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17 March 2023
Justice Department and Federal Trade Commission to Hold Annual Spring Enforcers SummitRead the Press Release
The Justice Department’s Antitrust Division and the Federal Trade Commission (FTC) will cohost the second Spring Enforcers Summit on Monday, March 27. Assistant Attorney General Jonathan Kanter of the Justice Department's Antitrust Division and Chair Lina M. Khan of the FTC, as well as senior staff from both agencies, will gather with international enforcers and state attorneys general to discuss enforcement priorities and strategies for effective coordination. The summit will be held in a hybrid format, with international enforcers and state attorneys general participating in-person, and a livestream option for virtual participation in the day’s plenary interviews and panel discussions.
“The global nature of our economy necessitates a vibrant and substantive exchange of ideas among antitrust and competition law enforcement authorities,” said Assistant Attorney General Kanter. “We look forward to sharing our priorities with fellow enforcement officials and the public directly.”
“At the second annual Enforcers Summit, we’ll identify top enforcement priorities and share progress on our agenda,” said FTC Chair Khan. “As we sharpen our tools to tackle today’s challenges, deepening cooperation with state and international enforcement partners is critical.”
The Enforcers Summit, which will take place in person at the RFK Main Justice Building of the Department of Justice, will include interviews of high-ranking officials; publicly streamed plenary sessions discussing merger review and monopolization cases; and closed-door, in-person discussions to facilitate the sharing of feedback and ideas. The event will highlight global, federal, and state perspectives on merger review and monopolization, including remedies, rollup strategies, and other pre-commercial activities; procurement collusion; and unfair methods of competition. The Enforcers Summit agenda is currently available at https://www.justice.gov/atr/spring-2023-enforcers-summit, and instructions for livestreaming the program will be made available on our web page shortly before the event.
Justice Department Commemorates the 60th Anniversary of Gideon v. WainwrightRead the Press Release
The Justice Department today commemorates the 60th anniversary of Gideon v. Wainwright, the landmark Supreme Court decision which held that the assistance of counsel is a fundamental right essential to a fair trial, and that the Sixth and Fourteenth Amendments require states to appoint attorneys for defendants who cannot afford to retain counsel on their own. The Office for Access to Justice (ATJ) is leading this effort by elevating the right to counsel and the importance of public defenders throughout the month of March.
“With its decision in Gideon, the Supreme Court transformed the American legal system by renewing the foundational promise of equal justice under law,” said Attorney General Merrick B. Garland. “There is still so much more work to be done to make the promise of Gideon real. The Justice Department recognizes the urgency and seriousness of these challenges. And we are committed to doing all we can to support our colleagues who have devoted their careers to public defense.”
“Twenty-five years ago today, former Attorney General Janet Reno, for whom I had the privilege of working, recognized that rigorous application of the Gideon decision secures the ‘fundamental fairness and accuracy of every criminal proceeding,’” said Deputy Attorney General Lisa Monaco. “Those words ring equally true today, as we strive to enhance access to counsel throughout the Bureau of Prisons and recognize the extraordinary contributions of hard-working public defenders and panel attorneys across this country.”
“Defending those accused of crimes is not just a nice thing to do, it is a constitutional requirement,” said Associate Attorney General Vanita Gupta. “That constitutional requirement helps ensure fairness and legitimacy — and for that reason, every actor in the criminal justice system should be invested in the work of public defenders. The Department of Justice stands with and is taking concrete steps to support public defenders as we work to make real the promise the Gideon decision made 60 years ago.”
Leading up to the anniversary on Saturday, March 18, ATJ, in partnership with Justice Department officials, launched a National Public Defense Day Tour focused on the appreciation and recognition of public defense. Through the Tour, the Department aimed to demonstrate commitment and responsiveness to concerns related to indigent defense in many communities. The National Public Defense Day Tour stops included:
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Miami – Deputy Attorney General Lisa Monaco, joined by U.S. Attorney Markenzy Lapointe for the Southern District of Florida and ATJ Director Rachel Rossi, launched the tour in Miami, where they met with federal and local public defenders and discussed barriers to access to counsel in detention facilities. The Deputy Attorney General announced a comprehensive, 100-day review to ensure consistent, timely access to counsel in Bureau of Prisons pretrial facilities.
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Tulsa, Oklahoma – Director Rossi met with the organization Still She Rises and local public defenders to discuss racial equity and holistic defense models of public defense.
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Muscogee (Creek) Nation – Director Rossi visited Muscogee (Creek) Nation Attorney General Geri Wisner and tribal defenders to discuss unique issues in public defense in Tribal jurisdictions.
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Las Vegas – Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department's Criminal Division and U.S. Attorney Jason M. Frierson for the District of Nevada joined Director Rossi at the William S. Boyd School of Law at the University of Nevada to discuss with law students the importance of public defense careers. Both announced a collaborative effort with ATJ and the Criminal Division’s Office of Overseas Prosecutorial Development and Training program to visit with and learn about Ghana’s legal aid commission and the commission’s public defender division, and to consider the possibility of study exchange visits to the United States. Director Rossi also announced that ATJ will soon launch a series of visits with law schools across the country to promote public defense careers.
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Nashville, Tennessee – Principal Deputy Assistant Attorney General Amy Solomon of the Office of Justice Programs joined Director Rossi to visit with members of the Public Defender Forensic Social Work Program and Nashville Public Defenders to discuss resource needs, and to announce the issuance of a joint dear colleague letter encouraging use of Byrne-JAG federal grant funding to resource public defense.
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Des Moines, Iowa – Associate Attorney General Vanita Gupta and U.S. Attorney Richard D. Westphal for the Southern District of Iowa joined Director Rossi where they met with the Iowa State Public Defender and contract attorneys to explore the needs of bar panel and contract defense attorneys, learn about issues faced by rural defenders, and discuss the assessment of fees for public defense services.
“On this 60th anniversary of Gideon, the Department is elevating the perspectives and experiences of public defense professionals and impacted communities across the country,” said Director Rossi. “As the principal advisor to the Department on the Sixth Amendment, ATJ will fulfill its mission by continuing to center these voices.”
To conclude the National Public Defense Day Tour, the Justice Department will hold a reception at the Department of Justice with over 100 attendees from various public defender offices, public defense organizations, judicial officers and court staff, government officials, and international partners. The reception, which can be viewed live, will feature remarks from Attorney General Merrick B. Garland, Associate Attorney General Vanita Gupta, ATJ Director Rachel Rossi, and the Federal Public Defender for the Western District of Virginia Juval Scott.
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Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on March 14 was:
Matthew Raymond Schroeder, 47, of Lakewood, Colorado, on charge of conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute meth. If convicted of the most serious crime, Schroeder faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Schroeder was remanded pending further proceedings. The Drug Enforcement Administration, Billings Police Department and Yellowstone County Sheriff’s Office investigated the case. PACER case reference. 22-150.
Appearing on March 13 was:
Keegan Tait Roll, 28, Camille Ann Rounds, 46, and Deborah Lynn Renenger, 32, all transients, on charges of possession to distribute controlled substances. If convicted of the most serious crime, the defendants face a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. All of the defendants were remanded pending further proceedings. The Eastern Montana High Intensity Drug Trafficking Area Task Force and Homeland Security Investigations investigated the case. PACER case reference. 23-41.
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on March 13 was:
Kayla Denise Smith, 25, of Great Falls, on charges of conspiracy to possess with intent to distribute controlled substances, possession with intent to distribute controlled substances and distribution of meth. If convicted of the most serious crime, Smith faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Smith was detained pending further proceedings. The Great Falls Police Department, Drug Enforcement Administration and Montana Division of Criminal Investigation investigated the case. PACER case reference. 22-102.
Ryan Mark Jensen, 43, of Bremerton, Washington, on charges of conspiracy to possess with intent to distribute fentanyl and possession with intent to distribute fentanyl. If convicted of the most serious crime, Jensen faces a mandatory minimum five years to 40 years in prison, a $5 million fine and at least four years of supervised release. Jensen was detained pending further proceedings. The Great Falls Police Department and Drug Enforcement Administration investigated the case. PACER case reference. 23-22.
Ryan Creighton Doak, 48, of Everett, Washington, on charges of possession with intent to distribute controlled substances, possession of a firearm in furtherance of a drug trafficking crime and prohibited person in possession of a firearm. If convicted of the most serious crime, Doak faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release on the drug charge and five years to life in prison, consecutive to any other sentence, a $250,000 fine and five years of supervised release, on the crime of possessing a firearm in a drug trafficking crime. Doak was detained pending further proceedings. The Missoula High Intensity Drug Trafficking Area Task Force, Bureau of Alcohol, Tobacco, Firearms and Explosives and Montana Highway Patrol investigated the case. PACER case reference. 23-16.
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on March 13 was:
Lindsay Ann Rumph, 34, of Butte, and Eric Anthony Navarro, 32, of Missoula, on charges of conspiracy to possess controlled substances, possession with intent to distribute controlled substances and possession of a firearm in furtherance of a drug trafficking crime. Navarro faces an additional charge of prohibited person in possession of a firearm. If convicted of the most serious crime, the defendants face a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release on the drug charge and five years to life in prison, consecutive to any other sentence, a $250,000 fine and five years of supervised release on the charge of possessing a firearm in furtherance of drug trafficking. Rumph and Navarro were detained pending further proceedings. The FBI’s Montana Regional Violent Crime Task Force, FBI and Montana Highway Patrol investigated the case. PACER case reference. 23-17.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Indy Man Sentenced to 2 Years in Federal Prison for Trafficking “Glock Switch” Devices That Turn Semiautomatic Pistols into Machine gunsRead the Press Release
INDIANAPOLIS- Zaiveon Perry, 24, of Indianapolis, was sentenced to 2 years in federal prison after pleading guilty to possession of a machine gun.
According to court documents, in April of 2021, agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) were contacted by Indiana State Police regarding Zaiveon Perry’s drug and firearm dealing in Indianapolis, Indiana and Chicago, Illinois. Agents discovered Perry’s social media accounts, where he was publicly advertising fully automatic Glocks for sale.
On July 28, 2021, ATF Special Agents and ISP Troopers observed Perry sell a Glock pistol with a “Glock switch” conversion device attached for $3,250.00. The transaction took place in Perry’s black BMW. On January 6, 2022, investigators arrested Perry. Perry admitted to selling at least seven Glock firearms with switches attached.
Machinegun conversion devices sometimes called “Glock switches” or “auto-sears” are devices that convert ordinary semiautomatic firearms into fully automatic machine guns. Machinegun conversion devices are themselves considered machine guns under federal law, even when not installed, and are illegal to possess or sell without a special license.
Zachary A. Myers, United States Attorney for the Southern District of Indiana, Daryl S. McCormick, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Columbus Field Division, and Doug Carter, Superintendent of Indiana State Police made the announcement.
“Criminals who put illegal machine guns onto our streets add fuel to the fire of gun violence already devastating far too many of our families,” said Zachary A. Myers, United States Attorney for the Southern District of Indiana. “Possession and sale of these extremely dangerous devices is a serious crime which can result in years in federal prison. Our office will continue to work with the ATF, ISP, and all our partners in law enforcement to get illegal machine guns out of our communities and hold gun traffickers accountable.”
“Unfortunately, we are seeing more of these deadly conversion devices showing up on the streets,” stated Daryl S. McCormick, Special Agent in Charge of ATF’s Columbus Field Division. “U.S. law has long recognized that automatic weapons pose a special risk to public safety, both through the sheer volume of bullets fired and the likelihood that innocent bystanders will be injured or killed. ATF will continue to work with our law enforcement partners to hold accountable those who use and distribute machine gun conversion devices.”
The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Indiana State Police investigated this case. The sentence was imposed by U.S. District Court Judge James P. Hanlon. Judge Hanlon also ordered that Perry be supervised by the U.S. Probation Office for 3 years following his release from prison and be subject to a $500 fine.
U.S. Attorney Myers thanked Assistant United States Attorney Peter A. Blackett, who prosecuted this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results
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Gulfport Man Sentenced to over Three Years in Prison for Possession with Intent to Distribute FentanylRead the Press Release
Gulfport, Miss. – A Gulfport man was sentenced to 42 months in federal prison for possession with intent to distribute fentanyl, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Brad L. Byerley of the Drug Enforcement Administration.
Deandre Alexander Oliver, 25, was sentenced in U.S. District Court in Gulfport.
According to court documents, in July of 2021, as part of the investigation into the death of an airman at Keesler Air Force Base, a drug trafficking organization was identified as operating in the sale of counterfeit pills containing fentanyl in Harrison County, Mississippi. This drug organization had provided fentanyl to Emmett Bennett who then caused a traffic accident on the base, killing one airman and injuring three others.
As a result of this investigation, Deandre Oliver was identified as a person who also sold fentanyl in the same drug trafficking network. On August 24, 2021, 20 counterfeit Percocet tablets containing fentanyl were purchased from Oliver in a controlled drug buy.
Oliver was indicted by a federal grand jury on September 7, 2022. He pled guilty on December 16, 2022, to possession with intent to distribute fentanyl.
The case was investigated by the Drug Enforcement Administration.
The case was prosecuted by Assistant U.S. Attorney Erica Rose.
