 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.
U.S. Attorney Avery thanked the State’s Attorney’s Office for the Judicial District of New Britain for its close cooperation in investigating and prosecuting this matter.
Man Charged Following Seizure of over One Million Suspected Fentanyl PillsRead the Press Release
PHOENIX, Ariz. – Juan Alfonso Torres-Rodriguez, 27, of Mexico, was charged by criminal complaint on March 9, 2023, with one count of Possessing Suspected Fentanyl Pills for Distribution.
The complaint alleges that, on the evening of March 8, 2023, law enforcement officers observed Torres-Rodriguez participating in a suspected drug transaction. Subsequent searches of Torres-Rodriguez’s residence and vehicle led to the seizure of more than one million pills (approximately 108 kilograms of pills), suspected of containing fentanyl. The complaint further alleges that Torres-Rodriguez intended to distribute more than one million fentanyl pills.
A conviction for Possessing 400 Grams or More of Fentanyl for Distribution carries a mandatory minimum sentence of 10 years in prison with a maximum penalty of life in prison, a fine of up to $10,000,000, and five years up to a lifetime of supervised release.
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.
The investigation was conducted by the United States Drug Enforcement Administration Task Force Group. The United States Attorney’s Office, District of Arizona, Phoenix, is handling the prosecution.
CASE NUMBER: MJ-23-09152-ESW
RELEASE NUMBER: 2023-041_Torres-Rodriguez# # #
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.
Lowell Postal Carrier Sentenced for Attempting to Bribe Supervisor to Divert Packages of CocaineRead the Press Release
BOSTON – A Lowell postal worker was sentenced today in federal court in Boston for attempting to bribe a postal supervisor and sell them cocaine.
John Noviello, of Nashua, N.H., 61, was sentenced by U.S. District Court Judge Angel Kelley to one day in prison and three years of supervised release, with nine months spent in home detention. On Nov. 1, 2022, Noviello pleaded guilty to one count of bribery of a public official and one count of distribution of cocaine.
Noviello was a mail carrier for the U.S. Postal Service in Lowell. On Feb. 15, 2022, Noviello approached a U.S. Postal supervisor seeking their assistance in a scheme to divert postal packages suspected of containing cocaine. Noviello offered to pay the supervisor $1,750 per kilogram of cocaine successfully obtained from any diverted packages. On Feb. 17, 2022, Noviello left $850 in cash, concealed in a bag, inside the supervisor’s vehicle in an attempt to encourage the supervisor to agree to the scheme. Noviello, referring to the $850, later commented to the supervisor, “that was a nice envelope for starters.” After contacting authorities, the supervisor conducted a controlled purchase from Noviello during which the defendant distributed approximately 3.7 grams of cocaine for $200. Noviello was charged for the offense on May 11, 2022.
United States Attorney Rachael S. Rollins; Matthew Modafferi, Special Agent in Charge of the United States Postal Service, Office of Inspector General, Northeast Area Office; and Ketty Larco Ward, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement. Assistant U.S. Attorney John T. Mulcahy of Rollins’ Narcotics & Money Laundering Unit prosecuted the case.
Lincoln Man Sentenced to 10 Years in Prison for Possession with Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Steven Russell announced that Travis J. Nyhoff, 41, of Lincoln, Nebraska, was sentenced today in federal court in Lincoln. Senior United States District Judge John M. Gerrard sentenced Nyhoff to 10 years in prison for possession with intent to distribute 50 grams or more of methamphetamine (actual). After serving his sentence, Nyhoff will be placed on supervised release for 5 years. There is no parole in the federal system.
On September 21, 2021, investigators with the Lincoln Police Department saw Nyhoff walking on a sidewalk in Lincoln. The investigators determined that Nyhoff had warrants for his arrest. The investigators contacted Nyhoff at a gas station parking lot. Nyhoff was carrying a backpack with a smaller bag clipped to it. They arrested Nyhoff pursuant to those warrants and searched his person. They found a glass meth pipe with residue on his person. During his arrest, he dropped the backpack he was carrying. Officers searched the bag attached to the backpack and found three baggies containing suspected methamphetamine. Investigators found in the backpack a digital scale with suspected methamphetamine residue. The suspected methamphetamine was sent to the lab for testing. The lab determined that the largest bag contained 60.23 grams of methamphetamine, of which at least 58 grams was actual methamphetamine. The other two bags were confirmed to contain methamphetamine and totaled 80.2 grams.
This case was investigated by the Lincoln/Lancaster County Narcotics Task Force.
Lincoln Man Sentenced to 10 Years in Prison for Possession with Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Steven Russell announced that Daniel Drews, 41, of Lincoln, Nebraska, was sentenced today in federal court in Lincoln. Senior United States District Judge John M. Gerrard sentenced Drews to 10 years in prison for possession with intent to distribute 5 grams or more of methamphetamine (actual) with a prior serious drug felony conviction. Because of Drews’s prior drug trafficking conviction, he faced a 10-year mandatory minimum sentence. After serving his sentence, Drews will be placed on supervised release for 8 years. There is no parole in the federal system.
On May 10, 2022, drug investigators were surveilling a residence in Lincoln. Investigators saw Drews and two others exit the residence and get in the vehicle. Drews got in the passenger side of the vehicle. The vehicle departed and officers followed. Law enforcement stopped the vehicle for a traffic violation, and Drews exited the vehicle and started walking away with a backpack. Officers instructed him not to run, but he ran and threw the backpack on the ground. Drews was eventually apprehended and taken into custody. Officers searched the backpack that he threw on the ground and found two bags of marijuana, a gun, and a knife. Officers searched his person and found two baggies of suspected methamphetamine and $240 in currency. The suspected methamphetamine was sent to the lab for testing. The lab confirmed that there was at least 22.5 grams of methamphetamine, of which at least 21 grams was actual methamphetamine.
This case was investigated by the Lincoln/Lancaster County Narcotics Task Force.
Lincoln Man Sentenced for Possession with Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Steven Russell announced that Rogelio Torres-Rodriguez, 26, of Lincoln, Nebraska, was sentenced today by Senior United States District Judge John M. Gerrard to three years and four months in federal prison for possession with the intent to distribute 50 grams or more of actual methamphetamine. Following the prison term, Torres-Rodriguez will serve three years on supervised release. There is no parole in the federal system.
On May 25, 2022, the Drug Enforcement Administration, (DEA), intercepted a package at United Parcel Service in Lincoln, and a trained canine indicated the odor of drugs. The Nebraska State Patrol obtained a search warrant for the package which was found to contain approximately four pounds of methamphetamine. Purity testing at the DEA lab showed more than 1.6 kilograms, (approximately 3 ½ pounds), of actual methamphetamine. An undercover DEA agent delivered a similar-looking package containing about half the methamphetamine to the listed address in Lincoln where it was accepted by Torres-Rodriguez. A search warrant was then executed at that residence for the package, and Torres-Rodriguez was arrested. He waived his rights and told investigators he was expecting the package and knew it contained methamphetamine. Torres-Rodriguez said he intended to turn it over to another person who was supposed to pay him for accepting the package.
This case was investigated by the DEA and the Nebraska State Patrol.
KC Man Sentenced to 15 Years for Heroin, Meth Trafficking, Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., was sentenced in federal court today on charges related to heroin and methamphetamine trafficking and to illegally possessing firearms.
Brian K. Tice, 58, was sentenced by U.S. District Judge Gary A. Fenner to 15 years in federal prison without parole.
On July 20, 2022, Tice pleaded guilty to one count of conspiracy to distribute heroin, two counts of possessing heroin with the intent to distribute, one count of possessing methamphetamine with the intent to distribute, one count of possessing firearms in furtherance of a drug-trafficking crime, and one count of being a felon in possession of firearms.
Tice admitted that he received an Express Mail package from California on Feb. 18, 2022, that contained 393.26 grams of heroin. The package was intercepted by a postal inspector, who learned that Tice had been sent 20 similar packages from the same person in California over the previous year. Law enforcement officers set up a controlled delivery of the package to Tice’s residence. When he brought the package inside and opened it, officers executed a search warrant at his residence.
Officers found a loaded Springfield Armory handgun, which was later determined to be stolen, and a loaded Smith & Wesson 9mm handgun on the bed where the controlled delivery parcel was located. Officers also found a Springfield Armory handgun and a Bryco .380-caliber handgun, which was later determined to be stolen, in the closet of the same bedroom. Officers also seized 115 grams of methamphetamine, two grams of crack cocaine, four cell phones and drug paraphernalia.
On March 5, 2022, law enforcement officers arrested Tice when he left a residence they had under surveillance. Officers searched Tice and the vehicle he was in, and seized 84 tablets of benzodiazepines, 69 tablets of Alprazolam, 108 tablets of Zolpidem Tartrate, 24 tablets of Hydrocone, and a vial that contained fentanyl.
Tice had earlier been stopped by a Jackson County sheriff’s deputy, which is the basis for one of the heroin distribution counts. At about 11 p.m. on Sept. 5, 2019, Tice was driving a 2009 Volkswagen Jetta and made a left-hand turn onto Broadway from West 39th Street in Kansas City. The deputy braked to avoid a collision with the Jetta, which continued traveling north on Broadway down the middle of the street. The deputy stopped the vehicle and conducted a series of field sobriety tests, which Tice failed. The deputy arrested Tice for driving under the influence; during a search the deputy found two plastic bags that contained a total of 25 grams of heroin and $3,762 in cash in Tice’s pockets. The deputy also searched Tice’s vehicle and found a grocery sack underneath the driver’s seat that contained a plastic bag with approximately 91 grams of heroin.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Tice has prior felony convictions for sale of a controlled substance and conspiracy to distribute five kilograms or more of cocaine.
