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16 March 2023
Convicted Child Molester Is Found Guilty of Naturalization FraudRead the Press Release
CHARLOTTE, N.C. – A federal jury in Charlotte convicted Gregory Maxwell Palmer, 48, a naturalized citizen of Jamaica, of naturalization fraud, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Frank D. Whitney presided over the two-day trial which ended yesterday evening.
Sean Ervin, Field Office Director of U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations Division (ICE-ERO) joins U.S. Attorney King in making today’s announcement.
“Palmer used lies and deceit to cheat his way into an American citizenship,” said U.S. Attorney King. “Today’s guilty verdict holds Palmer accountable for his actions and sends a warning message to those who attempt to compromise the integrity of our naturalization process and violate our country’s immigration laws: You will not go unpunished.”
“Palmer’s attempts to exploit our nation’s immigration system have been discovered and now he faces the consequences of his actions,” said Director Ervin. “ERO and its law enforcement partners will continue to target those who seek to violate the sanctity of the U.S. immigration system.”
According to filed documents, evidence presented at trial, and witness testimony, in 2008, while Palmer was residing in Gastonia, N.C., he sexually abused a minor. Palmer later obtained his U.S. citizenship fraudulently by providing materially false information on his citizenship application. Trial evidence established that, during the naturalization process, Palmer lied about his criminal history, and failed to admit that prior to applying for citizenship, he had knowingly committed sexual acts with a child.
According to trial evidence, on May 5, 2011, Palmer submitted an application for naturalization to U.S. Citizenship and Immigration Services (CIS). Palmer lied on the application form by responding “No” to the question “Have you ever committed a crime or offense for which you were not arrested?” Palmer signed the form under penalty of perjury, and certified that his answers were true and correct. On October 5, 2011, Palmer appeared at the CIS office in Charlotte for a naturalization interview. During the interview, Palmer swore under oath that his responses on the naturalization application were true and that he had never committed a crime for which he had not been arrested. On October 20, 2011, Palmer participated in a naturalization ceremony at the CIS office in Charlotte and was granted U.S. citizenship.
According to court records, on June 6, 2013, in the Gaston County Superior Court, Palmer pleaded guilty to attempted statutory rape and was ordered to serve between 157 and 198 months in prison. Palmer admitted to having committed the crime on June 17, 2008, by taking advantage of a position of trust with a minor victim. Palmer was not arrested for the crime until after he became a naturalized citizen. Court documents show that while Palmer was going through the naturalization process, immigration officials were not aware of his criminal actions.
Palmer is currently serving a state prison sentence. The maximum penalty for unlawful procurement of citizenship is 10 years in prison and a $250,000 fine. A sentencing date has not been set.
In making today’s announcement, U.S. Attorney King thanked ICE-ERO for their investigation of the case and credited Operation False Haven, which led to Palmer’s conviction. False Haven is an ongoing ERO initiative purpose-built to identify individuals who fraudulently obtained U.S. citizenship.
Assistant U.S. Attorneys Kenneth Smith and Katherine Armstrong of the U.S. Attorney’s Office in Charlotte are in charge of the prosecution.
Co-Conspirator of Tucson Amtrak Shooter Pleads GuiltyRead the Press Release
TUCSON, Ariz. – Devonte Okeith Mathis, 24, of Mesquite, Texas, pleaded guilty yesterday to Conspiracy to Possess with Intent to Distribute Marijuana, and Using and Carrying a Firearm During and In Relation to a Drug Trafficking Crime and Possession of a Firearm in Furtherance of a Drug Trafficking Crime. Sentencing is scheduled for May 24, 2023, before United States District Judge Rosemary Márquez.
On October 4, 2021, Mathis and his co-conspirator were traveling together aboard an Amtrak train in Tucson, Arizona, when his co-conspirator shot and killed Drug Enforcement Administration (DEA) Special Agent Michael Garbo aboard the train. His co-conspirator also shot and injured a second DEA Special Agent and a DEA Task Force Officer. The co-conspirator died on the scene. Mathis admitted, in pleading guilty, that he knew that his co-conspirator possessed two handguns. He also admitted that it was reasonably foreseeable that his co-conspirator would possess the firearms in furtherance of their drug trafficking conspiracy, and that he would carry and use the two handguns during and in relation to their drug trafficking conspiracy.
“Yesterday was an important step in securing justice on behalf of a federal law enforcement agent,” said United States Attorney Gary Restaino. “We await the sentencing in this matter. In the meantime, we celebrate Michael Garbo’s life of service, we mourn with his family and his colleagues at the Drug Enforcement Administration, and we remember his end of watch on October 4, 2021.”
A conviction for Conspiracy to Possess with Intent to Distribute Marijuana carries a maximum penalty of a term of imprisonment of up to five years, a fine of up to $250,000, or both. A conviction for Using and Carrying a Firearm During and In Relation to a Drug Trafficking Crime and Possession of a Firearm in Furtherance of a Drug Trafficking Crime carries a mandatory minimum term of imprisonment of five years, to run consecutive to all other counts, a fine of up to $250,000, or both.
The Federal Bureau of Investigation conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, Phoenix, is handling the prosecution.
CASE NUMBER: CR-21-2714-TUC-RM-MSA
RELEASE NUMBER: 2023-035_Mathis# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest newsCherokee Woman Pleads Guilty to Meth ChargesRead the Press Release
A woman who conspired to distribute methamphetamine and possessed with intent to distribute methamphetamine pled guilty on March 15, 2023, in federal court in Sioux City.
Christina Gianopoulos-Rohrer, 50, from Cherokee, Iowa, was convicted of conspiracy to distribute and possession with the intent to distribute methamphetamine.
At the plea hearing, Gianopoulos-Rohrer admitted that on December 6, 2021, in Woodbury County, Iowa, law enforcement conducted a traffic stop of the vehicle in which she was a passenger. During a search of the vehicle, law enforcement seized approximately one pound of methamphetamine which Gianopoulos-Rohrer intended, with others, to distribute. Gianopoulos-Rohrer also admitted her involvement in a conspiracy that distributed at least 3 kilograms of methamphetamine from December 2019 through May 2022. Gianopoulos-Rohrer further admitted her involvement with others in obtaining methamphetamine from sources in California and Nevada and transporting it back to the Cherokee, Iowa area for further distribution.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Gianopoulos-Rohrer remains in custody of the United States Marshal pending sentencing. Gianopoulos-Rohrer faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, and at least five years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Iowa Division of Narcotics Enforcement, United States Postal Inspectors, Homeland Security Investigations, Iowa DCI Laboratory, and Cherokee Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-4002 and 22-4066. Follow us on Twitter @USAO_NDIA.
Chelsea Man Pleads Guilty to Being a Felon in Possession of a Firearm and AmmunitionRead the Press Release
BOSTON – A Chelsea man pleaded guilty yesterday to federal firearms offenses.
Miguel Reyes, 33, pleaded guilty to two counts of being a felon in possession of a firearm and ammunition and one count of being a felon in possession of ammunition. U.S. Senior District Court Judge Douglas P. Woodlock scheduled sentencing for July 27, 2023. Reyes was originally indicted by a federal grand jury in April 2021 and subsequently charged in a superseding Information on March 13, 2023.
On two separate occasions in August 2020, Reyes was found in possession of a Beretta, Model U22, .22 LR caliber pistol and ammunition and a Glock, model 48, 9 mm pistol and ammunition. Additionally, at the time of his arrest in Chelsea in May 2021, Reyes was found in possession of a Glock replica, polymer 80 and ammunition. Due to a prior felony conviction, Reyes is prohibited from possessing firearms and ammunition.
The charges of being a felon in possession of a firearm and ammunition each provide 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.
United States Attorney Rachael S. Rollins and James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division. Valuable assistance was provided by the Chelsea Police Department. Assistant U.S. Attorney Benjamin A. Saltzman of Rollins’ Criminal Division is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Career Offender Sentenced to Six Years in Federal PrisonRead the Press Release
PROVIDENCE – A 37-year-old Woonsocket man previously arrested more than two dozen times and convicted on nearly four-dozen charges, including assault, domestic assault, and drug trafficking, has been sentenced to six years in federal prison for his leadership role in a drug trafficking conspiracy, announced United States Attorney Zachary A. Cunha.
Juan Batista was among nearly two-dozen individuals arrested and charged during an expansive investigation, initiated in January 2020by the FBI Rhode Island Safe Streets Gang Task Force that targeted sources of supplies and suppliers of drugs and firearms across Rhode Island.
According to information presented to the court, not long after he was released from prison for trafficking in narcotics, and while still serving an eleven-year term of probation, Batista rebuilt his drug trafficking business in and around Woonsocket. His resumed drug trafficking activities included trafficking in fentanyl, powder cocaine, and crack cocaine.
Between February 26, and June 23, 2020, members of the FBI Task Force surveilled at least six occasions when drug purchases were requested from, and delivered by, members of the conspiracy, at times including Batista himself. The transactions included deliveries of between 6.74 and 33.98 grams of crack cocaine and 5.3 grams of fentanyl, for between $360 and $1,800. Law enforcement also seized over $18,000 in cash, 5 grams of cocaine, 35 grams of crack cocaine, and 120 grams of fentanyl inside a residence where Batista was living.
Batista pleaded guilty on May 5, 2021, to conspiracy to distribute 28 or more grams of cocaine base, distribution of 28 or more grams of cocaine base, and possession with intent to distribute 40 or more grams of fentanyl. He was sentenced today by U.S. District Court Chief Judge John J. McConnell, Jr., to 72 months in federal prison to be followed by four years of federal supervised release.
The case was prosecuted by Assistant U.S. Attorney Christine D. Lowell.
The Rhode Island FBI Safe Streets Gang Task Force consists of agents and law enforcement officers from the FBI, United States Marshals Service, Central Falls Police Department, Cranston Police Department, Pawtucket Police Department, Providence Police Department, West Warwick Police Department, Woonsocket Police Department, and Rhode Island State Police.
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Career Offender Sentenced to 14 Years in Federal Prison for Drug TraffickingRead the Press Release
FAYETTEVILLE – A Kansas, Oklahoma man was sentenced today to 168 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 July 31, 2022, detectives with the Benton County Drug Unit were investigating Christopher Dale Lewellen, age 42, for drug trafficking and determined he was wanted on multiple outstanding warrants for state charges. Records showed he had an active search waiver as a condition of parole.
