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Monday 6 February 2023
California Drug Traffickers Plead Guilty to Supplying Fentanyl Linked to Wise County Teen OverdosesRead the Press Release
ABINGDON, Va. – A California-based trio pled guilty last week to running a cross-country drug trafficking conspiracy that supplied fentanyl linked to teenage overdoses in Wise County, Virginia.
Alexander Ortiz, 25, of Fullerton, California, Destiny Raeann Perez, 23, of Turlock, California, and Jorge Efrain Perez Jr., 24, of Santa Ana, California, each pled guilty to one count of conspiring to distribute 400 grams or more of fentanyl. Ortiz also pled guilty to one count of possessing a firearm in furtherance of a drug trafficking crime. Ortiz faces a mandatory minimum term of imprisonment of 15 years. Jorge Perez and Destiny Perez each face a minimum of 10 years in prison.
According to court documents, at the time of Mr. Ortiz’s arrest on June 20, 2022, he was found in possession of both a FNH pistol and a Glock, Model 45 9mm pistol, as well as over $10,000 cash, fentanyl patches and thousands of Alprazolam pills and other controlled substances, digital scales, and drug packaging items. A search warrant executed at Ortiz and Destiny Perez’s residence in Los Banos, California resulted in the recovery of over 6,000 pressed pills containing fentanyl, approximately $60,000 cash, and 13 firearms.
The investigation revealed that between November 1, 2020, and June 20, 2022, the trio packaged and sold tens of thousands of fentanyl-laced pills to buyers throughout the country, including sales to co-conspirator Paul Mason Perkins and others in Southwest Virginia. Using the social media platforms Snapchat and Instagram, Perkins ordered 1,000 pills every few weeks from Ortiz, who had the pills mailed to Perkins at his residence in Big Stone Gap. From there, Perkins sold the pills to individuals in Wise County, some of which were linked to two teenage overdoses that occurred in November 2021.
United States Attorney Christopher R. Kavanaugh, Charlies J. Patterson, Special Agent in Charge of the ATF’s Washington Field Division, and Tira A. Hayward, Acting Inspector in Charge of the U.S. Postal Inspection Service Washington Division made the announcement.
Assistant U.S. Attorney Lena Busscher is prosecuting the case.
The Wise County Sheriff’s Office, the Norton Police Department, the Southwest Drug Task Force, the United States Postal Inspection Service, and the Bureau of Alcohol, Tobacco, Firearms & Explosives investigated the case, with assistance from the Stanislaus and Orange County, California Sheriffs’ Offices, and the Patterson California Police Department.
Bridgeport Gang Member Sentenced to 14 Years in Federal PrisonRead the Press Release
JAMAR TRAYLOR, also known as “J-Hop,” 23, of Bridgeport, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to 168 months of imprisonment, followed by three years of supervised release, for offenses related to his participation in a violent Bridgeport street gang.
Today’s announcement was made by Vanessa Roberts Avery, United States Attorney for the District of Connecticut; Joseph T. Corradino, State’s Attorney for the Fairfield Judicial District; Bridgeport Police Chief Roderick Porter; Jean Pierre Njock, Acting Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation; James Ferguson, Special Agent in Charge, ATF Boston Field Division; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England, and Acting U.S. Marshal Lawrence Bobnick.
According to court documents and statements made in court, the FBI, ATF, DEA, U.S. Marshals Service and Bridgeport Police have been investigating multiple Bridgeport-based gangs whose members are involved in narcotics trafficking, murder and other acts of violence. Traylor was a member of the Original North End (“O.N.E.”), a gang based in the Trumbull Gardens area of Bridgeport that committed acts of violence against rival gang, including the East End gang, the East Side gang, and the PT Barnum gang. O.N.E. members also robbed drug dealers, sold narcotics, and stole cars from inside and outside Connecticut and used the cars to commit crimes.
On August 8, 2018, Traylor and other O.N.E. members stole a Jeep Grand Cherokee in Newburgh, New York, and drove it back to Bridgeport. In the following days, Traylor and others conspired to use the car to kill East End gang members and their allies who they had learned through social media were at a deli on Stratford Avenue in Bridgeport. Although that plan fell through, in the early morning hours of August 13, 2018, O.N.E. members drove the stolen Jeep to Stratford and Union Avenues in Bridgeport where they shot and killed Len Smith, 25, who they mistook for a rival East End group member, and shot and seriously wounded Smith’s female companion, both of whom were seated in a parked car. After the shooting, O.N.E. members transported the Jeep to Indian Wells State Park in Shelton where they burned the vehicle in an effort to destroy evidence of the murder.
On October 22, 2018, Traylor and other O.N.E. members committed a violent robbery of a marijuana dealer.
On June 1, 2021, Bridgeport Police arrested Traylor, who at the time was on state probation following a weapons conviction, when a search of his residence revealed five Glock handguns; 14 gun magazines, including a 50-round drum and three extenders; speed loaders; laser attachments; ammunition; body armor; bags of marijuana; and items use to process and package narcotics.
Traylor has been detained since his arrest. On June 10, 2022, he pleaded guilty to conspiring to engage in a pattern of racketeering activity.
This ongoing investigation is being conducted by the FBI’s Safe Streets and Violent Crimes Task Forces, ATF, DEA, U.S. Marshals Service, Bridgeport Police Department, Connecticut State Police and the Bridgeport State’s Attorney’s Office, with the assistance of the U.S. Postal Inspection Service, Connecticut Forensic Science Laboratory and the Waterbury Police Department. The case is being prosecuted by Assistant U.S. Attorneys Karen L. Peck, Rahul Kale, Jocelyn C. Kaoutzanis and Tara E. Levens.
This prosecution is a part of the Justice’s Department’s Project Safe Neighborhoods (PSN), Project Longevity and Organized Crime Drug Enforcement Task Forces (OCDETF) programs.
PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Project Longevity is a comprehensive initiative to reduce gun violence in Connecticut’s major cities. Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to commit violence and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it. If a group member elects to engage in gun violence, the focused attention of federal, state and local law enforcement will be directed at that entire group.
OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Boston Man Charged with Fentanyl Distribution OffenseRead the Press Release
BOSTON – A Boston man has been arrested and charged with a drug distribution offense involving fentanyl.
Csean Skerritt, a/k/a “Shizz Grimmy,” a/k/a “Black,” 34, was arrested yesterday and charged with one count of distribution of 40 grams or more of fentanyl. Following an appearance in federal court in Boston this afternoon, Skerritt was detained pending a hearing scheduled for Feb. 14, 2023 at 2:30 p.m.
According to the charging documents, on Feb. 1, 2023, Skerritt agreed to sell 50 grams of fentanyl to an individual in exchange for $1,500. It is alleged that, following a series of communications, Skerritt met the individual at a pre-arranged location. There, Skerritt allegedly entered the individual’s car and provided approximately 55 grams of fentanyl in exchange for the agreed-upon amount.
The charge of distribution of 40 grams or more of fentanyl provides for a sentence of at least 5 years and up to 40 years in prison, at least 4 years of supervised release and a fine of up to $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Boston Police Commissioner Michael Cox; and Suffolk County District Attorney Kevin Hayden made the announcement today. Assistant U.S. Attorney John T. Dawley of Rollins’ Organized Crime & Gang Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Benteler Steel & Tube Manufacturing Corp. Abandons Merger with Tenaris, S.A. After Justice Department InvestigationRead the Press Release
Tenaris, S.A. (Tenaris) confirmed that Benteler Steel & Tube Manufacturing Corp. (Benteler) has walked away from Tenaris’s planned $460 million take-over of Benteler’s state-of-the-art steel and tube manufacturing facility in Shreveport, Louisiana. The abandonment comes after the Justice Department’s Antitrust Division raised competition concerns about the deal.
The proposed transaction would have combined two domestic suppliers of seamless tubing and production casing, important types of steel pipe used in the extraction of oil and gas. The transaction would have increased concentration in an already concentrated industry, cementing Tenaris as the undisputed dominant player in the market.
“A competitive oil and gas industry is vital to the U.S. economy,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “The proposed acquisition would have eliminated Benteler as an independent competitor and threatened higher prices, lower quality, and less innovation in this market. I am grateful to the division’s hardworking staff who thoroughly investigated the transaction on behalf of the public.”
Tenaris, S.A. is a Luxembourg corporation listed on the New York, Italian, and Mexican stock exchanges operating a global network of steelmaking, including several Oil Country Tubular Goods (OCTG) mills in the United States, primarily through its subsidiary Maverick Tube Corp.
Benteler Steel & Tube Manufacturing Corp. operates a state-of-the-art seamless steel pipe mill in Shreveport, Louisiana. Benteler is a wholly-owned subsidiary of Benteler International AG, a privately-owned company registered in Austria, which provides steel pipes and products and services used in automotive manufacturing.
Belgrade Man Sentenced to 8+ Years for Manchester Bank RobberyRead the Press Release
PORTLAND, Maine: A Belgrade man was sentenced today in U.S. District Court in Portland for bank robbery.
U.S. District Judge John A. Woodcock, Jr. sentenced Clinton Damboise, 47, to 98 months in prison followed by three years of supervised release. He was ordered to pay $3,179 in restitution. Damboise pleaded guilty on September 27, 2021.
According to court records, in September 2016, Damboise entered the Camden National Bank in Manchester, Maine, telling the teller, “This is a robbery, not a joke.” He gestured to the waistband of his jacket and said he had a gun. The teller handed Damboise cash, and he fled. Damboise, who was not wearing a mask, was identified by the teller and by the bank’s security camera footage.
The FBI, Maine State Police, Kennebec County Sheriff’s Office and Southington (Connecticut) Police Department investigated the case.
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Aryan Brotherhood Associate Pleads Guilty to a Racketeering Conspiracy that Included Murders, Assaults, and Drug Trafficking from Within California PrisonsRead the Press Release
SACRAMENTO, Calif. — Justin Petty, 41, of Los Angeles, an associate of the Aryan Brotherhood (AB) prison gang, pleaded guilty today to conspiracy to participate in a racketeering enterprise and conspiracy to distribute heroin and methamphetamine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between 2011 and 2016, AB members and associates engaged in racketeering activity, committing multiple acts involving murder and drug trafficking offenses. AB members Ronald Yandell and Billy Sylvester oversaw a significant heroin and methamphetamine trafficking operation from their shared prison cell. They used smuggled cellphones to direct their drug trafficking activity from their prison cell to the streets of Sacramento and other California cities. Using a contraband cellphone, Yandell and Sylvester communicated with AB members and associates to direct drug trafficking activities, membership in the AB, order murders, and oversee other criminal activities.
In June 2019, sixteen defendants were indicted for federal racketeering (known as the “RICO” statute) and other charges. The allegations include murders, drug trafficking and other violent crimes. Nine of the defendants were inmates in California prisons, and six of those were serving life sentences for murder.
According to the plea agreement, between August and September 2016, Petty conspired with AB members at two different state prisons – CSP-Sacramento and High Desert state prison – to send packages containing food stuffed with contraband items into each prison through Petty’s employer, a contractor authorized by CDCR to pack and send sealed packages to inmates.
On Sept. 6, 2016, Petty’s package was intercepted at CSP-Sacramento and found to contain three cellphones, two phone charging cables, six grinding discs, seven lighters, one cellphone battery, seven small screw drivers – five with flat heads and two with Phillips heads, two Bluetooth ear pieces, 10 small metal saw blades, more than 20 grams of methamphetamine, and 15 grams of heroin. The contraband items were hidden inside food packages, including a box of Quaker Oats, a box of Honey Buns snacks, a box of fudge brownies, and similar items. The contraband was concealed in a manner designed to avoid detection by prison staff who would have searched the box’s contents before giving them to the inmate.
Similarly, on Sept. 6, 2016, another package from Petty was intercepted [at which prison] and found to contain about 10 cellphones, more than 200 grams of heroin, and 120 grams of methamphetamine. The cellphones and controlled substances were hidden inside boxes of Oatmeal Creme Pies and fudge brownies. They were concealed in a manner designed to avoid detection by prison staff who would have searched the box’s contents before giving them to the inmate addressee.
Other defendants who have entered guilty pleas as part of this investigation include:
Nickolas Perez – RICO conspiracy and drug trafficking conspiracy;
Donald Mazza – RICO conspiracy and conspiracy to commit murder in aid of racketeering;
Travis Burhop – RICO conspiracy and conspiracy to commit murder in aid of racketeering;
Samuel Keeton – RICO conspiracy and drug trafficking conspiracy; and
Kristen Demar – RICO conspiracy and drug trafficking conspiracy.
This case is the product of an investigation by the DEA with assistance from the California Department of Corrections and Rehabilitation, the Vallejo Police Department, the U.S. Marshals Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the El Dorado County District Attorney’s Office, and the Nevada County Sheriff’s Office.
Petty is scheduled for sentencing before U.S. District Judge Kimberly J. Mueller on May 8, 2023. Petty faces a maximum statutory penalty of life in prison and a fine up to $10 million. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations.