This case was prosecuted by Assistant U.S. Attorney Stefan C. Hughes. It was investigated by the U.S. Postal Inspection Service, the Jackson County Drug Task Force and the Jackson County, Mo., Sheriff’s Department.
Justice Department Settles Lawsuit Against Neurosurgeon and his Fiancée Alleging Receipt of Illegal KickbacksRead the Press Release
Dr. Sonjay Fonn and Ms. Deborah Seeger of Cape Girardeau, Missouri, and their professional companies, Midwest Neurosurgeons, LLC and DS Medical, LLC, have agreed to pay $825,000 to resolve a lawsuit alleging that they violated the False Claims Act by soliciting and receiving kickbacks from spinal implant companies.
The Justice Department’s lawsuit alleged that Dr. Fonn, Ms. Seeger, Midwest Neurosurgeons, and DS Medical solicited and received remuneration from spinal implant companies in return for arranging for the use of those companies’ products in Dr. Fonn’s surgeries, in violation of the Anti-Kickback Statute. The Anti‑Kickback Statute prohibits soliciting or receiving anything of value in return for the referral of items or services covered by federal health care programs. The statute is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives.
“The Anti-Kickback Statute plays a critical role in ensuring the integrity of medical care provided to federal health care program beneficiaries,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Treatment decisions should be determined by beneficiaries’ medical needs, not by kickbacks provided to their surgeon.”
“This case took nearly a decade of hard work by my office, the whistleblowers, the Departments of Justice and Health and Human Services, the FBI and the Missouri Attorney General’s Office,” said U.S. Attorney Sayler A. Fleming for the Eastern District of Missouri. “The U.S. Attorney’s Office will always vigorously pursue anyone who fraudulently obtains taxpayer money and defrauds Medicare and Medicaid.”
“Medical providers who accept kickbacks put personal financial gain before the needs of their patients. This behavior can harm patients and undermines the integrity of federal health care programs,” said acting Special Agent in Charge Linda Hanley of the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG is proud to work alongside our federal and state partners to protect our programs from fraud and ensure that patient needs drive provider decisions.”
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Paul Cairns, Dr. Terry Cleaver, Dr. Kyle Colle, Dr. Scott Gibbs, Dr. Paul Tolentino, Dr. Kevin Vaught, and Daniel Henson. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The share to be paid to the private parties has not yet been determined in this matter.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the United States Attorney’s Office for the Eastern District of Missouri, with assistance from the FBI, the HHS-OIG, and the Medicaid Fraud Control Unit of the Missouri Attorney General’s Office.
The investigation and resolution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The matter was handled by Fraud Section Attorneys Diana Cieslak, David Finkelstein, and James Nealon, and Assistant U.S. Attorney Joshua Jones for the Eastern District of Missouri.
The case is captioned United States ex rel. Cairns, et al. v. DS Medical, LLC, et al., 1:12-cv-0004-LPR (E.D. Mo.).
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Justice Department Announces Charges and Sentence in Connection with Iranian Procurement Network’s Attempts to Acquire Sophisticated Military TechnologyRead the Press Release
A federal court in the District of Columbia unsealed two indictments yesterday charging multiple defendants with violations of the Arms Export Control Act (AECA) and the International Emergency Economic Powers Act (IEEPA) for their roles in separate schemes to procure and export U.S. technology to Iran between 2005 and 2013. In connection with this announcement, the Department of Treasury’s Office of Foreign Assets Control designated three of the defendants and four entities for their involvement in the procurement of equipment that supports Iran’s ballistic missile and unmanned aerial vehicle (UAV) and weapons programs.
United States v. Paidar, et al.
According to the indictment, between 2012 and 2013, defendants Amanallah Paidar, of Iran, and Murat Bükey, of Turkey, conspired to procure and export U.S. technology for Iran through their companies Farazan Industrial Engineering, in Iran, and Ozon Spor Ve Hobbi Ürünleri, in Turkey. Specifically, Paidar and Bükey exported from the United States and transshipped through Turkey a device that can test the efficacy and power of fuel cells and attempted to obtain a bio-detection system that has application in weapons of mass destruction (WMD) research and use.
Bükey, who was extradited to the United States from Spain in July 2022, pleaded guilty to conspiring to violate the AECA and IEEPA in December 2022. He was sentenced on March 20 in the U.S. District Court for the District of Columbia to 28 months in prison, with credit for time served. He will be removed from the United States after completing his sentence. Paidar is a fugitive and remains at large.
United States v. Mahmoudi, et al.
According to the indictment, between 2005 and 2009, defendants Agshar Mahmoudi, of Iran; Bahram Mahmoudi Mahmoud Alilou, of Iran; and Shahin Golshani, of the United Arab Emirates (UAE); conspired to obtain U.S. technology, including a high-speed camera that has known nuclear and ballistic missile testing applications, a nose landing gear assembly for an F-5 fighter jet, and a meteorological sensor system, through their companies Aran Modern Devices Kish Company, in Iran; and Modern Technologies, in the UAE. The defendants are fugitives and remain at large.
“The defendants’ efforts to unlawfully export advanced U.S. technology that could benefit the Iranian regime’s military and weapons of mass destruction research pose a threat to all Americans,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The Justice Department will steadfastly pursue and bring to justice anyone who violates U.S. export laws and harm our nation’s security.”
“With the help of our U.S. agency and international partners, the FBI thwarted an attempt to export advanced, American controlled, technological systems and goods,” said Assistant Director Alan E. Kohler Jr. of the FBI Counterintelligence Division. “The FBI will not stand idly while hostile countries attempt to evade our laws and circumvent U.S. sanctions and we will work tirelessly to stop such activity. This sentencing further illustrates our willingness to reach beyond our borders, to protect American interests, and bring all offenders to justice.”
“These defendants sought to obtain valuable U.S.-origin goods that could assist Iran’s military and WMD aspirations, and in some instances, they were successful,” said U.S. Attorney Matthew M. Graves for the District of Columbia. “The U.S. Attorney’s Office for the District of Columbia and our federal law enforcement partners will zealously pursue those who break these laws and harm our national security interests, regardless of where in the world they operate."
“The sentencing of Murat Bukey and the charging of four others with conspiring to illegally export technologies and goods to Iran demonstrates our determination to hold those who attempt to circumvent U.S. export laws and sanctions accountable,” said Assistant Director in Charge David Sundberg of the FBI Washington Field Office. “Export controls exist to protect the security of the United States and its people, and we will aggressively investigate those who threaten our national security by violating these laws. We are grateful to our international partners for their assistance in dismantling this scheme and bringing the defendant to justice.”
The FBI, Homeland Security Investigations, and the Commerce Department’s Bureau of Industry, Office of Export Enforcement are investigating these cases.
Assistant U.S. Attorney Tejpal S. Chawla for the District of Columbia and Senior Trial Attorney Heather Schmidt of the National Security Division’s Counterintelligence and Export Control Section are prosecuting these cases, with support from Paralegal Specialist Michael Watts and Mariela Andrade. The Justice Department’s Office of International Affairs provided substantial assistance in securing Bükey’s arrest and extradition.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Jury convicts Browning man of raping girl on Blackfeet Indian ReservationRead the Press Release
GREAT FALLS — A federal jury today convicted a Browning man who was accused of raping a girl in Heart Butte, on the Blackfeet Indian Reservation, U.S. Attorney Jesse Laslovich said.
After a two-day trial that began on March 21, the jury found William Ronald Blackman, 31, guilty of attempted sexual abuse and two counts of sexual abuse as charged in a superseding indictment.
Blackman faces a maximum of life in prison, a $250,000 fine and not less than five years to a lifetime 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 sentencing factors. Sentencing was set for Aug. 10. Blackman was released pending further proceedings.
“Blackman repeatedly took advantage of a teenage girl for his own sexual gratification, which is something she will have to continue to overcome for the rest of her life. While the jury got it right, Blackman’s actions permanently harmed a child and unfortunately, no guilty verdict will change that. But the guilty verdicts rightly hold Blackman accountable. I am extremely grateful to Assistant U.S. Attorney Ryan G. Weldon, along with the FBI, for their diligent work on this case,” U.S. Attorney Laslovich said.
In court documents and at trial, the government alleged that Blackman sexually abused the victim, identified as Jane Doe, on three occasions when she was physically incapable of declining participating in a sexual act. Jane Doe, who was approximately 15 years old at the time, had passed out from alcohol intoxication and woke up to Blackman sexually abusing or having intercourse with her. The assaults occurred in 2019 and 2020. The victim ultimately reported the sexual abuse to a counselor.
Assistant U.S. Attorney Ryan G. Weldon is prosecuting the case, which was investigated by the FBI.
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Jury Finds Defendant Guilty in Staged Armored Truck Robbery of $1.9 MillionRead the Press Release
CHARLESTON, SOUTH CAROLINA —Terry Tyrone Pollard, 27, of Cedartown, Georgia, was convicted following a jury trial in federal court for conspiracy to commit bank larceny and bank larceny. The convictions arose from a January 2021 incident during which Pollard and his four codefendants staged an armed robbery of a Garda armored cash transport truck carrying $1.9 million in North Charleston, South Carolina. Pollard’s codefendants—Quantavius Murphy, 22, Anthony Burge, 24, and Thomas Calhoun, 21, all of Cedartown, Georgia, and James Sewell, 27, of North Charleston—all previously pleaded guilty to the charges.