After learning that Lewellen was traveling in a vehicle on Highway 412, detectives were able to locate and stop that vehicle and place Lewellen under arrest. A search of the vehicle resulted in detectives locating a black bag containing approximately 450 grams of suspected methamphetamine and drug paraphernalia. The suspected methamphetamine was later submitted to the Homeland Security Investigations Crime Laboratory for additional testing where it was tested and determined to be methamphetamine. Under Federal law, Lewellen is considered a Career Criminal, subject to enhanced penalties.
U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
The Benton County Drug Unit and Homeland Security Investigations Fayetteville investigated the case.
Assistant U.S. Attorney Sydney Butler prosecuted the case.
This case was prosecuted as part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Bowling Green Man Sentenced to 70 Months in Federal Prison for Fentanyl TraffickingRead the Press Release
Bowling Green, KY – A Bowling Green man was sentenced this week to 70 months in prison for trafficking in fentanyl.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge Rana Saoud of Homeland Security Investigations (HSI) Nashville, and Director Tommy Loving of the Bowling Green/Warren County Appalachia High Intensity Drug Trafficking Area (AHIDTA) Drug Task Force made the announcement.
According to court documents, on April 6, 2022, LeDrae Smith, 28, possessed with the intent to distribute 326.9 grams of a fentanyl mixture. Following release from prison, Smith was ordered to serve four years on supervised release. There is no parole in the federal system.
The case was investigated by the HSI Bowling Green and the Bowling Green/Warren County AHIDTA Drug Task Force.
Assistant U.S. Attorney Mark J. Yurchisin II, of the U.S. Attorney’s Bowling Green Branch Office, prosecuted the case.
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Billings man admits to producing, possessing child pornographyRead the Press Release
BILLINGS — A Billings man suspected of coercing a minor girl in New York to make and send him sexually explicit images of herself admitted to child pornography crimes today, U.S. Attorney Jesse Laslovich said.
Jeffrey Eugene Herbert, 34, pleaded guilty to production of child pornography and possession of child pornography. Herbert faces a mandatory minimum 15 years to 30 years in prison, a $250,000 fine, five years to a lifetime of supervised release and special assessments on the charge of production of child pornography. Herbert faces a maximum of 20 years in prison, a $250,000 fine, five years to a lifetime of supervised release and special assessments on the charge of possession of child pornography.
U.S. Magistrate Judge Timothy J. Cavan presided. A sentencing date will be set before U.S. District Judge Dana L. Christensen. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Herbert was released pending further proceedings.
In court documents, the government alleged that in June 2022, a 13-year-old girl, identified as Jane Doe 1, and her parents, located in New York, reported to law enforcement that Jane Doe 1 had been coerced to produce child pornography while using the social messaging application, Triller. The girl’s parents reported that someone with a specific Triller account had been sexually exploiting their daughter. In a forensic review of Jane Doe 1’s phone, law enforcement learned the girl was being sexually exploited by another user on Triller with a separate account name, “amberbaby 14141.” There were approximately 870 communications between the two accounts in June 2022. The investigation determined that “amberbaby 14141” was connected to Herbert’s residence.
The government further alleged that Jane Doe 1 confirmed to law enforcement that she had communicated with “amberbaby 14141” and was the person in the images and videos sent to Herbert. Law enforcement executed a search warrant on Herbert’s residence in October 2022 and collected approximately 20 pieces of electronic media. In an interview with law enforcement, Herbert admitted to using the “amberbaby 14141” account to coerce underage girls to produce sexually explicit content. Herbert also told law enforcement where child pornography would be located on his cellular phone, and investigators found a hidden folder that contained a video depicting a naked girl, approximately 10 years old, engaging in sexually explicit conduct.
Assistant U.S. Attorney Zeno B. Baucus is prosecuting the case, which was investigated by the FBI and Montana Division of Criminal Investigation.
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Berwick Woman Ordered to Pay $59,140 in Restitution to SSA, HUD Following Decade-Long FraudRead the Press Release
PORTLAND, Maine: A Berwick woman was sentenced today in U.S. District Court in Portland for Social Security fraud and theft of public money.
Chief U.S. District Judge Jon D. Levy sentenced Andreanna Politano, 60, to three years of probation. She was also ordered to pay $49,976.38 in restitution to the Social Security Administration (SSA) and $9,164.00 in restitution to the U.S. Department of Housing and Urban Development (HUD). Politano pleaded guilty on September 12, 2022.
According to court records, from about March 2009 to February 2020, Politano concealed the presence of her husband in her household to maintain her eligibility to receive Supplemental Security Income (SSI) payments. SSI benefits are paid to people with limited income who are blind, disabled or elderly. Politano also concealed her husband’s presence from HUD from about January 2018 to June 2021, during which time she received housing voucher subsidy benefits. Politano’s husband had sufficient income to render her ineligible for the benefits she received.
In multiple reviews of her eligibility for benefits, Politano falsely represented to SSA that she and her husband had separated in October 2008 and had lived separately since that time. In an interview with law enforcement agents, she admitted concealing her living situation from SSA and HUD because she knew it would make her ineligible to receive benefits.
The investigation was conducted by SSA’s Office of the Inspector General and HUD’s Office of the Inspector General.
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Barnstable Man Sentenced to 20 Years in Prison for Production and Possession of Child PornographyRead the Press Release
BOSTON – A Barnstable man was sentenced today in federal court in Boston for sexually exploiting two minor girls who were approximately four years old.
Atticus J. Bernard, 22, was sentenced by U.S. District Court Judge Indira Talwani to 20 years in prison and a lifetime of supervised release. The government recommended a sentence of 30 years in prison. In November 2022, Bernard pleaded guilty to two counts of sexual exploitation of children and one count of possession of child pornography
“Mr. Bernard’s vile and criminal behavior is a parent’s worst nightmare. He preyed upon, harmed and exploited two defenseless toddlers known to him. These innocent victims were under the age of five years old. That he documented the abuse for this own gross personal gratification is even more disgusting. Predators like Mr. Bernard who seek to sexualize and harm our children are a danger to society. While nothing can stop the pain he has caused, today’s sentence ensures that Mr. Bernard will be removed from our communities and unable to victimize, traumatize or harm any other children for many, many years,” said United States Attorney Rachael S. Rollins. “Child exploitation cases are among the most difficult and most important matters we prosecute. These defenseless victims deserve justice and accountability. Today’s sentence is a step closer to ensuring the safety and wellbeing of all of our children.”
“Bernard’s exploitation of two children was a heinous and irrevocable act. We hope that today’s sentence brings a measure of justice to these families as they heal and move forward,” said Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in New England. “Homeland Security Investigations remains dedicated to the protection of children through our work with our partners to detect and apprehend predators like Bernard.”On separate occasions in approximately November 2019 and approximately October 2020, Bernard sexually exploited two minor girls under the age of five-years-old and who were known to him. Bernard documented the abuse and exploitation and possessed the child sexual abuse material on his cell phone. A search of Bernard’s phone in January 2021 revealed numerous photos of Bernard exploiting the minor victims.
Bernard admitted that he had assaulted approximately five girls and recorded the assaults and that each victim was assaulted four or five times.
U.S. Attorney Rollins; HSI SAC Millhollin; Andrew Murphy, Special Agent in Charge of the U.S. Secret Service, Boston Field Office; and Barnstable Police Chief Matthew Sonnabend made the announcement today. Assistant U.S. Attorney David G. Tobin of Rollins’ Major Crimes Unit prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Alexandria Small Business Owner Pleads Guilty to $900,000 Tax FraudRead the Press Release
ALEXANDRIA, Va. – An Alexandria man pleaded guilty today to filing a false individual income tax return for the 2016 tax year.
According to court documents, Samer Najia was the owner and operator of Najia Systems, an information technology consultancy located in Alexandria. From 2012 to 2018, Najia knowingly filed false individual income tax returns with the Internal Revenue Service (“IRS”) that fraudulently represented that he had paid $229,279 in individual income taxes, when in fact he still owed that money to the IRS. To conceal the fraud, Najia provided false wage and tax statements to his accountant that misrepresented the taxes that he had paid to the IRS.
In addition to filing false individual tax returns, from 2012 through 2018, Najia willfully failed to satisfy his employment tax responsibilities. As the owner and operator of Najia Systems, Najia had an obligation to file employment tax returns. Despite knowing about this duty, Najia did not file employment tax returns for more than 24 quarters. Further, Najia was responsible for withholding and paying payroll taxes to the IRS. This consists of an employee portion comprised of Medicare, Social Security, and federal income taxes, and an employer portion comprised of Medicare and Social Security taxes. Despite collecting taxes from his employees, Najia did not timely pay either the employee or employer portions of the employment taxes to the IRS, resulting in a tax loss of $915,671.
Najia is scheduled to be sentenced on June 20, 2023. He faces a maximum penalty of three years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Kareem A. Carter, IRS Criminal Investigation Acting Special Agent in Charge of the Washington D.C. Field Office, made the announcement after U.S. District Judge Leonie M. Brinkema accepted the plea.
Assistant U.S. Attorney Jack Morgan and Special Assistant U.S. Attorney Colleen McCarthy are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:23-cr-45.
Albuquerque man sentenced to ten years in prison for assault and firearms violationsRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced today that Byron Rosetta was sentenced to ten years and one day in prison. Rosetta, 38, of Albuquerque, and an enrolled member of the Kewa Pueblo, pleaded guilty on June 22, 2022, to two counts of assault with a dangerous weapon in Indian Country and one count of using a firearm during a crime of violence.
According to the plea agreement and other court records, on January 3, 2020, law enforcement began receiving reports of seemingly indiscriminate shooting incidents along Interstate 25 between Bernalillo, New Mexico, and the Kewa Pueblo. Eventually, law enforcement determined that a Kewa man, Byron Rosetta, was responsible for the shootings. Between January 3, 2020, and April 4, 2020, law enforcement determined that Rosetta shot from his vehicle and from the roadside at several drivers near I-25. Rosetta used various firearms, including a .38 caliber pistol. Several victims suffered injuries and damage to their windshields and other parts of their vehicles.