Armed Methamphetamine Dealer Sentenced to 20 Years in Federal PrisonRead the Press Release
INDIANAPOLIS- Dylan Ostrum, 29, of Indianapolis, Indiana, was sentenced to 20 years in federal prison for trafficking methamphetamine and illegally possessing a firearm. Ostrum was convicted on all charged counts at the conclusion of a three-day jury trial.
According to court documents, from August 2020 to February 2021, Dylan Ostrum conspired with others to distribute methamphetamine and marijuana in Indianapolis, Indiana. On February 3, 2021, investigators executed a search warrant at Ostrum’s Indianapolis residence, where they arrested Ostrum. Ostrum admitted to his involvement in drug trafficking but acknowledged that he had removed all contraband from his home after a trafficking associate had been arrested the previous week. Investigators later located Ostrum’s vehicle at a coconspirator’s residence and recovered a loaded 9mm pistol, an extended magazine, 513 grams of actual methamphetamine, marijuana, and a digital scale.
Zachary A. Myers, United States Attorney for the Southern District of Indiana and Daryl S. McCormick, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Columbus Field Division made the announcement.
At the time of his arrest, Ostrum was on home detention after a previous felony conviction for possession of methamphetamine in Madison County, Indiana. Ostrum is prohibited from possessing a firearm due to his multiple previous felony convictions, including burglary and drug possession.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) investigated this case. The sentence was imposed by U.S. District Court Judge Sarah Evans Barker. Judge Barker also ordered that Ostrum be supervised by the U.S. Probation Office for 5 years following his release from federal prison.
U.S. Attorney Myers thanked Assistant United States Attorney’s Bradley A. Blackington and Michelle P. Brady, who prosecuted this case.
Arizona Man Arrested for Kidnapping a Utah Teenager is Facing Federal Charges Including Intent to Engage in Sexual Conduct with a MinorRead the Press Release
SALT LAKE CITY, Utah – A federal grand jury in Utah returned an indictment charging a Tucson, Arizona man with kidnapping a Utah teen and taking the victim across state lines with the intent to engage in illegal sexual activity.
According to court documents, Tadashi Kura Kojima, 26, also known as Aaron Michael Zeman, willfully and unlawfully kidnapped a 13-year-old, who he was not related to, or had legal custody of, and took the minor across state lines with the intent to engage in illegal sexual activity. The criminal conduct resulted in an Amber Alert and the arrest of Kojima in Nebraska. Kojima has been provided notice of the intent to seek forfeiture of property, including a cell phone, gaming devices, and a 1998 White Toyota Avalon, which were used or intended to be used to commit or to facilitate the commission of the violation.
The indictment charges Kojima with kidnapping and transportation with intent to engage in criminal sexual activity. The defendant appeared in a U.S. federal court in Nebraska and is in the custody of the U.S. Marshals Service, who will transfer Kojima to Utah. Upon his arrival in Utah, Kojima will appear on his indictment 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.
Assistant U.S. Attorney, Carol A. Dain, is prosecuting the case. The investigation is being worked jointly by the FBI, Layton Police Department and Grand Island Police Department.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Agoura Hills Real Estate Developer Agrees to Plead Guilty to Lying on Bankruptcy Petition and Filing False Federal Income Tax ReturnsRead the Press Release
LOS ANGELES – An Agoura Hills-based real estate developer has agreed to plead guilty to federal charges for failing to disclose on a bankruptcy petition that he had earned nearly $2.3 million in income and for failing to report almost $6.9 million in income on his tax returns, the Justice Department announced today.
Mark Handel, 68, has agreed to plead guilty to a two-count information charging him with making a false statement in bankruptcy and subscribing to a false tax return. Both the information and Handel’s plea agreement were filed today in United States District Court.
Handel has agreed to forfeit approximately $3,545,712, which represents the proceeds of the sale of real estate in Alameda County. Handel also has agreed to pay to the IRS approximately $1,450,070 in tax liabilities, which include civil fraud penalties.
He is expected to enter a guilty plea in the coming weeks.
According to his plea agreement, in April 2015, Handel filed a bankruptcy petition in Los Angeles in which he knowingly made false statements. Under penalty of perjury, Handel stated that he had no income from 2013 until April 2015. In fact, Handel earned approximately $2,263,221 in income from DTMM Construction Inc., his West Los Angeles-based real estate development company. Handel caused DTMM, which, according to court documents, stands for “Don’t Touch My Money,” to be registered in his wife’s name but used DTMM to deposit the profits from his own work as a real estate developer and to pay for his and his family’s living expenses.
Handel concealed his income from his creditors by depositing it into DTMM’s accounts. Among the assets Handel hid from creditors included his interest in real estate in Livermore, California.
In October 2016, Handel signed and filed a false federal income tax return for the tax year 2015 that failed to disclose approximately $1,096,175 in additional income. Handel further admitted that for the tax years 2010 to 2017, he failed to report a total of approximately $6,886,877 of income on his federal tax returns.
Handel also falsely reported a net operating loss of $7,259,119 on his 2017 federal income tax return as well as underreported his income on his 2018 tax return by $1,411,050 and admitted to failing to pay $460,408 in additional tax.
Once Handel pleads guilty to both charges, he will face a statutory maximum penalty of eight years in federal prison.
IRS Criminal Investigation and the FBI investigated this matter with assistance from the Office of the United States Trustee.
Assistant United States Attorney Thomas F. Rybarczyk of the Public Corruption and Civil Rights Section is prosecuting this case.
Saturday 4 February 2023
Former Yarmouth Resident Sentenced for Identity Theft and SBA Loan Fraud ChargesRead the Press Release
PORTLAND, Maine: A former Yarmouth resident was sentenced yesterday in U.S. District Court in Portland for aggravated identity theft and making a false statement to the Small Business Administration in a loan application.
U.S. District Judge Nancy Torresen sentenced John J. Cavanaugh, Jr., 53, to three years in prison and three years of supervised release. Cavanaugh was also ordered to pay over $244,000 in restitution to the victims of his crimes.
According to court records, in November 2016, Cavanaugh applied to the Social Security Administration (SSA) for disability insurance benefits on behalf of his minor son. During the application process, Cavanaugh falsely claimed that his son had resided with him since birth, and that he and his son lived together. In fact, neither his son nor his son’s mother had ever lived with Cavanaugh.
In December 2016, Cavanaugh submitted a typewritten letter to the SSA that was purportedly authored and signed by his son’s mother. The letter falsely stated that she and her son were living with Cavanaugh. The letter was provided in support of Cavanaugh’s application for disability insurance benefits on his son’s behalf. His son’s mother did not write the letter, and the signature on the letter was not hers. Cavanaugh did not have her permission to write the letter on her behalf. The SSA approved his application for benefits and he received them until June 2018, when his son’s mother learned that he was receiving them and notified the SSA.
Also according to court records, in April 2020, Cavanaugh applied for an Economic Injury Disaster Loan through the U.S. Small Business Administration. The loans were designed to support business owners negatively affected by the COVID-19 pandemic. The online application that Cavanaugh completed asked if he was currently subject to an indictment or other formal criminal charge. Cavanaugh falsely answered “No” to this question. In fact, he was under indictment in the U.S. District Court for the District of Maine, and was subject to an order setting conditions of release that informed him that if he committed a new federal felony while on release, he was subject to additional penalties.
The FBI investigated the case with assistance from the SSA Office of Inspector General and the U.S. Small Business Administration.
Armed Career Criminal Convicted of Drug Trafficking and Firearm OffenseRead the Press Release
PENSACOLA, FLORIDA – A federal jury in Pensacola convicted Michael Tyrone Lindsey, 38, of Pensacola, on possession with intent to distribute over 50 grams of methamphetamine, possession of a firearm in furtherance of drug trafficking, and possession of a firearm by a convicted felon. The guilty verdict, returned at the conclusion of a two-day trial, was announced by Jason R. Coody, United States Attorney for the Northern District of Florida.
The charges against Lindsey were based upon an execution of an outstanding arrest warrant for Lindsey at his hotel room in Pensacola. Evidence introduced during the trial revealed after seeing over $3000 in cash and drugs in plain view on one of the beds during the arrest, a state search warrant was obtained. Officers seized over 200 grams of pure methamphetamine in a large plastic bag and a loaded handgun between the mattresses of the bed where Lindsey was reaching when was arrested, along with small amounts of various other drugs. A discovery of a Facebook video Lindsey posted of himself 4 days prior to his arrest holding a bag of meth and a gun and “rapping” about them.
Lindsey’s sentencing hearing is scheduled for May 15, 2023, at 9:00 a.m., at the United States Courthouse in Pensacola before United States District Judge M. Casey Rodgers.
Due to prior convictions for both violent and drug-related felonies qualifying Lindsey as an Armed Career Criminal, he will be subject to mandatory enhanced sentences. Lindsey faces a mandatory 10 years to life imprisonment, 5 years of supervised release, a fine of up to $10,000,000, for possession with Intent to Distribute 50 grams or more of methamphetamine; mandatory/minimum 5 years imprisonment up to life imprisonment, five years of supervised release, a fine of up to $250,000, for possession of a firearm in furtherance of drug trafficking, and up to 10 years imprisonment, 3 years of supervised release, a fine of up to $250,000 for possession of a firearm by a convicted felon.
This conviction resulted from an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Pensacola Police Department, and the United States Marshals. Assistant United States Attorney Jeffrey M. Tharp prosecuted the case.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Friday 3 February 2023
“Clyde” in Bonnie & Clyde Duo Pleads Guilty to Armed Bank RobberyRead the Press Release
DETROIT – A Waterford man pleaded guilty yesterday in federal court in Detroit to bank robbery and weapons offenses, United States Attorney Dawn N. Ison announced today.
Ison was joined in the announcement by James A. Tarasca, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.
Defendant David Johnson, 54, pleaded guilty before U.S. District Judge Stephen J. Murphy, III. According to court records, in June 2018, Johnson and an accomplice walked into the Dearborn Federal Savings Bank at 4111 Telegraph Road and announced a robbery. Johnson’s accomplice pointed a short-barreled shotgun at the tellers as Johnson demanded money. The two men were unable to access the teller area and left the bank empty-handed. The men fled the scene in a car driven by Johnson’s wife and co-defendant, who was waiting nearby. Johnson’s wife then took the two men to the Citizens Bank at 23455 Eureka Road in Taylor, where Johnson and his accomplice walked in with the shotgun and announced a robbery. More than $4,000 was stolen from the Taylor bank, but the money was immediately thrown from the getaway car’s window after red dye packs placed in the bags by tellers exploded while they were driving down Eureka Road. After her arrest, Johnson’s wife told authorities the robbery was exciting and compared herself and her spouse to “Bonnie and Clyde.”
Johnson faces a maximum penalty of 20 years in federal prison for the bank robbery offense and not less than 10 years’ imprisonment for utilizing a short-barreled shotgun during the robberies. The sentencing hearing is set for May 4, 2023.
“Armed bank robbery places the lives of bank employees and customers at risk. We will continue to remove violent actors who endanger public safety from our community,” said U.S. Attorney Dawn N. Ison.
“Violent criminals who use guns during bank robberies deprive employees of their right to feel safe and secure in their workplaces,” said James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Field Office. “Thank you to the Dearborn Heights and Taylor Police Departments for their collaborative efforts during this investigation. The FBI is committed to working with our law enforcement partners to bring violent offenders to justice and to make our communities safer places to live and work.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Federal Bureau of Investigation, Dearborn Heights Police Department, and Taylor Police Department. The case is being prosecuted by Assistant U.S. Attorneys Barbara Lanning and Tara Hindelang.
Utah County Residents and an Accounting Business Charged in $11 Million COVID-Related Tax Fraud SchemeRead the Press Release
UPDATE
The defendants in this case, Zachary Bassett, Mason Warr and COS Accounting & Tax LLC, were acquitted of the charges alleged in the indictment described in the press release below.
Salt Lake City, Utah – A federal grand jury in Salt Lake City, Utah returned an indictment Wednesday charging two Utah County men and COS Accounting & Tax LLC, dba 1099 Tax Pros with a COVID-related tax fraud scheme to defraud the United States of America of millions of dollars.
According to court documents, Zachary Bassett, 39, of Provo, Mason Warr, 37, of Vineyard and COS Accounting & Tax LLC, dba 1099 Tax Pros located in Provo, participated in a fraudulent tax scheme to seek COVID-related relief funds by preparing and submitting more than one thousand tax forms to the IRS, claiming in excess of $11 million in false and fraudulent Employee Retention Credit (ERC) and sick and family leave wage credits for clients of COS Accounting.
The Coronavirus Aid, Relief, and Economic Security Act (CARES Act), enacted in March 2020, provides an employee retention tax credit (ERC) and is designed to encourage businesses to keep employees on their payroll. The Families First Coronavirus Response Act (FFCRA) requires certain employers to provide employees with paid sick leave of up to 80 hours and expanded family and medical leave of up to 10 weeks for specified reasons related to COVID-19. FFCRA provides refundable tax credits that reimburse employers for the cost of providing paid sick and family leave wages to employees for leave related to COVID-19.