Evidence presented by the Government at trial established that in early January 2021, Sewell, a Garda armored truck driver, recruited Pollard and the other codefendants to stage his robbery. After formulating the plan over Snapchat, Pollard, Murphy, Burge, and Calhoun traveled from Cedartown to Sewell’s apartment in North Charleston on January 15, 2021. Later that day, they drove around North Charleston looking for the best location to stage the theft. On January 16, 2021, Sewell parked his truck full of money outside an ATM in North Charleston. Pollard and the other codefendants approached Sewell and pretended to restrain him at gunpoint. They then loaded $1.9 million in cash into black trash bags and immediately fled back to Cedartown.
Investigators were able to determine the codefendants’ cell phone numbers and obtain cell site location data from service providers. The cell site location data confirmed the codefendants’ path of travel from Cedartown in the early morning hours of January 15, their location in the vicinity of Sewell’s apartment the day before the theft, and their joint path of travel back to Cedartown following the theft on January 16. Evidence presented to the jury revealed that several hours after the bank larceny, Calhoun posted a Snapchat video of Pollard holding a large stack of stolen cash in front of his face.
The jury deliberated for eight minutes before returning a guilty verdict against Pollard on both counts of the indictment.
“Prosecuting violent crime is one of the U.S. Attorney’s Office’s top priority,” said United States Attorney Adair F. Boroughs. “We appreciate the work of the FBI, North Charleston Police Department, and Cedartown Police Department in this case and their commitment to holding these defendants accountable.”
“The FBI is committed to thoroughly investigating violent crime, to include armored car robberies, and pursuing all who perpetrate those offenses,” said Acting Special Agent in Charge of the FBI Columbia field office, Paul “Reid” Davis. “This conviction sends a strong message that our office, along with the U.S. Attorney’s Office, will not waver in the pursuit of justice.”
Representatives from the North Charleston Police Department stated that they are pleased that a jury held Pollard responsible for traveling from out of state to commit a serious crime in North Charleston and are thankful for the assistance from and collaboration with the USAO and the FBI.
United States District Judge Bruce H. Hendricks presided over the trial and will sentence Pollard and his codefendants after receiving and reviewing pre-sentence reports prepared by the United States Probation Office. Pollard faces a maximum penalty of 10 years in federal prison, and a fine of $500,000 in addition to restitution for money stolen during the incident.
The case was investigated by the Federal Bureau of Investigation (FBI), the North Charleston Police Department, and the Cedartown Police Department. Assistant United States Attorneys Chris Lietzow, Emily Limehouse, and Allessandra Stewart prosecuted the case.
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Jury Convicts KC Man of Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man has been convicted at trial of illegally possessing a firearm after he pointed his pistol at an ex-girlfriend’s head and threatened to kill her, then crashed into several vehicles while attempting to flee from law enforcement officers.
Jonathan Good, 31, was found guilty of being a felon in possession of a firearm on Tuesday, March 21. Evidence introduced during the trial indicated that Good was in possession of a Taurus 9mm handgun on July 29, 2020.
Kansas City police officers were called to a residence on July 29, 2020. A woman at the residence reported that Good had arrived on her front porch, drunk and belligerent, at about 11:24 p.m., waving a gun around and yelling. She told him to leave, after which she heard a single gunshot from the front porch. She followed Good to his car, where he pointed his pistol at her head and threatened to kill her. Good got into his silver Ford Mustang and left as officers were arriving.
A Kansas City police officer was parked in front of the victim’s residence at approximately 11:47 p.m. Good returned to the scene in his Ford Mustang, then shifted into reverse and began driving away. When Good reached the intersection of 72nd Steet and Walrond, he shifted his car into drive and drove south on Walrond. Officers pursued Good, who was driving at 60 miles per hour. Good failed to stop at one stop sign before losing control of his vehicle. Good’s vehicle hit the sidewalk then spun and collided with one vehicle parked on Walrond before slamming into another two vehicles parked in a residential driveway, where it was disabled. Good was arrested and transported to a local hospital to check for injuries. While at the hospital, when staff lifted him off the gurney onto the hospital bed, they found three live rounds of 9mm ammunition.
At approximately 1 a.m. on July 30, 2020, officers searched Good’s residence and found the loaded Taurus 9mm pistol hidden inside an old charcoal grill with the legs missing, which was sitting on the grass in the front yard. Forensic investigators indicated a DNA sample recovered from the trigger guard of the pistol implicated Good as a major contributor. The KCPD expert testified the genetic information from the trigger was 7 octillion times more likely to be observed if Jonathan Good and four unknown individuals are the contributors than if five individuals are the contributors.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of a firearm or ammunition. Good has three prior felony convictions for domestic assault, two prior felony convictions for unlawful use of a weapon, and prior felony convictions for armed criminal action, violating an order of protection, and domestic assault.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for 30 minutes before returning guilty verdicts to U.S. Chief District Judge Beth Phillips, ending a trial that began Monday, March 20.
Due to his prior felony convictions, Good is classified as an armed career criminal. Under federal statutes, Good is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Stefan C. Hughes and Special Assistant U.S. Attorney Brandon E. Gibson. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Operation LeGend
Operation LeGend is a federal partnership with local law enforcement to address the increase in homicides and violent crime in Kansas City, Mo., in 2020. The operation honors the memory of four-year-old LeGend Taliferro, one of the youngest fatalities during a record-breaking year of homicides and shootings. Additional federal agents were assigned to the operation from the FBI, Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the U.S. Marshals Service.
Jackson Man Pleads Guilty to Conspiracy to Commit Bank FraudRead the Press Release
Jackson, Miss. – A Jackson man pleaded guilty to conspiracy to commit bank fraud, announced U.S. Attorney Darren J. LaMarca of the Southern District of Mississippi and Special Agent in Charge David Denton of Homeland Security Investigations
According to court documents, Deonta Miller, 36, conspired with two other individuals to obtain automobile loans through fraudulent means. Miller used a false name, social security number, driver’s license, and utility bill, to obtain a loan for a car. It is contrary to federal law to use false information to obtain a bank loan.
Miller is scheduled to be sentenced on June 20, 2023 and faces a maximum penalty of 30 years in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Madison Police Department and Homeland Security Investigations are investigating the case.
Assistant U.S. Attorney Charles W. Kirkham is prosecuting the case.
Hot Springs Man Sentenced to More Than 10 Years in Federal Prison for Drug Trafficking and Firearms PossessionRead the Press Release
HOT SPRINGS – A Hot Springs man was sentenced today to 130 months in prison followed by four years of supervised release on one count of Possession with Intent to Distribute Methamphetamine and Possession of a Firearm in Furtherance of a Drug Trafficking Offense. The Honorable Chief Judge Susan O. Hickey presided over the sentencing hearing in the U.S. District Court in Hot Springs.
According to court documents, George Monroe Walston, age 51, was identified by law enforcement to be distributing methamphetamine in Hot Springs, Arkansas area. Between the months of May 2021 and October 2021, investigators were able to conduct multiple controlled purchases of methamphetamine from Walston.
On April 19, 2021, a search was conducted at Walston’s residence, resulting in investigators locating and seizing approximately 205.3 grams of a mixture or substance containing a detectable amount of methamphetamine, located in various locations throughout the residence; approximately 359.7 grams of marijuana; nineteen (19) individual dosage units of Lysergic Acid Diethylamide (aka “LSD” or “Acid”); $6,330 United States Currency; and ten (10) firearms, including five (5) handguns, two (2) shotguns, and three (3) rifles; and various ammunition for the recovered firearms.
The methamphetamine and the LSD recovered and seized, was subsequently forwarded to the Drug Enforcement Administration Laboratory for confirmatory testing.
U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
The Drug Enforcement Administration, Homeland Security Investigations Little Rock, Hot Springs Police Department, Garland County Sheriff’s Department and 18th East Judicial District Drug Task Force investigated the case.
Assistant U.S. Attorney Bryan Achorn and Special Assistant U.S. Attorney Trent Daniels prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Grand jury indicts 3 local men for fentanyl, firearms crimes within 1,000 feet of public elementary schoolsRead the Press Release
DAYTON, Ohio – A federal grand jury has charged area men in two separate cases involving drugs sold near elementary schools in Springfield and Vandalia.
Robert Holmes, 39, and Jamel Williams, 37, both of Springfield, are charged together in one indictment with conspiring to possess with the intent to distribute 400 grams or more of fentanyl and 500 grams or more of cocaine.
It is alleged their drug trafficking took place within 1,000 feet of Fulton Elementary School on S. Yellow Springs St. in Springfield.
Holmes and Williams also allegedly possessed firearms in furtherance of their drug trafficking, which legally qualifies as a serious drug offense.
As part of this investigation, law enforcement officials seized five firearms, including an assault rifle, more than one kilogram of fentanyl, three kilograms of cocaine, and more than $143,000 in cash from Holmes’s property and vehicle near the school.,
If convicted, Holmes and Williams face a mandatory minimum of 10 years and up to life in prison for drug offenses and a potential consecutive mandatory minimum of five years and up to life in prison for firearms offenses.
Jason Glanton, 34, of Vandalia, allegedly distributed fentanyl within 1,000 feet of Helke Elementary School on Randler Avenue in Vandalia.