Good Samaritan Helps Apprehend Armed Man Brandishing Two Loaded Guns in ManhattanRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Ivan J. Arvelo, the Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), and Keechant L. Sewell, the Commissioner of the New York City Police Department (“NYPD”), announced the arrest of JASON FLEMING after he brandished a loaded semiautomatic Hi-Point carbine rifle and a loaded Smith & Wesson .357 Magnum revolver in broad daylight after a dispute in a bodega in Chelsea. FLEMING was arrested after a civilian, seeing FLEMING running down the street with a revolver in his hand as police were chasing him, stood in FLEMING’s way and pushed him into a nearby fence and then held onto him until police officers, who were still in pursuit, placed FLEMING under arrest.
U.S. Attorney Damian Williams said: “As alleged, the defendant illegally brandished two loaded firearms in broad daylight on a Manhattan street, one of which was a carbine rifle, frightening numerous New Yorkers, including a child. Thanks to our law enforcement partners and the heroic efforts of a Good Samaritan, the defendant was apprehended before he could hurt anyone, and his weapons are now off the streets.”
HSI Special Agent in Charge Ivan J. Arvelo said: “HSI special agents are committed to public safety and do not hesitate to act when members of the community are threatened. I am proud of our agents’ hard work and efforts with the rapid apprehension of this criminal and the follow-on investigative support provided to the New York City Police Department. HSI remains steadfast in our commitment to our law enforcement partners in the cause of community safety.”
NYPD Commissioner Keechant L. Sewell said: "The firearms allegedly displayed by the defendant in this case have no place on the streets of New York City. The NYPD will continue to aggressively pursue anyone who uses these illegal weapons to threaten the people we serve, and we will employ every resource available to hold them fully accountable. I want to thank the U.S. Attorney's Office for the Southern District of New York, the New York Field Office of Homeland Security Investigations, and everyone else who aided in this arrest."
According to the allegations in the Complaint:[1]
On or about March 16, 2023, JASON FLEMING entered a crowded bodega in the Chelsea neighborhood in Manhattan after having a verbal dispute with a man. FLEMING then stood in the doorway of the bodega and flashed a handgun as a girl attempted to leave the bodega. The child then ran away from the store when she was able to pass by FLEMING onto the sidewalk. The surveillance video then shows FLEMING outside the bodega and pulling back his coat momentarily to reveal a rifle that had been swung over his shoulder.
Police officers then approached FLEMING after a witness called 911, and FLEMING took off running down the sidewalk. While running, FLEMING brandished a semiautomatic carbine rifle in broad daylight while frightened civilians began running away from him, as seen in the below screenshots from surveillance videos:
FLEMING then threw the rifle over a fence near where customers were dining at a restaurant’s outdoor dining shed. Law enforcement officers recovered the rifle and found that it was a loaded semiautomatic Hi-Point carbine rifle, a photograph of which is below:
Meanwhile, after throwing the rifle, FLEMING brandished a revolver and continued running down the street, with police officers in foot pursuit. A nearby civilian, seeing FLEMING running down the street with a revolver in his hand, stood in FLEMING’s way and pushed him into a nearby fence and then held onto him until police officers, who were still in pursuit, placed FLEMING under arrest and handcuffed him. A screenshot of FLEMING, brandishing the revolver after the civilian made contact with him, is below, along with a photograph of the revolver:
FLEMING was not permitted to possess firearms because of his two prior felony convictions for unlawful firearms possession.
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JASON FLEMING, 39, of New York, New York, is charged with possession of firearms after a felony conviction, which carries a maximum sentence of 15 years in prison.
The statutory maximum penalty is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the outstanding investigative work of HSI and the NYPD. Mr. Williams also thanked the Bureau of Alcohol, Tobacco, Firearms, and Explosives for its assistance in this case.
This case is being handled by the Office’s Violent & Organized Crime Unit. Assistant U.S. Attorney Michael R. Herman is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Fresno Man Indicted for Escape from Federal CustodyRead the Press Release
FRESNO, Calif. — A federal grand jury returned a one-count indictment Thursday against Gabriel Mata, 29, of Fresno, charging him with escape from federal custody, U.S. Attorney Phillip A. Talbert announced.
According to court documents, On May 24, 2021, Mata was sentenced to 30 months in prison after pleading guilty to being a felon in possession of a firearm and was transferred to the Turning Point Residential Reentry Center in Fresno. On Dec. 28, 2021, Mata was discovered to be missing when a routine count was done at the facility. Mata did not have permission to leave the Turning Point facility and remained at large until his arrest.
This case is the product of an investigation by the U.S. Marshals Service. Assistant U.S. Attorney Laurel J. Montoya is prosecuting the case.
If convicted, Mata faces a maximum statutory penalty of five years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Fort McCoy Man Sentenced to 80 Years in Prison for Impersonating Federal Agent to Produce and Receive Child Sex Abuse MaterialsRead the Press Release
Ocala, Florida –Senior United States District Judge John Antoon II has sentenced Eddie Joe Oglesby, Jr. (52, Fort McCoy) to 80 years in federal prison for two counts of production of child sex abuse material and one count of receipt of sex abuse material. A federal jury previously found Oglesby guilty on October 14, 2022. He had been charged in a superseding indictment on September 13, 2022.
According to testimony and evidence presented at trial, Oglesby created an elaborate false identity which he used to impersonate a federal agent. He then used this false identity to coerce underaged female victims to produce and send him child sex abuse material over the internet. Posing as the false agent, Oglesby threatened to have the victims arrested, imprisoned, institutionalized, or killed if they did not comply with his demands.
During a search of Oglesby’s Marion County residence by FBI agents on September 27, 2021, they found him with an underaged female runaway. A search of Oglesby’s cellular phone showed him logged into multiple social media applications under both his real and false identities. Agents ultimately found 473 pages of electronic communications between Oglesby and one of his victims on that cellular phone.
“This case exemplifies the commitment of the FBI and our law enforcement partners to identify and locate abusers who prey on our children,” said Special Agent in Charge Sherri E. Onks for the Jacksonville Division. “The crimes committed by this predator are inexcusable and we will stop at nothing to thwart criminals like him from taking advantage of innocent youth.”
This case was investigated by the Federal Bureau of Investigation, the Marion County Sheriff’s Office, the Weatherford (Texas) Police Department, and the Cobb County (Georgia) Sheriff’s Office. It was prosecuted by Assistant United States Attorneys William S. Hamilton and Hannah J. Nowalk.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former Postal Employee Sentenced for Stealing Items from the Mail She Was Entrusted to HandleRead the Press Release
NEW ORLEANS –KEISHAN WILSON, age 38, of New Orleans, Louisiana was sentenced on March 16, 2023, by the Honorable Eldon E. Fallon, U.S. District Judge, Eastern District of Louisiana, for stealing items from the mail she was entrusted to handle as a postal employee, announced U.S. Attorney Duane A. Evans.
According to court documents, KEISHAN WILSON was employed by the United States Postal Service as a mail processor in New Orleans when she was apprehended stealing items from the mail that she was entrusted to handle. The defendant was sentenced to (5) five years of probation. She was also ordered to pay restitution and a mandatory special assessment fee of $100. The restitution hearing is set for June 8, 2023.
U.S. Attorney Evans praised the work of the United States Postal Service, Office of the Inspector General in investigating this matter. Assistant United States Attorney Richard R. Pickens, II of the Financial Crimes Unit is in charge of the prosecution.
Former Memphis Attorney Pleads Guilty to Wire Fraud SchemeRead the Press Release
Memphis, TN – Former Memphis attorney, Leigh M. Chiles, 49, pled guilty in connection with a scheme to defraud an estate over which she was appointed to serve as executrix. United States Attorney Kevin G. Ritz announced the guilty plea today.
According to U.S. Attorney Ritz, a federal grand jury returned an indictment against Chiles in July 2022. Based on the charges and information presented in court today, Chiles, currently of Little Rock, Arkansas, appeared before United States Magistrate Judge Annie T. Christoff and entered a guilty plea to one count of wire fraud.
In September 2018, Chiles was appointed to serve as executrix over an estate opened in Shelby County Probate Court. In connection with her duties Chiles was responsible for collecting estate assets and distributing them to heirs and beneficiaries. In violation of her fiduciary duty, Chiles used approximately $124,000 in estate funds to write checks to herself and to pay her personal credit card between November 2018 and June 2019.
A sentencing hearing is currently set before United States District Judge John T. Fowlkes, Jr. on July 17, 2023, where Chiles faces a maximum sentence of 20 years’ imprisonment, a $250,000 fine, and three years of supervised release.
The case was investigated by the Federal Bureau of Investigation.
Assistant United States Attorney Carroll L. André III is prosecuting this case.
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For more information, please contact Public Information Officer Cherri Green at (901) 544-4231 or [email protected]. Follow @WDTNNews on Twitter for office news and updates.
Former Department of State Employee Sentenced for Engaging in Illicit Sexual Conduct with Minors in the PhilippinesRead the Press Release
ALEXANDRIA, Va. – A former U.S. Department of State employee was sentenced today to 15 years in prison for engaging in illicit sexual conduct in a foreign place.
According to court documents, Dean Edward Cheves, 63, served at the U.S. Embassy in the Philippines from 2017 to 2021. From December 2020 to March 2021, Cheves used a messaging application installed on his cell phone to chat with a 15- to 16-year-old Philippine minor, whom he paid to create and send to him sexually explicit images of the minor. Additionally, in February 2021, Cheves engaged in sex acts on two separate occasions with another 16-year-old Philippine minor, whom he met online. Cheves used his government-issued cell phone to film the sex acts on at least one of those occasions. The child sex abuse material that Cheves produced was found on the phone after it was seized from Cheves’ embassy residence in the Philippines. Cheves knew the ages of both minors at the time he engaged in the conduct.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Kenneth A. Polite, Jr., Assistant Attorney General of the Justice Department’s Criminal Division, made the announcement after sentencing by Senior U.S. District Judge Claude M. Hilton.
The U.S. Department of State’s Diplomatic Security Service (DSS) Office of Special Investigations investigated the case with valuable assistance provided by the DSS Regional Security Office, Homeland Security Investigations Attaché’s Office in the Philippines, and the Philippine National Police.
Assistant U.S. Attorneys Lauren Pomerantz Halper and Zoe Bedell for the Eastern District of Virginia, and Trial Attorney Gwendelynn Bills for the Child Exploitation and Obscenity Section of the Justice Department’s Criminal Division, 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 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 https://www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:21-cr-177.
Former Department of State Employee Sentenced for Engaging in Illicit Sexual Conduct with Minors in the PhilippinesRead the Press Release
A former U.S. Department of State employee was sentenced today to 15 years in prison for engaging in illicit sexual conduct in a foreign place.
According to court documents, Dean Edward Cheves, 63, served at the U.S. Embassy in the Philippines from 2017 to 2021. From December 2020 to March 2021, Cheves used a messaging application installed on his cell phone to chat with a 15- to 16-year-old Philippine minor, whom he paid to create and send to him sexually explicit images of the minor. Additionally, in February 2021, Cheves engaged in sex acts on two separate occasions with another 16-year-old Philippine minor, whom he met online. Cheves used his government-issued cell phone to film the sex acts on at least one of those occasions. The child sex abuse material that Cheves produced was found on the phone after it was seized from Cheves’ embassy residence in the Philippines. Cheves knew the ages of both minors at the time he engaged in the conduct.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division and U.S. Attorney Jessica D. Aber for the Eastern District of Virginia made the announcement.
The U.S. Department of State’s Diplomatic Security Service (DSS) Office of Special Investigations investigated the case with valuable assistance provided by the DSS Regional Security Office, Homeland Security Investigations Attaché’s Office in the Philippines, and the Philippine National Police.
Trial Attorney Gwendelynn Bills of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorneys Lauren Pomerantz Halper and Zoe Bedell for the Eastern District of Virginia prosecuted the case.
This case is brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
Federal Jury Convicts Northern Minnesota Felon for Illegal Possession of a FirearmRead the Press Release
MINNEAPOLIS – A federal jury found an Onamia man guilty of illegally possessing a firearm following a domestic assault, announced U.S. Attorney Andrew M. Luger.
Following a four-day trial before Senior Judge Michael J. Davis, Justin Lyle Cutbank, 36, was convicted on one count of possessing a firearm as a felon. A sentencing hearing will be scheduled at a later date.
According to evidence presented at trial and court documents, on November 19, 2020, Leech Lake Tribal Police were dispatched to a residence following a report that Cutbank had physically assaulted a woman, held her at gunpoint, threatened to kill her, and then fled the residence into the woods. Shortly after officers arrived at the residence and took the victim’s statement, a neighbor reported that Cutbank was in their garage and refused to leave. Officers from multiple agencies responded to the location and found Cutbank barricaded in the garage. Several hours of negotiations followed with Cutbank retreating into the attic of the garage and refusing to surrender. Ultimately, officers were able to apprehend Cutbank, who continued to actively resist arrest. The following day, officers searched the wooded area where Cutbank had fled and found a Marlin Model 100 .22 caliber rifle with no serial number, a knife, and the victim’s cell phone.
Because Cutbank has multiple prior felony convictions, he is prohibited under federal law from possessing firearms or ammunition at any time.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Minnesota Bureau of Criminal Apprehension, the Leech Lake Tribal Police Department, the Paul Bunyan Drug Task Force, and the Cass County Sheriff’s Office.
Assistant U.S. Attorneys Bradley M. Endicott and Ruth S. Shnider are prosecuting the case.