“During the pandemic, the defendants allegedly took advantage of a program intended to provide critical relief for businesses impacted by the COVID-19 outbreak,” said IRS Criminal Investigation Special Agent in Charge Albert Childress. "IRS CI is committed to bringing justice to those who have exploited the pandemic for personal gain and have stolen from America’s taxpayers.”
The indictment charges Bassett, Warr and COS Accounting & Tax LLC, dba 1099 Tax Pros with conspiracy to defraud the United States, wire fraud and aiding and assisting in filing false tax returns. According to the indictment, the scheme to defraud took place from at least April 2020 through at least August 2021 in the District of Utah. Defendants were also provided notice that if convicted of the charges, defendants would forfeit to the United States of America any property constituting or derived from proceeds traceable to the scheme to defraud. An initial appearance for the defendants is scheduled for February 22, 2023, at 1p.m. at the U.S. District Court in Salt Lake City.
U.S. Attorney Trina A. Higgins for the District of Utah made the announcement.
Assistant U.S. Attorney, Jennifer K. Muyskens, for the District of Utah is prosecuting the case.
The IRS-Criminal Investigation is investigating the case.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866 720 5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Urbandale Man Sentenced for Child Pornography OffenseRead the Press Release
Des Moines, IA – Russell Glenn Crane, age 44, of Urbandale, was sentenced today to 78 months in prison following his guilty plea to a charge of Possession of Child Pornography. Crane must also serve a five-year term of supervised release following his prison term. There is no parole in the federal system.
According to court documents, on or about January 6, 2022, Crane knowingly possessed visual depictions of child pornography, including over 20,000 images and at least four videos, some of which depicted minors younger than 12 years old. Using several electronic devices, Crane had collected the child pornography over the course of at least a decade by downloading the material from various internet sites.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Urbandale Police Department, Iowa Internet Crimes Against Children Task Force, and the Federal Bureau of Investigation Human Trafficking and Child Exploitation Task Force investigated the case. Assistant U.S. Attorney Kyle Essley prosecuted the case.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorney’s Offices and the Department of Justice’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Union County Investment Advisor Admits Stealing Client MoneyRead the Press Release
NEWARK, N.J. – A former investment advisor who stole over $600,000 from his clients to fund his gambling and personal expenses has pleaded guilty, U.S. Attorney Philip R. Sellinger announced today.
Mario E. Rivero Jr., 39, of Elizabeth, New Jersey, pleaded guilty on Feb. 2, 2023, before U.S. District Judge Madeline Cox Arleo in Newark federal court to an information charging him with one count each of wire fraud and securities fraud.
According to documents filed in this case and statements made in court:
From April 2018 through November 2020, Rivero, while serving in his capacity as an investment advisor employed by a large brokerage firm, misappropriated $626,478 from five clients. Rivero, who had been entrusted to manage client funds responsibly, instead perpetrated a scheme to defraud multiple clients. He obtained his clients’ money under the fraudulent pretense that he would invest the funds, but instead, Rivero unlawfully diverted the funds to enrich himself and others.
The wire fraud and security fraud counts each carry a maximum potential penalty of 20 years in prison and maximum fines of $1 million, and $5 million, respectively. Sentencing is scheduled for June 27, 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 postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Inspector in Charge Christopher Nielsen, Philadelphia Division, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Shawn Barnes, Chief of the OCDETF/Narcotics Unit in Newark.
Undercover Operation Lands Alleged Utah Drug Trafficker Behind BarsRead the Press Release
Salt Lake City, Utah – A 25-year-old Taylorsville man has been arrested and charged in a federal criminal complaint for possessing with intent to distribute fentanyl to an undercover federal agent.
The United States Attorney’s Office for the District of Utah filed the complaint Tuesday, January 31, 2022, charging the defendant, Flavio Cesar Mazariegos Covarrubias with possession of fentanyl with intent to distribute.
According to court documents, the FBI’s Wasatch Metro Drug Task Force (WMDTF) initiated a criminal investigation into Covarrubias and a drug trafficking organization that agents believe to be distributing large quantities of narcotics in Utah. Recently, an undercover agent purchased fentanyl from the defendant which led to his arrest. Agents located and seized approximately 5,000 blue-colored pills and approximately 40 brightly-colored pills which field-tested positive for fentanyl, a schedule II controlled substance. Brightly-colored fentanyl pills, like the pills seized from Covarrubias, are also referred to as the common street name “rainbow fentanyl,” or “skittles,” and look like candy to entice young people.
U.S. Attorney Trina A. Higgins for the District of Utah made the announcement.
Assistant U.S. Attorney, Stephen L. Nelson, for the District of Utah is prosecuting the case.
The FBI is investigating the case.
A criminal complaint is a formal accusation of criminal conduct, not evidence. Defendants are presumed innocent unless and until proven guilty.
FBITwo Individuals from Idaho Falls Each Sentenced to over 20 Years in Federal Prison for Trafficking Methamphetamine and FentanylRead the Press Release
POCATELLO – Ernestine Delafuente and Simon Martinez, of Idaho Falls, were sentenced to federal prison for possession with the intent to distribute methamphetamine, U.S. Attorney Josh Hurwit announced today. Chief U.S. District Judge B. Lynn Winmill sentenced Delafuente to 309 months in federal prison, and Martinez to 264 months in federal prison.
According to court records and evidence presented at sentencing, from January 2020, through December 2020, Delafuente, Martinez, and multiple other individuals engaged in large-scale methamphetamine trafficking in Idaho Falls, Pocatello, and the surrounding areas. Evidence established that Delafuente was the source of supply and leader of the drug trafficking organization. Evidence further established that Delafuente obtained hundreds of pounds of methamphetamine and other drugs from a California source of supply. Martinez was identified as working directly under Delafuente in the drug trafficking organization. In December 2020, a search warrant was executed at a storage unit in Idaho Falls and law enforcement recovered more than 56 pounds of methamphetamine, and approximately 12,000 fentanyl pills.
U.S. Attorney Hurwit commended the Drug Enforcement Administration, Idaho State Police, Idaho Falls Police Department, Bonneville County Sheriff’s Office, Pocatello Police Department, Power County Sheriff’s Office, Bannock County Sheriff’s Office, Bingham County Sheriff’s Office, and Homeland Security Investigations (HSI) for their close collaboration on the case.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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Tomah Man Sentenced to 12 Years for Distributing MethamphetamineRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Victor Pennington, 27, Tomah, Wisconsin was sentenced today by U.S. District Judge William M. Conley to 12 years in federal prison for distributing 500 grams or more of methamphetamine as part of a conspiracy. This prison term will be followed by 5 years of supervised release.
Law enforcement began their investigation of Pennington in January 2021. Through the course of their investigation, officers utilized confidential informants to purchase over 100 grams of methamphetamine from him or his co-defendant Lucas Ellwart on three occasions. Officers also determined Pennington utilized another individual, Kyle Ritchie, to purchase guns on his behalf.
Pennington is prohibited from legally possessing or purchasing firearms as a result of several felony convictions, including two Wisconsin convictions related to methamphetamine from 2019. Judge Conley sentenced Ellwart in October 2022 to 72 months imprisonment for distribution of methamphetamine, and Ritchie in September 2022 to 24 months imprisonment for making false statements during the purchase of a firearm, which he provided to Pennington.
Pennington was arrested following a 33-mile high-speed car pursuit in September 2021. Officers attempted to pull him over on his return from Minnesota—purportedly where he had purchased a large quantity of methamphetamine—but the defendant fled. During the pursuit, he instructed Ellwart, who was also in the car, to throw methamphetamine out of the car window. Officers later recovered over 700 grams of methamphetamine along the route of the chase.
In sentencing Pennington, Judge Conley noted that the defendant was under Wisconsin supervision at the time of these offenses. Judge Conley reasoned that a significant sentence was warranted due to the sheer volume of methamphetamine the defendant distributed, including to lower-level dealers in central Wisconsin, and his decision to illegally obtain guns and flee from police.
The charge against Pennington was a result of an investigation conducted by the Federal Bureau of Investigation's Central Wisconsin Narcotics Task Force comprised of investigators from FBI, Marathon County Sheriff's Office, Wausau Police Department, Wisconsin Department of Justice Division of Criminal Investigation, the Lincoln County Sheriff's Office, Wisconsin State Patrol, Everest Metro Police Department, Wisconsin's National Guard Counterdrug Program, and the Marathon County District Attorney’s Office. Assistant U.S. Attorney Taylor L. Kraus handled the prosecution.
Three Individuals and One Company Indicted for Introducing Adulterated and Misbranded Devices into Interstate Commerce and Mail Fraud ConspiracyRead the Press Release
SAN JUAN, Puerto Rico – A federal grand jury in the District of Puerto Rico returned an indictment on February 1, 2023 charging Elberto Berdut-Teruel, Wanda L. Carballo-Cabrera, María Santos-Carballo, and Magnetic Healer of PR Inc. with conspiracy and introduction of adulterated and misbranded devices with intent to defraud and mislead, conspiracy to commit mail fraud, and alteration of a device after shipment in interstate commerce.
According to court documents, the defendants unlawfully enriched themselves and operated the company Magnetic Healer of PR Inc. to sell devices containing magnets (“healing magnets”) which were advertised as being effective in the cure, mitigation, treatment, and prevention of diseases in humans, which included COVID-19, migraines, depression, insomnia, Parkinson’s disease, Alzheimer’s disease, autism, and cancer, among others. The indictment alleges that the defendants generated proceeds from the unlawful sale of the devices, which were adulterated and misbranded for purposes of the Federal Food, Drug, and Cosmetic Act (the FDCA) and seeks the forfeiture of a money judgment totaling $327,047.56.
One purpose of the FDCA is to ensure that devices and drugs sold to prevent, cure, or treat diseases are safe and effective for their intended uses and bear labeling that contain true and accurate information and have adequate directions for use. The FDCA prohibits, among other things, the knowing introduction and delivery in interstate commerce of a device that is misbranded or adulterated.
The devices that the defendants sold were misbranded under the FDCA because the defendants marketed and sold devices without notifying and obtaining the necessary approval from the United States Food and Drug Administration (FDA). The lack of approval from the FDA also made the devices adulterated for purposes of the FDCA. Furthermore, the devices were misbranded because their the labeling was false and misleading; the labeling failed to bear adequate directions for use; and the labeling lacked adequate warnings.
The defendants obtained parts for the devices via the mail from vendors outside of Puerto Rico and assembled the devices in Puerto Rico. They promoted the devices on social media and websites, including www.elbertoberdut.com and www.magneticbiotherapy.com. The defendants falsely claimed that the devices did not require FDA approval, had been submitted for FDA approval, and were FDA Authorized, using an official “FDA authorized” logo. The defendants sold the devices via the same websites and at the company’s physical address in San Juan, Puerto Rico.
Elberto Berdut-Teruel was the president, secretary, treasurer, and resident agent of Magnetic Healer of PR Inc. Wanda L. Carballo-Cabrera and María Santos-Carballo were employees of the company.
“Companies that sell medical products put their customers at risk when they misrepresent the quality, safety, or effectiveness of those products,” said W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. “Working with the FDA and other law enforcement partners, we are committed to holding individuals and companies accountable for violating the integrity of the FDA approval process, which directly impacts public health and safety.”
“The FDA continues to actively monitor the marketplace for fraudulent products related to our battle against COVID-19 as well as other diseases and conditions,” said Special Agent in Charge Justin C. Fielder, FDA Office of Criminal Investigations Miami Field Office. “We will continue to take appropriate action against those who choose to mislead consumers and attempt to subvert the legitimate device regulatory regime.”
The defendants are scheduled for their initial court appearance today before U.S. Magistrate Judge Bruce McGiverin of the U.S. District Court for the District of Puerto Rico. If convicted, the defendants face a maximum penalty of 20 years in prison. A federal district court judge would determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FDA – Office of Criminal Investigations is investigating the case. Assistant U.S. Attorney Victor O. Acevedo-Hernández is prosecuting the case.
For more information about the FDA, the products it regulates, and public safety notices, please visit www.FDA.gov or www.FDA.gov/about-fda/fda-en-espanol.
To report an adverse event or serious problem to the FDA, please visit https://www.fda.gov/safety/reporting-serious-problems-fda/how-consumers-can-report-adverse-event-or-serious-problem-fda or https://www.fda.gov/safety/reporting-serious-problems-fda/como-los-consumidores-pueden-reportar-eventos-adversos-o-problemas-serios-la-fda.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Third Codefendant Sentenced for 2021 CarjackingsRead the Press Release
A Tulsa man who took part in two carjackings was sentenced in federal court Friday, announced U.S. Attorney Clint Johnson. His two codefendants were sentenced in January.
Chief U.S. District Judge John F. Heil III sentenced Carlos Alfredo Arroliga, 27, to 168 months in federal prison followed by five years of supervised release. He previously pleaded guilty to two counts of carrying, using, and brandishing a firearm during and in relation to a crime of violence.
“Carlos Arroliga took part in two armed carjackings at apartment complexes in Tulsa. He and his two cohorts are now headed to federal prison where they can no longer threaten, terrorize and put Tulsans’ lives at risk,” said U.S. Attorney Clint Johnson. “Protecting our community from violence is a top priority for the U.S. Attorney’s Office and our partners at the Tulsa Police Department. I appreciate Chief Franklin and the officers who have dedicated themselves to seeking justice and protecting this community. Their work is critical to bringing violent offenders to account for the harm they cause to victims.”