On April 4, 2020, Rosetta fired a shotgun at a vehicle traveling south on I-25 through the Kewa Pueblo, and the driver of the vehicle was struck in the face by birdshot. Rosetta then shot an ambulance from Santo Domingo Pueblo that responded to a 911 call for the incident. Despite damage to the ambulance windshield, paramedics continued their service and transported the occupants of the first vehicle to the University of New Mexico Hospital.
On April 5, 2020, Rosetta was driving on State Road 22 on the Kewa Pueblo in Sandoval County, New Mexico, when he shot a passing vehicle, narrowly missing the unsuspecting driver. The driver reported the incident to law enforcement, and agents were able to identify Rosetta’s vehicle in surveillance footage.
On April 9, New Mexico State Police officers executed a search warrant on Rosetta’s residence. During the search, officers located a handgun, a shotgun, and ammunition.
Upon his release from prison, Rosetta will be subject to five years of supervised release.
The FBI Albuquerque Field Office investigated this case with assistance from the New Mexico State Police, the Sandoval County Sheriff’s Office, the Bureau of Indian Affairs, and the Drug Enforcement Administration. Assistant United States Attorney Joseph Spindle is prosecuting the case.
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Albany Woman Pleads Guilty to Money Laundering Conspiracy and Making False Statements to the DEARead the Press Release
ALBANY, NEW YORK – Kristle Walker, aka “Demii,” age 39, of Albany, pled guilty today to conspiring to commit money laundering and making false statements to the Drug Enforcement Administration.
United States Attorney Carla B. Freedman; John B. DeVito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); Frank A. Tarentino III, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), New York Division; Troy Police Chief Daniel DeWolf; and Matthew Scarpino, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI), made the announcement.
In pleading guilty, Walker admitted to conspiring with Dwight A. Singletary, aka “Nutt” and “Mike Jones,” David Singletary, aka “DB,” and McKenzie Merrialice Coles, aka “Kenzie,” among others, to launder proceeds from the sale of marijuana and tetrahydrocannabinols (THC) in the Capital Region and other locations throughout the United States between at least 2019 and June 2022. Walker laundered the drug proceeds through several means, including sending over $10,000 in money transfers purchased with cash drug proceeds from the Capital Region to Fresno and Clovis, California; exchanging $26,500 in cash drug proceeds consisting of small bills for large bills at a Capital Region credit union; purchasing over $195,000 in cashier’s checks with cash drug proceeds; and flying from the Capital Region to Fresno with suitcases full of cash drug proceeds.
Walker was charged in an indictment with Dwight and David Singletary, Coles, and 20 other people charging marijuana distribution and money laundering conspiracies, firearms offenses, and other crimes. Dwight Singletary, David Singletary, and Coles have pled not guilty, and are presumed innocent unless and until proven guilty. The charges in the indictment are merely accusations.
Federal law requires financial institutions to complete a currency transaction report for cash transactions over $10,000. At Dwight Singletary’s direction, to avoid the reporting requirement and otherwise conceal cash drug proceeds, Walker purchased multiple cashier’s checks in amounts slightly below the reporting threshold for cash transactions of over $10,000, but amounting to over $10,000 in total, at different banks and branches on the same day. The cashier’s checks were payable to Dwight Singletary; his company, DAS Empire, Inc.; his lawyer’s firm; a company from which he and Coles purchased real estate; and to a person from whom Dwight Singletary and DAS Empire purchased real estate.
In June 2020, Walker attempted to board a flight from Albany to Fresno with a suitcase containing $179,710 in cash drug proceeds, which was seized by the DEA. The cash, as Walker admitted, belonged to Dwight Singletary, but Walker sought return of the cash from the DEA. In a claim form submitted to the DEA, Walker claimed ownership of the cash and that she was not involved in criminal activity, which was untrue.
Walker faces up to 20 years in prison and a fine of up to $500,000 on the money laundering conspiracy count, and up to 5 years in prison and a fine of up to $250,000 on the false statements count. Walker may also be required to serve up to 3 years of supervised release.
The ATF, DEA, Troy Police Department and HSI are investigating the case. Assistant U.S. Attorneys Cyrus P.W. Rieck and Dustin C. Segovia are prosecuting the case.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
15 March 2023
Woman who Embezzled $2.2 Million from her Employer Admits to Bank Fraud, Tax EvasionRead the Press Release
A Bixby woman pleaded guilty in federal court Tuesday for committing bank fraud when she embezzled nearly $2.2 million from her employer over a period of nine years, announced U.S. Attorney Clint Johnson. She further admitted to failing to pay taxes on the embezzled “income” in 2020.
Christine Fletcher pleaded guilty to bank fraud and tax evasion. As part of her plea agreement, Fletcher will pay at least $2,188,870 in restitution to her former employer and $62,067 to the IRS for unpaid taxes in 2020. A federal judge will sentence Fletcher and determine the final restitution amounts at a later date.
Fletcher worked for a company and various other entities owned by her employer for approximately 38 years. She was entrusted to manage her employer’s various Bank of Oklahoma Financial (BOKF) and Trust Company of Oklahoma bank accounts. She was also entrusted with preparing and providing financial statements and related information to the company’s tax preparer.
In her plea agreement, Fletcher admitted that from December 2012 to approximately May 2021, she embezzled funds for her own personal gain from her employer in the approximate amount of $2, 188,870.
To avoid being detected, she routinely made unauthorized transfers between and among various BOKF and Trust Company of Oklahoma accounts before misappropriating the funds for her own personal use. One of the many ways she fraudulently moved money, included making unauthorized transfers from some accounts into a specific individual’s account. From there, Fletcher prepared forged checks bearing the individual’s name and made the checks payable to herself or on her own behalf. Fletcher also admitted to routinely paying her credit card bills with the unauthorized and forged checks.
Additionally, she admitted that for tax year 2020, she failed to report income she had obtained illegally in the amount of $289,810, thus failing to pay over $62,067 in taxes to the United States Treasury.
The U.S. Secret Service conducted the investigation. Assistant U.S. Attorneys David D. Whipple and Thomas E. Buscemi are prosecuting the case.
Winooski Resident Sentenced to 40 Months in Prison for Trafficking Methamphetamine and CocaineRead the Press Release
Burlington, Vermont – The Office of the United States Attorney for the District of Vermont stated that Julie Overfield, 63, of Winooski, Vermont, was sentenced today to serve 40 months in prison after Overfield was convicted for possession with intent to distribute cocaine, cocaine base, and methamphetamine. Overfield also received a 24-month prison sentence, to run concurrent with the 40-month sentence, for violating terms of supervised release that were imposed following a conviction in the District of Arizona for conspiring to distribute more than 50 grams of methamphetamine. Chief United States District Judge Geoffrey Crawford ordered that after Overfield’s release from prison, Overfield must serve a three-year term of supervised release.
According to court records, the Winooski Police Department and the Drug Enforcement Administration began investigating Julie Overfield in February of 2022. On two occasions, Overfield sold methamphetamine to a confidential informant assisting law enforcement. On March 23, 2022, the DEA executed a federal search warrant at Overfield’s Winooski residence, resulting in the seizure of 60 grams of cocaine, 36 grams of cocaine base, 13.5 grams of methamphetamine, and $4,341 of cash. Laboratory testing revealed that all of the methamphetamine was of high purity, commonly referred to as “Ice.”
United States Attorney Nikolas P. Kerest commended the investigatory efforts of the Drug Enforcement Administration and the Winooski Police Department.Assistant United States Attorney Jonathan A. Ophardt handled the prosecution. Federal Defender Michael Desautels, Esq. represented Overfield.
Wayne County Man Sentenced to 30 Years in Prison for Online Enticement of A MinorRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that United States District Court Judge Robert D. Mariani sentenced Michael Jacob Walczyk, age 43, of Beach Lake, Pennsylvania, to 360 months in prison for enticement of a minor.
According to United States Attorney Gerard M. Karam, Walczyk pleaded guilty to a felony Information and admitted that, between July 10, 2019 and September 2020, he knowingly persuaded, induced, enticed, and coerced a victim under the age of 18 to engage in sexual activity for the purposes of producing child pornography. Walczyk encountered the victim online in 2019, when she was 14 years old. He convinced her to produce sexually explicit photographs and videos for him and engaged in live video chats during which he directed her to perform sexual acts. Beginning in January 2020, Walczyk began to invite others to watch as the minor victim performed sexual “shows” at his direction and charged them a fee. Walczyk further engaged in verbally abusive and controlling behavior to keep the victim performing and producing child pornography for his enjoyment and profit. Walczyk used multiple mobile applications and websites to contact the child victim, and he coerced her to turn over all of her social media login information, so he could monitor her activities and exercise control.
Walczyk admitted that he used false identities to entice the victim and that he produced and distributed child pornography as part of his offense conduct. Judge Mariani found that Walczyk’s pattern of prohibited sexual conduct with a minor should result in a higher sentencing range as a repeat and dangerous sex offender against minors under the United States Sentencing Commission Guidelines.
In addition to the 30-year prison term, Judge Mariani ordered Walczyk to serve a 10-year term of supervised release, to pay $2,900 in restitution to the victim, and to forfeit assets involved in the commission of the offense, including over $3,000 in proceeds from selling admission to the child pornography livestreams.
“This case represents the worst fears of parents of young children in the age of the internet,” said U.S. Attorney Karam. “And it drives home the importance of monitoring and controlling the online activities of our children. Just as we warn our kids about the pitfalls of talking to strangers they might encounter on the street or out in public places, we must have frank conversations with children about the dangers of interacting with people they don’t know online. If someone tries to chat with a child or asks for any information or pictures, they need to know they can and should tell a trusted adult immediately. We are grateful to the brave, young victim and her family who came forward in this case, for helping to ensure that this defendant won’t be able to victimize another child.”
“Michael Walcyzk deserves each and every day of this 30-year sentence,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “His repeated virtual invasions of his victim’s home; his sexual exploitation of her, both for his own pleasure and for profit; and the psychological torment he inflicted have changed this child’s life. Our Crimes Against Children Task Force will continue to diligently work to identify and apprehend abhorrent predators like Michael Walcyzk, whose crimes demand they be removed from society so they can’t harm anyone else.”
The case was investigated by the Federal Bureau of Investigation (FBI). Assistant U.S. Attorney Sean A. Camoni prosecuted the case.