Federal Grand Jury Indicts Clovis Man Arrested with Fentanyl and MethamphetamineRead the Press Release
FRESNO, Calif. — A federal grand jury returned an indictment Thursday against Reyes Quinonez Jr., 42, of Clovis, charging him with possessing over 50 grams of methamphetamine and over 40 grams of fentanyl with intent to distribute those controlled substances, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in February 2023, Quinonez was on parole for a prior felony offense. Law enforcement officers conducted parole-compliance searches of Quinonez, his residence, and a car. They found a firearm, ammunition, over a pound of methamphetamine, and over half a pound of fentanyl.
This case is the product of an investigation by the Drug Enforcement Administration and the Clovis Police Department. Assistant U.S. Attorney Justin J. Gilio is prosecuting the case.
If convicted, Quinonez faces a statutory penalty of between five and 40 years in prison and a fine of up to $5 million. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of Operation Synthetic Opioid Surge (S.O.S.) a program designed to reduce the supply of deadly synthetic opioids in high impact areas as well as identifying wholesale distribution networks and international and domestic suppliers. In July 2018, the Justice Department announced the creation of S.O.S., which is being implemented in the Eastern District of California and nine other federal districts.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Federal Firearms Licensee and Boston Man Indicted for Firearm Trafficking and Straw Purchasing ConspiracyRead the Press Release
BOSTON – A Federal Firearms Licensee (FFL) and a Boston man have been indicted by a federal grand jury for allegedly conspiring to illegally traffic and straw purchase firearms.
Cory Daigle, 29, of Revere, and Gustavo Rodriguez, 20 of Boston, were each indicted on one count of conspiracy to make false statements in records required to be kept by an FFL and one count of aiding and abetting making false statements in records required to be kept by an FFL. Shakim Grant, 21, of Boston, was charged by Information with the same offenses. Daigle was also indicted on one count of trafficking in firearms, one count of illegal possession of a machine gun and one count of receipt or possession of an unregistered firearm. In January 2023, Daigle, Grant and Rodriguez were charged by criminal complaint.
According to the indictment, from in or about August 2022 through November 2022, Daigle and Rodriguez conspired to create false entries in records required to be maintained by Daigle, an FFL, in order to conceal the illegal sale of multiple firearms via Grant to Rodriguez, who could not lawfully purchase or possess firearms. Specifically, it is alleged that Daigle and Grant made and signed false representations on required forms to disguise Rodriguez’s identity as the true firearm purchaser. Rodriguez is prohibited from possessing a firearm. It is further alleged that the defendants attempted to coverup the illegal straw purchase by providing false information to law enforcement.
“Straw purchases are serious crimes that can result in deadly firearms getting into the hands of people the law strictly prohibits from possessing them. Frequently, we find that gun violence, including shootings and murders, is committed with an illegally obtained firearm by prohibited individuals, whether they are unlicensed, underage or precluded due to criminal history. In fact, that is exactly what is alleged to have happened here. Mr. Rodriguez does not have a license to legally possess or carry firearms and is banned from having a firearm in Massachusetts based on his age. Through excellent investigative work, authorities were led to an alleged straw purchaser, Grant, and Daigle, a Federal Firearms Licensee and gun vendor at a mill in Littleton, Massachusetts which has been publicly reported to be the largest congregation of gun vendors at a single address in the country. We allege that these individuals circumvented the law to knowingly engage in a straw purchase,” said United States Attorney Rachael S. Rollins. “This criminal conspiracy came to light in the wake of a violent shooting in Boston. These types of crimes can have real and life altering consequences. We pledge to aggressively combat the illegal trafficking of firearms in our Commonwealth and to hold all participants – not just the buyers – in straw purchases accountable.”
“When you buy a gun for someone who is legally prohibited from possessing a firearm, you could be buying yourself time in federal prison,” said James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, & Explosives, Boston Field Division. “The surge of gun violence in our cities is being fueled by individuals who circumvent the law and put firearms in the wrong hands. Our mission is clear and we will continue working with our partners to stop the flow of illegal firearm transfers that fuel the cycles of violence.”
The charge of conspiracy to make false statements in records required to be kept by an FFL provides for a sentence of up to five years in prison, one year of supervised release and a fine of $250,000. The charge of aiding and abetting making false statements in records required to be kept by an FFL provides for a sentence of up to five years in prison, one year of supervised release and a fine of $250,000. The charge of trafficking in firearms provides for a sentence of up to 15 years in prison, three years of supervised release and a fine of $250,000. The charge of illegal possession of a machine gun provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. The charge of receipt or possession of an unregistered firearm provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
U.S. Attorney Rollins, ATF Boston SAC Ferguson and Boston Police Commissioner Michael Cox made the announcement today. Valuable assistance in the investigation was provided by the Revere Police Department. Assistant U.S. Attorney Luke A. Goldworm of Rollins’ Major Crimes Unit is prosecuting the case.
The details contained in the charging document are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Exton, Pennsylvania Lab Agrees to Pay $125,000 to Resolve Controlled Substances Act ViolationsRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Frontage Laboratories, Inc. (Frontage) has agreed to pay $125,000.00 to resolve allegations that it violated the Controlled Substances Act (CSA) by failing to maintain complete and accurate records of controlled substances and failing to keep one controlled substance secured. The United States’ investigation involved Frontage’s facility located 75 E. Uwchlan Ave., Exton, PA 19341. As part of the settlement, Frontage has entered into a two-year extension of its Memorandum of Agreement (MOA) with the Drug Enforcement Administration (DEA), which includes additional responsibilities regarding the handling of controlled substances. The MOA imposes compliance obligations significantly more stringent than those in the applicable laws and regulations.
Frontage is registered with the DEA as a Manufacturer of schedule I-V controlled substances. Based on an investigation, Frontage entered into a Memorandum of Agreement with the DEA on July 21, 2021. On May 9, 2022, a reinspection was completed on Frontage’s manufacturer registration. The investigators found record-keeping violations, including failure to separate Schedule I-II biennial inventory from Schedule III-V inventory, failure to document the correct amount of certain controlled substances on-hand, failure to record the date and quantity received on four receiving records, record the address and registration number of their own manufacturer and analytical lab on six transfers of controlled substances, and storing one controlled substance in a cabinet, rather than an approved safe.
Frontage acknowledged the seriousness of the issues, corrected the problems, hired new oversight staff, and accepted the extended MOA and the need to pay a penalty.
“Manufacturers who fail to maintain proper records of controlled substances create conditions ripe for diversion,” said U.S. Attorney Romero. “Companies have a responsibility to ensure that all controlled substances are tracked through the distribution chain. Our Office is committed to ensuring total compliance with the Controlled Substances Act, and we will vigorously enforce violations wherever we find them.”
Congress enacted the CSA to deter the illegal importation, manufacture, distribution, possession, and improper use of controlled substances, including prescription medications, and requires individuals and entities registered with the DEA to maintain complete and accurate records of all controlled substances and security systems so that controlled substances are not lost, stolen, or inappropriately dispensed.
The government’s pursuit of this matter demonstrates its commitment to combating diversion of controlled substances. The recordkeeping and other regulations applicable to DEA registrants, including manufacturers, are the tools by which the DEA deters drug diversion.
The investigation was conducted by the DEA’s Philadelphia Field Division, Diversion Regulatory Group 1 and the investigation and settlement was handled by Assistant U.S. Attorney Viveca D. Parker.
The claims resolved by this settlement are allegations only and there has been no determination of liability.
El Dorado County Couple Found Guilty of Tax FraudRead the Press Release
SACRAMENTO, Calif. — After an 8-day trial, a federal jury found El Dorado Hills couple Brian Beland, 39, and Denae Beland, 40, guilty in an effort to circumvent paying federal income taxes, U.S. Attorney Phillip A. Talbert announced.
“When the IRS began a civil audit of Brian and Danae Beland’s taxes, the defendants tried to hide their crimes through false expenses, telling falsehoods to the civil examiner, and obstructing the IRS audit,” said U.S. Attorney Talbert. “This trial is an example of the U.S. Attorney’s Office’s commitment to investigate and prosecute those who fail to comply with their federal tax obligations.”
“Falsifying documents and filing fraudulent tax returns is a crime,” said Darren Lian, Special Agent in Charge of the IRS Criminal Investigation’s Oakland Field Office. “We should not forget that the ultimate victims in tax fraud cases are the people of the United States – those honest taxpayers who diligently and truthfully file tax returns each year. IRS-CI will continue to focus our investigative efforts on individuals and businesses who cheat on their taxes and do not comply with the law. I want to thank the U.S. Attorney’s Office and the dedication of our agents that resulted in Mr. and Mrs. Beland’s guilty verdict by the jury.”
For filing false tax returns that illegally claimed both personal expenses and fabricated expenses as tax deductions, Brian Beland has been found guilty of three counts of a filing false tax return for tax years 2011, 2012, and 2013. Brian Beland and Denae Beland were both found guilty of corruptly impeding their tax audit.
According to court documents and evidence presented at trial, Brian Beland was a mortgage broker for Wells Fargo and then Bank of America from 2011 through 2013. He claimed business expenses in excess of $800,000 for all three years, effectively paying only a 2% tax on the more than $1.1 million he earned. Denae Beland is an attorney licensed by the California State Bar. When the IRS began a civil audit of their taxes, Brian and Denae Beland tried to hide their crimes by falsely claiming that personal expenses were business expenses, telling falsehoods to the civil examiner, and obstructing the IRS audit by not providing requested documents.
For the IRS audit, the Belands, claiming their business records had been shredded or lost, recreated spreadsheets of their business expenses that listed various items as business expenses that were actually personal expenses, including travel to Europe, the Eiffel Tower, Hawaii and Cancun; wine racks and a personalized wine bottle in their wine cellar; a California king bed; patio furniture; automated tiki torches; birthday party and baby shower expenses; home gym exercise flooring; and other items. In June 2016, the IRS executed a search warrant at their house in El Dorado Hills. In addition to finding many pieces of furniture and household goods that had been claimed as business expenses, agents also found tax records and receipts, despite the Belands’ claims that all records and receipts had been destroyed.
This case is the product of an investigation by the IRS Criminal Investigation. Assistant U.S. Attorneys Veronica M.A. Alegría and Lee S. Bickley are prosecuting the case.
Brian and Danae Beland are scheduled to be sentenced on June 20, 2023, by U.S. District Judge William B. Shubb. Brian Beland faces a maximum statutory penalty of three years in prison and a fine of up to $100,000 for each count of filing a false tax return. Brian and Denae Beland each face a maximum statutory penalty of three years in prison and a fine of up to $5,000 for corruptly endeavoring to impede the tax audit. The actual sentences, 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.
Clackamas Man Arrested on Child Pornography Charges Three Months After Release from Federal CustodyRead the Press Release
PORTLAND, Ore.—A Clackamas, Oregon man appeared in federal court today after he was arrested on child pornography charges less than three months after completing a federal prison sentence for similar conduct.
Nicholas James Stacy, 29, has been charged by criminal complaint with transporting and possessing child pornography.
According to the complaint, in March 2023, special agents from Homeland Security Investigations (HSI) were contacted by Portland Police Bureau detectives investigating multiple CyberTipline reports they had received regarding Stacy’s alleged use of Facebook, Dropbox, and other web services to possess and distribute child pornography.
Stacy was released from federal custody in December 2022 after serving a 60-month sentence on a previous child pornography conviction. While on post-prison supervision, Stacy was prohibited from possessing a computer or other electronic devices or accessing the internet for any reason without permission from his probation officer.
On March 16, 2023, investigators executed federal search warrants on Stacy’s person, residence, and his mother’s residence. Agents seized multiple electronic devices Stacy possessed in violation of his terms of supervision and placed him under arrest.
Stacy made his first appearance in federal court today before U.S. Magistrate Judge Youlee Yim You. He was ordered detained pending further court proceedings.
This case was investigated by HSI, the Portland Police Bureau, and U.S. Probation Office. It is being prosecuted by Mira Chernick, Assistant U.S. Attorney for the District of Oregon.
A criminal complaint is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Anyone who has information about the physical or online exploitation of children are encouraged to contact HSI at (866) 347-2423 or submit a tip online at report.cybertip.org.
Federal law defines child pornography as any visual depiction of sexually explicit conduct involving a minor. It is important to remember child sexual abuse material depicts actual crimes being committed against children. Not only do these images and videos document the victims’ exploitation and abuse, but when shared across the internet, re-victimize and re-traumatize the child victims each time their abuse is viewed. To learn more, please visit the National Center for Missing & Exploited Children at www.missingkids.org.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Brittany Busby Sentenced to 28 Months in Prison for Distributing Fentanyl at Northern Lights Transitional HouseRead the Press Release
Burlington, Vermont - The United States Attorney’s Office stated that Brittany Busby, 31, formerly of Washington, Vermont, was sentenced on March 15, 2023 in United States District Court in Rutland to 28 months of imprisonment following her guilty plea to distributing fentanyl. U.S. Chief District Judge Geoffrey Crawford also ordered that Busby serve three years of supervised released and pay restitution in the amount of $250 to the family of a victim.
On September 26, 2022, Busby pleaded guilty to an Information charging her with distributing fentanyl. According to court records and proceedings, Busby was a resident of Northern Lights, a transitional housing program for women located in Burlington, Vermont. Before it was closed on June 30, 2021, Northern Lights was intended to provide a sober living environment, as well as vocational training, substance abuse treatment, medical care, and other programming for women to successfully reenter the community.
On the evening of January 11, 2021, while at Northern Lights, Busby knowingly and intentionally distributed fentanyl to at least one other Northern Lights resident. On January 12, 2021, Burlington Police responded to Northern Lights and found that two Northern Lights residents had fatally overdosed after using fentanyl and other controlled substances.