Codefendant Raul Hernandez-Moreno, 22, was sentenced to 225 months in federal prison after he was convicted at trial of two counts of carjacking; two counts of carrying, using and brandishing a firearm during and in relation to a crime of violence; and possession of a firearm and ammunition by an alien illegally in the United States.
Codefendant Nicole Marie Rumualdo, aka Nicole Hughes, 29, was sentenced to 144 months in federal prison after pleading guilty to two counts of carrying, using, and brandishing a firearm during and in relation to a crime of violence.
On Oct. 26, 2021, Hernandez-Moreno, Rumualdo, and Arroliga were responsible for two carjackings in Tulsa. At 7:30 am, Hernandez-Moreno and his two accomplices pulled alongside a gray 2006 Mazda 3 in the Echo Trails Apartments in Tulsa. The defendants exited their blue SUV, and Rumualdo pointed a loaded handgun at the victim. Hernandez-Moreno blocked the victim from behind. Speaking in Spanish, Rumualdo demanded the victim’s wallet and cell phone. When the victim responded that he did not have his wallet and cell phone, Rumualdo snatched the victim’s keys. Hernandez-Moreno and Rumualdo drove off in the Mazda, and Arroliga followed in the blue SUV.
A few hours later, the three defendants targeted a maintenance worker in his parked vehicle at Bristol Park Apartments in Tulsa. The victim was preparing to perform repairs at the complex when the defendants pulled into a nearby spot. Hernandez-Moreno then approached the victim and pointed a loaded gun at the victim, ordering him to hand over his money. Hernandez-Moreno then took the victim’s keys and drove off in the victim’s 2010 gray Chevrolet Silverado. Arroliga and Rumualdo followed in the blue SUV.
Officers were able to locate surveillance footage of the crimes from one of the apartment complexes. The video showed the vehicle used by the defendants, a bright blue Ford Escape with a paper tag and unique license plate frame. The same day of the crime, the blue Ford Escape was observed on Garnett Road, and a traffic stop was initiated because it matched the description of the SUV seen in the surveillance video. Arroliga was driving the vehicle and taken into custody for questioning. On Oct. 27, 2020, Hernandez-Moreno and Rumualdo were found in the stolen Mazda at the Echo Trails Apartment complex. They were immediately taken into custody.
The Tulsa Police Department and U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations conducted the investigation. Assistant U.S. Attorneys Gina S. Gilmore, Joel-lyn A. McCormick, and Thomas E. Buscemi prosecuted the case.
This case was prosecuted as part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement, and the local community to develop effective, locally based strategies to reduce violent crime.
Statement from United States Attorney Rachael S. Rollins on Restitution Judgment in U.S. v. Cromwell and DeQuattroRead the Press Release
“The Mashpee Wampanoags put their trust in Mr. Cromwell when they elected him to represent them. Mr. Cromwell violated and exploited that trust, lining his own pockets through a fraudulent business arrangement with Mr. DeQuattro. Their bribery scheme corrupted and stalled the most significant economic development project in the Tribe’s history. Last spring, a federal jury saw through the lies and found the defendants guilty of their shameful conduct. They were later held accountable at sentencing in November, with Mr. Cromwell receiving a three-year sentence.
Now, thanks to the Mashpee Wampanoag’s current leadership and tenacious legal counsel’s zealous advocacy, our office sought and secured restitution of $209,687.54 from Mr. Cromwell payable directly to the Tribe. This restitution judgment rightly addresses the immense harm these men inflicted upon the Mashpee Wampanoag Nation – harm to its reputation through Mr. Cromwell’s corruption; to its economic development through massive project delays and lost resources; and harm to its financial resources through the significant legal fees and expenses generated in their steadfast support and compliance with our investigation. It is my hope that this judgement closes the door on a dark chapter Mr. Cromwell wrote in the Wampanoag’s rich, extraordinary and profound history. With this corrupt member gone, I am hopeful the Tribe will thrive and flourish.”
St. Louis County Man Arrested on Child Pornography ChargeRead the Press Release
ST. LOUIS – A man from St. Louis County, Missouri was arrested Friday on a federal charge of receiving of child pornography.
Christopher D. Cotton, 32, appeared in U.S. District Court in St. Louis later Friday and pleaded not guilty. He was indicted this week.
The indictment alleges that Cotton used electronic devices to receive multiple videos and images containing child pornography, including videos featuring infants.
A motion seeking to have him jailed until trial says Cotton traded child pornography with others, possessed thousands of videos and images containing child pornography and had asked for and received sexual images from minors that he’d communicated with via social media.
The motion says the investigation began with a tip to the National Center for Missing and Exploited Children after someone uploaded files containing child sexual abuse material to Dropbox.
The case was investigated by the Maryland Heights Police Department, the St. Louis County Special Investigations Unit and the FBI. Assistant U.S. Attorney Jillian Anderson prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Sioux Falls Man Sentenced to 10 Years and 10 Months in Federal Prison for Firearm & Drug CrimesRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Sioux Falls, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person and Possession with Intent to Distribute a Controlled Substance. The sentencing took place on February 2, 2023.
For the firearm conviction, Olson received the statutory maximum penalty of 10 years in custody. For the controlled substance (methamphetamine) conviction, Olson was sentenced to 10 years and 10 months of imprisonment. The sentences will run concurrently for a total of 10 years and 10 months. Olson also was sentenced to four years of supervised release following his prison term and ordered to pay $200 special assessment to the Federal Crime Victims Fund and to forfeit the firearm and ammunition involved in the case.
Olson was indicted for Possession of a Firearm by a Prohibited Person and Possession with Intent to Distribute a Controlled Substance by a federal grand jury in June of 2022. He was convicted at a jury trial in November of 2022.
According to evidence presented during trial, in June of 2021, in Sioux Falls, South Dakota, Olson, having been convicted of a felony and being an unlawful user of a controlled substance, possessed a loaded semi-automatic handgun and ammunition. Olson also possessed with intent to distribute five grams or more of methamphetamine (actual), a Schedule II controlled substance.
This case was investigated by the Sioux Falls Police Department and the ATF. Assistant U.S. Attorney Jeremy R. Jehangiri and Special Assistant U.S. Attorney Beth Ebert prosecuted the case.
The defendant was immediately remanded to the custody of the U.S. Marshals Service.
Sioux City Woman Sentenced to Five Years in Federal Prison for Illegal Possession of FirearmsRead the Press Release
Alicia Loraine Robinson, 36, from Sioux City, Iowa, was sentenced February 2, 2023, in federal court in Sioux City, Iowa. On September 6, 2022, Robinson pled guilty to possession with intent to distribute methamphetamine and being a prohibited person in possession of firearms.
Evidence at the plea and sentencing hearings showed that on December 30, 2021, in Sioux City, Iowa, law enforcement conducted a traffic stop of a vehicle Robinson was driving. Law enforcement smelled marijuana emanating from the car and noted Robinson was clutching her purse tightly on her lap. Robinson admitted she smoked marijuana in the car and that she was suspended from driving. A search of the car found drug paraphernalia and a .380 firearm in Robinson’s purse. Law enforcement then searched Robinson’s home and found a 12-gauge shotgun, over 50 grams of methamphetamine, marijuana, and other distribution-related items. On July 6, 2021, law enforcement executed a search warrant at another home associated with drug distribution. Amongst other illicit items, law enforcement found a Glock .40 handgun that had been owned by Robinson. Robinson admitted to possessing the firearms and being a user of marijuana and methamphetamine. A person that uses controlled substances is prohibited from possessing firearms.
Sentencing was held before United States District Court Chief Judge Leonard T. Strand. Robinson was sentenced to 62 months’ imprisonment and must serve a 4-year term of supervised release following imprisonment. There is no parole in the federal system. Robinson remains in custody of the United States Marshal until she can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Patrick T. Greenwood and was investigated by Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-4010.
Follow us on Twitter @USAO_NDIA.
Several charged in deadly alien smuggling ringRead the Press Release
BROWNSVILLE, Texas – A total of six people have been arrested on charges of alien smuggling which resulted in the death of eight, announced U.S. Attorney Alamdar S. Hamdani.
Those charged and taken into custody over the last three days include Juan Manuel Tena, 39, Pharr; Julia Isairis Torres, 37, Israel Torres Jr., 33, Erasmo Garcia III, 21, and Alexis Rafael Adorno, all of Roma; and Jose Refugio Torres, 26, Austin.
The 11-count indictment was returned Jan. 10 and unsealed upon the arrests this week.
According to the indictment, Tena was the alleged leader of the alien smuggling ring and coordinated a network of co-conspirators throughout the Southern District of Texas. Tena and his co-conspirators allegedly conspired to transport illegal aliens from the Rio Grande Valley to destinations within the United States.
As a result of that conspiracy, a total of eight aliens were killed and two others seriously injured, according to the charges.
The indictment alleges all engaged in a conspiracy to transport illegal aliens resulting in death and committed multiple counts of transporting illegal aliens resulting in death.
Tena, Julia Torres, Israel Torres, Jose Torres and Garcia are all charged with the attempted smuggling of illegal aliens in March 2019 by motor vehicle from the Rio Grande Valley to Houston. The charges allege that during the failed attempt, a vehicle rolled over and caused the deaths of four non-U.S. citizens with serious injuries to one other.
The indictment also charges Tena along with Adorno with the attempted smuggling of illegal aliens in February 2022 by watercraft from South Padre Island to the Corpus Christi area. The watercraft allegedly capsized, four illegal aliens were killed and another seriously injured.
All face up to life in prison a possible $250,000 maximum fine for the conspiracy and up to 20 years for each count of transporting illegal aliens resulting in serious bodily injury.
The indictment also includes a notice of forfeiture identifying several properties allegedly purchased with illegal proceeds of criminal activity.
The arrests came as part of Homeland Security Investigations’ (HSI) Operation Justice for All.
HSI conducted the investigation with the assistance of Border Patrol; Coast Guard; Customs and Border Protection’s Air and Marine Operations; police departments in Port Mansfield and South Padre Island; Texas Rangers; Texas Game Wardens; sheriff’s offices in Kenedy, Duval and Willacy Counties; and the Willacy County District Attorney’s Office. Assistant U.S. Attorneys Edgardo J. Rodriguez and David A. Lindenmuth are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Rocky Mount Gang Members Sentenced for Heroin & Fentanyl DistributionRead the Press Release
RALEIGH, N.C. – Two Rocky Mount men were sentenced today in connection to their role in a violent drug trafficking organization with ties to the United Blood Nation gang. The investigation revealed that Tyrone Foreman a/k/a Tye Nitty, who is awaiting sentencing, obtained kilograms of heroin and fentanyl from various sources of supply, and that Benjamine Moss, Jr. and Dentrez Randell Thomas were the primary distributors of these drugs within Nash and Edgecombe County. Moss, 31 was sentenced to 246 months in prison after having pled guilty to conspiring to distribute heroin, fentanyl, and marijuana, and possessing a firearm in furtherance of drug trafficking. Thomas, 28 was sentenced to 151 months in prison after having pled guilty to conspiring to distribute heroin, fentanyl, and marijuana.
U.S. Attorney Michael Easley stated, “These individuals peddled poison to the communities in and around Rocky Mount. The law-abiding citizens in these communities are much safer now that this source of illegal drugs has been removed from the streets.”
According to court documents and other information presented in court, Moss and Thomas were identified during a multi-year investigation into a Rocky Mount based Blood gang set led by Tyrone Foreman. Through a series of controlled purchases, traffic stops, law enforcement surveillance, and interviews of witnesses, investigators also learned that Moss and Thomas routinely carried firearms while they sold heroin and fentanyl and were tasked with threatening lower-level drug distributors at gunpoint to ensure that the organization’s drug sales continued. The investigation culminated in a December 2020 traffic stop of Thomas and Foreman on I-95 in Maryland as they returned from meeting with a New York based drug supplier. Over 3,500 dosage units of heroin/fentanyl mixture were seized during that stop.
“Stopping the flow of drugs into our communities plays a significant role in helping to decrease violent crime overall,” said ATF Special Agent in Charge Bennie Mims. “These particular gang members have been responsible for a large number of violent crimes in the area. To have them in custody and off our streets is a huge win for public safety.”
“Our goal is to reduce crime in our city by strategically targeting those involved in violent crime. It is our vision to make Rocky Mount one of the safest cities in North Carolina. These convictions are the result of long investigative work that could not have succeeded without the collaboration between federal, state and local law enforcement;” said Rocky Mount Police Chief Robert Hassell.
"I would like to express my appreciation to the law enforcement and the U.S. Attorney’s Office who were involved in this case,” said Nash County Sheriff Keith Stone. “The long hours and hard work by each agency have tremendously impacted the violence and drug trafficking surrounding our communities. Through our local, state, and federal partnerships, we continue our fight to take problems like this away from our citizens."