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.usdoj.gov/psc.
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Washington drug dealer sentenced to more than 12 years in prison for trafficking meth, heroin, cocaine and fentanyl to Cascade County, Rocky Boy’s Indian ReservationRead the Press Release
GREAT FALLS — A Washington man who admitted to trafficking drugs in Cascade County and the Rocky Boy’s Indian Reservation after law enforcement seized more than five pounds of methamphetamine along with other drugs from his vehicle was sentenced today to 12 years and six months in prison, to be followed by five years of supervised release, U.S. Attorney Jesse Laslovich said.
Jorge Perez, aka Chicago, 41, of Spokane, Washington, pleaded guilty in October 2022 to possession with intent to distribute controlled substances.
Chief U.S. District Judge Brian M. Morris presided.
The government alleged in court documents that in March 2022, law enforcement learned that Perez was bringing large quantities of meth, heroin, cocaine and fentanyl from Spokane to the Great Falls area for distribution. The FBI’s investigation identified the vehicle Perez was driving and, with assistance from local law enforcement, stopped the vehicle outside of Great Falls in June 2022. Perez was the driver and sole occupant and had more than $4,000 cash on his person. Perez admitted there were pounds of drugs in the vehicle. Law enforcement seized approximately five pounds of meth, which is the equivalent of 18,120 doses, along with cocaine and fentanyl pills. In a second traffic stop in which Perez was a passenger, law enforcement found meth, cocaine and heroin in the vehicle. In a third traffic stop, on the Rocky Boy’s Indian Reservation, in which Perez was the driver and sole passenger, law enforcement found meth, cocaine and fentanyl.
Assistant U.S. Attorney Ethan R. Plaut prosecuted the case, which was investigated by the FBI, Homeland Security Investigations, Great Falls Police Department, Cascade County Sheriff’s Office, Montana Highway Patrol and Chippewa Cree Law Enforcement.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Washington Man Sentenced for Combative Behavior on Flight to Anchorage, AlaskaRead the Press Release
ANCHORAGE, ALASKA – A Washington man was sentenced on March 9, 2023, for putting a flight crew in fear of being assaulted during a commercial airline flight.
According to court documents, on March 1, 2023, Marc Hetsler, 43, was a passenger aboard Aleutian Flight SRY 1102 with service from Dutch Harbor, Alaska to Anchorage, Alaska. While the aircraft was in flight, Hetsler laid down in the aisle and refused to let flight crew through. He then became combative and began behaving aggressively towards the crewmember. An off-duty police officer aboard the flight stepped in to assist the flight crew. Hetsler became confrontational with the officer as well. Other passengers then assisted in subduing Hetsler who was restrained for the remainder of the flight. Agents with the Federal Bureau of Investigation placed Hetsler into federal custody upon the plane landing at Ted Stevens Anchorage International Airport.
Eight days after his arrest, on March 9, 2023, Hetsler pleaded guilty to an Information charging Fear Assault in the Special Aircraft Jurisdiction of the United States, in violation of 49 U.S.C. § 46506 and 18 U.S.C. § 113. He was sentenced to time served for the eight days he spent in federal custody.
“The safety and security of air travel is paramount, and we will continue to prosecute offenders in order to ensure that all passengers are able to travel without fear of assault or harm,” said U.S. Attorney S. Lane Tucker. “We hope that this case will serve as a warning to others who may consider committing similar acts in the future, and that it will encourage everyone to follow the rules and regulations designed to keep our skies safe and secure.”
U.S. Attorney Lane Tucker of the District of Alaska made the announcement.
The Federal Bureau of Investigation and the Ted Stevens Anchorage International Airport Police investigated the case.
Assistant U.S. Attorneys Will Taylor and Karen Vandergaw prosecuted the case.
Uniontown Man Sentenced to 17.5 Years in Prison and Lifetime Supervision for Making Live Videos of Himself Molesting a ChildRead the Press Release
PITTSBURGH, PA- A former resident of Uniontown, Pennsylvania, has been sentenced in federal court to 210 months’ imprisonment and lifetime supervised release on his conviction of production of visual depictions of a minor engaged in sexually explicit conduct, Acting United States Attorney Troy Rivetti announced today.
Chief United States District Judge Mark R. Hornak imposed the sentence yesterday on Zachary Bosh, 39, following his July 12, 2022, guilty plea.
According to information presented to the court, on Friday, April 12, 2019, a law enforcement officer acting in an undercover capacity (UC) entered a public chat group titled #parentstoys, using an internet-based, free mobile application. The user “ascott5505,” later identified as Bosh, initiated a private chat with the UC. During the conversation, Bosh sent the UC approximately seven video clips and/or images of a minor victim, one of which depicted the sexual exploitation of the minor victim, and verified with the UC that the video clips and/or images were “live.” The Court was further informed of the full content and context of the communications between Bosh and the UC. Investigators were able to obtain emergency disclosures from the mobile application as well as internet service provider, enabling them to identify – on the same day – the residence where the video of the minor victim’s sexual exploitation had been produced. During a search of the residence, which also occurred that day, law enforcement seized bedsheets that matched the sheets visible in the video.
In imposing the sentence, of 210 month’s imprisonment and lifetime supervision, which is a guideline range sentence, Judge Hornak stated that he would not “reduce [the defendant’s] conduct to a descriptive term” – such as egregious or terrible – because it would not be “sufficient” and risked “minimizing” Bosh’s conduct. The Court explained that its sentence was “sufficient to fulfill the goals of sentencing” and “no greater than needed.” Based upon the evidence before it, the Court also found that the record “strongly suggests” that Bosh engaged in illicit conduct in the “past” and his statements to the UC expressed “desires” to engage in “more physical sexual” conduct in the future. To that end, in imposing lifetime supervision, the Court expressed its intent that this would deter Bosh and others from committing similar crimes.
Assistant United States Attorney Rebecca L. Silinski prosecuted this case on behalf of the government.
“This defendant will spend the next 17.5 years in prison for preying upon, exploiting and abusing a young girl who was under the defendant’s care for his own sexual gratification,” said Acting United States Attorney Rivetti. “This sentence sends a clear message that predatory crimes, such as child exploitation offenses, will continue to be vigorously prosecuted by this office.”
Acting United States Attorney Rivetti further praised the work of the Federal Bureau of Investigation in conjunction with the FBI Washington Field Office’s (WFO) Child Exploitation and Human Trafficking Task Force that conducted the investigation that led to the prosecution of Bosh.
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..
United States Attorney Dawn N. Ison Announces Implementation of New Voluntary Self-Disclosure PolicyRead the Press Release
DETROIT - United States Attorney Dawn N. Ison announced that the U.S. Attorney’s Office for the Eastern District of Michigan has implemented the new United States Attorney’s Offices’ Voluntary Self-Disclosure Policy. The policy, which became effective in February, details the circumstances under which a company will be considered to have made a voluntary self-disclosure (VSD) of misconduct to a United States Attorney’s Office (USAO), and provides transparency and predictability to companies and the defense bar concerning the concrete benefits and potential outcomes in cases where companies voluntarily self-disclose misconduct, fully cooperate and timely and appropriately remediate.
The goal of the policy is to standardize how VSDs are defined and credited by USAOs nationwide, and to incentivize companies to maintain effective compliance programs capable of identifying misconduct, to expeditiously and voluntarily disclose and remediate misconduct, and to cooperate fully with the government in corporate criminal investigations. The policy was developed pursuant to the Deputy Attorney General’s September 15, 2022 memorandum, “Further Revisions to Corporate Criminal Enforcement Policies Following Discussions with Corporate Crime Advisory Group” (Monaco Memo), which directed each Department of Justice (DOJ) component that prosecutes corporate crime to review its policies on corporate voluntary self-disclosure and, if there was no formal written policy to incentivize self-disclosure, draft and publicly share such a policy.
Under the new VSD policy, a company is considered to have made a VSD if it becomes aware of misconduct by employees or agents before that misconduct is publicly reported or otherwise known to the DOJ, and discloses all relevant facts known to the company about the misconduct to a USAO in a timely fashion prior to an imminent threat of disclosure or government investigation. A company that voluntarily self-discloses as defined in the policy and fully meets the other requirements of the policy, by—in the absence of any aggravating factor—fully cooperating and timely and appropriately remediating the criminal conduct (including agreeing to pay all disgorgement, forfeiture, and restitution resulting from the misconduct), will receive significant benefits, including that the USAO will not seek a guilty plea; may choose not to impose any criminal penalty, and in any event will not impose a criminal penalty that is greater than 50% below the low end of the United States Sentencing Guidelines (USSG) fine range; and will not seek the imposition of an independent compliance monitor if the company demonstrates that it has implemented and tested an effective compliance program.
The policy identifies three aggravating factors that may warrant a USAO seeking a guilty plea even if the other requirements of the VSD policy are met: (1) if the misconduct poses a grave threat to national security, public health, or the environment; (2) if the misconduct is deeply pervasive throughout the company; or (3) if the misconduct involved current executive management of the company. The presence of an aggravating factor does not necessarily mean that a guilty plea will be required; instead, the USAO will assess the relevant facts and circumstances to determine the appropriate resolution. If a guilty plea is ultimately required, the company will still receive the other benefits under the VSD policy, including that the USAO will recommend a criminal penalty of at least a 50% and up to a 75% reduction off the low end of the USSG fine range, and that the USAO will not require the appointment of a monitor if the company has implemented and tested an effective compliance program.
In cases where a company is being jointly prosecuted by a USAO and another DOJ component, or where the misconduct reported by the company falls within the scope of conduct covered by VSD policies administered by other DOJ components, the USAO will coordinate with, or, if necessary, obtain approval from, the DOJ component responsible for the VSD policy specific to the reported misconduct when considering a potential resolution. Consistent with relevant provisions of the Justice Manual and as allowable under alternate VSD policies, the USAO may choose to apply any provision of an alternate VSD policy in addition to, or in place of, any provision of its policy.