“The Burlington Police Department is very grateful to the United States Attorney’s Office for helping us investigate this crime,” said acting Chief of Police Jon Murad, “and to the Drug Enforcement Administration for all its assistance. We also want to thank all those who work tirelessly to treat people experiencing substance use disorder. And I want to personally applaud Detective Kratochvil’s work. This terrible epidemic continues to claim victims. Police are called to respond to deaths like these too often. Each represents a life cut short; each leaves grief in its wake. Our ultimate goal is to prevent any such deaths.”
“Fentanyl is causing deaths in record numbers and DEA’s top priority is to aggressively pursue anyone who distributes this poison,” said DEA Special Agent in Charge Brian D. Boyle. “Illegal drug distribution ravages the very foundations of our families and communities so every time we take fentanyl off the streets, lives are saved. This investigation demonstrates the strength of collaborative local, county and state law enforcement efforts in Vermont and our strong partnership with the U.S. Attorney’s Office.”
“Fentanyl distribution continues to be a significant problem affecting our Vermont communities,” said U.S. Attorney Nikolas Kerest. “The investigation of Brittany Busby and the two overdose deaths at Northern Lights demonstrates why those who choose to distribute fentanyl must be held accountable for their actions. It also demonstrates why Vermont needs more robust, substance-free transitional housing. Thanks to the dedication and thorough work of the Burlington Police Department and the Drug Enforcement Administration this sad chapter at Northern Lights has now come to a close.”
The case was investigated by the Burlington Police Department and the Drug Enforcement Administration.
Busby was represented by Heather E. Ross, Esq., of Sheehey, Furlong & Behm, P.C. The prosecutors were Assistant United States Attorneys Kimberly Ang and John J. Boscia.
Bristol Man Arrested for Defrauding CustomersRead the Press Release
Burlington, Vermont – The Office of the United States Attorney for the District of Vermont announced that David Conrad, 42, of Bristol, Vermont was arrested yesterday following his indictment for conducting a wire fraud scheme between approximately January of 2022 and February 28, 2023. Conrad will be arraigned this afternoon before United States Magistrate Judge Kevin J. Doyle.
According to court records, David Conrad operated a custom woodworking business operating under the names “Old Camp Woodworking” and “Vermont Custom Designs.” Conrad was the sole employee of the business, which he operated out of the two-car garage attached to his residence in Bristol, Vermont. Conrad advertised his businesses on Facebook, and had stand-alone websites which allowed customers to place orders for custom wood items, such as dining tables, dressers, bedroom sets, desks, and other items. Parts of these websites were plagiarized from other woodworking websites, and some of the photographs on the websites were not original photographs of custom pieces crafted by Conrad, but rather copies of photographs from elsewhere on the internet. Conrad’s websites displayed strict cancelation and refund policies, listing a 25% processing fee for orders canceled within 24 hours; a 75% processing fee for orders canceled within 30 days; and no refunds for orders canceled after 30 days.
Between January 2022 and February 2023, Conrad accepted approximately $165,500 through various payment methods for over 100 different items ordered by customers in Vermont, New York, and New Hampshire. As part of the scheme to defraud, Conrad accepted payment for items he knew he could not complete within the 12-to-16-week timeframe he quoted customers. Conrad made numerous false statements to customers regarding the status of their orders and regarding why orders had not been completed (including false claims of having had a heart attack and cutting off a portion of his finger). Conrad used his strict refund policy as a reason to retain funds from customers, despite not having begun work on their orders. Conrad used funds obtained from customers to pay for his and his family’s personal expenses, while knowing that he would be unable to complete the custom-made wood item ordered by the customer from whom the funds were obtained. The grand jury’s indictment alleges five specific fraudulent transactions that involved interstate wires.
The United States Attorney’s Office emphasizes that an Indictment contains allegations only and that Conrad remains presumed innocent until and unless he is convicted of a crime. Conrad faces a maximum sentence of 20 years of imprisonment and a $250,000 fine, and restitution to the victims, on each alleged count. The actual sentence would be determined with reference to the United States Sentencing Guidelines.
United States Attorney Nikolas P. Kerest commended the investigatory efforts of Homeland Security Investigations, Vergennes Police Department, and Vermont State Police and also thanks the Vermont Attorney General’s Consumer Assistance Program for its assistance in compiling consumer complaints and their collaborative work on this investigation.
The prosecutor is Assistant United States Attorney Jonathan A. Ophardt. Conrad is represented by Chandler Matson, Esq.
Bay St. Louis Man Sentenced to 5 Years for Possession with Intent to Distribute FentanylRead the Press Release
Gulfport, Miss. – A Bay St. Louis, Mississippi man was sentenced to 60 months in federal prison for possession with intent to distribute fentanyl, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Brad L. Byerley of the Drug Enforcement Administration.
Joseph Henry, III, 45, of Bay St. Louis, MS was sentenced in U.S. District Court in Gulfport.
According to court records, On December 2, 2021, Hancock County Sheriff's Deputies went to a residence in Bay St Louis to locate a subject with active felony warrants. At the residence, deputies found Henry and over 1 pound of Marijuana, 848 dosage units of MDMA, and 312 dosage units of counterfeit Oxycodone containing 41.77grams of fentanyl.
Mr. Henry was indicted by a federal grand jury on August 26, 2022. He pled guilty on December 15, 2022, to possession with intent to distribute fentanyl.
The case was investigated by the Drug Enforcement Administration.
The case was prosecuted by Assistant U.S. Attorney Erica Rose.
Atlantic City Councilman Charged with Submitting False Voter Registrations, Making False Statements, and Fraudulently Obtaining Unemployment BenefitsRead the Press Release
CAMDEN, N.J. – An Atlantic County, New Jersey, man has been charged with falsifying voter registrations, making false statements to the FBI about interactions with prospective voters, and submitting false unemployment benefits claims with the New Jersey Department of Labor and Workforce Development (NJDOL), U.S. Attorney Philip R. Sellinger announced today.
MD Hossain Morshed, 49, a councilman elected to Atlantic City’s Fourth Ward, is charged in a criminal complaint unsealed today with one count of fraudulent procurement and submission of voter registration applications, one count of making false statements, and one count of wire fraud. Morshed made his initial appearance before U.S. District Judge Ann Marie Donio in Camden federal court and was released on $100,000 unsecured bond.
According to the documents filed in this case and statements made in court:
Falsification of Voter Forms
In April 2019, in advance of the June 2019 primary election, Morshed gave a prospective voter a New Jersey voter registration application that had already been filled out and which falsely asserted that the prospective voter had a residential address in the Fourth Ward in Atlantic City. Even though the address written on the form was not where the voter actually lived, Morshed urged the prospective voter to sign the application. Subsequently, Morshed visited the prospective voter at the voter’s actual residence (which was not in the Fourth Ward) and presented the prospective voter with a vote-by-mail application to sign which included the same false Fourth Ward Atlantic City address that was on the voter registration application and listed yet another false Atlantic City address for where the mail-in ballot should be sent to the voter.
The Atlantic County Superintendent of Elections subsequently received the falsified voter registration application that Morshed had the prospective voter sign and thereafter, the Atlantic County Board of Elections received the prospective voter’s completed mail-in ballot, and that ballot was counted towards the June 2019 primary election. The prospective voter later admitted not receiving, completing or returning the mail-in ballot. During lawfully recorded conversations between this voter and Morshed concerning possible questioning by law enforcement, Morshed directed the voter, if questioned by law enforcement, to make false representations about where the voter lived and who filled out the voter forms that Morshed had given to the voter.
When Morshed was subsequently approached and questioned by FBI agents about his provision of voter registration and vote-by-mail applications to New Jersey residents, he made materially false statements, including that he had never provided any voter documents to any prospective voter, never assisted any prospective voter in filling out such documents, and never collected any such documents from any prospective voter. Morshed also falsely stated that he had never asked residents of municipalities outside of Atlantic City to register to vote in Atlantic City’s Fourth Ward.
Fraudulently Obtaining Unemployment Benefits
From April 2020 through September 2021, Morshed also defrauded the NJDOL of $39,208 in unemployment benefits to which he was not entitled. Morshed applied for and was approved to receive various unemployment benefits related to New Jersey’s Pandemic Unemployment Assistance program even though he was earning compensation for his employment as an Atlantic City Councilperson, and additional income as a driver.
The false voter registration submission and false statements counts each carry a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gain or loss from the offense. The wire fraud count carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy; the FBI’s Newark, Atlantic City Resident Agency’s Public Corruption Task Force, including the Atlantic County Prosecutor's Office, under the direction of Prosecutor William Reynolds; the Atlantic City Police Department, under the direction of Officer-in-Charge Chief James A. Sarkos; the New Jersey State Police, under the direction of Col. Patrick J. Callahan; and the Cape May County Prosecutor's Office, under the direction of Prosecutor Jeffrey H. Sutherland; as well as special agents of the U.S. Department of Labor, Office of Inspector General, Northeast Region, under the direction of Special Agent in Charge Jonathan Mellone; and the postal inspectors of the U.S. Postal Inspection Service, Philadelphia Division, under the direction of Inspector in Charge Christopher A. Nielsen, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Eric A. Boden, Attorney-in-Charge of the Trenton Office, and Assistant U.S. Attorney James H. Graham of the General Crimes Unit, under the supervision of the Special Prosecutions Division.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
morshed.complaint.pdfAtlanta man sentenced to federal prison in connection with a multimillion-dollar international cyber and fraud schemeRead the Press Release
ATLANTA - Christian Akhatsegbe has been sentenced for wire and computer fraud conspiracy, access device fraud, and aggravated identity theft related to a multi-million-dollar cyber-fraud scheme perpetrated through email phishing, credential harvesting, and invoice fraud. His brother, Emmanuel Aiye Akhatsegbe, who is believed to be residing in Nigeria, was also charged in the scheme and remains a fugitive.
“The far-reaching scope of this defendant’s criminal conduct is astonishing,” said U.S. Attorney Ryan K. Buchanan. “Hiding behind several aliases, Christian Akhatsegbe and his conspirators stole employee credentials, unlawfully accessed computers, and attempted to scam companies out of more than 12 million dollars. And not content to limiting his criminal conduct to these schemes, Akhatsegbe also engaged in hundreds of thousands of dollars of COVID-19-related loan fraud. The relentless efforts of determined corporate-law enforcement partnerships, in conjunction with excellent investigative work across the globe, exposed Akhatsegbe’s crimes and he will now serve a sentence in federal prison as well as pay restitution to his victims.”
“Operation Dark Nimbus is a perfect example of how the FBI won’t let geographic boundaries stop us from pursuing and prosecuting anyone who inflicts tremendous financial pain to U.S. citizens,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “These criminals felt like they were safe hiding behind their computers and aliases. Hopefully this sentence and the ultimate capture of Emmanuel sends a message to anyone who thinks they can prey on our citizens and get away with it.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Between approximately August 2019 through November 2020, Christian Akhatsegbe, together with his brother, Emmanuel Aiye Akhatsegbe, and others, engaged in spear phishing, credential harvesting, and business email compromise schemes, which involved sending phishing emails to employees of companies and agencies in the United States and the United Kingdom using stolen SendGrid email marketing accounts, stealing and harvesting the employee access credentials on computer servers, using the stolen credentials to access the victims’ computers, and then sending fraudulent invoices to victims requesting payment of funds to bank accounts in Hong Kong.
In November 2019, for example, an employee of a company in the United Kingdom received a phishing email, which resulted in their credentials being logged, stolen, and later stored on a computer server that was accessed and maintained by Christian Akhatsegbe and his conspirators. Using the stolen credentials, the conspirators sent an email to another employee of the company that appeared to originate from one of the company’s vendors. The email attached a fraudulent invoice in the amount of $434,383.45 with wiring instructions to a bank in Hong Kong. The victim company later paid the fraudulent invoice and wired the funds to Hong Kong.
Similarly, in December 2019, using credentials stolen from a Massachusetts victim company employee, Christian Akhatsegbe and his conspirators sent an email to another employee of the company that appeared to originate from one of the company’s vendors. The email attached a fraudulent invoice in the amount of $498,000 and requested that the victim send payment to a bank in Hong Kong. The victim paid the invoice, together with a second invoice in the same amount, wiring a total of $996,000 to a bank account in Hong Kong.
In January and April 2020, Christian Akhatsegbe and his conspirators perpetrated a similar scheme against two other United Kingdom-based companies, sending fraudulent invoices in the amount of $498,000 and $980,000, respectively. But these victim companies recognized the invoices as fraudulent and did not remit payment. In total, the conspirators sent victim companies fraudulent invoices in the amount of $12,861,290.59. Of this amount, victims paid invoices in the total amount of $2,268,329.69.
The investigation further revealed that Christian Akhatsegbe utilized stolen identities to submit 40 fraudulent applications for COVID-19 Economic Injury Disaster loans in the amount of $2,905,100 during the time period of July 2020 to September 2020. The U.S. Small Business Administration in turn approved loans in the amount of $220,700.
Christian Akhatsegbe, 36, of Atlanta, Georgia, has been sentenced to seven years, three months in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $2,001,083.45. Akhatsegbe was convicted on these charges on April 12, 2022, after he pleaded guilty.
This case was investigated by the Federal Bureau of Investigation. Valuable assistance has also been provided by Microsoft Corporation’s Digital Crimes Unit and the City of London Police in the United Kingdom.