Edgecombe County Sheriff Cleveland Atkinson stated, "This was definitely a collaboration between all agencies. When we work together as one, there is almost nothing we can't achieve."
Michael F. Easley, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Bureau of Alcohol, Tobacco, Firearms, and Explosive, Rocky Mount Police Department, the Nash County Sheriff’s Office, and the Edgecombe County Sheriff’s Office investigated the case and Assistant U.S. Attorney Caroline Webb prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:21-CR-88-D.
Rochester Man Pleads Guilty to Cocaine ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney Trini E. Ross announced today that Tavares Wilson, 41, of Rochester, NY, pleaded guilty before U.S. District Judge Frank P. Geraci, Jr. to conspiracy to possess with intent to distribute, and to distribute, 500 grams or more of cocaine. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 40 years in prison and a $5,000,000 fine.
Assistant U.S. Attorney Katelyn M. Hartford, who is handling the case, stated that between November 2020, and October 26, 2021, Wilson conspired with others to sell cocaine. Wilson obtained kilogram quantities of cocaine, which he then broke down into smaller quantities and re-sold. On October 26, 2021, investigators executed a search warrant at Wilson’s residence on Genesee Park Boulevard, seizing approximately 642 grams of cocaine and drug trafficking paraphernalia, including a digital scale with cocaine residue, plastic baggies, and cutting agent. Investigators also found approximately $6,594 in cash, which were proceeds from Wilson’s drug trafficking activities.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank A. Tarentino III, New York Field Division and the Internal Revenue Service, Criminal Investigation Division, under the direction of Thomas Fattorusso, Special Agent-in-Charge.
Sentencing is scheduled for May 1, 2023, at 2:30 p.m. before Judge Geraci.
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Riverton Tax Preparer Sentenced to Federal Prison for Tax FraudRead the Press Release
SPRINGFIELD, Ill. – A Riverton, Illinois, man, Jason Hines, 50, of the 100 block of East Menard Street, was sentenced on February 1, 2023, to 18 months in federal prison, to be followed by 36 months of supervised release, for fraudulently preparing 34 federal tax returns for 20 clients resulting in a state and federal tax loss of $194,910.00. He was also ordered to pay restitution in the full amount of the loss.
During the sentencing hearing in front of United States District Judge Sue E. Myerscough, the judge considered information including that Hines had willfully prepared fraudulent tax returns often falsifying information pertaining to business property loss amounts and education credits.
A federal grand jury returned a twelve-count indictment against Hines in March 2020, which included ten counts of aiding and assisting in the preparation and presentation of false and fraudulent individual income tax returns and two counts of wire fraud. Hines pleaded guilty to one count of false and fraudulent statements and one count of wire fraud in June 2022. Hines had remained on bond since his initial appearance in May 2020.
The statutory penalties for the most serious count of conviction – wire fraud – were up to 20 years in prison, up to 36 months of supervised release, and up to a $250,000 fine.
The case investigation was conducted by the Internal Revenue Service – Criminal Investigations Division and the Illinois Department of Revenue. Assistant U.S. Attorney Timothy Bass represented the government in the prosecution.
For help and assistance in choosing reputable tax professionals for preparing tax returns, or for assistance in preparation of individual tax returns, please visit the official IRS website: https://www.irs.gov/help-resources.
Reseda Man Pleads Guilty to Selling Pound Quantities of Methamphetamine and Running Unlicensed Firearms BusinessRead the Press Release
LOS ANGELES – A San Fernando Valley man pleaded guilty today to federal charges for selling a total of approximately 17 pounds of methamphetamine and 89 firearms, including dozens of “ghost guns,” or firearms that lack serial numbers.
Julio Ernesto Lopez-Menendez, 27, a.k.a. “Iroe,” of Reseda, pleaded guilty to one count of distribution of methamphetamine and one count of engaging in the business of dealing in firearms without a license.
Lopez-Menendez has been in federal custody since his arrest in this case in April 2022.
According to his plea agreement, from January 2022 to April 2022, Lopez-Menendez engaged in transactions in which large numbers of firearms and pound quantities of methamphetamine were sold. Many of the firearms sold were so-called “ghost guns,” named because of their lack of a serial number.
Ghost guns are often assembled from parts purchased separately or in a kit. Because the separate parts do not bear serial numbers, the assembled ghost guns do not bear serial numbers, and they cannot be registered or traced.
In one deal on January 20, 2022, Lopez-Menendez sold the buyer a dozen firearms, including 10 semi-automatic “ghost gun” pistols. In a February 10 transaction, Lopez-Menendez sold the same buyer nearly one pound of methamphetamine and 14 firearms, including nine semi-automatic ghost gun pistols, for $15,000.
During the final two drug deals, Lopez-Menendez sold the buyer approximately 4.2 kilograms (9.2 pounds) and 2.2 kilograms (4.8 pounds) of methamphetamine on March 8, 2022, and March 23, 2022, respectively.
In total, Lopez-Menendez admitted to selling approximately 17 pounds of methamphetamine and 89 firearms – including 53 ghost guns.
At no time did Lopez-Menendez have a federal firearms license, nor did he have any firearms registered to him in the National Firearms Registration and Transfer Record, the central registry for all items regulated under the National Firearms Act.
United States District Judge André Birotte Jr. scheduled a May 26 sentencing hearing, at which time Lopez-Menendez will face a statutory maximum sentence of life in federal prison.
The FBI investigated this case as part of the High Intensity Drug Trafficking Area (HIDTA) program, along with the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; and the Los Angeles Police Department.
Assistant United States Attorney Jennifer Chou of the Violent and Organized Crimes Section is prosecuting this case.
Repeat Offender Sentenced to Prison for Committing Robberies While on Supervised ReleaseRead the Press Release
LAS VEGAS – A Las Vegas resident was sentenced Wednesday by U.S. District Judge James C. Mahan to four years and nine months in prison followed by three years of supervised release for carrying out a series of commercial robberies while on supervised release.
Alfonzo Dale Lobas (34) pleaded guilty in November 2022 to three counts of interference with commerce by robbery.
According to court documents, on November 19, 2021, Lobas began a term of supervised release after an earlier conviction for a series of robberies. He admitted that, between January 16 and 28, 2022, he brandished an air pistol to intimidate cashiers at three gas station and convenience stores. During a robbery on January 20, 2022, Lobas told the cashier to “empty the register and hurry up,” and on January 24, when asked by a witness why he was robbing the store, he replied “because it’s fun.” At each of the robberies, he approached the cashier and demanded money while holding what the cashier believed to be a handgun.
United States Attorney Jason M. Frierson for the District of Nevada and Special Agent in Charge Spencer L. Evans for the FBI made the announcement.
The FBI and the Las Vegas Metropolitan Police Department investigated the case. Assistant United States Attorney Dan Cowhig prosecuted the case.
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Raleigh County Woman Sentenced to Prison for Federal Drug CrimeRead the Press Release
BECKLEY, W.Va. – Athena Grizzle, 37, of Beckley, was sentenced today to eight months in prison, to be followed by three years of supervised release, for distributing a quantity of heroin.
According to court documents and statements made in court, on October 15, 2020, Grizzle sold a quantity of heroin to a confidential informant at a Shady Spring residence where she was staying. The West Virginia State Police Forensic Laboratory confirmed the controlled substance contained heroin and fentanyl.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Beckley/Raleigh County Drug and Violent Crime Unit. The Beckley/Raleigh County Drug and Violent Crime Unit consists of officers from the West Virginia State Police, the Raleigh County Sheriff’s Department, and the Beckley Police Department.
United States District Judge Frank W. Volk imposed the sentence. Assistant United States Attorneys Alex Hamner and Timothy D. Boggess prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:22-cr-12.
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Raleigh County Woman Sentenced to 10 Years in Prison for Federal Drug CrimeRead the Press Release
BECKLEY, W.Va. – Jamie Vass, 45, of Beckley, was sentenced today to 10 years in prison, to be followed by five years of supervised release, for distributing 5 grams or more of methamphetamine.
According to court documents and statements made in court, on February 7, 2022, Vass sold approximately 1 ounce of methamphetamine to a confidential informant at her Beckley residence. Vass further admitted to selling approximately 47 grams of methamphetamine to the confidential informant at her residence on March 27, 2022.
On April 5, 2022, law enforcement officers executed a search warrant at Vass’ residence and found quantities of methamphetamine and fentanyl, as well as a Ruger LC 9mm pistol, a Lorcin L22 .22-caliber pistol and $827. Vass admitted to telling the officers that she had been selling approximately 4 ounces of methamphetamine every four days and approximately 7 grams of fentanyl per week from December 2021 until her arrest on April 5, 2022.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Beckley/Raleigh County Drug and Violent Crime Unit.
United States District Judge Frank W. Volk imposed the sentence. Assistant United States Attorneys Andrew D. Isabell and Alex Hamner prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:22-cr-115.
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Quantico, Virginia Man Pleads Guilty to 2019 Murder in Upper NorthwestRead the Press Release
WASHINGTON – Collin Potter, 30, of Quantico, VA, pled guilty to second-degree murder while armed for stabbing Vongell Lugo, of Washington, DC, to death in Mr. Lugo’s apartment in the Upper Northwest neighborhood of Washington, DC, announced U.S. Attorney Matthew M. Graves and Chief Robert J. Contee III, of the Metropolitan Police Department (MPD).
Potter pled guilty in the Superior Court of the District of Columbia. He is scheduled to be sentenced by the Honorable Marisa J. Demeo on April 14, 2023 and faces a sentence of between 14 and 16 years of imprisonment.
According to the government’s evidence, on Sunday January 6, 2019, at approximately 4:00 a.m., the defendant and the decedent, Vongell Lugo, were alone together in Mr. Lugo’s apartment at #206, Garfield House, 2844 Wisconsin Ave., N.W., Washington, D.C. Mr. Lugo stood approximately 5’6” tall, weighed about 167 pounds, and was unarmed. The defendant, unprovoked, attacked Mr. Lugo. The defendant grabbed one of Mr. Lugo’s kitchen knives from Mr. Lugo’s kitchen and stabbed Mr. Lugo 42 times in the head, neck, and torso, killing Mr. Lugo. According to the autopsy, the defendant, at some point, also punched Mr. Lugo in the face. Mr. Lugo never fought back, beyond yelling for help. Mr. Lugo’s cries for help woke two of his neighbors, both of whom independently called 911 around 4:14 a.m. The defendant then attempted to clean the knife in the kitchen sink. Around 4:20 a.m., the defendant pulled Mr. Lugo’s naked body out into the hallway, where Mr. Lugo’s body was found and the defendant was discovered by MPD officers, standing naked, uninjured, and covered in Mr. Lugo’s blood.
Potter was arrested at the scene on that same day. He has been in custody ever since.
In announcing the sentence, U.S. Attorney Graves and Chief Contee commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the efforts of those who handled the case at the U.S. Attorney’s Office, including Paralegal Specialist Stephanie Siegerist and Victim/Witness Advocate Karina Hernandez. Finally, they commended the work of Assistant U.S. Attorneys Nebiyu Feleke, Christian Natiello, and Peter V. Roman, and Deputy Chief Laura Bach, who investigated and prosecuted the case.
Pueblo Felon Sentenced to 190 Months in Federal Prison for Drugs and Weapons ChargesRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces Kenneth Lawrence Baca, age 44, of Pueblo, was sentenced to 190 months in federal prison after pleading guilty to possession with intent to distribute methamphetamine and felon in possession of a firearm.
According to the plea agreement, on October 12, 2021, Pueblo police detectives were investigating Baca after receiving an anonymous tip that the defendant was selling a large amount of narcotics. A detective messaged Baca, in an undercover capacity, via Facebook messenger. Baca agreed to sell heroin and methamphetamines. On October 13, 2021, the conversation continued and they agreed to meet at Baca’s hotel room in Pueblo. Officers set-up surveillance in the parking lot of the motel and observed Baca pull into the parking lot in a truck with no front license plate and an expired registration. Officers also knew that Baca didn’t have a valid driver’s license. Officers conducted a traffic stop. Given his history, an officer informed Baca that he would be patted down for weapons. Baca replied that he had a pistol in his right pants pocket. Baca was immediately placed into custody and the firearm was retrieved from his pants. A search of the truck found a backpack containing methamphetamine, fentanyl, heroin, a digital scale, $1,746 in U.S. currency, a notebook that appeared to be a drug ledger, and a wallet containing Baca’s identification cards. In the motel room registered to Baca, officers recovered fentanyl, methamphetamine, drug paraphernalia, a suspected drug ledger, and $1,018 in U.S. currency. At the time Baca possessed the firearm and ammunition, he was on supervised release after serving time in prison for a previous felon in possession conviction.
Judge Regina M. Rodriguez sentenced the defendant on February 1, 2023.
“This defendant repeatedly committed crimes with no regard for the law. The fact that the defendant was on supervised release when he committed these crimes exemplifies this solemn reality. This sentence achieves the goals of deterring such criminal conduct, while simultaneously protecting our community from drugs and weapons,” said United States Attorney Cole Finegan.