Glanton’s indictment alleges he possessed and distributed fentanyl and owned a firearm in furtherance of his serious drug offense.
While executing a search warrant, agents seized nine firearms and $21,000 in cash from Glanton.
The grand jury returned both indictments on March 14. Glanton appeared in federal court yesterday and Holmes and Williams appeared in federal court this afternoon. Their cases were subsequently unsealed.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Orville O. Greene, Special Agent in Charge, Drug Enforcement Administration; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and Dayton Police Chief Kamran Aftal announced the charges. Assistant United States Attorney Kelly K. Rossi is representing the United States in this case.
An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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Grand Jury - March 2023Read the Press Release
United States Attorney Steven Russell announced the federal Grand Jury for the District of Nebraska has returned 16 unsealed Indictments charging 16 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Angelica Agena, age 40, of Lincoln, Nebraska, is charged with possession with intent to distribute 5 grams or more of methamphetamine (actual) on or about June 29, 2022. The penalty if convicted is not less than 5 years’ and up to 40 years’ imprisonment, a $5,000,000 fine, not less than four years and up to a life term of supervised release, and a $100 special assessment.
* Victor Hugo Cansino Monzon, age 29, is charged in a two-count Indictment. Count I charges Cansino Monzon with illegal reentry after deportation on or about March 6, 2023. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a one-year term of supervised release, and a $100 special assessment. Count II charges Cansino Monzon with resisting, opposing, impeding and interfering with an officer on or about March 6, 2023. The maximum possible penalty if convicted is 1 year imprisonment, a $100,000 fine, a one-year term of supervised release, and a $100 special assessment.
* Estefan Bernardino Chavez, age 29, of Norfolk, Nebraska, is charged with production of child pornography beginning on or about January 31, 2023 and continuing to on or about February 28, 2023. The maximum possible penalty if convicted is not less than 15 years’ and not more than 30 years’ imprisonment, a $250,000 fine, not less than a five-year and up to life term of supervised release, and $55,100 in special assessments.
* Luis Duran, a/k/a Luis Duran-Salcedo, age 20, of Omaha, Nebraska, is charged with assault of a dating partner by strangulation or suffocation on the Winnebago Indian Reservation on or about March 16, 2023. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
* Matthew McCann, age 35, of Omaha, Nebraska, is charged in a two-count Indictment. Count I charges McCann with distribution of child pornography with a prior conviction on or about January 7, 2023. The maximum possible penalty if convicted is not less than 15 years’ and not more than 40 years’ imprisonment, a $250,000 fine, not less than a five-year and up to life term of supervised release, and $40,100 in special assessments. Count II charges McCann with possession of child pornography with a prior conviction on or about January 7, 2023. The maximum possible penalty if convicted is not less than 10 years’ and not more than 20 years’ imprisonment, a $250,000 fine, not less than a five-year and up to life term of supervised release, and $22,100 in special assessments.
* Fernando Montoya-Amezcua, age 46, is charged with possession with intent to distribute 500 grams or more of methamphetamine on or about March 14, 2023. The penalty if convicted is not less than 10 years’ and up to life imprisonment, a $10,000,000 fine, not less than five years and up to a life term of supervised release, and a $100 special assessment. There is also an allegation to forfeit United States currency and property seized on or about March 14, 2023.
* Carmen Perez Catu a/k/a Jess Manuel Calvillo, age 39, is charged with illegal reentry after deportation on or about May 9, 2022. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a one-year term of supervised release, and a $100 special assessment.
* Edgar Ignacio Salas Zarate, age 30, is charged with possession with intent to distribute 500 grams or more of methamphetamine on or about December 7, 2022. The penalty if convicted is not less than 10 years’ and up to life imprisonment, a $10,000,000 fine, not less than five years and up to a life term of supervised release, and a $100 special assessment.
* Tobin R. Schaneman, age 45, is charged as a felon in possession of a firearm on or about March 25, 2022. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
Adan Silva-Valencia, age 43, is charged with illegal reentry of a removed alien after a felony conviction beginning on or about September 11, 2022 and continuing to on or about March 7, 2023. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
* Juan Carlos Tapia-Torres, age 43, is charged with possession with intent to distribute 500 grams or more of methamphetamine on or about March 14, 2023. The penalty if convicted is not less than 10 years’ and up to life imprisonment, a $5,000,000 fine, not less than five years and up to a life term of supervised release, and a $100 special assessment.
* David Valdez Ramirez, age 35, is charged in a two-count Indictment. Count I charges Valdez Ramirez with illegal reentry after a felony conviction on or about March 6, 2023. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment. Count II charges Valdez Ramirez with resisting, opposing, impeding and interfering with an officer on or about March 6, 2023. The maximum possible penalty if convicted is 1 year imprisonment, a $100,000 fine, a one-year term of supervised release, and a $100 special assessment.
* Nicolas Vicente Lares, age 25, is charged with illegal reentry after being removed as an alien on or about March 1, 2023. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a one-year term of supervised release, and a $100 special assessment.
* Steven Owen Watson, age 46, of Lincoln, Nebraska, is charged with possession with intent to distribute 5 grams or more of methamphetamine (actual) and 50 grams or more of methamphetamine (mix) on or about September 26, 2022. The penalty if convicted is not less than 5 years’ and up to 40 years’ imprisonment, a $5,000,000 fine, not less than four years and up to a life term of supervised release, and a $100 special assessment.
* Cameron Woods, age 44, of Omaha, Nebraska, is charged with possession with intent to distribute 50 grams or more of methamphetamine (actual) with prior drug felony on or about April 16, 2022. The penalty if convicted is not less than 15 years’ and up to life imprisonment, a $20,000,000 fine, not less than ten years and up to a life term of supervised release, and a $100 special assessment.
* Domingo Zetino Hernandez, age 20, of Norfolk, Nebraska, is charged in a two-count Indictment. Count I charges Zetino Hernandez with false representation of a social security number with intent to deceive on or about December 5, 2022. The maximum possible penalty if convicted is a 5 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment. Count II charges Zetino Hernandez with use of false immigration documents not lawfully issued on or December 5, 2022. The maximum possible penalty if convicted is a 5 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
Georgia Man Who Supplied Bridgeport Gang Members with Firearms Sentenced to More Than 7 Years in PrisonRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that STEPHFAN SANDERSON, also known as “Birdy” and “Beans, 25, of Covington, Georgia, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 92 months of imprisonment, followed by three years of supervised release, for trafficking firearms into Connecticut.
According to court documents and statements made in court, the FBI, ATF, DEA, U.S. Marshals Service and Bridgeport Police have been investigating multiple Bridgeport-based gangs whose members are involved in narcotics trafficking, murder and other acts of violence. From at least 2017 until his arrest on November 12, 2020, Sanderson, who formerly resided in Bridgeport, procured at least 25 firearms in Georgia and Alabama and distributed them to individuals he had reason to know would commit felonies with those firearms, including members of the “Greene Homes Boyz” (“GHB/Hotz”) and Original North End (“O.N.E.”) street gangs in Bridgeport.
Some of the firearms Sanderson trafficked contained switches that converted the guns to fully automatic machine guns. On October 4, 2018, Undrea Kirkland, also known as “Spooda,” used one of the machine guns Sanderson supplied to fire 32 shots at rival gang members in the vicinity of the Greene Homes Housing Complex in Bridgeport. Although one of the intended targets received minor injuries, most of the shots missed and traveled into a nearby residence. A man in the kitchen of the residence was struck in the back by one of the bullets.
Another firearm that Sanderson trafficked was recovered in May 2022 and has been linked to two separate shootings and one homicide.
Sanderson has been detained since his arrest. On November 15, 2022, he pleaded guilty to one count of crossing state lines with the intent to engage in the unlicensed dealing of firearms.
Kirkland, who admitted his involvement in several gang-related shootings, pleaded guilty to conspiracy to engage in a pattern of racketeering activity. On April 22, 2022, he was sentenced to 210 months of imprisonment.
This 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 Stratford and Naugatuck Police Departments. The case is being prosecuted by Assistant U.S. Attorneys Rahul Kale, Jocelyn C. Kaoutzanis, Stephanie T. Levick and Karen L. Peck.
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.
Former West Haven City Employee Sentenced to 13 Months in Federal Prison for Stealing COVID-19 Relief FundsRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that JOHN BERNARDO, 66, of West Haven, was sentenced today by U.S. District Judge Omar A. Williams in Hartford to 13 months of imprisonment, followed by three years of supervised release, for participating in a scheme to steal COVID-19 relief funds from the City of West Haven.
According to court documents and statements made in court, Bernardo was employed by the City of West Haven as a Housing Specialist in the office of Community Development Administration. Michael DiMassa was also employed by the City of West Haven, most recently serving as the Administrative Assistant to the City Council, and was a Connecticut State Representative.
In April 2020, the State of Connecticut was allocated money by the U.S. Department of the Treasury through the Coronavirus Relief Fund (“CRF”), which was established by the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) for the purpose of helping local governments pay costs incurred in responding to the COVID-19 pandemic. From July 2020 through September 2021, the City of West Haven received approximately $1,150,257 in financial assistance from this fund. DiMassa, who was authorized to approve the designated relief funds for the reimbursement of COVID-related expenditures incurred by West Haven, conspired with Bernardo, John Trasacco, and DiMassa’s now wife, Lauren DiMassa, 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.