Assistant U.S. Attorney Michael Herskowitz and Natalie Tecimer, Trial Attorney of the Department of Justice, Criminal Division, Computer Crime & Intellectual Property Section, prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Assistant U.S. Attorney Amanda Masselam Strachan Named 2023 Most Outstanding Assistant U.S. Attorney by National CommitteeRead the Press Release
BOSTON – Assistant U.S. Attorney (AUSA) Amanda P. Masselam Strachan, Co-Chief of United States Attorney Rollins’ Criminal Division, has been selected by the National Association of Former United States Attorneys (NAFUSA) as the recipient of its 2023 J. Michael Bradford Memorial Award for Most Outstanding Assistant United States Attorney.
Each year, the distinguished J. Michael Bradford Memorial Award is awarded to one AUSA in the nation in recognition of outstanding performance. The recipient is selected for their remarkable handling of a significant investigation and prosecution(s) that has had a significant impact and merits special recognition. AUSA Strachan is the sixth woman to be awarded this honor since its inception in 1999.
“AUSA Strachan is an outstanding lawyer, a fierce advocate on behalf of victims, and a leader among leaders in our District and the legal community. Her acumen, compassion and dedication are evident in every case she has prosecuted over the course of her 16-year career as an AUSA, but her decade-long role in pursuing justice for the 793 victims of the New England Compounding Center (NECC) fungal meningitis outbreak makes her uniquely deserving of this exceptional honor,” said U.S. Attorney Rollins.
In the fall of 2012, a nationwide outbreak of fungal meningitis infected patients in 20 states. The CDC and FDA traced the fungal infections to contaminated steroid injections (MPA) produced by NECC, a compounding pharmacy then located in Massachusetts. NECC had sold and shipped more than 17,000 vials of contaminated MPA to medical facilities throughout the nation. The CDC identified staggering amounts of contamination within these supposedly sterile vials of MPA, which doctors injected into patients’ bodies to treat back and joint pain. NECC’s contaminated drugs infected at least 793 individuals and caused more than 100 of them to die.
The fungal meningitis outbreak is the largest public health crisis ever caused by a compounded drug. AUSA Strachan and her team conducted a thorough investigation which uncovered evidence of widespread systemic fraud at NECC and a shocking disregard for patients’ lives. The investigation discovered dangerously unsafe production practices and unsanitary conditions inside NECC’s facility.
In December 2014, 14 NECC owners, employees and executives were indicted on numerous counts, including RICO, RICO conspiracy, conspiracy to defraud the FDA, mail fraud, structuring, and FDCA violations. Between 2017-2019, AUSA Strachan led four trials against the defendants (totaling 24 weeks), and four other defendants pleaded guilty. In total, 13 defendants were convicted of 168 counts. Additionally, AUSA Strachan won four affirmative appeals in this case before the First Circuit to ensure full accountability for the defendants and complete recognition for all 793 victims.
AUSA Strachan’s tireless advocacy on the victims’ behalf went beyond the courtroom; she successfully lobbied the Office of Victims of Crime to recognize the fungal meningitis victims as crime victims and helped secure for them a $40 million federal contribution to the Victims of Violent Crimes Compensation Fund. In the face of this unprecedented national tragedy, AUSA Strachan’s steadfast commitment to holding the wrongdoers accountable secured a measure of justice for the victims and their families and shined a light on the abuses of the compounding pharmacy industry.
“As brilliant and tenacious as she is as a lawyer, AUSA Strachan also has demonstrated that she is an exceptional leader. She inspired and empowered a team of AUSAs, legal assistants, victim specialists, and other professionals to do their best work on behalf of these victims. Her impressive mentoring and management skills led me to promote her to Co-Chief of our Criminal Division, making her only the second woman ever appointed to lead the Criminal Division,” said U.S. Attorney Rollins.
AUSA Strachan is a two-time recipient of the Attorney General’s Award for Distinguished Service (2013, 2019) and received EOUSA’s Director’s Award for Superior Performance by a Litigative Team in 2020. In 2019, AUSA Strachan was named a Top Woman of Law by Massachusetts Lawyers Weekly.
Alma Woman Sentenced to 30 Months for Possession of Stolen FirearmsRead the Press Release
United States Attorney Steven Russell announced that Erin Leigh Gehrig, 41, of Alma, Nebraska, was sentenced today by Senior United States District Court Judge John M. Gerrard to 30 months’ imprisonment following her conviction for possession of stolen firearms. After she completes her prison sentence, Gehrig will also serve three years on supervised release. There is no parole in the federal system. Gehrig pleaded guilty to the offense on October 13, 2022.
A home in Bertrand, Nebraska, was burglarized on April 13, 2021. The victim of the burglary is related to Gehrig. Fourteen firearms were taken in the burglary. Gehrig later told police that another person approached her and said he wanted to steal firearms. Gehrig told that person about the residence in Bertrand, and allowed that person to use her minivan. That person later returned, and the 14 stolen firearms were in the back of the minivan. Gehrig arranged for the sale of the stolen firearms for $1,500 to two other persons. Law enforcement executed a search warrant at the home of the purchasers. Thirteen of the 14 stolen firearms were recovered when that home was searched.
The investigation was conducted by the Federal Bureau of Investigation, the Department of Homeland Security, the Kearney Police Department, and the Phelps County Sheriff’s Office. 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.
16 March 2023
Wyandotte Man Sentenced for Stealing $10,000+ in Grant Funds Allocated for Tribal Youth ProgramsRead the Press Release
A man who stole grant funding awarded to the Eastern Shawnee Tribe of Oklahoma was sentenced Thursday in federal court, announced U.S. Attorney Clint Johnson.
U.S. District Judge Gregory K. Frizzell sentenced Travis Neil Patton, 33, of Wyandotte, to five years of probation for theft from Indian tribal organization. He was further ordered to pay $10, 782.60 in restitution.
Between June and October 2019, Patton knowingly embezzled $10, 782.60 worth of grant funding that had been awarded to the Eastern Shawnee Tribe of Oklahoma by the federal government. The grant money was allocated to support programs to help tribal youth struggling with addiction and mental health issues. Patton had access to and control of the funds when he committed the crime.
The Department of Health and Human Services- Office of Inspector General and FBI were the investigative agencies. Assistant U.S. Attorney Rick Cella prosecuted the case.
Woodland Hills Man Arrested in Federal Case Alleging He Extorted ‘Protection’ Money from Koreatown BusinessesRead the Press Release
LOS ANGELES – Authorities this morning arrested a Woodland Hills man on federal charges that allege he was extorting “protection” money from Koreatown businesses, sometimes using acts of violence against individuals who refused to pay.
Daekun Cho, 38, was arrested by special agents from Homeland Security Investigations (HSI) and officers from the Los Angeles Police Department pursuant to a federal criminal complaint filed last week. The complaint charges Cho with interference with commerce by threats or violence. Cho is expected to make his initial appearance this afternoon in United States District Court in downtown Los Angeles.
The federal investigation in this case began about a year ago and found that Cho was demanding protection money from karaoke businesses in Koreatown, as well as from “doumi” – or hostesses – employed by patrons of the karaoke establishments.
“To further his extortion scheme, Cho committed shootings, a carjacking, a kidnapping, and other acts of physical violence,” according to the complaint affidavit. “Cho made explicit threatening statements to the doumi drivers and karaoke bar owners to get them to pay a monthly fee.”
The affidavit outlines physical attacks of four victims over the past year and discusses another victim who was threatened. The first victim discussed in the affidavit was a doumi driver, who, after refusing to pay the protection money after a price increase, was subject to a baseball bat beating, allegedly by Cho and another individual, on May 8, 2021. The victim suffered a broken arm and multiple lacerations, the affidavit states.
In another incident on August 5, 2022, at a karaoke bar, Cho demanded that a doumi driver leave the location, and, as the driver and two doumis were driving away, they heard gunshots and one of the doumis suffered a gunshot wound to the neck, according to the affidavit, which notes this incident remains under investigation by the LAPD.
The fifth victim, who reported he had been paying Cho for approximately four years, told investigators that he had decided to stop paying Cho before Cho allegedly assaulted him and stole approximately $1,000 from him on January 24. The affidavit details how that victim, working with law enforcement, made an extortionate $500 payment to Cho on February 16.
A complaint contains allegations that a defendant committed a crime. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The charge of interference with commerce by threats or violence carries a statutory maximum sentence of 20 years in federal prison.
HSI and the LAPD are investigating this matter.
Assistant United States Attorney Jena MacCabe of the Violent and Organized Crime Section is prosecuting this case.
Washington Man Sentenced to 90 Months for Identity Theft Scheme Spanning Idaho and Several Western StatesRead the Press Release
BOISE – Ryan M. Tichy, 43, of Seattle, was sentenced to 90 months in federal prison for wire fraud and aggravated identity theft, U.S. Attorney Josh Hurwit announced today.
According to court records, from at least May 2018 through November 2020, Tichy executed a scheme to defraud wherein he obtained the means of identification of many individuals and used that information to create false identification documents, open credit accounts, obtain loans, takeover existing credit accounts, and make purchases. The fraudulently-obtained means of identification included names, social security numbers, dates of birth, and account numbers. After he gathered that information, Tichy would often create a fake driver’s license using his picture but the victim’s name. Tichy travelled around Washington, Idaho, Oregon, Nevada, and elsewhere to make fraudulent purchases.
When law enforcement executed a search warrant on December 2, 2020, they discovered a mobile identity theft lab inside a trailer Tichy purchased using another person’s identity. The trailer contained materials, machines, computers, and printers for use in producing counterfeit identity cards and debit/credit cards. The trailer also contained foils, blank stock for driver’s licenses, an embosser, a card punch, printers, counterfeit driver’s licenses in various stages of completion, and counterfeit credit cards.
Tichy has multiple prior convictions for identity theft-related crimes, including prior federal convictions for social security number fraud (Case No. 2:08-cr-00237-MJP) and possession of a document making implement, possession of counterfeit identification, and possession of stolen mail (Case No. 2:03-cr-00449-MJP).
“As this case shows, identify theft is a problem that can quickly cross borders and affect many communities and victims,” said U.S. Attorney Hurwit. “I am grateful for the dedicated law enforcement agents we work with who use sophisticated tools to track down these types of criminals and hold them accountable.”
“Mr. Tichy is a prolific identity thief who victimized dozens of individuals and businesses after cutting off his ankle monitor while under federal supervised release following his time spent in prison for prior identify-theft related offenses,” said Gail S. Ennis, Inspector General for the Social Security Administration. “This sentence demonstrates our tireless commitment to hold those accountable for misusing Social Security numbers. I appreciate the U.S. Attorney’s Office for supporting our investigation, and I want to thank our law enforcement partners for their efforts to see justice done in this case.”
U.S. Attorney Josh Hurwit credited the cooperative efforts of the Social Security Administration Office of Inspector General, Boise Police Department, United States Marshals Service, Meridian Police Department, Nampa Police Department, Edmonds Police Department, Island County Sheriff’s Office, Kirkland Police Department, Lynden Police Department, Marysville Police Department, Port of Portland Police Department, Redmond Police Department, Reno Police Department, Seattle Police Department, Snohomish County Sheriff’s Office, Spokane Police Department, and the Union Gap Police Department, which led to the charges.
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Waco Return Preparers Sentenced to Prison in Tax SchemeRead the Press Release
A group of Texas tax return preparers were sentenced to prison yesterday for conspiring to file false tax returns.
According to court documents, between 2012 and 2017, Labanda Loyd, Deidra Brandon, Shaterian Parr, Jaleesia Sais, and Lashamekwa Alexander worked as return preparers at Tax World and another tax preparation firm in Waco. Loyd also served as manager and Brandon was, at times, Loyd’s assistant manager. Together, they conspired to prepare and file tax returns that fraudulently claimed refunds their clients were not entitled to receive. As manager, Loyd instructed some of her coconspirators how to prepare the false returns. For some clients, the conspirators completely fabricated employment, wage and tax withholding information on their clients’ returns. For others, they altered the wages and withholdings legitimately reported to the IRS by their employers. In all, the conspirators caused a tax loss exceeding $1.8 million.
Loyd was sentenced to 51 months in prison, Sais was sentenced to 40 months in prison, Brandon was sentenced to 12 months and one day in prison, Parr was sentenced to five years of probation and Alexander was sentenced to 40 months of probation. In addition, Loyd, Sais, Brandon, Alexander and Parr were each ordered to pay $918,396 in restitution to the United States.
“Return preparers are entrusted to accurately report clients’ income tax information,” said Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division. “Those who violate that trust, as these defendants did, will face the consequences.”
“The sentencing of these criminals for their tax crimes during the ongoing tax season is a timely reminder justice will always prevail,” said Acting Special Agent in Charge Rodrick J. Benton of IRS-CI’s Houston Field Office. “These tax preparers submitted false returns claiming fraudulent refunds to the IRS, all while betting they would not get caught. But the one thing they all forgot; no one is better at following the money than IRS-CI Special Agents.”
IRS-Criminal Investigation investigated the case.
Trial Attorneys Patrick Elwell, Matthew Hicks and Wilson Stamm of the Justice Department’s Tax Division prosecuted the case.