"This sentencing highlights the collaboration and teamwork between the FBI and our law enforcement partners like the Pueblo Police Department, whose efforts were instrumental in this case," said FBI Denver Special Agent in Charge Mark Michalek. "FBI Denver remains committed to working closely with the Pueblo Police Department to ensure that dangerous criminals are no longer menacing the public. The FBI prioritizes keeping our communities safe by finding, investigating, and dismantling criminal operations one person at a time, as we did with this repeat offender peddling illegal drugs."
The investigation was conducted by the Federal Bureau of Investigations (FBI) Denver Division and the Pueblo Police Department. Prosecution was handled by Assistant United States Attorney Daniel Warhola and the Transnational Organized Crime and Money Laundering Section of the U.S. Attorney’s Office.
CASE NUMBER: 21-cr-00387
Podiatrist Pleads Guilty to Foot Bath Fraud SchemeRead the Press Release
WASHINGTON – A Mississippi man pleaded guilty today for his role in a scheme to defraud Medicare and TRICARE by prescribing and dispensing medically unnecessary foot bath medications and ordering medically unnecessary testing of toenails in exchange for kickbacks and bribes.
According to court documents, Marion Shaun Lund, D.P.M., 53, of Taylor, owned and operated a podiatry clinic, as well as an in-house pharmacy. Lund routinely wrote prescriptions for, and his pharmacy dispensed, antibiotic and antifungal drugs to be mixed into a tub of warm water for patients to soak their feet. Rather than prescribe drugs based on the individualized needs of patients, Lund prescribed foot bath medications in order to maximize reimbursements from Medicare, TRICARE, and other health care benefit programs, regardless of medical necessity. In addition, Lund took toenail clippings and wound cultures from patients and sent them to a lab for diagnostic testing, even though such testing was not medically necessary. From April 2020 through March 2022, Lund caused the submission of over $1.4 million in claims to Medicare and TRICARE for unnecessary prescriptions of foot bath medications and diagnostic testing of toenails, resulting in over $700,000 in reimbursements. In exchange for his prescriptions and orders, Lund was paid cash kickbacks by a purported marketer.
Lund pleaded guilty to one count of conspiracy to commit health care fraud. He is scheduled to be sentenced on May 15, 2023, and faces a maximum penalty of ten years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Lund is the fourth defendant, including three medical professionals, to plead guilty for his role in the scheme. In October 2021, Logan Hunter Power pled guilty to one count of conspiracy to defraud the United States and to pay and receive kickbacks, and in October 2022, Power was sentenced to 25 months in prison. In August 2022, Jared Lee Spicer, D.P.M., pled guilty to one count of conspiracy to commit health care fraud and is awaiting sentencing. In September 2022, Carey “Craig” Williams, D.P.M., pled guilty to one count of conspiracy to commit health care fraud and is awaiting sentencing.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Clay Joyner for the Northern District of Mississippi; Special Agent in Charge Derrick L. Jackson of the Department of Health and Human Services-Office of Inspector General (HHS-OIG); and Acting Assistant Director Jay Greenberg of the FBI Criminal Investigative Division made the announcement.
The HHS-OIG and FBI are investigating the case.
Trial Attorney Sara E. Porter and Assistant Chief Justin M. Woodard of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Clayton A. Dabbs of the Northern District of Mississippi are prosecuting the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, comprised of 15 strike forces operating in 25 federal districts, has charged more than 5,000 defendants who collectively have billed federal health care programs and private insurers more than $24 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at https://www.justice.gov/criminal-fraud/health-care-fraud-unit.
Philadelphia Man Pleads Guilty to Tax Fraud and Commercial Bribery OffensesRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Danny Sing, age 59, of Philadelphia, Pennsylvania, pleaded guilty yesterday before U.S. District Court Judge Malachy E. Mannion to various federal tax offenses and commercial bribery.
According to United States Attorney Gerard M. Karam, Sing pleaded guilty to conspiring with other individuals to evade federal income taxes on approximately $1,600,000 in personal wages paid by Global Staffing Services, Inc. (Global Staffing), a temporary staffing company that he and his coconspirators owned and operated. Global Staffing leased temporary employees to a manufacturing business in northeastern Pennsylvania. Sing also failed to report over $8,800,000 in wages paid to Global Staffing employees, and withhold and remit approximately $1,360,000 in federal employment taxes to the IRS. Coconspirator Den Lam, age 48, of Philadelphia, and Sing paid Global Staffing employees in cash, paid themselves in cash, and cashed all checks received from Global Staffing’s client, to conceal the income and wages from the IRS. The criminal activities occurred between 2013 and 2020. Sing also provided in excess of approximately $400,000 in bribes and kickbacks to managers and supervisors at Global Staffing’s client, to obtain business for Global Staffing.
Four other individuals were prosecuted in this investigation:
- Den Lam, age 48, was charged in a criminal information alleging that he conspired with other individuals to evade federal income taxes for approximately $1,600,000 in personal wages paid by Global Staffing Services, Inc. Den Lam also was charged with failing to report over $8,800,000 in wages paid to Global Staffing employees, and withhold and remit approximately $1,360,000 in federal employment taxes owed, but never paid, by Global Staffing to the IRS. Lam awaits his initial appearance currently scheduled for February 16, 2023.
- Mark Holmes, age 66, of Hughes Springs, Texas, pleaded guilty to failing to remit approximately $135,000 in employment taxes to the IRS that were owed by Encore Staffing Solutions LLC, a temporary staffing company that he and his coconspirators owned and operated. Encore leased temporary employees to manufacturing businesses throughout Pennsylvania. Holmes also pleaded guilty to accepting, as the General Manager of a Pennsylvania food services company, approximately $400,000 in bribes and kickbacks from two temporary staffing companies, Global Staffing and Penns Independent Staffing, in exchange for hiring their employees. The two temporary staffing companies, in turn, received approximately $16,000,000 from Holmes’s employer. Holmes awaits sentencing.
- Nari Lam, age 29, of Wilmington, Delaware, pleaded guilty to failing to remit employment taxes to the IRS. From 2016 through 2020, Nari Lam, the owner of Pennsylvania-based temporary staffing company Penns Independent Staffing, failed to pay approximately $300,000 in employment taxes owed by Penns Independent Staffing to the IRS. Nari Lam awaits sentencing.
- Madeline Nieves, age 48, of Plains, Pennsylvania, was indicted by a federal grand jury on tax fraud and conspiracy offenses. Nieves allegedly conspired with other individuals to defraud the IRS, from 2018 to 2020, in connection with Encore Staffing, that she and her coconspirators owned and operated. Nieves also was charged with failing to report Encore employee wages to the IRS, resulting in approximately $67,000 in employment taxes owed, but never paid, by Encore to the IRS. Nieves further was charged with three counts of tax evasion, for failing to report her own personal income from Encore. Nieves awaits trial.
The cases were investigated by the Internal Revenue Service - Criminal Investigation. Assistant U.S. Attorney Phillip J. Caraballo is prosecuting the cases.
The maximum penalty under federal law for the tax offense is five years of imprisonment, a term of supervised release following imprisonment, and a fine. The maximum penalty under federal law for the commercial bribery offense is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
All persons charged are presumed to be innocent unless and until found guilty in court.
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Orinda Man Sentenced to 40 Months for Bank Fraud, Wire Fraud, Money LaunderingRead the Press Release
SAN FRANCISCO – Alan Safahi was sentenced today to 40 months in federal prison following fraud and money laundering convictions arising from a fraudulent prepaid debit card scheme which created $2.7 million in unfunded liabilities, announced United States Attorney Stephanie M. Hinds and Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge Darren Lian.
Safahi, 62, of Orinda, was convicted on June 30, 2022, following a four week bench trial before Senior United States District Judge Susan Illston. In a 39-page order, Senior U.S. District Judge Illston found Safahi guilty of one count of bank fraud, four counts of wire fraud, and one count of money laundering. As detailed in the court order, Safahi developed an elaborate fraud scheme in which he collected money from clients to buy prepaid debit cards and, while accurately reporting the cards’ balances to his clients, he in turn used a “funding on demand” scheme to defraud the bank that supported his cards. In Safahi’s scheme, legitimate clients paid Safahi’s company CardEx in full for prepaid debit cards, but Safahi reported to the bank only the amount that the clients had spent on the card as the card’s “balance.” He fraudulently diverted to himself the remaining balance of the card’s value. As an example, a client of Safahi’s company CardEx would buy a prepaid debit card for $100 and then spend $10 of that $100 balance. Safahi’s fraudulent “funding on demand” system would report to the bank the “balance” of that card as $10 instead of $100. In this example, Safahi’s fraud scheme allowed him access to the additional $90. Using the scheme, Safahi fraudulently appropriated unspent funds for scores of such pre-paid cards.
Safahi’s fraud scheme unraveled on September 25, 2014. On that day, as Safahi was shutting down his CardEx business, he directed an employee to provide the accurate balances of the prepaid debit cards to the bank. According to the evidence, Safahi had earlier reported to the bank a false total balance of $93,734 on the cards that he had sold. The true total balance on the cards reported to the bank that day was $2,774,953. The difference was nearly $2.7 million in unfunded liability.
Evidence showed that Safahi had appropriated the fraud scheme’s proceeds for, among other things, purchasing an Orinda home. Just two days before reporting the true total balance of all the cards to the bank, Safahi issued an $80,000 cashier’s check to himself from his company’s account that, along with other fraudulently obtained funds, he used to purchase the Orinda house. The transaction provided the basis for his money laundering conviction.
In a sentencing memo filed for today’s hearing, the government described that Safahi tricked both his bank and his clients. His clients entrusted their customers’ money to him, having been misled to believe it was protected and secure. Through lies and his fraudulent “funding on demand” scheme, Safahi also misled his bank. Safahi then profligately spent the fraud proceeds to fund a lavish lifestyle, to pay previous debts, and to purchase the expensive Orinda home.
In addition to the 40 months imprisonment, Senior U.S. District Judge Illston imposed a $100,000 fine on Sahafi and ordered three years of supervision of him following his release from prison. Safahi was ordered to surrender on May 4, 2023, to begin serving his prison sentence. A hearing to determine the amount of Safahi’s restitution obligation is set for March 31.
Robert David Rees and Benjamin Kurtis Kleinman are the Assistant U.S. Attorneys who prosecuted the case, with the assistance of Llessica Chan Fierro, Veronica Hernandez, Olivia Hawkins, Leeya Kekona, and Karina Ruiz. The prosecution is the result of an investigation by IRS-CI.
Ohio Man Sentenced to 65 Months for Vehicular Homicide and AssaultRead the Press Release
KNOXVILLE Tenn. – On February 2, 2023, Bryce Allen Axline, 21, of Columbus, Ohio, was sentenced to 65 months in federal prison for vehicular homicide and vehicular assault by the Honorable Thomas A. Varlan, in the United States District Court for the Eastern District of Tennessee at Knoxville. Axline was ordered to pay $5,000 in restitution and, upon his release from prison, he will be on federal supervised release for three years.
According to filed court documents, Axline's convictions resulted from a single-vehicle accident in the Great Smoky Mountains National Park on the night of June, 7, 2021. Axline was intoxicated and driving recklessly when he crashed his car into an embankment on the Spur. His two female passengers, both 19 years of age, were seriously injured during the crash. One victim suffered life-altering injuries, and the other victim died shortly after the accident. Axline was released from the hospital the following day after being treated for minor injuries. He was interviewed by the National Park Service as his home and admitted that he was driving the vehicle when the accident occurred. Based on an analysis of the vehicle's air bag module, the National Park Service determined that the vehicle was fully accelerated and traveling at 90 miles per hour just seconds before the accident occurred.
The surviving victim provided a victim impact statement to the court explaining how the accident has affected her life. The deceased victim’s family members also provided victim impact statements and were present in court for the sentencing hearing. The deceased victim’s father addressed the court on behalf of the family.
The investigation was led by the National Park Service, Investigative Service Branch.
Assistant United States Attorney LaToyia T. Carpenter represented the United States.
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Ocoee Man Convicted of Firearm and Drug Trafficking ChargesRead the Press Release
TALLAHASSEE, FLORIDA – A federal jury in Tallahassee convicted Sean Secada Scott, 30, of Ocoee, Florida, of possession of a controlled substance with intent to distribute and carrying a firearm during and in relation to a drug-trafficking crime. The guilty verdict, returned yesterday at the conclusion of a three-day trial, was announced by Jason R. Coody, United States Attorney for the Northern District of Florida.
The Tallahassee Police Department (TPD) and the Drug Enforcement Administration (DEA) learned that the defendant would be delivering 20 pounds of marijuana on February 26, 2022, to Tallahassee. DEA and TPD conducted surveillance of the defendant and observed him loading a suitcase into the trunk of his SUV. A subsequent traffic stop by the Florida Highway Patrol revealed that the suitcase contained approximately 20 pounds of marijuana in 20 individually vacuum sealed bags, and that the defendant had a Glock 9 millimeter pistol in the center console of his vehicle.
Scott’s sentencing hearing is scheduled for April 12, 2023, at 10:00 a.m., at the United States Courthouse in Tallahassee before United States Chief District Judge Mark E. Walker. Scott faces between five years and life imprisonment, followed by at least two years of supervised release, and a fine of up to $500,000.