In January 2021, DiMassa and Bernardo formed Compass Investment Group, LLC. Beginning in February 2021, Compass Investment Group LLC fraudulently billed the City of West Haven and its “COVID-19 Grant Department” for consulting services purportedly provided to the West Haven Health Department that were not performed. From February 2021 through September 2021, the City of West Haven paid Compass Investment Group a total of $636,783.70. Bernardo received a portion of these funds. DiMassa made several large cash withdrawals from the Compass Investment Group LLC bank account, some of which were made shortly before or after he was recorded as having made a large cash “buy-in” of gaming chips at the Mohegan Sun Casino.
Judge Williams ordered Bernardo to pay $58,927.25 in restitution.
Bernardo was arrested on November 4, 2021. On June 14, 2022, he pleaded guilty to one count of conspiracy to commit wire fraud.
Bernardo, who is released on a $250,000 bond, is required to report to prison on May 22.
On November 1, 2022, DiMassa pleaded guilty to three counts of conspiracy to commit wire fraud. He is awaiting sentencing and has agreed to pay restitution of $1,216,541.80.
On 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.
On July 12, 2022, Lauren DiMassa, who received $147,776 through this scheme, pleaded guilty to one count of conspiracy to commit wire fraud. She is scheduled to be sentenced tomorrow at 10 a.m.
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.
Former Warren County Businessman Sentenced to Three Years in Prison for Fraudulently Obtaining $1.8 Million in COVID-19 Loans Meant for Small BusinessesRead the Press Release
NEWARK, N.J. – A Warren County, New Jersey, businessman was sentenced today to 36 months in prison for fraudulently obtaining nearly $1.8 million in federal Paycheck Protection Program (PPP) loans, U.S. Attorney Philip R. Sellinger and Assistant Attorney General Kenneth A. Polite, Jr., of the Justice Department’s Criminal Division announced.
Rocco A. Malanga, 39, formerly of Hackettstown, New Jersey, pleaded guilty by videoconference on June 28, 2022, before U.S. District Judge Julien X. Neals to an information charging him with one count of bank fraud and one count of money laundering. Judge Neals imposed the sentence today in Newark federal court.
According to documents filed in the case and statements made in court:
From April 2020 through August 2020, Malanga submitted false documentation to three lenders to fraudulently obtain approximately $1.8 million in federal COVID-19 emergency relief funds meant for distressed small businesses. He submitted at least three PPP loan applications on behalf of three different business entities in which he fabricated the number of employees employed by each business entity, as well as their average monthly payroll. Malanga then diverted some of the proceeds from the loans to fund a business that did not receive PPP loan funds.
In addition to the prison term, Judge Neals sentenced Malanga to three years of supervised release and ordered $1.8 million in restitution and $1.8 million in forfeiture.
U.S. Attorney Sellinger and Assistant Attorney General Polite credited special agents of IRS – Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy L. Tomlins; postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Inspector in Charge Christopher A. Nielsen, Philadelphia Division; special agents of the Office of Inspector General for the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection, under the Direction of Acting Special Agent in Charge Stephen Donnelly; special agents of the Federal Deposit Insurance Corporation, Office of Inspector General, under the direction of Special Agent in Charge Patricia Tarasca, New York Region; and special agents of the Social Security Administration, Office of the Inspector General, under the direction of Special Agent in Charge Sharon MacDermott, with the investigation leading to the today’s sentencing.
The government is represented by Assistant U.S. Attorney Blake Coppotelli of the District of New Jersey and Trial Attorney Della Sentilles of the Fraud Section of the Department of Justice.
Former Tyngsborough Police Officer Sentenced for Bank Fraud and National Firearms Act ViolationsRead the Press Release
BOSTON – A former Tyngsborough police officer was sentenced today in federal court in Boston.
Daniel Whitman, 39, of Salisbury, was sentenced by U.S. District Court Judge Patti B. Saris to one year and one day in prison and two years of supervised release. Whitman was also ordered to pay a $20,000 fine. In October 2022, Whitman pleaded guilty to one count of bank fraud conspiracy; two counts of bank fraud; two counts of making false statements to a bank; one count of possession of an unregistered firearm; one count of conspiracy to violate provisions of the National Firearms Act (NFA); one count of making a firearm in violation of the NFA; and one count of transferring a firearm in violation of the NFA.
Whitman was a police officer with the Tyngsborough Police Department and the owner of Hitman Firearms, LLC, a retail gun shop in Tyngsborough. Whitman created Freedom Alley Shooting Sports LLC, which he envisioned as a large indoor shooting range that would serve regional and international customers and offer shooting clinics and other services. Whitman and his co-conspirator, Bin Lu, brought in a Chinese investor who contributed several million dollars to Freedom Alley in exchange for a majority interest in the company. However, in applying for loans from federally insured banks to fund the construction of Freedom Alley, Whitman hid the true source of their initial funding from the banks and filed false documents in connection with their loan applications.
In addition, Whitman knowingly made, possessed and transferred firearms that had been modified by the addition of stocks and short barrels, resulting in their classification as short-barreled rifles (SBR) under the NFA. These SBRs were not properly registered in the National Firearms Registration and Transfer Record as required by the NFA, nor did Whitman pay the applicable taxes or fulfill other requirements under the NFA.
In June 2021, Lu pleaded guilty to one count of conspiracy to commit bank fraud and one count of possession of an unregistered firearm. He is scheduled to be sentenced on April 6, 2023.
United States Attorney Rachael S. Rollins; Michael J. Krol, Acting Special Agent in Charge of Homeland Security Investigations in New England; Jonathan Davidson, Special Agent in Charge of U.S. Department of State’s Diplomatic Security Service, Boston Field Office; Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service in Boston; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. The Tyngsborough and Westford Police Departments provided special assistance in this case. Assistant U.S. Attorneys Evan D. Panich of Rollins’ Criminal Division, Christine J. Wichers of Rollins’ Public Corruption & Special Prosecutions Unit and Eugenia M. Carris, Deputy Chief of Rollins’ Public Corruption & Special Prosecutions Unit, prosecuted the case.
Former Rochester Pawn Shop Owner Going to Prison for Selling Stolen GoodsRead the Press Release
ROCHESTER, N.Y. - U.S. Attorney Trini E. Ross announced today that Devin Tribunella, 39, of Rochester, NY, who was convicted of transportation of stolen goods in interstate commerce, was sentenced to serve 48 months in prison by U.S. District Judge Charles J. Siragusa. Tribunella was also ordered to forfeit a 2008 Lamborghini, a 2014 Mercedes Benz, a 2014 Rolls Royce, a 2015 Porsche, the contents of three bank accounts totaling $155,182.87, and a $1,600,000 money judgment.
Assistant U.S. Attorney Meghan K. McGuire, who handled the case, stated that Tribunella owned and operated Royal Crown Pawn & Jewelry on Dewey Avenue in Rochester. Tribunella and an employee purchased stolen goods and merchandise from individuals, commonly referred to as “boosters,” who shoplifted the goods and merchandise from Rochester area retail stores. Tribunella routinely advised the boosters what type of merchandise to steal from the retail stores, such as Lowes, Home Depot, Target, and Walmart, and then paid the boosters a fraction of the true retail value for the goods. Tribunella listed the stolen goods for sale on eBay, advertising the goods as “New” or “New-In-Box” and priced below retail value. Between January 2017, and November 2019, Tribunella sold and shipped (or caused to be shipped) approximately $3,248,426 worth of those stolen goods to buyers located outside of New York State.
The sentencing is the result of an investigation by the Internal Revenue Service, Criminal Investigations Division, under the direction of Thomas Fattorusso, Special Agent-in-Charge, New York Field Office; the Rochester Police Department, under the direction of Chief David Smith; the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter; and the Greece Police Department, under the direction of Chief Michael Wood. Additional assistance was provided by the Monroe County District Attorney’s Office.
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Former Missoula nurse sentenced for felony diversion of drugsRead the Press Release
MISSOULA — A former Missoula nurse who admitted to diverting opioid drugs while working at St. Patrick Hospital was sentenced today to three years of probation, U.S. Attorney Jesse Laslovich said.
Caitlin Ashley Evans, 37, pleaded guilty in November 2022 to obtaining controlled substances by fraud, deception and subterfuge.
U.S. District Judge Donald W. Molloy presided.
In court documents, the government alleged that in October 2021, a St. Patrick Hospital official reviewed drug distribution data and discovered that Evans was ordering opiates, including oxycodone, hydromorphone, hydrocodone, and fentanyl, at much higher rates and in greater amounts than her peers. Another nurse also reported suspicious activity by Evans to her supervisor. Hospital administrators spoke with Evans, who admitted to diverting drugs from the hospital while working since the fall of 2020. Evans explained that she had been taking waste amounts of hydromorphone and morphine two to three times a week by exchanging the drugs for saline before disposing of them.
Assistant U.S. Attorney Karla E. Painter prosecuted the case, which was investigated by the Drug Enforcement Administration and Montana Division of Criminal Investigation.
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Former Mayor of Les Irois, Haiti Arrested for Visa FraudRead the Press Release
BOSTON – The former Mayor of Les Irois, Haiti was indicted today for illegally obtaining a Permanent Resident Card (commonly referred to as a Green Card) by means of a false statement, specifically, that he had not ordered, carried out or materially assisted in extrajudicial and political killings and other acts of violence against the Haitian people.
Jean Morose Viliena, 50, was indicted on three counts of visa fraud and will appear in federal court in Boston today later today.