Virginia Man Sentenced to 10 Years in Prison in Project Safe Childhood CaseRead the Press Release
PITTSBURGH - A former resident of Alexandria, Virginia, has been sentenced in federal court to 10 years’ imprisonment followed by 10 years’ supervised release on his conviction for federal crimes related to the sexual exploitation of a minor, Acting United States Attorney Troy Rivetti announced today. Specifically, Vutipawat was convicted after a plea of guilty on three counts: (1) Travel With Intent to Engage in Illicit Sexual Conduct, (2) Transportation With Intent to Engage in Criminal Sexual Activity, and (3) Obstruction of Justice – Hindering Communication Through Corrupt Persuasion,
Apipat Vutipawat, also known as “Viktor Vutipawat,” “Viktor Koi,” “Arty Freedom,” and “Victor Kim,” age 29, of Alexandria Virginia, pleaded guilty to three counts before Senior United States District Judge Joy Flowers Conti.
According to information presented to the court, Vutipawat, then 26 years old, was arrested in mid-May 2020 in Washington County, Pennsylvania on charges related to the sexual abuse of a 14-year-old minor. At that time, Vutipawat was released on bond and returned to his home state of Virginia. On May 29, 2020, Vutipawat traveled from Virginia to the Western District of Pennsylvania and assisted the minor in absconding from placement. Vutipawat then took the minor to an apartment in Virginia. Vutipawat’s travel from Virginia to Pennsylvania was tracked by his cellular telephone. Other evidence on Vutipawat’s cell phone, including his internet search history, indicated Vutipawat’s intent to engage in sexual contact with the minor when he traveled to Pennsylvania and then transported the minor back to Virginia. Vutipawat originally met the minor on a website called “Secret Benefits” and presented himself to the minor as a wealthy businessman.
Assistant United States Attorney Heidi M. Grogan is prosecuting this case on behalf of the government.
Homeland Security Investigations-Pittsburgh, Homeland Security Investigations-York, Homeland Security Investigations-DC, Pennsylvania State Police, North Strabane Township Police Department, and the Fairfax County Police (Virginia) conducted the investigation that led to the prosecution of Vutipawat.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Union County Man Admits Role in Scheme to Steal Mail, Commit Credit Card Fraud, and Defraud United StatesRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, man admitted his role in a scheme to receive stolen credit cards and pandemic relief debit cards sent through the mail, commit bank fraud, and defraud the U.S. Postal Service and the U.S. Department of the Treasury, U.S. Attorney Philip R. Sellinger announced today.
Justin Brooks, 23, of Vauxhall, New Jersey, pleaded guilty before U.S. District Judge Claire C. Cecchi on March 15, 2023, to three counts of an indictment charging him with: one count of conspiracy to commit mail theft and bank fraud, and to defraud the U.S. Postal Service and U.S. Department of the Treasury; one count of receiving stolen mail; and one count of bank fraud.
According to documents filed in this case and statements made in court:
From July 2019 to Oct. 6, 2020, Books and his conspirators obtained credit cards stolen from the U.S. mail from a U.S. Postal Service letter carrier, fraudulently activated those credit cards, and then used those credit cards to make and attempt to make purchases without the cardholders’ authorization. The victims have incurred approximately $70,000 in losses from fraudulent purchases made using their stolen credit cards. Brooks also schemed to fraudulently use over $13,000 of funds pre-loaded onto Economic Impact Payment (EIP) cards issued by the U.S. Department of Treasury and sent in the U.S. mail pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), that were also stolen from the mail. The CARES Act authorized EIP payments structured as one-time refundable tax credits to certain eligible taxpayers of $1,200 for individuals, $2,400 for married couples filing jointly, and up to $500 for each qualifying child. The goal of this part of their fraud was for the conspirators to unlawfully obtain the government funds pre-loaded onto these cards.
The conspiracy and possession of mail theft charges are each punishable by a maximum potential penalty of five years in prison and a maximum fine of up to $250,000. The bank fraud charge is punishable by a maximum potential penalty of 30 years in prison and a maximum fine of up to $1 million. Sentencing is scheduled for July 20, 2023.
Brooks originally was charged with Jarid Brooks, 29, Kyle Williams, 37, and Kyjuan Hutchins, 23, also of Vauxhall, in October 2020. Jarid Brooks’ case is pending before Judge Cecchi, and he is presumed innocent unless and until proven guilty. Williams has pleaded guilty to conspiring to commit access device fraud and was sentenced. Hutchins has pleaded guilty to conspiring to commit access device fraud and is awaiting sentencing.
U.S. Attorney Sellinger credited postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Postal Inspector in Charge Damon Wood, Philadelphia Division; special agents with the U.S. Postal Service – Office of Inspector General, under the direction of Special Agent in Charge Matthew Modafferi, Northeast Area Field Office; and special agents with the Office of the Treasury Inspector General for Tax Administration (TIGTA), under the direction of Special Agent in Charge Andrew McKay, with the investigation leading to today’s guilty plea. He also thanked the Union County Prosecutor’s Office, the Caldwell Police Department, the Fairfield Police Department, the Boonton Police Department, and the Millburn Police Department for their assistance.
The government is represented by Assistant U.S. Attorney Elaine K. Lou, Chief of the Opioid Abuse Prevention and Enforcement Unit of the Criminal Division in Newark.
brooks.indictment.pdfU.S. Postal Service Employee Charged with Mail TheftRead the Press Release
PITTSBURGH - A resident of Rochester, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal Postal laws, Acting United States Attorney Troy Rivetti announced today.
The one-count Indictment named Adam Gallagher, age 38, as the sole defendant.
According to the Indictment, on Oct. 19, 2022, Gallagher engaged in theft of mail matter while employed by the United States Postal Service.
The law provides for a maximum total sentence of not more than five years in prison, a fine of not more than $250,000, a term of supervised release of not more than three years, or a combination thereof. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The United States Postal Inspection Services conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
U.S. Attorney Office Seizes $24,000 in Suspected Cryptocurrency ScamRead the Press Release
FAIRVIEW HEIGHTS, Ill. – The U.S. Attorney’s Office in the Southern District of Illinois announced Thursday the seizure of cryptocurrency valued at approximately $24,000 from an account believed to be involved in a fraud scheme against an O’Fallon resident.
“Many of us are still learning the facts about buying and trading cryptocurrency, and as in many cases, scammers are targeting the vulnerable,” said U.S. Attorney Rachelle Aud Crowe. “I appreciate the collaboration between the O’Fallon Police Department and the U.S. Secret Service for their efforts to recover the victim’s funds.”
“The U.S. Secret Service is dedicated to safeguarding the integrity of U.S. financial systems and preventing the public from losing their hard-earned money to these types of scams,” said Stephen S. Webster, Resident Agent in Charge of the U.S. Secret Service Springfield Office. “Unfortunately, new technology has made it easier for individuals abroad to take advantage of innocent victims throughout the United States. The U.S. Secret Service worked quickly with our partners at the U.S. Attorney’s Office in the Southern District of Illinois and O’Fallon Police Department to seize this cryptocurrency and prevent it from lining the pockets of criminals overseas.”
The U.S. District Court issued a default judgment on Feb. 15 on a civil forfeiture complaint. The civil forfeiture complaint, which was filed on Sept. 21, 2022, sought the seizure of 14.77997889 Ethereum (ETH) Cryptocurrency from a Binance Account holder based in Nigeria.
According to an exhibit filed in support of the government’s civil forfeiture complaint, a woman contacted the O’Fallon Police Department in June 2022 to report she was a victim of fraud in a suspected cryptocurrency scam worth more than $32,000.
In May 2022, the victim began communicating with a Twitter account unbeknownst to her at the time was impersonating a cryptocurrency influencer. The fraudster instructed her to deposit $32,662 worth of Bitcoin into a “3Twarriorstrading.com” account. By the time the victim realized the website was a scam, she could not retrieve the cryptocurrency.
The value of the forfeited property will be returned to the victim through a process known as remission. The victim lost about $32,000, but the investigation could only trace and forfeit property worth approximately $24,000.
No criminal charges have been filed related to the civil forfeiture.
The O’Fallon Police Department and the U.S. Secret Service contributed to the investigation. Assistant U.S. Attorney Adam E. Hanna is prosecuting the case.
Two Wolf Point residents admit roles in kidnapping, assault of minor girl on Fort Peck Indian ReservationRead the Press Release
GREAT FALLS — Two Wolf Point residents suspected in the kidnapping and assault of a girl on the Fort Peck Indian Reservation in 2021 today admitted their roles in the abduction, U.S. Attorney Jesse Laslovich said.
Dylan Troy Jackson, 22, and co-defendant Kaylee Jade Jackson, 19, each pleaded guilty to kidnapping of an individual under 18. The defendants face a mandatory minimum 20 years to a maximum of life in prison, a $250,000 fine and not less than five years to a lifetime of supervised release.
Chief U.S. District Judge Brian M. Morris presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other sentencing factors. Sentencing was set for July 26 for Dylan Jackson and Aug. 3 for Kaylee Jackson. Both defendants were detained pending further proceedings.
The government alleged that on Sept. 15, 2021, a group of individuals lured a 15-year-old girl, identified as Jane Doe, out of her house in Wolf Point and kidnapped her. That evening, after telling Kaylee Jackson about how Jane Doe had wronged him, co-defendant Cheri Cruz Granbois offered to pay Kaylee Jackson to lure the victim from her house so she could be assaulted. Kaylee Jackson accepted the offer and accompanied Granbois and others, including Dylan Jackson, to Jane Doe’s home. Kaylee Jackson lured Jane Doe out of her house, and the situation escalated. Some of the individuals in the group assaulted the victim. When eyewitnesses yelled that they were going to call the police, some of individuals kidnapped Jane Doe, forcing her into a vehicle and driving to a vacant field where the assault continued. Dylan Jackson helped to seize and abduct the victim.
Co-defendants Patti Jo Annunciata Mail, Lavanchie Patricia Goodbird and Elmarie Amelia Weeks have pleaded guilty to charges in the case and are pending sentencing. Granbois has pleaded not guilty to charges and is pending trial.
Assistant U.S. Attorneys Wendy A. Johnson and Ryan G. Weldon are prosecuting the case, which was investigated by the FBI, Fort Peck Law Enforcement, Roosevelt County Sheriff’s Office and Wolf Point Police Department.
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Two New Orleans Men Plead Guilty to Jung Hotel ShootingRead the Press Release
NEW ORLEANS, LOUISIANA – DARIUS DANNEL, a/k/a “DD,” and TERRELL MOORE, a/k/a “Rell,” pled guilty to various violations of the Federal Gun Control, the Federal Controlled Substances, and Hobbs Act before the Honorable Judge Ivan L.R. Lemelle announced U.S. Attorney Duane A. Evans.
According to court documents, DANNEL and MOORE pled guilty to Counts 1, 2, 3, and 4 of the superseding indictment. Count 1 charged them with attempted Hobbs Act Robbery, in violation of Title 18, United States Code, Sections 1951 and 2. Count 2 charged them with participating in a conspiracy to possess with the intent to distribute quantities of marijuana, in violation of Title 21, United States Code, Sections 841(a)(1), (b)(1)(D), and 846. Count 3 charged the defendants with using, carrying, and discharging a firearm during and in relation to a drug trafficking crime, in violation of Title 18, United States Code, Sections 924(c) and 2. Count 4 charged the defendants with participating in a conspiracy to possess firearms in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(o).
As to Count 1, DANNEL and MOORE face a maximum sentence of 20 years in prison, a fine of not more than $250,000.00, and up to three years of supervised release. As to Count 2, the defendants face a maximum sentence of 5 years in prison, a fine not to exceed $250,000.00, and at least two years supervised release. As to Count 3, the defendants face a mandatory minimum of 10 years and a maximum of life in prison, a fine of not more than $250,000.00, and up to five years supervised release. The prison sentence imposed for Count 3 must be served consecutively to any other prison sentence imposed in connection with this case and any other case. Finally, as to Count 4, DANNEL and MOORE face a maximum sentence of 20 years in prison, not more than a $250,000.00 fine, and up to three years of supervised release. As to each count, DANNEL and MOORE face payment of a mandatory $100 special assessment fee.
The sentencing for DANNEL and MOORE is scheduled for June 28, 2023 at 1:30 p.m.
The case stems from a shootout that occurred at the Jung Hotel. On December 28, 2020, during an attempted armed robbery of significant amounts of marijuana, two groups engaged in a shootout in the Jung Hotel- one group who possessed the marijuana, the other group who tried to take the marijuana. In total, over 80 shots were fired and three people were shot. A good portion of this shootout was captured via the hotel security cameras. DANNEL and MOORE admitted to their participation in attempting to rob the drug dealers, and discharging their firearms during the attempted robbery. All six of the robber-perpetrators have pled guilty to their charged crimes before Judge Lemelle. Two of the marijuana distributors have pled guilty to similar crimes before United States District Court Judge Greg. G. Guidry. Judge Guidry sentenced Clarence Santiago to 30-years imprisonment for his role in the crimes on March 7, 2023. As part of the record, the Government introduced video surveillance of the event during Santiago’s sentencing hearing.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the federal Bureau of Alcohol, Tobacco, Firearms and Explosives and the New Orleans Police Department. It is being prosecuted by Assistant United States Attorneys Maurice Landrieu of the Narcotics Unit and Elizabeth Privitera, Chief of the Violent Crimes Unit.
Three Men Indicted in Connection with Violent Armed Bank Robbery on Martha's VineyardRead the Press Release
BOSTON – Three men have been indicted by a federal grand jury in Boston in connection with the Nov. 17, 2022 armed bank robbery of the Rockland Trust Bank in Tisbury, Mass.