The Attorney General’s Advisory Committee (AGAC), under the leadership of United States Attorney for the Southern District of New York Damian Williams, requested that the White Collar Fraud Subcommittee of the AGAC, under the leadership of United States Attorney for the Eastern District of New York Breon Peace, develop policies in response to the Deputy AG’s memo. The policy announced today was prepared by a Corporate Criminal Enforcement Policy Working Group comprised of U.S. Attorneys from geographically diverse districts, including U.S. Attorney Peace, as well as U.S. Attorney for the Eastern District of Virginia Jessica Aber, U.S. Attorney for the District of Connecticut Vanessa Avery, U.S. Attorney for the District of Hawaii Clare Connors, U.S. Attorney for the Eastern District of North Carolina Michael F. Easley, Jr., U.S. Attorney for the Northern District of California Stephanie Hinds, U.S. Attorney for the Western District of Virginia Christopher Kavanaugh, and U.S. Attorney for the District of New Jersey Philip Sellinger. Assistant U.S. Attorney Amanda Riedel, White Collar Crimes Coordinator for the Executive Office for U.S. Attorneys, also participated in the development of the policy.
U.S. Postal Employee Sentenced to Nine Months for Mail TheftRead the Press Release
CHICAGO — A federal judge has sentenced a former U.S. Postal Service employee to nine months in federal prison for stealing mail that he was entrusted with.
DIAMANTE WILLIAMS, 25, of Chicago was indicted by a federal grand jury on three counts of mail theft by a U.S. Postal employee in March 2022 for events which occurred in March and April 2018. In September, 2022 Williams plead guilty to one count of mail theft. As stated in William’s plea agreement, on or about March 28, he stole mail and contents of mail from individuals residing on his route in Morgan Park, including financial instruments. Williams admitted to stealing a check intended for Company A in the amount of $1,274.
U.S. District Court Judge Martha M. Pacold sentenced Williams to nine months in federal prison on March 9, 2023.
The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois; Scott Pierce, Special Agent in Charge of the U.S. Postal Service, Office of Inspector General, Central Area Field Office; and Ruth M. Mendonça, Inspector-in-Charge of the Chicago Office of the U.S. Postal Inspection Service. The government is represented by Assistant U.S. Attorney Malgorzata Tracz Kozaka.
U.S. Attorney’s Office and Department of Justice Host Two-Day Human Trafficking Seminar for Law Enforcement and Victims’ Services AgenciesRead the Press Release
INDIANAPOLIS, IN- United States Attorney Zachary A. Myers is proud to announce the successful completion of the first Human Trafficking Seminar held in the Southern District of Indiana. This two-day, educational event was hosted by the U.S. Attorney’s Office, Southern District of Indiana, and the Civil Rights Division of the Department of Justice’s Human Trafficking Prosecution Unit (HTPU).
The seminar was organized by Assistant U.S. Attorney Lawrence D. Hilton, the U.S. Attorney’s Office’s Human Trafficking Coordinator, and the agenda included presentations from the HTPU’s Deputy Director, Matt Grady, National Program Manager, Sean Tepfer, and Trial Attorney Julie Pfluger. Topics covered included proving coercion, documenting a human trafficking crime scene, anticipating and overcoming common defenses, trauma informed interviewing, trial preparation, evidence collection, and prosecuting human trafficking crimes at a federal level.
“Human trafficking is a horrific crime that inflicts lasting trauma on survivors who are often already vulnerable,” said U.S. Attorney Myers. “These complex crimes require prosecutors to work closely with investigators to get traffickers off the streets, while collaborating with agencies and organizations who provide vital resources to support survivors. Human traffickers, especially those who employ force, fraud, or coercion, and who sell minors for sex, should take notice: these crimes one of our top priorities, and convictions will result in lengthy terms in federal prison with no possibility of parole. Survivors, especially those who are still in the grips of traffickers, should know that there are specially trained police, prosecutors, and service providers who support you, believe in you, and will work tirelessly to get you the help you need.”
An example of these collaborative efforts in the Southern District of Indiana can be seen in the recent sentencing of Damion Alexander to fifteen years in federal prison for the sex trafficking of a minor. See release here.
U.S. Attorney Myers encourages the community to be aware of indicators of trafficking and report suspicious activity. Recognizing key indicators is the first step in identifying victims and can help save them from further exploitation.
Indicators of human trafficking can include the following:
- An individual with an inability to produce identification or other documents because they are in a third party’s possession and control.
- An individual who is unable to freely contact friends or family.
- An individual who is coached on what to say to law enforcement or other authority figures.
- An individual who lacks knowledge or awareness as to what happens to the money they earn/are supposed to earn.
- An individual who lacks knowledge or awareness as to how much money they earn.
- An individual who is unable move or travel freely.
- Garnishment of a salary to pay off a fee imposed by their employer.
- Juveniles engaged in commercial sex.
- Frequent visits to the emergency department.
Anyone who has information about a potential human trafficking situation or thinks they or someone they know may be a victim of human trafficking should contact the National Human Trafficking Hotline toll-free at 1-888-373-7888, which is available 24 hours a day, seven days a week. Individuals can also text 233733 or email [email protected].
For more information about human trafficking, please visit www.humantraffickinghotline.org.
Information on the Department of Justice’s efforts to combat human trafficking can be found at www.justice.gov/humantrafficking.
The federal, state, and local law enforcement agencies and partners who participated in the Seminar included:
- Allen County Prosecuting Attorney’s Office
- Assistant Commonwealth Attorney for Anderson, Spencer and Shelby County, Kentucky
- Boone County Prosecutor’s Office
- Boone County Sheriff’s Office
- Crawfordsville Fire Department
- Cherish Child Advocacy Center. Noblesville, IN
- Child and Parent Services. Elkhart, IN
- Child Advocacy Center. Marion County, IN
- Child Advocates Inc. Indianapolis, IN
- Clinton County Prosecutor’s Office
- Community Health Network of Indiana
- Damien Center. Indianapolis, IN
- Department of Child Services- Hancock County
- Department of Homeland Security- Investigations
- Eskenazi Health COH
- Family Service Association of Indianapolis
- FBI
- Firefly Children & Family Alliance. Indianapolis, IN
- Freedom Network USA
- Hancock County Prosecutor’s Office
- Indiana Attorney General’s Office- Investigations Division
- Indiana Coalition to End Sexual Assault and Human Trafficking
- Indiana Legal Services
- Indiana Department of Child Services
- Indiana Department of Workforce Development
- Indianapolis Metropolitan Police Department
- Indiana Protection of Abused and Trafficked Humans Taskforce
- Indiana State Parole
- Indiana State Police
- Indiana Trafficking Victims Assistance Program
- Indiana Youth Services Association
- Johnson County Human Trafficking Task Force
- Marion County Behavioral Health Court
- Marion County Juvenile Probation
- Marion County Prosecutor's Office
- Marion Superior Court Probation Department
- Moyars Consulting
- Riley Children’s Hospital
- Salvation Army
- Sheridan Police Department
- Stepping Stone Shelter for Women, Inc. Michigan City, IN
- Sylvias Child Advocacy Center. Lebanon, IN
- Tippecanoe County Prosecutor’s Office
- U.S. Attorney’s Office- Northern District of Indiana
- U.S. Marshal Services
- Vigo County Prosecutor's Office
- Whitestown Metropolitan Police Department
- Washington Township School Police Department
- West Lafayette Police Department
- Zionsville Police Department
- Zoey's Place Child Advocate. Greenfield, IN
Two Waterbury Residents Involved in Fentanyl and Heroin Trafficking Ring Sentenced to PrisonRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that two Waterbury residents were sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford for their participation in a fentanyl and heroin trafficking organization. ELIAS SANCHEZ-MARTINEZ, 31, was sentenced to 135 months of imprisonment, and IMIRICI SOSA-ORTIZ, also known as “Mimi,” 36, was sentenced to 94 months of imprisonment.
According to court documents and statements made in court, this matter stems from a joint investigation headed by the DEA New Haven Task Force and the Waterbury Police Department into a Waterbury-based drug trafficking operation headed by Nestor Sosa-Ortiz. The investigation, which included the use of court-authorized wiretaps, physical surveillance, and controlled purchases of narcotics, revealed that Sosa-Ortiz’s organization received large quantities of fentanyl and heroin from suppliers in Connecticut and New York and distributed the narcotics through a network of co-conspirators, including Sanchez-Martinez. After Sosa-Ortiz was arrested in New York City on a separate federal heroin and fentanyl trafficking charge in May 2019, he continued to control his drug network while incarcerated by using smuggled cell phones to communicate with various co-conspirators, including his sisters, Imirici Sosa-Ortiz and Isamelis Sosa-Ortiz.
The organization used an apartment located at 330 Bishop Street in Waterbury to store kilogram-quantities of fentanyl and heroin, and to process and package the drugs for street sale. Imirici Sosa-Ortiz helped manage the operation at this location.
Sanchez-Martinez, Imirici Sosa-Ortiz, Isamelis Sosa-Ortiz and several co-defendants were arrested on October 29, 2019. On that date, investigators executed search warrants at the Bishop Street apartment and four other locations and seized approximately six kilograms of fentanyl and heroin, approximately 100,000 bags of fentanyl/heroin packaged for street distribution, approximately 1,000 fentanyl pills disguised as Percocet pills, one firearm, and approximately $50,000 in cash. Nearly 50 grams of fentanyl were seized from Sanchez-Martinez’s Charlevoux Street residence.
Imirici Sosa-Ortiz has been detained since her arrest. On January 22, 2020, she pleaded guilty to conspiracy to possess with intent to distribute one kilogram or more of heroin and 400 grams or more of fentanyl.
Sanchez-Martinez, who is a citizen of the Dominican Republic, was detained from the date of his arrest until June 20, 2020, when he was released on a $100,000 bond due the COVID-19 pandemic. Shortly thereafter he fled to the Dominican Republic. He was located and arrested in the Dominican Republic on June 9, 2021, and has been detained since that date.
On motion from the government, Judge Bryant ordered the forfeiture of Sanchez-Martinez’s bond. The five individuals who signed Sanchez-Martinez’s bond are responsible for paying $100,000.
On August 29, 2022, Sanchez-Martinez pleaded guilty to conspiracy to possess with intent to distribute heroin and fentanyl. He faces immigration proceedings when he completes his prison term.
Seventeen individuals were charged as a result of this investigation. Nestor Sosa-Ortiz and Isamelis Sosa-Ortiz pleaded guilty. Nestor Sosa-Ortiz is awaiting sentencing. On December 21, 2022, Isamelis Sosa-Ortiz was sentenced to 94 months of imprisonment.