“The atrocities alleged here – the extrajudicial torture, murder and attempted murder of multiple people – are hard to comprehend. But the political corruption and violence endured in other parts of the world are very real. Immigrants seeking asylum in the United States are often fleeing war, persecution or natural disaster. That this defendant, a former Mayor in Haiti, is alleged to have personally committed or ordered the maiming, harm, humiliation or death of his adversaries and then blatantly deceived our country to seek refuge here is not only unacceptable, it is a crime. Moments ago, he was arrested and officially charged with visa fraud. We intend to hold him accountable for this crime,” said United States Attorney Rachael S. Rollins. “Gaining lawful entry into our country is a privilege, not a right. Our nation offers protection, assistance and asylum to those who are persecuted. People that perpetrate acts of violence and harm in their countries — and then allegedly lie about their conduct to US immigration officials — are not welcome here.”
“Today’s indictment recounts horrific violence Viliena is alleged to have committed against the people of Haiti, both through armed groups he directed and by his own hand,” said Michael J. Krol, Acting Special Agent in Charge of Homeland Security Investigations in New England. “He’s alleged to have lied about this violent past, evading the consequences of his actions and beginning a life here in Massachusetts. With today’s indictment and arrest, Viliena is finally facing federal criminal charges for his lies.”
According to court documents, Viliena was the former mayor of Les Irois, Haiti from December 2006 until at least February 2010. As a candidate and as a Mayor, Viliena was backed by a political machine called Korega, which exerts power throughout the southwestern region of Haiti through armed violence. Viliena personally supervised his mayoral staff and security detail and led an armed group in Les Irois aligned with Korega. Under Viliena’s direct supervision, the Korega militia enforced Viliena’s policies by various means, including by targeting political opponents in Les Irois through armed violence.
According to the indictment, as Mayor, Viliena was involved in several instances of violence. The first allegedly occurred in or around July 27, 2007 when a witness spoke at a judicial proceeding in Les Irois on behalf of a neighbor who had been assaulted by Viliena. In reprisal for that testimony, that evening, Viliena allegedly led an armed group to that witness’ home, where Viliena and his associates shot and killed the witness’ younger brother, and then smashed his skull with a large rock before a crowd of bystanders.
The second incident allegedly occurred in or around March 2008, when a group of local journalists and activists founded a community radio station. According to court documents, Viliena opposed establishment of the radio station and, on April 8, 2008, mobilized members of his staff and the Korega militia to forcibly shut down the radio station and seize its broadcasting equipment. At that time, Viliena distributed firearms to the Korega militia members, some of whom also carried machetes, picks, and sledgehammers.
On the day of the attack on the radio station, Viliena allegedly pistol-whipped an individual with his gun and struck him with his fists. When the individual tried to flee, it is alleged that Viliena ordered one of his associates to shoot and kill him. Shots were fired which hit the individual in the leg. The individual spent several months in various hospitals and his leg was later amputated above his knee. Another individual, also a citizen of Haiti, became a target of Viliena allegedly because of his association with the radio station. It is alleged that on the day of the attack of the radio station, that individual was present and when he tried to flee, he was hit by a bullet in the face. He required months of intensive medical treatment, including two surgeries to extract shotgun pellets from his face, which left him permanently blind in one eye. According to court documents, pieces of shotgun pellets remain in the individual’s scalp and arms.
On June 3, 2008, Viliena presented himself at the United States Embassy Consular Office in Port au Prince, Haiti where he submitted an Application for Immigrant Visa and Alien Registration, Form DS-230, Part II in order to gain entry to the United States. The form specifically requires that each applicant state whether or not they are a member of any class of individuals that are excluded from admission into the United States, including those who have “ordered, carried out or materially assisted in extrajudicial and political killings and other acts of violence against the Haitian people.” It is alleged that Viliena falsely responded that he was not. Viliena thereafter swore to, or affirmed, before a U.S. Consular Officer that the contents of the application were true and signed the application. According to court documents, thereafter, on or about June 4, 2008 and based upon Viliena’s false representations in the Application for Immigrant Visa and Alien Registration Form DS-230, the U.S. Department of State approved Viliena’s DS-230 application.
On or about July 14, 2008 – as the result of the approval of his DS-230 application – Viliena gained entry into the United States and was thereafter granted lawful permanent residence status in the United States. As a further result, Viliena received a Permanent Resident Card. Viliena has continued to possess a Permanent Resident Card and has used such card on numerous occasions to enter the United States.
The charge of visa fraud provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
U.S. Attorney Rollins; HSI Acting SAC Krol; Jennifer De La O, Director of Field Operations of U.S. Customs and Border Protection, Boston Field Office; and Malden Police Chief Glenn Cronin made the announcement today. Assistant U.S. Attorney Laura J. Kaplan of Rollins’ National Security Unit and Christina Giffin and Alexandra Skinnion of the Justice Department’s Human Rights and Special Prosecutions Unit Section (HRSP) are prosecuting the case, with assistance from HRSP historian Christopher Hayden.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Manager of West Alton Marina Sentenced to 25 Years in Federal Prison for Sex Trafficking and Child Exploitation OffensesRead the Press Release
CONCORD – John E. Murray, III, 56, of Alton Bay was sentenced today to twenty-five years in federal prison for production of child sexual abuse material and sex trafficking of minors, United States Attorney Jane E. Young announced.
Murray was a manager at the West Alton Marina on Alton Bay, where he was responsible for hiring and supervising seasonal employees, many of whom were minors. According to court documents and statements made in court, Murray solicited minor employees of the marina for sexually explicit images and videos of themselves, often in exchange for cash. Murray directed the victims to send him the videos via Snapchat, and videos of the victims were found on Murray’s cell phone and in his Snapchat account. Murray also subjected minor employees to unwanted sexual contact and sexual acts, to include fondling and oral sex. With respect to two minor victims, Murray made cash payments to them in exchange for allowing Murray to perform sexual acts on the victims. The conduct took place over the course of several years and dates back to at least 2015. Murray has been in state custody since August 2021 on related charges.
“But for the bravery of the survivors in coming forward, this outcome would not have been possible,” United States Attorney Young said. “We hope that today’s sentencing brings some measure of solace to the survivors and their families and serves as a warning to anyone who would target children for sexual abuse and exploitation in New Hampshire.” Attorney Young went on to say, “To our local, state, and federal law enforcement partners who worked together seamlessly throughout this investigation—thank you for your outstanding work and tireless dedication in the pursuit of justice.”
“For years, Murray used his position of power to prey on his young employees, exploiting and subjecting them to unwanted advances. Thanks to the tireless efforts of a collaborative group of law enforcement professionals and the bravery of those who came forward, he faces a long sentence in federal prison,” said Michael Krol, Acting Special Agent in Charge of Homeland Security Investigations in New England.
This matter was investigated by Homeland Security Investigations and the Alton Police Department, with assistance from the New Hampshire State Police, the New Hampshire Human Trafficking Collaborative Task Force, and the New Hampshire Internet Crimes Against Children Task Force. The case was prosecuted by Assistant U.S. Attorney Kasey Weiland.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Former Lumentum Executive Pleads Guilty to Insider TradingRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that AMIT BHARDWAJ, the former Chief Information Security Officer (“CISO”) at Lumentum Holdings Inc. (“Lumentum”), pled guilty to 13 counts arising from his participation in a scheme to commit insider trading based on material, non-public information (“MNPI”) that BHARDWAJ misappropriated from his employer, Lumentum. BHARDWAJ traded on the misappropriated MNPI himself and tipped his associates with this same information so that they could place profitable trades in Lumentum’s acquisition targets. BHARDWAJ was arrested and charged in July 2022 and pled guilty earlier today before U.S. District Judge Gregory H. Woods.
U.S. Attorney Damian Williams said: “Amit Bhardwaj, the former Chief Information Security Officer of Lumentum, ironically failed to keep the confidential information he was trusted with secure as he shared it with numerous friends and a family member in order to make a profit. Not only did Bhardwaj betray his company and cheat the securities markets, but when confronted by the FBI, he also schemed to conceal his illicit behavior and obstruct the investigation. Today’s guilty plea emphasizes this Office’s commitment to protecting the integrity of the financial markets.”
According to the allegations in the Indictment and statements made in public court proceedings:
In approximately December 2020, BHARDWAJ learned that Lumentum was considering acquiring Coherent, Inc (“Coherent”). Based on this information, BHARDWAJ himself purchased Coherent stock and call options, and BHARDWAJ tipped three associates –– his friend Dhirenkumar Patel, another friend, and one of BHARDWAJ’s close family relatives ––and these individuals all traded in Coherent securities as a result. BHARDWAJ and Patel agreed that Patel would pay BHARDWAJ 50% of the profits that Patel earned by trading in Coherent based on the MNPI provided by BHARDWAJ. When Coherent’s stock price increased substantially following the announcement of the Lumentum acquisition, BHARDWAJ, his close family member, his friend Patel, and another friend closed their positions in Coherent securities and collectively profited by nearly $900,000.
In or about October 2021, BHARDWAJ learned that Lumentum was engaged in confidential discussions with Neophotonics Corporation (“Neophotonics”) about a potential acquisition. BHARDWAJ provided this information to SRINIVASA KAKKERA, ABBAS SAEEDI, and Ramesh Chitor, and these individuals all traded in Neophotonics securities as a result. In connection with Chitor’s trading, BHARDWAJ and Chitor agreed that Chitor and BHARDWAJ would split the profits equally. When Neophotonics’ stock price increased substantially following the announcement of the Lumentum acquisition in November 2021, KAKKERA, SAEEDI, and Chitor closed their positions in Neophotonics securities and made collectively approximately $4.3 million in realized and unrealized profits.