Miquel Antonio Jones, 39, of Edgartown, and Omar Odion Johnson, 32 of Canterbury, N.H., were indicted on one count each of armed bank robbery and aiding and abetting. Romane Andre Clayton, 21, of Jamaica, was indicted on one count of being an accessory after the fact to armed bank robbery. Jones, Johnson and Clayton will appear in federal court in Boston at a later date. Following the defendants’ initial arrest and charge by criminal complaint in December 2022, Jones and Johnson have remained in custody and Clayton was released on conditions.
According to the charging documents, on the morning of Nov. 17, 2022, three masked and armed individuals forced their way into the rear door of the Rockland Trust Bank in Tisbury. All three individuals were wearing dark colored clothing and white masks resembling an elderly man with exaggerated facial features. According to witnesses, each of the individuals were allegedly carrying what appeared to be semi-automatic handguns. The video surveillance also showed that one of the individuals was carrying what appeared to be a walkie-talkie. Once inside the bank, one of the individuals allegedly held a gun to the head of one of the bank employees and forced him to open the bank’s vault. It is further alleged that the individuals entered the vault and took approximately $39,100, then bound the employees with duct tape and plastic zip ties, demanded access to one of their vehicles, and left the premises in an employee’s car.
A short time after the robbery, the stolen car was located in a parking lot approximately 2.3 miles from the bank and determined that, minutes after the robbery, the individuals allegedly left the parking lot in another vehicle.
Additionally, according to the charging documents, during a search of the Tisbury farm used by a local landscaping company that employs Jones, a glove, paper money band, zip tie and multiple rubber band – items consistent with the bank robbery – were recovered. During the search, investigators observed an area that appeared to have had a recent fire, and found burned pieces of nylon, white metal plastic consistent with a white mask, burned walkie-talkie pieces, an antennae, batteries and pieces of metal consistent with a duffle bag zipper. Within a few feet of the burned area two semi-automatic handguns loaded with 9mm ammunition were discovered buried inches under the ground. These items, including the handguns, were consistent with items possessed by the robbers during the robbery of the Rockland Trust bank.
According to surveillance video obtained from the Steamship Authority ferry terminal in Vineyard Haven, it is alleged that less than 40 minutes after the robbery – at approximately 8:58 a.m. on Nov. 17, 2022 – Clayton was captured arriving in a silver sedan to a parking lot nearby the ferry terminal, parking the vehicle, purchasing ferry tickets and boarding a ferry at 9:21 a.m. Approximately 30 minutes later, at 9:53 a.m., Johnson is allegedly captured arriving to the same parking lot and getting into the driver’s seat of the silver sedan Clayton had previously arrived in and parked before boarding a ferry. It is further alleged that Johnson is later captured driving the silver sedan to the vehicle reservation clerk booth, purchasing a vehicle ferry ticket and boarding a freight ferry in the silver sedan at 12:24 p.m.
The charge of armed bank robbery provides for a sentence of up to 25 years in prison, five years of supervised release and a fine of $250,000. The charge of being an accessory after the fact to armed bank robbery provides for a sentence of up to 150 months in prison, five years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Cape & Islands District Attorney Robert Galibois; John E. Mawn Jr., Interim Colonel of the Massachusetts State Police; Tisbury Police Chief Chris Habekos; West Tisbury Police Chief Matt Mincone; Edgartown Police Chief Bruce R. McNamee; Chilmark Police Chief Jonathan Klaren; Oak Bluffs Police Chief Jonathan Searle; Aquinnah Police Chief Randhi P. Belain; and Canterbury (N.H.) Police Chief Michael Labrecque made the announcement today. Valuable assistance was provided by the United States Postal Inspection Service; the Bureau of Alcohol Tobacco and Firearms; Immigration and Customs Enforcement; and the United States Customs and Border Protection. Assistant U.S. Attorneys Meghan C. Cleary and Kenneth G. Shine of Rollins’s Major Crimes Unit are prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Texas Man Sentenced for $2 Million Medicare FraudRead the Press Release
NORFOLK, Va. – A Texas man was sentenced today to 66 months in prison for conspiring to defraud Medicare of more than $2 million by submitting thousands of fraudulent claims for durable medical equipment.
According to court documents, Jordan Thomas Broome, 37, was the owner and operator of Beach Medical Suppliers, LLC (“Beach Medical”), which had its storefront in Virginia Beach. Broome enrolled Beach Medical in Medicare in 2018 and thereafter submitted thousands of fraudulent claims for durable medical equipment such as back and knee braces. Working with other companies and individuals, Beach Medical would unlawfully obtain the personal identifying information of elderly Medicare beneficiaries, mail them braces that they never wanted or needed, and then submit fraudulent bills to Medicare. The scheme included a network of doctors who would “robo-sign” prescriptions for patients the doctors had never met. During the scheme, which lasted until federal agents executed a search warrant at Beach Medical in late 2020, Beach Medical obtained approximately $2,153,200.44 in fraudulent billings involving more than 2,000 Medicare beneficiaries.
Broome is a graduate of the U.S. Naval Academy and a former Naval officer.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Maureen R. Dixon, Special Agent in Charge of the Office of Inspector General for the U.S. Department of Health and Human Services (HHS); and Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Elizabeth Wilson Hanes.
Assistant U.S. Attorneys E. Rebecca Gantt and Kevin P. Hudson prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:22-cr-79.
Texarkana Man Sentenced to 30 Years in Federal Prison for Production of Child PornographyRead the Press Release
TEXARKANA – A Texarkana, Arkansas, man was sentenced today to 30 years in prison, followed by lifetime supervised release, on one count of Sexual Exploitation of a Minor via Production of Child Pornography. There is no parole in the federal system. The Honorable Chief Judge Susan O. Hickey presided over the sentencing hearing in the U.S. District Court in Texarkana.
According to court documents, Michael Ray Beam, age 32, used the social media service Snapchat to induce a 13-year-old Texarkana, Arkansas, girl to send him nude images and videos of herself, amounting to child pornography under federal law. The victim told authorities that Beam had left a “vape” device in her home mailbox in exchange for her sending him images and videos of herself engaging in specific sexual acts. Using the Snapchat service, Beam had been able view the victim’s real-time physical location, at her Texarkana, Arkansas, residence. Following Beam’s arrest on state charges, investigators obtained a warrant to search a smart phone found in his possession. In Beam’s phone, investigators found multiple ‘screen capture’ video recordings of the child pornography he had received via Snapchat from the young victim.
Beam was indicted by a Grand Jury sitting in the Western District of Arkansas in September 2021, and entered a plea of guilty in March 2022.
U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
The Miller County Sheriff’s Department, the Wake Village, Texas, Police Department, and the FBI investigated the case.
Assistant U.S. Attorney Graham Jones prosecuted the case.
This case was prosecuted 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.
Staten Island Man Pleads Guilty to Baby Formula Fraud SchemeRead the Press Release
BROOKLYN – Earlier today, in federal court in Brooklyn, Vladislav Kotlyar pleaded guilty to defrauding insurance plans and medical suppliers by fraudulently procuring specialty baby formula. When sentenced for mail fraud, Kotlyar faces up to 20 years in prison. The proceeding was held before United States District Judge William F. Kuntz, II.
Breon Peace, United States Attorney for the Eastern District of New York, Kenneth A. Polite, Jr., Assistant Attorney General of the Justice Department’s Criminal Division, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the guilty plea.
According to court filings, Kotlyar submitted forged prescriptions and medical records for specialty baby formula that was paid for by health insurers. Kotlyar obtained prescriptions and medical records for infants who were prescribed specialty baby formula and forged those records to obtain additional specialty baby formula. After receiving the specialty baby formula, Kotlyar fabricated issues with the shipments, including falsely claiming they were damaged or the incorrect formula in order to obtain additional formula at no additional cost. As part of the scheme, Kotlyar and his co-conspirators submitted more than $1.9 million in fraudulent claims to health insurers, including during a national shortage of baby formula. Kotlyar agreed to forfeit approximately $1 million and pay more than $738,000 in restitution.
Trial Attorney Patrick J. Campbell of the Justice Department’s Fraud Section is prosecuting the case.
The Defendant:
VLADISLAV KOTLYAR
Age: 43
Staten Island, New YorkE.D.N.Y. Docket Number: 23-CR-75 (WFK)
St. Paul Felon Sentenced to 15 Years in Prison for Illegal Possession of a FirearmRead the Press Release
ST. PAUL, Minn. – A St. Paul man was sentenced to 15 years in prison, followed by five years of supervised release, for possessing a firearm as an Armed Career Criminal, announced U.S. Attorney Andrew M. Luger.
According to court documents, on March 17, 2022, Geraldo Jay Dilworth, 35, was in possession of a Springfield Armory .45 caliber pistol while waiting to board a train at the Union Depot Station in St. Paul. Because he has multiple prior felony convictions in Ramsey and Washington Counties, including domestic assault and terroristic threats, Dilworth is prohibited under federal law from possessing firearms or ammunition at any time.
Dilworth pleaded guilty on November 1, 2022, to one count of felon in possession of a firearm as an Armed Career Criminal. He was sentenced on March 14, 2023, by Senior Judge Susan Richard Nelson.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the St. Paul Police Department.
Assistant U.S. Attorney Lauren O. Roso prosecuted the case.
St. Louis Park Man Pleads Guilty to CyberstalkingRead the Press Release
ST. PAUL, Minn. – A St. Louis Park man has pleaded guilty to two counts of cyberstalking involving two victims, announced U.S. Attorney Andrew M. Luger.
According to the defendant’s guilty plea and court documents, between September 2020 through December 2021, Julyen Alonzo Martin, 30, cyberstalked and threatened to kill, injure, and harass the victims. In violation of orders of protection issued against him, Martin sent numerous threats and unwanted messages via text message and social media applications to a victim. As a part of his cyberstalking scheme, Martin created social media accounts posing as one of the victims online and posted harmful allegations about the victims. According to court documents, Martin also contacted the National Center for Missing and Exploited Children (“NCMEC”), falsely alleging that one of the victims was using their work computer to view child pornography. Martin emailed and called the victim’s employer several times claiming the victim was a pedophile being investigated for child endangerment. Also, Martin posed as a federal agent in furtherance of his cyberstalking scheme and claimed to be an FBI Special Agent intending to search the victim’s place of work for evidence.
Martin pleaded guilty yesterday in U.S. District Court before Senior Judge Susan Richard Nelson to two counts of cyberstalking. A sentencing hearing is scheduled for August 8, 2023.
This case is the result of an investigation conducted by the FBI.
Assistant U.S. Attorney Hillary A. Taylor is prosecuting the case.
St. Louis Man Admits Making Rape Threats to Five WomenRead the Press Release
ST. LOUIS – A man from St. Louis pleaded guilty Thursday to five federal felonies and admitted harassing and threatening to rape five women.
Robert D. Merkle, 54, pleaded guilty in U.S. District Court in St. Louis to all the counts he was facing: two counts of interstate communication of threats and three counts of cyberstalking. He admitted harassing women in the St. Louis area and across the country for months, while he was on parole for similar crimes with different victims.
The federal investigation began in January 2022, after a woman told the Town and Country Police Department that a man she’d met on a dating site more than seven years earlier sent a series of text messages in which he said he’d made a copy of her house key and was planning on breaking into her home two days later and raping her.
The FBI obtained a court-approved search warrant for Merkle’s home and cell phones, and discovered that he’d used emails, multiple cell phones and a service that can send texts anonymously to harass women.
Merkle met several of the women on dating sites and worked with another woman.
Both sides have agreed to recommend the maximum penalty for the crime, five years in prison, at Merkle’s sentencing. That sentencing is scheduled for June 21. Merkle still faces a pending felony charge of harassment in St. Louis County Circuit Court.
Merkle was charged with harassment in 2017 and 2018 in Jefferson County Circuit Court and St. Louis Circuit Court, resulting in a three-year prison sentence. Merkle was living in a halfway house in St. Louis at the time of his federal crimes.
The FBI, the Town and Country Police Department, the St. Louis Metropolitan Police Department, the Glen Ellyn (Illinois) Police Department and the Harrison County Sheriff’s Department and the Gulfport Police Department in Mississippi investigated this case. Assistant U.S. Attorney Colleen Lang is prosecuting the case.
Springdale Woman Sentenced to More Than 9 Years in Federal Prison for Drug TraffickingRead the Press Release
FAYETTEVILLE – A Springdale woman was sentenced yesterday to 110 months in prison followed by three years of supervised release on one count of Possession with Intent to Distribute Methamphetamine. The Honorable Judge Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court documents, on September 12, 2022, as part of an ongoing narcotics investigation, detectives with the Fourth Judicial District Drug Task Force (DTF) executed a search warrant at the residence of Edna May Meadath, age 63, in Springdale, Arkansas.
During the search, detectives located multiple digital scales, multiple drug ledgers, packaging materials for the sale and distribution of methamphetamine, two methamphetamine smoking pipes, banking receipts, and approximately 661 grams of suspected methamphetamine.
The suspected methamphetamine was sent to the Homeland Security Investigations Crime Laboratory where it tested positive for methamphetamine.
U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
The Fourth Judicial District Drug Task Force investigated the case.
Assistant U.S. Attorney Sydney Butler prosecuted the case.
Southeast Missouri Man Sentenced to 16 Years in Prison for Bank RobberyRead the Press Release
CAPE GIRARDEAU – United States District Judge Stephen N. Limbaugh, Jr., sentenced Keith Lamar Dunlap to 15 years in federal prison today for robbing the Citizens Bank of Sikeston on October 30, 2020. Dunlap, now 56, was also sentenced to serve a consecutive term of 12 months in federal prison for violating his supervised release in a 2013 bank robbery case.