This investigation has been conducted by the Drug Enforcement Administration New Haven Task Force and the Waterbury Police Department. The DEA New Haven Task Force includes participants from the DEA, U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division, Connecticut State Police and the New Haven, Waterbury, East Haven, Branford, West Haven, Ansonia, Meriden, Naugatuck, and Shelton Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys Lauren C. Clark and Jocelyn Courtney Kaoutzanis through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Two Previously Deported Men Charged with Illegal ReentryRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that two previously deported men were indicted separately by a federal grand jury for illegal reentry into the United States.
According to United States Attorney Gerard M. Karam, Daniel Godinez-Pelcastre, age 54, of Mexico, was indicted by a federal grand jury with illegal reentry into the United States by a previously removed alien. The indictment alleges that Godinez-Pelcastre was previously removed from the United States on March 29, 2017, through Brownsville, Texas, and it is alleged that he reentered the United States without first obtaining legal permission to do so. The indictment also alleges that on November 21, 2022, Godinez-Pelcastre was encountered in Adams County, Pennsylvania.
The case was investigated by U.S. Immigration Customs and Enforcement (ICE) and the Pennsylvania State Police.
Hector Cristales-Najarro, age 25, of Guatemala, was indicted by a federal grand jury with illegal reentry into the United States by a previously removed alien. The indictment alleges that Cristales-Najarro was previously removed from the United States on February 11, 2020, through San Antonio, Texas, and it is alleged that he reentered the United States without first obtaining legal permission to do so. The indictment also alleges that on December 26, 2022, Cristales-Najarro was encountered in Dauphin County, Pennsylvania.
The case was investigated by U.S. Immigration Customs and Enforcement (ICE) and the Harrisburg Police Department.
Assistant U.S. Attorney Jaime M. Keating is prosecuting the case.
The maximum penalty under federal law for these offenses are 10 years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Texas Woman Traveling Through Alabama Found Guilty of Possessing Six Kilograms of Heroin with Intent to DistributeRead the Press Release
Montgomery, Alabama – Today, United States Attorney Sandra J. Stewart announced that Melissa Vasquez-Guardado, 25, from Houston, Texas, was found guilty of possession of heroin with intent to distribute. The jury reached its verdict on March 14, 2023.
According to court records and evidence presented at trial, on July 27, 2021, law enforcement in Butler County, Alabama, stopped a vehicle on Interstate 65. The vehicle had three occupants. The driver had difficulty providing identification and stated she did not have a driver’s license. Officers eventually identified the driver as Fidelia Barrera-Villanueva, 39, also from Houston, Texas. Vasquez-Guardado was a passenger in the vehicle, along with Barrera-Villanueva’s 15-year-old daughter. When speaking with officers, Vasquez-Guardado and Barrera-Villanueva indicated that they were on their way to Atlanta, Georgia. Barrera-Villanueva gave officers permission to search the vehicle. During the search, officers saw a pillowcase underneath a box on the floorboard behind the front passenger seat. Inside the pillowcase were six cylindrical objects wrapped in black tape containing what turned out to be a total of 5.9 kilograms of heroin.
Following this conviction, Vasquez-Guardado faces a sentence 10 years to life in federal prison. Barrera-Villanueva previously pleaded guilty to possession of heroin with intent to distribute and could receive a maximum sentence of life in prison. A sentencing hearing for both Vasquez-Guardado and Barrera-Villanueva is scheduled for July 6, 2023.
The DEA, the Butler County Sheriff’s Office, the Covington County Sherriff’s Office, and the Greenville Police Department investigated this case. Assistant United States Attorneys Kevin P. Davidson, Justin L. Jones, and Mark E. Andreu are prosecuting the case.
Tampa Man Arrested for Possessing Fentanyl with the Intent to DistributeRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces the arrest of Perry Ivory Wims (37, Tampa) on a criminal complaint charging possession with intent to distribute a controlled substance. Wims was arrested on March 9, 2023 and ordered detained pending the outcome of his case.
According to the complaint, the Tampa Police Department (TPD) learned that Wims was selling fentanyl out of his room at the Garden View Motel located at 2500 East Busch Boulevard in Tampa. Based on that information, TPD obtained a warrant authorizing the search of Wims’ motel room. Prior to the execution of the warrant, officers observed Wims exit his motel room with a pistol tucked in the waistband of his shorts. Additionally, TPD learned that Wims had a verbal altercation with unknown individuals shortly before the execution of the warrant, during which Wims pointed a gun at people with whom he was arguing.
During the execution of the search warrant, officers located approximately 283 grams of a substance that field-tested positive for fentanyl, a loaded Ruger 9mm pistol, a Zaviar Arms AR-style pistol, $3,705 in cash, and other suspected narcotics.
Wims previously received a 15-year sentence in federal court for possessing a firearm as a convicted felon. He completed serving that sentence on December 21, 2022.
A complaint is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Tampa Police Department and the Drug Enforcement Administration. It will be prosecuted by Assistant United States Attorney David P. Sullivan.
Sterling Bancorp, Inc. to Plead Guilty to $69M Securities FraudRead the Press Release
*This press release was revised on April 12, 2023, to remove reference to uncharged third parties.
**This press release was revised on July 11, 2023, to include information concerning individuals convicted in relation to this case.
A Southfield, Michigan-headquartered bank holding company has agreed to plead guilty to securities fraud for filing false securities statements relating to its 2017 initial public offering (IPO) and its 2018 and 2019 annual filings.
According to a signed plea agreement that will be publicly filed in court, Sterling Bancorp, Inc. (the Company) was the holding company for its wholly owned subsidiary, Sterling Bank and Trust F.S.B. (the Bank, or together with the Company, “Sterling”). Sterling – with branches located in San Francisco, Los Angeles, Seattle, New York, and Southfield – completed an IPO in 2017, and the Company’s stock began trading on the NASDAQ exchange under the ticker symbol “SBT.”
“For years, Sterling originated residential mortgages that were rife with fraud to pad its bottom line and then lied about these loans in its IPO and subsequent public filings, defrauding unwitting investors,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “This proposed guilty plea reflects the nature and seriousness of the wrongdoing and demonstrates the Department of Justice’s commitment to protecting the integrity of our public markets, holding corporations accountable for their criminal misconduct, and compensating victims for their losses.”
The largest portion of the Bank’s loan portfolio was composed of residential mortgage loans. In or around 2011, the Bank established a residential mortgage loan program known as the Advantage Loan Program (ALP). Between 2011 and 2019, the Bank’s employees and agents originated at least $5 billion in ALP loans. The Bank touted the ALP’s flexible documentation requirements and fast underwriting and closing capabilities. The program required a minimum 35% down payment and charged higher rates and fees than generally were available elsewhere in the market, but it did not require submission of typical loan documentation, such as an applicant’s tax returns or payroll records.
“The consequences of this type of financial fraud scheme are damaging and far-reaching,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “The FBI and our law enforcement partners remain committed to protecting good-faith investors and safeguarding the integrity of our markets from companies that commit securities fraud.”
In the lead-up to the IPO, Sterling’s loan officers were encouraged to increase the volume of ALP loan originations to increase the Bank’s revenue through origination fees and interest payments. The Bank’s Underwriting Department maintained internal underwriting guidelines that governed the loan approval process for the ALP. The underwriting guidelines required loan officers to obtain various documents from the borrower and the borrower’s employer. In addition to collecting these documents, loan officers were supposed to calculate the borrower’s debt-to-income ratio, which was a personal-finance measure that compared the amount of debt a borrower had to the borrower’s overall income and was used to measure the borrower’s ability to manage monthly mortgage payments. Taken together, the various documents obtained from the borrower and the borrower’s employer, and related information, were critical to completing certain mortgage application forms and assessing the creditworthiness of a borrower’s application.
In connection with loans originated through the ALP, the Bank’s loan officers falsified, caused to be falsified, and concealed various information from the Bank’s Underwriting Department and Quality Control Department that the loan officers believed would delay or prevent the Bank from originating loans under the ALP.
The false information that the loan officers included and caused to be included in ALP applications was ultimately transmitted to, and relied upon by, the Bank’s Underwriting Department and caused the Bank to originate ALP loans and extend credit to borrowers who otherwise would not have qualified for credit from the Bank based upon the underwriting guidelines. These fraudulent loans directly increased the Bank’s revenue through fees and interest associated with the origination of the fraudulent loans.
In or around October 2017 – while Sterling was artificially inflating its revenue through the ALP – Sterling went public. In connection with its IPO, Sterling’s 2017 SEC Form S-1 contained materially false and misleading statements that touted the soundness of the ALP loans. In truth, the ALP was rife with fraud.
After Sterling’s IPO, the ALP fraud continued. In its 2018 and 2019 SEC Form 10-K filings, Sterling reiterated a series of materially false and misleading statements about the ALP. As a result of Sterling’s fraud, the total loss to Sterling’s non-insider victim-shareholders was nearly $70 million.
“Bank holding companies that engage in fraud to deceive the public and regulators must be brought to justice for their actions,” said Inspector General Mark Bialek of the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau. “I commend our agents and their federal law enforcement partners for their hard work and persistence, which ultimately led to today’s announcement.”
“This proposed guilty plea holds Sterling accountable for its role in defrauding non-insider victim-shareholders of millions of dollars by originating fraudulent loans through its Advantage Loan Program and filing false securities statements about the Program in its IPO and subsequent annual filings,” said Acting Inspector General Tyler Smith of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG). “The FDIC-OIG is committed to working with our law enforcement partners to investigate financial crimes that harm innocent investors and consumers and undermine the integrity of the banking sector.”
“This case is another example of Postal Inspectors relentlessly pursuing any individual or entity committing securities fraud,” said Inspector in Charge Eric Shen of the U.S. Postal Inspection Service (USPIS) Criminal Investigations. “I'm proud of the work done by all the investigators involved in this case and look forward to the continued collaborative efforts between Postal Inspectors and our law enforcement partners.”
Under the terms of the plea agreement, which must be accepted by the court, the Company will plead guilty to one count of securities fraud. The Company will also be required to serve a term of probation through 2026, submit to enhanced reporting obligations to the department, and pay more than $27.2 million in restitution to its non-insider victim-shareholders. The department considered a range of factors outlined in the department’s Inability to Pay Guidance and determined that any payment exceeding approximately $27.2 million is reasonably likely to threaten the continued viability of the Company, which may expose the Company’s shareholders to a further risk of loss. Accordingly, to ensure that the maximum amount of the Company’s funds is paid to restitution, the department has agreed not to seek a criminal fine in this case.