This conviction was the result of a joint investigation conducted by the Tallahassee Police Department, the Drug Enforcement Administration, the Florida Highway Patrol, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Leon County Sheriff’s Office. Assistant United States Attorney James A. McCain prosecuted the case.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
North Dakota Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Jonathan A. Kobes, sitting in federal district court in Rapid City, has sentenced a Bismarck, North Dakota, man convicted of Failure to Register as a Sex Offender. The sentencing took place on February 1, 2023.
Dorian Lester, age 26, was sentenced to two years and four months in federal prison, five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Lester was indicted by a federal grand jury in July of 2022. He pleaded guilty on October 7, 2022.
The conviction stems from Lester failing to register as a sex offender as required by federal law between May 20, 2022 and July 6, 2022. Lester had previously been convicted of a sex offense in federal court which requires him to register for the rest of his life.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Lester was immediately remanded to the custody of the U.S. Marshals Service.
North Carolina Man Sentenced to 10 Years in Prison for Sex Offense Against A MinorRead the Press Release
BECKLEY, W.Va. – David William McConnell, 39, of Charlotte, North Carolina, was sentenced today to 10 years in prison, to be followed by 25 years of supervised release, for traveling in interstate commerce to engage in illicit sexual conduct with a minor. McConnell must also register as a sex offender.
According to court documents and statements made in court, from May 15, 2022, until May 30, 2022, McConnell used the Kik messaging app, exchanged text messages and communicated by phone with a woman he believed to be a single mother of 11-year-old and 13-year-old daughters in Beckley, West Virginia. During these conversations, McConnell expressed interest in engaging in sexual activity with the two minor females and teaching the woman to engage in sexual acts with her daughters.
McConnell admitted to telling the woman that he planned to travel from his Charlotte residence to a Beckley hotel to meet her and the two minor females on May 30, 2022. McConnell further admitted to telling the woman that he planned to shower with each of the minor children and engage in sexual acts with both of them. On May 30, 2022, McConnell was arrested in Beckley.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) West Virginia Human Trafficking and Child Exploitation Task Force.
United States District Judge Frank W. Volk imposed the sentence. Assistant United States Attorney Jennifer Rada Herrald prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:22-cr-124.
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Ninth Defendant Sentenced to Prison for Involvement in Large-Scale Methamphetamine Trafficking ConspiracyRead the Press Release
LAS VEGAS – A Henderson resident was sentenced Wednesday by U.S. District Judge Andrew P. Gordon to 65 months in prison followed by five years of supervised release.
Brian Scarborough (47) pleaded guilty in September 2022 to conspiracy to distribute a controlled substance – methamphetamine. Scarborough was the ninth defendant to plead guilty for his role in a large-scale conspiracy to distribute methamphetamine in Las Vegas.
According to court documents, from a date unknown to April 17, 2019, Scarborough conspired with others – including Miriam Elizabeth Suarez-Contreras, aka “Ella” and “Liz,” who was an organizer of the criminal conspiracy – to distribute methamphetamine in the Las Vegas area. As part of the conspiracy, Suarez-Contreras, a Mexican national, received methamphetamine orders via telephone while she was living in California, and dispatched different drug couriers to deliver the methamphetamine in Las Vegas. On April 3, 2019, the FBI executed a search warrant of Scarborough’s hotel room after he had ordered methamphetamine from Suarez-Contreras via telephone and discovered about 130 grams of methamphetamine and a 9mm handgun.
Co-defendants Suarez-Contreras was sentenced to 135 months in prison; Roberto Blancas-Mata, aka “Carlos Delgado,” of Las Vegas, was sentenced to 12 months and one day in prison; Rahdsma Henderson, aka “Weezy,” of Las Vegas, was sentenced to 41 months in prison; Stephen Lloyd, of Las Vegas, was sentenced to time served; Doug Stumpf, of Henderson, was sentenced to 46 months in prison; Renea Barnes, aka “Renea Valdez,” of Las Vegas, was sentenced to 48 months in prison; Quentin Armstrong, of Sandy Valley, Nevada, was sentenced to 90 months in prison; and Jose Guillermo Tello-Albarran, of Las Vegas, was sentenced to time served. Charles Parr, aka “Charles Magnuson,” of Salt Lake City, Utah, awaits sentencing.
United States Attorney Jason M. Frierson for the District of Nevada and Special Agent in Charge Spencer L. Evans for the FBI made the announcement.
The case was investigated by the Safe Streets Gang Task Force, the Las Vegas Metropolitan Police Department, and the North Las Vegas Police Department. Assistant United States Attorney Melanee Smith is prosecuting this case.
This case was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
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Nigerian Nationals Victimize U.S. Persons Through Cyber-Enabled Fraud SchemesRead the Press Release
PHOENIX, Ariz. – In December 2022, Solomon Ekunke Okpe and Johnson Uke Obogo, both Nigerian nationals, each pleaded guilty to conspiracy to commit wire, bank, and mail fraud. Okpe and Obogo were involved in a variety of cyber-enabled fraud schemes between December 2011 and January 2017. Okpe also pleaded guilty to one count of aggravated identity theft.
At the request of the United States, Okpe and Obogo were previously arrested in Malaysia and the United Kingdom, respectively, and were extradited to the District of Arizona in 2022.
According to court documents, Okpe and his co-conspirators’ fraud scheme included business email compromise (BEC), work-from-home, romance, check-fraud, and credit-card scams that targeted unsuspecting victims around the world, and attempted to cause more than a million dollars in losses. The victims of the scheme included individuals and local businesses in the District of Arizona, including a regional branch of First American Bank.
In the BEC schemes, Okpe and co-conspirators hacked into victims’ email accounts. After gaining access to a victim’s account, they would send emails to employees of companies doing business with the victim, directing those employees to transfer money to conspirator-controlled bank accounts. These emails looked like they were coming from the victim, but they were actually unauthorized wiring instructions from Okpe and co-conspirators. To get access to victims’ accounts, Okpe and co-conspirators launched email phishing attacks over the Internet that collected thousands of email addresses, passwords, credit card information, and personal identifiable information of unsuspecting individuals.
In the “work-from-home” scams, Okpe, Obogo, and others falsely posed as online employers on job websites and forums under fictitious online personas, and pretended to “hire” large numbers of individuals around the United States to the positions, including in Arizona. Although the positions were marketed as legitimate, work-from-home jobs, "employees" were actually directed to perform tasks that facilitated other fraud scams, including creating bank and payment processing accounts, transferring or withdrawing money from accounts, and cashing or depositing counterfeit checks.
U.S. Attorney for the District of Arizona, Gary M. Restaino, Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, and Joseph E. Carrico, Special Agent in Charge at the Federal Bureau of Investigation (FBI) made the announcement.
Assistant U.S. Attorney Seth Goertz of the District of Arizona and Senior Counsel Aarash Haghighat of the Criminal Division's Computer Crime and Intellectual Property Section (CCIPS) are prosecuting the cases against Okpe and Obogo. The Justice Department's Office of International Affairs provided significant assistance throughout the criminal investigation.
A number of victims have been identified by the FBI. However, there is evidence of many more victims that remain unidentified. Anyone who believes they were defrauded by the defendants in this case should contact the Victim Witness Section at the United States Attorney’s Office, District of Arizona at [email protected]
CASE NUMBER: CR-19-0146-PHX-GMS
RELEASE NUMBER: 2023-011_Okpe# # #
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.New York Man and Alabama Woman Sentenced for Attempting to Provide Material Support to ISISRead the Press Release
James Bradley, aka Abdullah, 21, of the Bronx, New York, and Arwa Muthana, 30, of Hoover, Alabama, were sentenced to 11 years in prison followed by 10 years of supervised release and nine years in prison followed by 10 years of supervised release, respectively, for attempting to provide material support to a designated foreign terrorist organization, the Islamic State of Iraq and al-Sham (ISIS).
In September 2022, Bradley and Muthana pleaded guilty to attempting to provide material support to ISIS before U.S. District Judge Paul A. Engelmayer. According to court documents, Bradley and Muthana are ISIS supporters who sought to travel to the Middle East to join and fight for ISIS. Bradley expressed violent extremist views since at least 2019, including his desire to support ISIS by traveling overseas to join the group or committing a terrorist attack in the United States. In May 2020, Bradley stated to an undercover law enforcement officer (UC-1) a belief that ISIS may be good for Muslims because ISIS was establishing a caliphate. Bradley also expressed his desire to conduct a terrorist attack in the United States and discussed potentially attacking the United States Military Academy in West Point, New York. Bradley explained that if he could not leave the United States, he would do “something” in the United States instead, referring to carrying out an attack.
In June 2020, Bradley reaffirmed his interest to UC-1 in attacking a military base and that doing so would be his contribution to the cause of jihad. In January 2021, Bradley mentioned to UC-1 another university in New York State where he frequently saw Reserve Officer Training Corps (ROTC) cadets training. Bradley stated that he could use his truck in an attack along with Muthana, take “out” all of the ROTC cadets.
In late January 2021, Bradley married Muthana in an Islamic marriage ceremony. Beginning before and continuing after their marriage, Bradley and Muthana discussed, planned, and ultimately attempted to travel to the Middle East together to join ISIS. In or about early March 2021, Bradley traveled from New York to Alabama to visit Muthana. They returned to New York together to travel from New York to join ISIS in the Middle East. Thereafter, Bradley raised the possibility of UC-1 helping the couple board a cargo ship to travel to the Middle East or Africa. UC-1 subsequently put Bradley in contact with a purported associate who could assist in making travel arrangements via cargo ship. In reality, the purported facilitator was a law enforcement officer acting in an undercover capacity (UC-2).
Later in March 2021, Bradley met with UC-2 and expressed his desire to travel via cargo ship and to “fight among the rank[s] of the Islamic State.” Bradley subsequently provided UC-2 $1,000 in cash as travel costs. Bradley told UC-2 that he and Muthana both planned to be “fighting” after arriving in the Middle East. Bradley also told UC-2 that he had a dream that he had given “bay’ah,” an Arabic term meaning the oath of allegiance, to Abu Ibrahim al-Hashimi al-Qurashi, the former leader of ISIS.
On March 25, 2021, UC-2 told Bradley that the cargo ship would be leaving on March 31 from a seaport in Newark, New Jersey. Bradley praised Allah and confirmed he and Muthana planned to travel on the ship. On March 31, 2021, Bradley and Muthana met with UC-2 en route to the seaport. During this meeting, Muthana confirmed to UC-2 that she was traveling to the Middle East to fight for ISIS. Bradley and Muthana were arrested as they walked on a gangplank to board the cargo ship. After Muthana was arrested, she waived her Miranda rights and stated during an interview that she was willing to fight and kill Americans if it was for Allah. Also on March 31, 2021, in connection with court-authorized searches, the FBI seized from a bedroom previously used by Bradley a hand-drawn image of a jihadi flag commonly used by ISIS and a hand-drawn map of the Pakistan region. The FBI also recovered a machete from a truck used by Bradley.
In the months and years prior to their arrests, Bradley and Muthana also accessed, posted, and distributed extremist online content, including materials indicative of their support for ISIS. Such material included Bradley’s postings of images of ISIS fighters, Usama Bin Laden, and terrorist attacks. Bradley also distributed to UC-1 videos of ISIS fighters, a 2020 stabbing attack against a New York City Police Department (NYPD) officer, and extremists shooting a uniformed soldier. Content on Muthana’s cellphone, which was searched pursuant to a court-authorized search warrant, included images of an ISIS flag with Arabic writing, ISIS propaganda, firearms, quotations of the deceased former al Qaeda in the Arabian Peninsula member Anwar al-Awlaki, and a video showing an individual in prisoner garb being chained and then burned alive.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Damian Williams for the Southern District of New York, Assistant Director Robert R. Wells of the FBI Counterterrorism Division and Assistant Director in Charge Michael J. Driscoll of the FBI New York Field Office made the announcement.
The New York Joint Terrorism Task Force, which consists of investigators and analysts from the FBI, the NYPD, and over 50 other federal, state and local agencies, investigated the case.
Assistant U.S. Attorneys Kaylan E. Lasky and Jason A. Richman for the Southern District of New York are prosecuting the case with valuable assistance provided by Trial Attorney Jennifer Burke of the National Security Division’s Counterterrorism Section.
New York Man Sentenced to 10 Years in Federal Prison for Attempted Enticement of a MinorRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. Circuit Judge Jonathan A. Kobes has sentenced a Wolcott, New York, man convicted of Attempted Enticement of a Minor Using the Internet. The sentencing took place on January 31, 2023.
Christopher Thomas Dahl, 29, was sentenced to 10 years in federal prison, followed by 5 years of supervised release and ordered to pay a $100 special assessment to the Federal Crime Victims Fund, and a $5,000 special assessment to the Victims of Trafficking Fund. Dahl will also be required to register as a sex offender under the Sex Offender Registration and Notification Act.