Dunlap pleaded guilty on October 6, 2022, to the bank robbery charge. He admitted robbing Citizens Bank of Charleston on Oct. 30, 2020 after handing a note to a teller stating, “give me all stacks of $100 and $50 or I will shoot you.”
Dunlap was pulled over by the Missouri State Highway Patrol in Sikeston in a vehicle matching the description of the one used in the robbery. As stated in the plea agreement, a trooper found another threatening note in the vehicle as well as the cash taken in the robbery.
Dunlap was twice previously convicted of bank robbery in the United States District Court for the Eastern District of Missouri, in 2009 and 2013, for robbing banks in St. Louis and St. Louis County, respectively.
The FBI, the Missouri State Highway Patrol, and the Sikeston Department of Public Safety investigated this case. Assistant U.S. Attorney Paul W. Hahn handled the prosecution for the government.
Securities Fraud Fugitive Arrested and Returned to the United StatesRead the Press Release
NEWARK, N.J. – A former North Carolina resident appeared in court after he was arrested and returned to the United States from Phuket, Thailand, for his role in a large-scale market manipulation scheme related to two publicly traded companies, U.S. Attorney Philip R. Sellinger announced today.
Peter Coker Jr., 53, of Phuket, was charged in a 12-count indictment with conspiracy to commit securities fraud, securities fraud, and conspiracy to manipulate securities prices. Coker Jr., who was previously arrested in Phuket, Thailand, was returned to the United States today and made his initial appearance before U.S. Magistrate Judge Michael A. Hammer in Newark federal court on March 15, 2023. He was detained without bail. Peter Coker Sr. and James Patten were previously arrested on the indictment and those charges remain pending.
According to documents filed in this case and statements made in court:
From 2014 through September 2022, Patten, Coker Sr., and Coker Jr. conspired to enrich themselves through a scheme to manipulate securities prices via a pattern of coordinated trading, which injected inaccurate information into the marketplace, creating false impressions of supply and demand for these securities.
The defendants targeted two publicly traded companies – Hometown International Inc. and E-Waste Corp. – which were both traded on the OTC Link Alternative Trading System, also known as the OTC Marketplace. The OTC Marketplace is an alternative trading system that contains three tiers of markets, which are largely based on the quality and quantity of the listed companies’ information and disclosures.
Patten, Coker Sr., and Coker Jr. took steps to gain control of both entities’ management and stock with the ultimate intention of entering reverse mergers, a transaction through which an existing public company merges with a private operating company. A successful reverse merger would allow the defendants to sell shares of each entity at a significant profit.
In 2014, two New Jersey residents began the process of opening a local deli in Paulsboro, New Jersey. One of the individuals discussed his interest in opening the deli with Patten, a long-time friend, who suggested the creation of Hometown International, an umbrella corporation, under which the deli would operate as a wholly owned subsidiary. Unbeknownst to the deli owners, almost immediately after Hometown International was formed, Patten and his associates began positioning Hometown International as a vehicle for a reverse merger that would yield substantial profit to them.
In October 2019, Hometown International began selling shares on the OTC Marketplace. Shortly thereafter, Patten, Coker Sr., and Coker Jr. undertook a scheme to gain control of Hometown International’s management and its shares from the deli owners. Patten, Coker Sr., and Coker Jr. took similar actions to gain control of E-Waste Corporation’s stock and management.
Once the defendants gained control of Hometown International and E-Waste’s shares, they arranged for the transfer of millions of shares of stock to a number of nominee entities, including entities controlled by Coker Jr., in an effort to mask their control of the shares.
The defendants transferred shares to family members, friends, and associates and gained control over their trading accounts by obtaining their log-in information in order to conceal the defendants’ involvement. The defendants then used those accounts to commit a number of coordinated trading events, often referred to as match and wash trades, to trade in Hometown International and E-Waste Corp.’s stock on both sides of the transaction.
These tactics artificially inflated the price of Hometown International and E-Waste’s stock by giving the false impression that there was a genuine market interest in the stock. Their scheme had the ultimate impact of artificially inflating Hometown International’s stock by approximately 939 percent and E-Waste’s stock by approximately 19,900 percent.
The securities fraud count carries a maximum penalty of 20 years in prison and a $5 million fine. The counts of conspiracy to commit securities fraud and conspiracy to manipulate securities prices both carry a maximum penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense whichever is greatest.
In a separate civil action, the Securities and Exchange Commission previously filed a complaint in the District of New Jersey charging Patten, Coker Sr., and Coker Jr. based on the allegations underlying the market manipulation scheme.
U.S. Attorney Sellinger credited special agents of the FBI’s Philadelphia Division, under the direction of Special Agent in Charge Jacqueline Maguire, and special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy Tomlins in Newark, with the investigation.
The government is represented by Assistant U.S. Attorneys Shawn Barnes, Chief of the OCDETF/Narcotics Unit, and Lauren Repole, Chief of the General Crimes Unit.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
coker.indictment.pdfSan Jose Resident Faces Charge of Distributing FentanylRead the Press Release
OAKLAND – Ian Edward Parrish appeared today in United States District Court to face a federal charge that he distributed fentanyl in the form of counterfeit “M30” pills, announced United States Attorney Stephanie M. Hinds and Federal Bureau of Investigations (FBI) Special Agent in Charge Robert K. Tripp. Parrish made his initial appearance today in United States District Court in Oakland before United States Magistrate Judge Kandis A. Westmore.
The charge was set out in a criminal complaint filed March 14, 2023, and unsealed in federal court today. According to the criminal complaint, Parrish, 28, of San Jose, Calif., sold two counterfeit Percocet pills to an individual in a bar in Fremont. The complaint alleges that the counterfeit pills were in fact laced with fentanyl. The complaint alleges that the individual who purchased the pills consumed one and shortly thereafter died of an overdose.
The complaint charges Parrish with distribution of fentanyl, in violation of 21 U.S.C. 841(a)(1), (b)(1)(C). The statutory maximum for the charge is a maximum 20 years’ imprisonment, a maximum fine of $250,000, a maximum of 3 years’ supervised release, and a $100 special assessment. However, any sentence following a conviction would be imposed by a court only after considerations of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. 3553.
The charges contained in the criminal complaint are only allegations. As in any criminal case, the defendant is presumed innocent unless and until proven guilty in a court of law.
At today’s hearing, Parrish was ordered detained. His next federal court appearance is scheduled for March 21, 2023, before Magistrate Judge Westmore for a status conference to consider detention and additional issues.
Assistant U.S. Attorney Evan M. Mateer of the Oakland Branch of the United States Attorney’s Office is prosecuting the case with the assistance of Karina Ruiz. The prosecution is the result of an investigation by FBI and the Fremont Police Department.
One Pill Can Kill: Beware of pills bought on the street: One Pill Can Kill. Fentanyl, a Schedule II controlled substance, is a highly potent opiate that can be diluted with cutting agents to create counterfeit pills that purport to mimic the effects of Oxycodone, Percocet, and other drugs, but can be obtained at a lower cost. However, very small variations in the amount or quality of fentanyl create huge effects on the potency of the counterfeit pills and can easily cause death. Fentanyl has now become the leading cause of drug overdose deaths in the United States. Counterfeit, fentanyl-laced pills are usually shaped and colored to resemble pills that are sold legitimately at pharmacies.
SIM Card Swapping Fraudsters Sentenced in San AntonioRead the Press Release
SAN ANTONIO – A San Antonio man and woman were sentenced Wednesday in a federal court in San Antonio for their roles in a SIM card swapping fraud scheme.
According to court documents, Zena Elisa Dounson, 24, and Andrew Percy Trujillo, 22, conspired to access and transfer assets from victims’ cryptocurrency accounts via SIM swapping. A mobile phone uses a SIM card to store information that identifies and authenticates the subscriber to that cellular phone. A SIM swapping scheme allows a person to use other phones or devices as though they were the authorized subscriber. In November 2021, Dounson, an employee at the AT&T store at Ingram Park Mall, assisted Trujillo in adding himself as an authorized user to the accounts of multiple victims. Using his access as an apparent authorized user, Trujillo would add multiple devices to the accounts. Dounson would then transfer the victims’ SIM card credentials to the fraudulent SIM cards in Trujillo’s phones. When the victims’ original devices were locked due to suspected fraud, Trujillo accessed and transferred at least $250,000 worth of cryptocurrency from the victims’ investment accounts to his own account. Both defendants pleaded guilty in August 2022 to one count of conspiracy to commit computer fraud and abuse and wire fraud.
At the hearing, Trujillo was sentenced to 33 months in prison plus three years of supervised release. Additionally, he was ordered to pay approximately $282,000 in restitution. Dounson received a split sentence of two months in prison and five years of probation. She was also ordered to pay $282,000 in restitution.
“SIM Swapping is a rapidly growing type of fraud scheme that everyone should be aware of,” said U.S. Attorney Jaime Esparza of the Western District of Texas. “It’s particularly dangerous because it abuses access to two-factor authentication systems which are intended to provide additional security. Anyone who uses two-factor authentication should be mindful that it is not foolproof, and to still be on the lookout for any suspicious activity involving their phones.”
“The defendants in this case callously devised a scheme to transfer more than $250,000 of cryptocurrency from multiple victims for their own personal gain,” said Special Agent in Charge Oliver E. Rich Jr. of the FBI San Antonio Division. “This sentencing brings a measure of justice to victims and holds the defendants accountable for their actions."
The FBI investigated the case.
Assistant U.S. Attorneys Michael Galdo and Justin Chung prosecuted the case.
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Richmond Man Sentenced for Possession and Sale of Machinegun Conversion DevicesRead the Press Release
RICHMOND, Va. – A Richmond man was sentenced today to three years in prison for possessing and selling multiple machinegun conversion devices, also known as Glock switches, that are designed to convert firearms into fully automatic machineguns.
According to court documents, Zantias Tyler, 27, pleaded guilty to one count of possessing and transporting multiple machinegun conversion devices, which are illegal under federal law because they are designed solely to convert a firearm into a fully automatic weapon. In June 2022, the ATF Internet Investigations Branch identified a YouTube channel where Tyler showcased several videos promoting the manufacture and sale of devices specific to “Glock-Style” firearms, commonly referred to as “switches” or “Glock switches.”
Previously, in May 2022, Tyler had been stopped and questioned by Richmond police, and during that encounter, the officers recovered two Glock switches attached to Tyler’s key chain. Further investigation by the ATF intercepted packages mailed by Tyler containing more switches. Ultimately, two search warrants were executed on Tyler’s residence. In all, twelve conversion devices were seized by the ATF, along with a package of 30 additional device parts, two firearms, and evidence of dozens of online sales of these devices.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Michael T. Weddel, Acting Special Agent in Charge of the ATF’s Washington Field Division; Damon E. Wood, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; and Rick Edwards, Acting Chief of Richmond Police, made the announcement after sentencing by U.S. District Judge M. Hannah Lauck.
Assistant U.S. Attorney Peter S. Duffey prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:22-cr-145.
Residents of Pennsylvania and Ohio Indicted for Conspiring to Distribute CocaineRead the Press Release
JOHNSTOWN, Pa. – Residents of Pennsylvania and Ohio were indicted by a federal grand jury in Pittsburgh on a charge of violating federal narcotics laws, Acting United States Attorney Troy Rivetti announced today.
The Indictment named Raheem Hurst, 25, of Garfield Heights, OH; Samantha Jones, 40, of Arnold, PA; and Leah Jackson, 37, of New Kensington, PA, as the defendants.
According to the Indictment presented to the court, from September 2022, and continuing thereafter to March 2, 2023, Hurst, Jones, and Jackson conspired to possess with intent to distribute and distribute 500 grams or more of a mixture and substance containing a detectable amount of cocaine.
The law provides for a minimum sentence of 10 years in prison, a fine of $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Arnold P. Bernard, Jr. is prosecuting this case on behalf of the government.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The Federal Bureau of Investigation, Laurel Highlands Resident Agency and Homeland Security Investigations conducted the investigation leading to the Indictment in this case. Additional agencies participating in this investigation include the the Internal Revenue Service – Criminal Investigation, the United States Postal Inspection Service, and other local law enforcement agencies.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Realty Company Owner Pleads Guilty in Fraud SchemeRead the Press Release
PITTSBURGH, PA - A resident of Aliquippa, Pennsylvania, pleaded guilty in federal court to charges of bank fraud and conspiracy, Acting United States Attorney Troy Rivetti announced today.
Lee Ann Benninghoff, age 44, pleaded guilty to two counts before United States District Judge Marilyn J. Horan.
In connection with the guilty plea, the court was advised that Benninghoff owned and operated Complete Escrow and Bella Casa Realty. From February 2014 through March 2017, Benninghoff used her position and connections in real estate financing, and conspired with others in the industry, to submit fraudulent gift letters in support of mortgage loan applications The gift letters misrepresented the source of the funds and their purported purpose.
Judge Horan scheduled sentencing for July 12, 2023, at 9 a.m. The law provides for a total sentence of not more than 30 years in prison, a fine of not more than $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Robert S. Cessar is prosecuting this case on behalf of the government.
The Federal Housing Finance Agency Office of Inspector General, the U.S. Department of Housing and Urban Development Office of Inspector General, and the U.S. Secret Service conducted the investigation that led to the prosecution of Benninghoff.