After they were interviewed by the Federal Bureau of Investigation (“FBI”) voluntarily and served with federal grand jury subpoenas on approximately March 29, 2022, BHARDWAJ took steps to obstruct the federal investigation of their conduct. On the day of the March 29, 2022, FBI interviews, BHARDWAJ drove to the homes of certain of his co-conspirators to encourage them not to tell the federal authorities the truth about their insider trading scheme. BHARDWAJ and his associates subsequently met in person on multiple occasions and discussed, among other things, potential false stories that would conceal their insider trading scheme as well as creating false documents to buttress lies regarding payments that were, in reality, related to the insider trading scheme.
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BHARDWAJ, 49, of San Ramon, California, pled guilty to seven counts of securities fraud and two counts of wire fraud, each of which carries a maximum term of 20 years in prison, and four counts of conspiracy to commit securities fraud and wire fraud, each of which carries a maximum term of five years in prison.
The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge. BHARDWAJ is scheduled to be sentenced by Judge Woods on July 11, 2023, at 10 a.m.
Mr. Williams praised the investigative work of the FBI. He also acknowledged the assistance of the Securities and Exchange Commission, which separately initiated civil proceedings against BHARDWAJ.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Noah Solowiejczyk and Adam Hobson are in charge of the prosecution.
Former Federal Prison Warden Sentenced for Sexual Abuse of Three Female InmatesRead the Press Release
A former prison warden was sentenced today in the Northern District of California to 70 months in prison, 15 years of supervised release and $15,000 in restitution for sexually abusive conduct against three female victims who were serving prison sentences and one count of making false statements to government agents.
Ray J. Garcia, 55, of Merced, California, was sentenced following his conviction by a federal jury in December 2022.
Trial evidence showed that Garcia was employed as an associate warden and later as the warden of the Federal Correctional Institute in Dublin, California (FCI Dublin), an all-female low security federal correctional institution. All three of Garcia’s victims were incarcerated and serving their prison sentences at FCI Dublin under the custodial, supervisory and disciplinary authority of Garcia when the crimes occurred.
“The defendant in this case abused his authority as a warden and violated his oath to protect those in the custody of the Bureau of Prisons,” said Deputy Attorney General Lisa O. Monaco. “The sentence he received today is another step forward in our ongoing efforts to root out sexual misconduct within the BOP. This prosecution should serve as both warning and reassurance that the Department of Justice will not waver in holding accountable BOP employees and executives who abuse their authority — whether they be a correctional officer, chaplain, or warden — and in pursuing justice for their victims.”
“Rather than ensuring that female inmates at the Dublin prison were safe and secure, Garcia used his position as warden to sexually abuse three inmates over multiple years, intimidated inmates and lied to cover up his crimes, and created a heinous culture that failed to protect female inmates from widespread sexual abuse and violence at the hands of other Dublin employees. The Department of Justice Office of the Inspector General will continue to aggressively investigate this type of egregious criminal conduct and we will do everything within our authority to bring perpetrators to justice,” said Department of Justice Inspector General Michael E. Horowitz.
“Corrections officials are sworn to protect people and preserve civil rights — the extreme opposite of this defendant's heinous actions,” said FBI Deputy Director Paul Abbate. “Garcia assaulted and harmed those in his care and custody, attempted to intimidate them into silence, and then lied in an effort to cover up his crimes. The FBI is grateful to the brave women who came forward to report these vile offenses, and we hope today’s sentence is one more step towards justice and healing.”
“The evidence in this case paints a disturbing picture of a former warden who abused the trust placed in him, as well as authority granted to him, all while thinking he could get away with his crimes by lying to investigators and intimidating his victims,” said U.S. Attorney Ismail J. Ramsey for the Northern District of California. “Today’s sentence demonstrates that prison walls present no impediment to justice. The Department of Justice will hold accountable any prison official who violates their duty to protect those in federal custody.”
The trial evidence established that Garcia abused inmates from December 2019 until July 2021. Garcia’s sexual abuse and abusive sexual contact against Victim 1 began in December 2019 and extended through March 2020, the abuse of Victim 2 occurred January to July 2021 and the abuse of Victim 3 occurred during the period of March to September 2020. The jury convicted Garcia of three counts sexual abuse and one count of sexually abusive contact as to Victim 1, two counts of abusive sexual contact as to Victim 2, and one count of abusive sexual contact as to Victim 3.
The government’s sentencing memorandum described how Garcia also sought to deter his victims from coming forward. For example, Garcia told his victims he was friends with the person in charge of investigating sexual abuse of inmates, boasted that he could “never be fired,” and warned them that he worked for “Washington, D.C.” Garcia also instructed a victim to “get rid of any evidence” and reported falsely to another victim that a different inmate was sent back to FCI Dublin after pictures of a correctional officer were found on her phone. According to the government’s memorandum, Garcia created and perpetuated a culture of abuse. The government also pointed out that four other correctional officers at FCI Dublin have been charged with sexually abusing inmates while Garcia was associate warden or warden.
The trial evidence also demonstrated Garcia made false statements to federal investigators. On July 22, 2021, Garcia was interviewed and told investigators he never asked inmates to be undressed for him and that he had never touched an inmate inappropriately. Trial evidence showed that Garcia had already asked multiple inmates to undress for him and had also touched Victim 1, Victim 2 and Victim 3 in a sexual manner.
Garcia was initially charged with sexual abuse of an inmate on Sept. 24, 2021. A federal grand jury issued a superseding indictment on Aug. 23, 2022, charging Garcia with three counts of sexual abuse and four counts of abusive sexual contact against three female inmates. The superseding indictment also charged Garcia with one count of making false statements to a government agency during the investigation of the criminal acts. On Dec. 8, 2022, a jury convicted Garcia of all counts.
Judge Gonzalez Rogers ordered Garcia to report to surrender on or before May 19 to begin serving his prison term.
The Justice Department Office of Inspector General and the FBI are investigating the case, with the cooperation of the Bureau of Prisons.
Assistant U.S. Attorneys Molly Priedeman and Andrew Paulson for the Northern District of California, with the assistance of Madeline Wachs, Leeya Kekona and Sara Slattery are prosecuting the case.
Former Federal Prison Warden Sentenced to More Than Five Years in Prison for Sexual Abuse of Three Female InmatesRead the Press Release
OAKLAND – Former prison warden Ray J. Garcia was sentenced today to 70 months in prison following his convictions for sexually abusive conduct against three female victims who were serving prison sentences and for making false statements to government agents. The sentence was handed down by the Hon. Yvonne Gonzalez Rogers, U.S. District Judge, who presided over the trial that resulted in the convictions.
Garcia, 55, of Merced, Calif., was convicted of the charges in December of 2022. The evidence at trial demonstrated Garcia was employed as an associate warden and later as the warden of the Federal Correctional Institute in Dublin, Calif. (FCI Dublin), an all-female low security federal correctional institution. All three of Garcia’s victims were incarcerated and serving their prison sentences at FCI Dublin under the custodial, supervisory and disciplinary authority of Garcia when the crimes occurred.
“The defendant in this case abused his authority as a warden and violated his oath to protect those in the custody of the Bureau of Prisons,” said Deputy Attorney General Lisa O. Monaco. “The sentence he received today is another step forward in our ongoing efforts to root out sexual misconduct within the BOP. This prosecution should serve as both warning and reassurance that the Department of Justice will not waver in holding accountable BOP employees and executives who abuse their authority — whether they be a guard, chaplain or warden — and in pursuing justice for their victims.”
“The evidence in this case paints a disturbing picture of a former warden who abused the trust placed in him, as well as authority granted to him, all while thinking he could get away with his crimes by lying to investigators and intimidating his victims,” said U.S. Attorney Ismail J. Ramsey for the Northern District of California. “Today’s sentence demonstrates that prison walls present no impediment to justice. The Department of Justice will hold accountable any prison official who violates their duty to protect those in federal custody.”
“Rather than ensuring that female inmates at the Dublin prison were safe and secure, Garcia used his position as warden to sexually abuse three inmates over multiple years, intimidated inmates and lied to cover up his crimes, and created a heinous culture that failed to protect female inmates from widespread sexual abuse and violence at the hands of other Dublin employees,” said Department of Justice Inspector General Michael E. Horowitz. “Today’s 70-month sentence holds Garcia accountable for his disgraceful actions and sends a clear message to every BOP employee about the serious consequences of engaging in such conduct. The Department of Justice Office of the Inspector General will continue to aggressively investigate this type of egregious criminal conduct and we will do everything within our authority to bring perpetrators to justice.”
“Corrections officials are sworn to protect people and preserve civil rights - the extreme opposite of this defendant's heinous actions,” said FBI Deputy Director Paul Abbate. “Garcia assaulted and harmed those in his care and custody, attempted to intimidate them into silence, and then lied in an effort to cover up his crimes. The FBI is grateful to the brave women who came forward to report these vile offenses, and we hope today’s sentence is one more step towards justice and healing.”
“Garcia will now spend the next 70 months in federal prison for his abhorrent misconduct,” said FBI Special Agent in Charge of the San Francisco Field Office Robert Tripp. “Corrections officials who abuse their position are not above the law they have sworn to uphold. The FBI and our partners will continue to vigorously enforce our civil rights laws and hold prison officials who break the law accountable.”