Dahl was indicted for Attempted Commercial Sex Trafficking of a Minor and Attempted Enticement of a Minor Using the Internet by a federal grand jury in August of 2021. He pleaded guilty on August 19, 2022.
Dahl was arrested and federally indicted as a result of an undercover sex trafficking operation conducted during the 2021 Sturgis Motorcycle Rally, targeting internet predators. Following multiple text messages with an undercover persona, Dahl negotiated a time and place he would meet a 14-year-old girl to have sex. Additionally, Dahl agreed to pay the undercover persona $250 for the unlawful sex acts with the minor. When Dahl went to the pre-determined location to meet the undercover persona, he was instead met by law enforcement agents and placed under arrest.
This case was investigated by Homeland Security Investigations, the South Dakota Division of Criminal Investigation, the Pennington County Sheriff’s Office, and the Rapid City Police Department. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Dahl was immediately remanded to the custody of the U.S. Marshals Service.
New York City Man and Alabama Woman Sentenced to 11 and Nine Years in Prison for Attempting to Provide Material Support to ISISRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that JAMES BRADLEY, a/k/a “Abdullah,” and ARWA MUTHANA were sentenced to 11 and nine years in prison, respectively, for attempting to provide material support to a designated foreign terrorist organization, the Islamic State of Iraq and al-Sham (“ISIS”). BRADLEY pled guilty on September 9, 2022, and MUTHANA pled guilty on September 12, 2022, before United States District Judge Paul A. Engelmayer in Manhattan federal court. Judge Engelmayer sentenced BRADLEY on February 2, 2023, and sentenced MUTHANA earlier today.
U.S. Attorney Damian Williams said: “James Bradley and Arwa Muthana were determined to travel to the Middle East to fight in the name of hate and terror. Even worse, if they failed in making it to the Middle East, Bradley was prepared to carry out an attack on American soil. I commend the FBI New York Joint Terrorism Task Force for investigating and arresting these two individuals before they had the opportunity to wage violence on behalf of a brutal terrorist organization. Bradley and Muthana’s sentences reemphasize this Office’s determination to thwart those who wish to cause suffering and create destruction through terror.”
According to the Complaint, Indictment, and other public documents in the case, as well as statements made during court proceedings:[1]
BRADLEY and MUTHANA are ISIS supporters who attempted to travel to the Middle East to join and fight for ISIS. BRADLEY expressed violent extremist views since at least 2019, including his desire to support ISIS by traveling overseas to join the group or committing a terrorist attack in the United States. In May 2020, BRADLEY stated to an undercover law enforcement officer (“UC-1”) that he believed that ISIS may be good for Muslims because ISIS was establishing a caliphate. BRADLEY further expressed his desire to conduct a terrorist attack in the United States and discussed potentially attacking the United States Military Academy in West Point, New York. BRADLEY explained that if he could not leave the United States, he would do “something” in the United States instead, referring to carrying out an attack.
In June 2020, BRADLEY reaffirmed his interest to UC-1 in attacking a military base and that doing so would be his contribution to the cause of jihad. In January 2021, BRADLEY mentioned to UC-1 another university in New York State where he frequently saw Reserve Officer Training Corps (“ROTC”) cadets training. BRADLEY stated that he could use his truck in an attack and that he, along with MUTHANA, could take all of the ROTC cadets “out.”
In late January 2021, BRADLEY married MUTHANA in an Islamic marriage ceremony. Beginning before and continuing after their marriage, BRADLEY and MUTHANA discussed, planned, and ultimately attempted to travel to the Middle East together in order to join and fight with ISIS. In or about early March 2021, BRADLEY traveled from New York to Alabama to visit MUTHANA, and BRADLEY and MUTHANA traveled back to New York together in order to travel from New York to join ISIS in the Middle East. Thereafter, BRADLEY raised the possibility of UC-1 helping BRADLEY and MUTHANA get on a cargo ship to travel to the Middle East or Africa for the purpose of ultimately joining and fighting for ISIS. UC-1 subsequently put BRADLEY in contact with a purported associate who could assist BRADLEY in making arrangements for BRADLEY and MUTHANA to travel to the Middle East via cargo ship. In reality, the purported facilitator was a law enforcement officer acting in an undercover capacity (“UC-2”).
Later in March 2021, BRADLEY met with UC-2 and expressed his desire to travel via cargo ship and to “fight among the rank[s] of the Islamic State.” BRADLEY subsequently provided UC-2 $1,000 in cash as travel costs for BRADLEY and MUTHANA to take a cargo ship to Yemen. BRADLEY told UC-2 that he and MUTHANA both planned to be “fighting” after arriving in the Middle East. BRADLEY also told UC-2 that he had a dream that he had given “bay’ah,” an Arabic term meaning the oath of allegiance, to Abu Ibrahim al-Hashimi al-Qurashi, the former leader of ISIS.
On March 25, 2021, UC-2 told BRADLEY that the cargo ship would be leaving on March 31 from a seaport in Newark, New Jersey. BRADLEY praised Allah and confirmed he and MUTHANA planned to travel on the ship. On March 31, 2021, BRADLEY and MUTHANA met with UC-2 en route to the seaport. During this meeting, MUTHANA confirmed to UC-2 that she was traveling to the Middle East to fight for ISIS. BRADLEY and MUTHANA were arrested as they walked on a gangplank to board the cargo ship. After MUTHANA was arrested, she waived her Miranda rights and stated during an interview that she was willing to fight and kill Americans if it was for Allah. Also on March 31, 2021, in connection with court-authorized searches, the Federal Bureau of Investigation (“FBI”) seized from a bedroom previously used by BRADLEY a hand-drawn image of a jihadi flag commonly used by ISIS and a hand-drawn map of the Pakistan region, and the FBI also recovered a machete from a truck used by BRADLEY.
In the months and years prior to their arrests, BRADLEY and MUTHANA also accessed, posted, and distributed extremist online content, including materials indicative of their support for ISIS. Such material included BRADLEY’s postings of images of ISIS fighters, Usama Bin Laden, and terrorist attacks, and his distribution to UC-1 of videos of ISIS fighters, a 2020 stabbing attack against a New York City Police Department (“NYPD”) officer, and extremists shooting a uniformed soldier. Content on MUTHANA’s cellphone, which was searched pursuant to a court-authorized search warrant, included images of an ISIS flag with Arabic writing, ISIS propaganda, firearms, quotations of the deceased extremist preacher and former al Qaeda in the Arabian Peninsula member Anwar al-Awlaki, including, for example, a copy of the cover of a book authored by al-Awlaki, titled “44 Ways to Support Jihad,” and a video showing an individual in prisoner garb being chained and then burned alive.
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In addition to the prison term, BRADLEY, 21, of the Bronx, New York, and MUTHANA, 30, of Hoover, Alabama, were each sentenced to 10 years of supervised release.
Mr. Williams praised the outstanding efforts of the FBI New York Joint Terrorism Task Force, which consists of investigators and analysts from the FBI, the NYPD, and over 50 other federal, state, and local agencies. Mr. Williams also thanked the Counterterrorism Section of the Department of Justice’s National Security Division.
The case is being handled by the Office’s National Security and International Narcotics Unit. Assistant U.S. Attorneys Kaylan E. Lasky and Jason A. Richman are in charge of the prosecution, with assistance from Trial Attorney Jennifer Burke of the Counterterrorism Section.
[1] Communications, conversations, and statements discussed and quoted herein are described in substance and in part.
New Orleans Woman Charged with Theft of Government FundsRead the Press Release
NEW ORLEANS – United States Attorney Duane A. Evans announced that DEDRA BRIGHT (“BRIGHT”), age 64, of New Orleans, Louisiana, was charged on February 2, 2023 by an indictment for Theft of Government Funds, in violation of Title 18, United States Code, Section 641.
According to the indictment, from November 2008 to November 2020, BRIGHT knowingly accessed and converted approximately $194,127.80 in Social Security Administration and Coronavirus Aid, Relief, and Economic Security Act (“CARES ACT”) funds.
U.S. Attorney Duane A. Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The U.S. Attorney’s Office would also like to acknowledge the assistance of the Social Security Administration, Office of the Inspector General, with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Nicholas Moses and Assistant U.S. Attorney Brian M. Klebba, Chief of the Financial Crimes Unit.
In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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New Orleans Man Sentenced for Federal Weapons ChargeRead the Press Release
NEW ORLEANS, LOUISIANA –NELSON RAYMOND, a resident of New Orleans, was sentenced on January 31, 2023 by U.S. District Court Judge Wendy B. Vitter to seventy (70) months of incarceration after pleading guilty to a one-count indictment. Judge B. Vitter ordered that RAYMOND shall be on supervised release for a term of three (3) years following his release from imprisonment. RAYMOND was also ordered to pay a $100 mandatory special assessment fee.
According to public records, Judge Vitter’s sentence was above the United State Sentencing Guidelines.
Count 1 charged RAYMOND with being a felon in possession of a firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2).
On October 15, 2021, RAYMOND was at the intersection of Olive Street and Hamilton Street in New Orleans, sitting inside his vehicle. At some point, an unknown man walked to the vehicle, opened the rear driver side door, and placed a rifle in RAYMOND’s vehicle. Later, police observed RAYMOND with a firearm in his waistband. RAYMOND’s vehicle was later searched, and three firearms were recovered.
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 male our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principals: 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.
U.S. Attorney Evans praised the work of Federal Bureau of Investigation and the New Orleans Police Department in this matter. The case was prosecuted by Assistant United States Attorney Mike Trummel of the Violent Crime Unit of the U.S. Attorney's Office.
New Orleans Man Pleads Guilty to Federal Weapons ViolationRead the Press Release
NEW ORLEANS, LOUISIANA –Yesterday, defendant QUENDRICK BAILEY, age 27, resident of New Orleans, LA, pled guilty before U.S. District Court Judge Carl J. Barbier to a federal weapons violation of being a felon in possession of a firearm announced U.S. Attorney Duane A. Evans.
According to court records, BAILEY was previously convicted for a felony in 2017. BAILEY possessed a firearm on June 12, 2022, as a convicted felon, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2).
BAILEY faces a maximum sentence of 10 years of imprisonment, a fine of up to $250,000, a period of up to 3 years supervised release, and a mandatory special assessment fee of $100.00. Sentencing is scheduled for March 25, 2023.
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.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation and the New Orleans Police Department. The case is being prosecuted by Assistant United States Attorney Inga Petrovich of the Violent Crime Unit of the U.S. Attorney's Office.
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Missouri Doctor Admits Diluting Clinic’s MethadoneRead the Press Release
ST. LOUIS – A doctor admitted on Friday that he diluted methadone that was dispensed in a St. Francois County, Missouri methadone clinic in 2021.
Dr. Sunil G. Chand, 59, pleaded guilty in front of U.S. District Judge Sarah E. Pitlyk to one count of adulterating a drug with the intent to defraud or mislead. He admitted that while the owner of Best Medical LLC, a family medicine clinic in Leadington, Missouri, he added saline and water to bottles of methadone to conceal a shortage of the drug from the Drug Enforcement Administration.
Dr. Chand decided in 2020 to open a methadone clinic to treat patients with narcotic use disorders, his plea agreement says. Dr. Chand caused Best Medical to obtain a DEA registration authorizing it to operate as a narcotic treatment program and to store and dispense Schedule II controlled substances, including methadone, to treat patients with narcotic use disorders.
On April 6, 2021, the clinic received twelve 1,000 milliliter bottles of methadone oral concentrate. Best Medical's methadone clinic opened the next day, treating patients who came in to receive an oral, liquid dose of methadone.
By April 22, Dr. Chand became aware that methadone was missing. Instead of reporting the methadone loss to the DEA within one business day of its discovery, as required, he instructed Best Medical's clinical director several days later to complete and submit a DEA Form 106 to report the loss.
Dr. Chand admitted that the form, submitted April 28, inaccurately reported that 1,075 milliliters of methadone had been lost. Dr. Chand then came in on a Sunday, when the clinic was closed, to dilute the methadone, his plea agreement says.
As part of the plea agreement, Dr. Chand has also agreed to surrender his DEA registration, which authorized him to prescribe certain controlled substances.
Dr. Chand is scheduled to be sentenced May 30. The charge carries a maximum penalty of three years in prison, a $250,000 fine or both.
"As part of our mission, DEA is dedicated to patient safety and oversight of all medical professionals registered with DEA,” said Diversion Program Manager Inez Davis, DEA’s lead for the Diversion program in Missouri, Kansas and southern Illinois. “Dr. Chand abused his authority and public trust by altering controlled substance medications intended for those seeking treatment for substance use disorders. With this acknowledgement of wrongdoing, his patients will no longer be subjected to substandard care."
“The Food and Drug Administration oversees the U.S. drug supply to ensure that they are safe and effective; those who distribute adulterated drugs may place American consumers at risk,” said Special Agent in Charge Charles L. Grinstead of the FDA Office of Criminal Investigations Kansas City Field Office. “Our office will continue to pursue and bring to justice those who violate laws designed to protect the public health.”
The Drug Enforcement Administration and the Food and Drug Administration, Office of Criminal Investigations investigated this case. Assistant U.S. Attorney Amy Sestric is prosecuting the case.