A number of relevant considerations contributed to the department’s criminal resolution with Sterling, including the nature and seriousness of the offense and the pervasiveness of the misconduct at the most senior levels of the Company. Sterling received credit for its cooperation with the department’s investigation and engaged in extensive remedial measures, including terminating employees involved in the ALP fraud, such that through terminations and resignations, more than 100 officers and employees left the bank; completely overhauling the Bank’s senior management, including terminations of former senior management; overhauling the Bank’s residential lending department, internal audit function, compliance function, and Bank Secrecy Act/Anti-Money Laundering function, and creating an enterprise risk management function; permanently ending the ALP; hiring a new chairman, chief executive officer, and president; increasing the number of independent directors on the Company’s board of directors; and implementing a new business model to reduce its risk profile.
As part of Sterling’s plea agreement, Sterling agreed to cooperate fully with the United States in all matters relating to the conduct covered by the plea agreement and other conduct under investigation by the United States, to self-report violations of U.S. federal criminal law, and to continue to implement a compliance and ethics program designed to effectively detect and deter violations of U.S. securities laws throughout its operations.
Three individuals previously pleaded guilty in connection with the underlying ALP fraud. YiHou Han, 39, of San Francisco, California, Hao Liang “Frank” Hu, 48, of Chino Hills, California, and Amy Lu, 33, of Brea, California, have each pleaded guilty. Han pleaded guilty to one count of conspiracy to commit bank fraud and wire fraud, Hu pleaded guilty to one count of conspiracy to commit bank fraud and wire fraud, and Lu pleaded guilty to one count of conspiracy to commit bank fraud and wire fraud. Han and Hu each face a maximum sentence of 30 years in prison, and Lu faces a maximum sentence of five years in prison. All are awaiting sentencing. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI Los Angeles Field Office, Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau Office of Inspector General, FDIC-OIG San Francisco, and USPIS investigated the case.
Assistant Chief Cory E. Jacobs and Trial Attorney Amanda Fretto Lingwood of the Criminal Division’s Fraud Section are prosecuting the case.
If you believe you are a victim in this case, please contact the Fraud Section’s Victim Witness Unit toll-free at (888) 549-3945 or by email at [email protected]. You are also encouraged to visit our webpage for this case at https://www.justice.gov/criminal-vns/case/united-states-v-sterling-bancorp-inc.
St. Charles County Man Accused of Pointing Laser at Police HelicopterRead the Press Release
ST. LOUIS –A man from Lake St. Louis, Missouri has been indicted and accused of pointing a laser at a Metro Air Support helicopter in the St. Louis area.
David Gammil, 44, was indicted in U.S. District Court in St. Louis on March 8 on one count of aiming a laser at an aircraft. Gammil’s indictment says the incident occurred on February 23.
Gammil was arrested Wednesday and made his first appearance in court, where he pleaded not guilty.
The charge carries a penalty of up to five years in prison, a $250,000 fine or both. For years, the FBI and aviation authorities have warned that lasers can blind pilots, and the incidents are on the rise. The Federal Aviation Administration reported 9,457 incidents in 2022, including dozens which resulted in reported injuries.
Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The case was investigated by the St. Charles County Police Department and the FBI. Assistant U.S. Attorney Colleen Lang is prosecuting the case.
Southern California Return Preparer Charged with Filing False Tax ReturnsRead the Press Release
A federal grand jury in Riverside, California, returned an indictment, unsealed Tuesday, charging a California man with 47 counts of preparing false tax returns.
According to the indictment, for tax years 2016 through 2021, Salvador Gonzalez operated a tax preparation business, Grace’s Lighthouse Resource Center, Inc., in Corona, California, and prepared individual and corporate income tax returns for clients to submit to the IRS that claimed tens of thousands of dollars in false business losses. Gonzalez also allegedly falsified additional deductions on client returns, including medical and dental expenses, unreimbursed employee expenses, and charitable contributions, knowing that the clients were not entitled to the amounts claimed.
If convicted, Gonzalez faces a maximum penalty of three years in prison for each false return count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Martin Estrada for the Central District of California made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorney Lauren K. Pope of the Justice Department’s Tax Division and AUSA Robert S. Trisotto of the U.S. Attorney’s Office for the Central District of California, Riverside Branch Office, are prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Six Charged with Drug Trafficking Operation, Shipping Methamphetamine from California to ChicagoRead the Press Release
CHICAGO — A federal grand jury has indicted five Chicago area residents and one California resident with a drug trafficking conspiracy for both shipping methamphetamine through the mail and distributing methamphetamine in and around Chicago.
Charged in the indictment under count one are STEPHEN R. JENKINS, 44, of Chicago, KEITH R. MCCORMICK, also known as “Keith Lopez”, 51, of Sacramento, CA, DANIEL HEISE, 40, of Chicago, DONALD W. GRENIER, JR., 61, of Chicago, JOSE HERNANDEZ, 45, of Chicago, and WILLIAM F. KOCH, 36, of Chicago. Jenkins, Heise, Koch, and Greiner, Jr. are also charged with additional drug trafficking counts, which occur on different dates, within the indictment. Heise is also charged with possession of a firearm in furtherance of a drug trafficking offense.
As alleged in the indictment and the criminal complaint filed in February 2023, from February 2022 to February 2023, Jenkins and Heise directed McCormick to ship parcels containing methamphetamine via U.S. Mail from Sacramento, California to Chicago. During their investigation, law enforcement identified more than 200 parcels suspected of containing methamphetamine, and recovered methamphetamine from at least ten parcels, including parcels addressed to Grenier, McCormick, Koch, Hernandez, and Heise. Jenkins and Heise, along with other members of the drug trafficking organization, are alleged to have shipped narcotics proceeds back to McCormick via private shipping companies, including FedEx and UPS.
The indictment is announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois; Ruth M. Mendonça, Inspector-in-Charge of the U.S. Postal Inspection Service (USPIS) in Chicago; Sheila G. Lyons, Special Agent-in-Charge of the Chicago Field Division of the U.S. Drug Enforcement Administration; Robert W. Wheeler, Jr., Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; David Brown, Superintendent of the Chicago Police Department. Valuable assistance was provided by the United States Attorney’s Office for the Eastern District of California, the Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Forces located in Chicago and Sacramento, the USPIS’s High Intensity Drug Trafficking Area Task Force (HIDTA) Parcel Interdiction Regional Enforcement Team located in Chicago, USPIS’s Narcotics and Economic Crimes Investigations Task Force located in Sacramento, Homeland Security Investigations in Sacramento, and North Riverside Police Department, Illinois. The government is represented by Assistant U.S. Attorney Elly Peirson.
The public is reminded that an indictment contains only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. The drug trafficking counts carry penalties driven by the amount of methamphetamine each defendant is responsible for trafficking; they range from no less than 5 years up to life in federal prison. For the firearms charge, Heise faces an additional penalty of five years in federal prison consecutive to the drug charges. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
This case is part of an OCDETF investigation. OCDETF identifies, disrupts, and dismantles drug traffickers and other alleged criminal offenders that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against alleged criminal networks.
Sex Offender Pleads Guilty to Sexual Exploitation of an InfantRead the Press Release
SYRACUSE, NEW YORK – Benjamin Munson, age 32, of Syracuse, pled guilty in United States District Court today to all counts of a thirteen-count Indictment charging him with six counts of Sexual Exploitation of a Child, Commission of a Felony Involving a Minor by a Registered Sex Offender, four counts of Distribution of Child Pornography, and two counts of Possession of Child Pornography. United States Attorney Carla B. Freedman, Special Agent in Charge Janeen DiGuiseppi of the Albany Field Office of the Federal Bureau of Investigation (FBI), and New York State Police Acting Superintendent Steven A. Nigrelli made the announcement.
As a part of his guilty plea, Munson, a registered sex offender, admitted that on at least six separate occasions between 2021 and 2022, while on supervised release for a 2011 federal conviction for distribution and possession of child pornography, he sexually abused an infant for the purpose of producing images and videos of his sexual exploitation of the child. He further admitted that he administered a network of approximately 20 child pornography trading groups on the internet, some of which were dedicated exclusively to trading in newly produced child pornography. Munson admitted that he distributed child pornography to those groups, including images and videos he produced of his abuse of the infant. Munson was arrested in August of 2022 after his online activities were discovered by the FBI, and the infant was located and rescued.
Munson also admitted to seven violations of his conditions of his federal supervised release, including for his new criminal conduct, contact with a minor, contact with a known felon, possession of unauthorized electronic devices, and possession of child pornography.
Munson is scheduled to be sentenced on July 13, 2023 before Hon. David N. Hurd in Utica, New York. For all thirteen offenses, Munson faces a mandatory minimum sentence of 35 years, and up to 560 years imprisonment, a fine of up to $250,000, and a term of supervised release of at least 5 years and up to life. He will also continue to be required to register as a sex offender. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the Federal Bureau of Investigation’s Mid-State Child Exploitation Task Force in cooperation with the New York State Police. It is being prosecuted by Assistant U.S. Attorney Lisa M. Fletcher, Project Safe Childhood Coordinator for the Northern District of New York.
Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Romanian Citizens Arrested and Charged with Laundering $1.4 Million in Proceeds from Jewelry Thefts and Covid FraudRead the Press Release
NEWS RELEASE SUMMARY – March 14, 2023
SAN DIEGO – Eduard Ghiocel and Floarea Ghiocel, married Romanian nationals and suspected leaders of a Romania-based transnational organized crime group, are charged in federal court with laundering $1.4 million in proceeds from dozens of small thefts, robberies and swindles targeting mostly elderly victims in San Diego County.
Also charged are four of the Ghiocels’ family members or close associates, including Gabriel Ghiocel, Marius Ghiocel, Larisa Ghiocel and Argentina Alexandru. All defendants are alleged associates of the larger Valcea Romanian Transnational Crime Group.
Eduard and Floarea Ghiocel were transferred from state to federal custody and are scheduled to make their first appearance in federal court today. The other defendants remain at large in Romania.