The trial evidence established that Garcia abused inmates from December 2019 until July 2021. Garcia’s sexual abuse and abusive sexual contact against Victim 1 began in December 2019 and extended through March 2020, the abuse of Victim 2 occurred January to July 2021, and the abuse of Victim 3 occurred during the period of March to September 2020. The jury convicted Garcia of three counts sexual abuse and one count of sexually abusive contact as to Victim 1, two counts of abusive sexual contact as to Victim 2, and one count of abusive sexual contact as to Victim 3.
The government’s sentencing memorandum described how Garcia also sought to deter his victims from coming forward. For example, Garcia told his victims he was friends with the person in charge of investigating sexual abuse of inmates, boasted that he could “never be fired,” and warned them that he worked for “Washington, D.C.” Garcia also instructed a victim to “get rid of any evidence” and reported falsely to another victim that a different inmate was sent back to FCI Dublin after pictures of a correctional officer were found on her phone. According to the government’s memorandum, Garcia created and perpetuated a culture of abuse. The government also pointed out that four other correctional officers at FCI Dublin have been charged with sexually abusing inmates while Garcia was associate warden or warden.
The trial evidence also demonstrated Garcia made false statements to federal investigators. On July 22, 2021, Garcia was interviewed and told investigators he never asked inmates to be undressed for him and that he had never touched an inmate inappropriately. Trial evidence showed that Garcia had already asked multiple inmates to undress for him and had also touched Victim 1, Victim 2 and Victim 3 in a sexual manner.
Garcia was initially charged with sexual abuse of an inmate on Sept. 24, 2021. A federal grand jury issued a superseding indictment on Aug. 23, 2022, charging Garcia with three counts of sexual abuse and four counts of abusive sexual contact against three female inmates. The superseding indictment also charged Garcia with one count of making false statements to a government agency during the investigation of the criminal acts. On Dec. 8, 2022, a jury convicted Garcia of all counts.
In addition to the prison term, Judge Gonzalez Rogers ordered Garcia to pay $15,000 and to serve 15 years’ supervised release which begin after the prison term. Judge Gonzalez Rogers ordered Garcia to report to surrender on or before May 19, 2023, to begin serving his prison term.
DOJ-OIG and the FBI are investigating the case, with the cooperation of the Bureau of Prisons.
Assistant U.S. Attorneys Molly Priedeman and Andrew Paulson for the Northern District of California, with the assistance of Madeline Wachs, Leeya Kekona and Sara Slattery are prosecuting the case.
Former Bardstown Chief Financial Officer Sentenced to 35 Months in Federal Prison for Embezzling City FundsRead the Press Release
Louisville, KY – A former city official was sentenced yesterday to 35 months in prison and ordered to pay restitution for embezzling over three-quarters of a million dollars from the City of Bardstown, Kentucky, during her years working with the city.
United States Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge Jodi Cohen of the FBI’s Louisville Field Office, and Commissioner Phillip Burnett, Jr. of the Kentucky State Police made the announcement.
According to court documents and statements made in court, Tracy L. Hudson, 42, of Bloomfield, Kentucky, embezzled funds from the City of Bardstown, Kentucky, while employed first as the City’s Occupational Tax Administrator and then as its Chief Financial Officer. Between 2013 and September 2019, Hudson stole funds from the City of Bardstown by various means, including by taking cash from the City’s funds for her own personal use, paying herself for false expense reimbursements, diverting additional payments into her 401k pension plan in excess of the amount withheld from her wages, purchasing personal items on a City credit card without authorization, and crediting payments to her personal accounts with the City despite no actual payment having been made. The primary method by which Hudson stole from the City of Bardstown was by stealing cash, most often from cash payments made when individuals were paying for City services. Hudson also engaged in various activities which generated interstate wire communications to steal certain of the funds and to conceal her thefts from the City.
In addition to the 35-month prison sentence, Hudson was sentenced to a 3-year term of supervised release and ordered to pay $629,972.39 in restitution to the City of Bardstown and its insurance company.
The FBI and the Kentucky State Police investigated the case.
Assistant U.S. Attorney Stephanie M. Zimdahl prosecuted the case.
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Florida Entrepreneur Sentenced in $4.5 Million Insider Trading SchemeRead the Press Release
BOSTON – A Florida entrepreneur was sentenced yesterday in federal court in Boston for his role in an insider trading scheme that generated more than $4.5 million in profits.
David Schottenstein, 39, of Surfside, Fla., was sentenced by U.S. Senior District Court Judge Douglas P. Woodlock to one year and one day in prison and five years of supervised release, during which he will be required to perform 30 hours per week of community service. In February 2022, Schottenstein pleaded guilty to conspiracy to commit securities fraud. Judge Woodlock delayed formal imposition of the pronounced sentence pending additional briefing.
Between August 2017 and May 2019, Schottenstein obtained material nonpublic information (MNPI) from members of his own family—who are major shareholders or directors of several publicly traded companies—regarding the earnings results and merger-and-acquisition activity of those companies. According to court documents, Schottenstein traded on that information and provided it to two of his friends—one of whom controlled a hedge fund in which Schottenstein was an investor—who also traded on it. The publicly traded companies in which Schottenstein and his co-conspirators traded included Aphria, Inc., DSW, Inc. and Rite Aid Corp., among others. Through this scheme, Schottenstein and his alleged co-conspirators netted at least $4.5 million.
United States Attorney Rachael S. Rollins and Wayne A. Jacobs, Special Agent in Charge of the Federal Bureau of Investigation’s Criminal/Cyber Division, Washington Field Office, made the announcement today. The Securities & Exchange Commission and the Federal Bureau of Investigation, Miami Field Office provided valuable assistance. Assistant U.S. Attorneys Stephen E. Frank and Seth B. Kosto – Chief and Deputy Chief, respectively, of Rollins’ Securities, Financial & Cyber Fraud Unit – prosecuted the case.
Federal Jury Convicts Tahlequah Resident of Multiple Counts of Aggravated Sexual Abuse and Exploitation of Children in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that Leiloni Blake Smith, age 30, of Tahlequah, Oklahoma was found guilty by a federal jury of eight counts of Aggravated Sexual Abuse of a Child in Indian Country; two counts of Sexual Exploitation of a Child; and one count of Possession of Certain Material Involving the Sexual Exploitation of a Minor.
The jury trial began on Monday, March 20, 2023, and concluded on Tuesday, March 21, 2023, with the guilty verdicts.
During the trial, the United States presented evidence that an investigation began in 2020 based on CyberTips received from the National Center for Missing and Exploited Children. Those CyberTips indicated that an individual in the Tahlequah area was uploading child sexual abuse materials through an online provider. Gregory Neil Bias was identified, located, and arrested in January of 2022 for those offenses. During the investigation, electronic devices including the cell phones of Smith and Bias were seized and examined. Investigators discovered videos depicting the aggravated sexual abuse of two children.
The guilty verdicts were the result of an investigation by the Oklahoma State Bureau of Investigation, Federal Bureau of Investigation, and Homeland Security Investigations.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the tab "resources."
The United States Attorney’s Office for the Eastern District of Oklahoma prosecuted the case because the defendants in this case are members of a federally recognized Indian tribe and the crimes occurred in Cherokee County, within the boundaries of the Cherokee Nation Reservation and within the Eastern District of Oklahoma.
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma in Muskogee, presided over the trial of Smith and ordered the completion of a presentence report. Sentencing will be scheduled following completion of the report. Smith was remanded to the custody of the United States Marshal pending the imposition of sentencing.
The co-defendant in this case, Gregory Neil Bias, age 39, entered pleas of guilty on January 18, 2023 to nine counts of Aggravated Sexual Abuse of a Child in Indian Country; two counts of Sexual Exploitation of a Child; two counts of Possession of Certain Material Involving the Sexual Exploitation of a Minor; one count of Receipt of Certain Material Involving the Sexual Exploitation of a Minor; one count of Distribution of Certain Material Involving the Sexual Exploitation of a Minor; and one count of Felon in Possession of Firearm. Completion of a presentence report was previously ordered for Bias and he is in the custody of the United States Marshal pending the imposition of sentencing.
Assistant United States Attorneys Edith Singer and Kyra Jenner represented the United States.
Federal Grand Jury Indicts Tennessee Felon for Illegal Possession of FirearmRead the Press Release
Paducah, KY – A federal grand jury in Paducah, Kentucky, returned an indictment on January 10, 2023, charging a Murfreesboro, Tennessee man with being a prohibited person in possession of a firearm.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky and Acting Special Agent in Charge Robert Maynard of the ATF Louisville Field Division made the announcement.
According to the indictment, Arsenio R. Rhodes, 32, of Murfreesboro, Tennessee, was charged with one count of being a prohibited person in possession of a firearm. Rhodes was prohibited from owning a firearm because of two previous felony convictions for trafficking for sexual servitude in Shelby County, Tennessee.
Rhodes made his initial court appearance before a U.S. Magistrate Judge in the Middle District of Tennessee on March 2, 2023. He appeared in the United States District Court for the Western District of Kentucky on March 20, 2023. If convicted, Rhodes faces a maximum sentence of 15 years in prison. A federal district court judge will determine any sentence after considering the sentencing guidelines and other statutory factors. There is no parole in the federal system.
This case is being investigated by the ATF Bowling Green Field Office with assistance from the Hopkinsville Police Department.
Assistant U.S. Attorney Leigh Ann Dycus, of the U.S. Attorney’s Paducah Branch Office, is prosecuting this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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