Starting at 9 p.m. PST Monday night (6 a.m. Tuesday - Eastern European Time Zone), pursuant to seven Romanian search warrants issued by the Bucharest Tribunal and executed by police officers from the Romanian National Police's Directorate for Combatting Organized Crime, Service for Combatting Organized Criminal Groups, and Service for Combatting Organized Crime Valcea, assisted by FBI and IRS, officers seized Ghiocel assets across locations in Valcea County, Romania, including high-end luxury vehicles, gold coins, and cash, totaling $618,075.
According to a complaint and an international seizure warrant, the defendants conducted a series of 17 jewelry thefts in elderly communities in San Diego between March 2020 and September 2022. The complaint said the Ghiocels also filed false unemployment claims in order to steal about $32,250 in California unemployment insurance benefits intended to help workers impacted by the pandemic.
According to the complaint, the Ghiocels laundered the proceeds of their crimes by pawning expensive gold jewelry and watches for cash in jewelry stores in Los Angeles. The Ghiocels, who never had any legitimate employment, then systematically laundered that cash, along with the stolen unemployment insurance proceeds by sending wire transfers to Romania via Money Service Businesses, and by purchasing gold bars, gold coins, and high-end luxury vehicles from locations in Southern California and shipping these items to Romania. In total the Ghiocel Sub-Group repatriated $1,367,652.02 in assets from illicit funds to Romania, the complaint said.
“We have alleged that an organized crime group targeted and robbed members of San Diego’s senior community, many of whom lost items of great personal significance,” said U.S. Attorney Randy Grossman. “We will pursue justice for these crime victims wherever the evidence takes us, even as far as Romania.” Grossman thanked the prosecution team, investigating agencies and authorities in Romania for their excellent work on this case.
“The FBI would like to thank our local, state, federal, and Romanian partners for their incredible cooperation in this important matter,” said Special Agent in Charge Stacey Moy of the FBI’s San Diego Field Office. “The FBI and our partners are committed to scouring the globe to find those who have victimized our citizens, to hold them accountable for their crimes and to seize what they have stolen. A special thanks to the Romanian authorities who were essential, as the trail of this investigation led within their borders: prosecutors from the Directorate for Investigating Organized Crime and Terrorism and police officers from the Romanian National Police’s Directorate for Combating Organized Crime. Their assistance is an excellent example of what international cooperation can bring to bear.”
“This international organized crime ring targeted some of the most vulnerable of our population. It's important that we send a message to criminals that the safety of everyone in our community matters,” said San Diego Police Chief David Nisleit. “I want to thank the investigators and prosecutors who continue to work toward justice on behalf of the victims.”
“According to allegations in the complaint, the defendants victimized some of our most vulnerable citizens and targeted relief programs during the height of the COVID-19 pandemic,” said Tyler Hatcher, Special Agent in Charge of IRS Criminal Investigation's Los Angeles Field Office. “One of our main duties as financial investigators is to take the profit out of crime and hold criminals accountable for their actions, and that’s what this investigation is about. IRS-CI will continue to work closely with our partners locally and internationally to locate and hold criminal organizations accountable for their crimes.”
Assistance was provided by the Romanian National Police (Service for Combatting Organized Criminal Groups and Service for Combatting Organized Crime Valcea) and the Romanian Directorate for Investigating Organized Crime and Terrorism (Agency for Prosecuting Organized Crime). The Justice Department’s Office of International Affairs also provided significant assistance.
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
DEFENDANTS Case Number: 23MJ0474-MSB
Eduard Ghiocel (1) Age: 47 Transient, Romanian
aka Eduard Alexandru, aka “Filica”
Floarea Ghiocel (2) Age: 48 Transient, Romanian
aka Floarea Alexandru
Gabriel Ghiocel (3) Age: 25 Transient, Romanian
Marius Ghiocel (4) Age: 33 Transient, Romanian
Larisa Ghiocel (5) Age: 24 Transient, Romanian
Argentina Alexandru (6) Age: 31 Transient, Romanian
SUMMARY OF CHARGES
Title 18 U.S.C. § 1956(h) and Title 18 U.S.C. § 1956(a)(2)(A) — Conspiracy to Transport Funds to Promote Unlawful Activity
Maximum penalty: Twenty years in prison and $500,000 fine or twice the value of the monetary instrument or funds involved in the transportation, transmission, or transfer, whichever is greater
INVESTIGATING AGENCIES
Federal Bureau of Investigation
San Diego Police Department
Internal Revenue Service
California Employment Development Department Investigative Division
U.S. Department of Homeland Security
Department of Labor Office of Investigator General
Queens Man Sentenced to 16 Years in Prison for Enticing Three Minors to Engage in Sexual ConductRead the Press Release
Earlier today, in federal court in Brooklyn, Rogelio Vega was sentenced by United States District Judge Eric R. Komitee to 16 years in prison for enticing three minors to engage in sexual conduct. As part of his sentence, Vega will be required to register as a sex offender upon his release from prison. Vega pleaded guilty to the charges in September 2022.
Breon Peace, United States Attorney for the Eastern District of New York, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), announced the sentence.
Between approximately 2015 and January 2021, the defendant, while also serving as an ordained Deacon in the Catholic Church, used the Kik Internet messaging application, which is marketed to teens, and the Grindr Internet application, which is marketed to the LGBTQ+ community, to express his interest in “young guys” and coerce and entice three male victims between the ages of 14 and 16 to meet him for sexual acts. Messages found on the defendant’s cell phones revealed a series of communications in which the victims identified themselves as underage and the defendant arranged to meet them multiple times for sexual encounters in his car or at motels.
Anyone with information about crimes perpetrated by Vega is asked to contact the FBI at 1-800-CALL-FBI and reference this case.
Department of Justice Trial Attorney Patrick J. Campbell is in charge of the prosecution.
The Defendant:
ROGELIO VEGA
Age: 52
Maspeth, New YorkE.D.N.Y. Docket No. 21-CR-563 (EK)
Providence Man Sentenced for Fraud, Theft of Government Funds, and Identity Theft Committed While on Federal Supervised Release for Sex TraffickingRead the Press Release
Mackenzy Scott, 26, began filing fraudulent applications for pandemic-related benefits on March 28, 2020, one day after the CARES Act, passed by Congress to provide economic assistance programs in response to the COVID-19 pandemic, became law. Scott’s fraudulent activity was discovered in February 2021 by a United States Probation Officer, during an investigation into alleged violations of the terms of Scott’s federal supervised release related to his earlier conviction for sex trafficking.
Scott used his own name and the names of others to carry out the scheme in an attempt to collect COVID-related, federally-funded unemployment benefits from state agencies in ten states: North Dakota, Massachusetts, Arizona, Nevada, Kentucky, Texas, Hawaii, Pennsylvania, Michigan, and Indiana. In each of the applications he filed, Scott made false statements about employment and/or his residence.
Scott pleaded guilty on December 21, 2022, to conspiracy to commit wire fraud, seven counts of wire fraud, theft of government money, and four counts of aggravated identity theft. He was sentenced on Tuesday by U.S. District Court Chief Judge John J. McConnell, Jr., to 30 months of incarceration to be followed by 3 years of federal supervised release. Scott was ordered to pay restitution in the amount of $16,336.
These matters and other cases of alleged criminal activity related to fraudulent applications for unemployment insurance benefits due to the pandemic are being investigated jointly by the FBI and Rhode Island State Police, with the assistance of the U.S. Department of Labor, Office of Inspector General. Cases are jointly reviewed, charged, and prosecuted by a team of prosecutors to include Assistant U.S. Attorneys Stacey A. Erickson, Denise M. Barton, G. Michael Seaman, and Rhode Island Assistant Attorney General John M. Moreira, chief of the Rhode Island Attorney General’s Public Integrity Unit. Assistant U.S. Attorney Lee H. Vilker represented the government at today’s sentencing hearing.
Rhode Islanders who believe their personal identification has been stolen and used to fraudulently obtain unemployment benefits are urged to contact the Rhode Island State Police at [email protected] or the FBI Providence office at (401) 272-8310.
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.
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Plaquemines Parish Man Sentenced for Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – THEODORE HOLMES, age 34, a resident of Plaquemines Parish, Louisiana, was sentenced on March 7, 2023, to 18 months imprisonment, 3 years of supervised release, and a $200 mandatory special assessment fee by U.S. District Judge Susie Morgan, announced U.S. Attorney Duane A. Evans.
HOLMES previously pled guilty to conspiracy to distribute and possess with intent to distribute methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(C), and 846, and the use of a communication facility in causing or facilitating the commission of felonies under the Controlled Substances Act, in violation of Title 21, United States Code, Section 843(b) and Title 18, United States Code, Section 2.
According to court documents, a Drug Enforcement Administration (DEA) investigation revealed that HOLMES was involved in a narcotics distribution conspiracy with several other co-conspirators between June 8, 2020, and June 5, 2021. As part of the conspiracy, HOLMES regularly distributed amounts of methamphetamine.
This case was investigated by the Drug Enforcement Administration and Plaquemines Parish Sheriff’s Office. The prosecution was handled by Assistant United States Attorney J. Benjamin Myers of the Narcotics Unit.
Pittsburgh Man Sentenced to More Than 5 Years in Prison for Possession of Child Sexual Abuse MaterialRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania has been sentenced in federal court to 63 months’ imprisonment followed by 10 years’ supervised release on his conviction of possession of material depicting the sexual exploitation of a minor, Acting United States Attorney Troy Rivetti announced today.
U.S. District Judge Marilyn J. Horan imposed the sentence on Desair McCray, age 22.
According to information presented at the change of plea hearing and in the indictment, on or about March 11, 2020, McCray knowingly possessed images and videos containing child sex abuse material. Specifically, the Court was informed that a search warrant was executed at McCray’s residence after a law enforcement officer acting in an undercover capacity received links created by an individual associated with that residence. A forensic examination of McCray’s iPad and cellular telephone recovered during that search showed that he possessed almost 200 video files and 23 images containing child sexual abuse material. McCray also admitted to law enforcement that he sent links containing child sexual abuse material to other individuals online.
Assistant United States Attorney Karen Gal-Or is prosecuting this case on behalf of the government.
Acting United States Attorney Rivetti commended the Federal Bureau of Investigations and other members of the Western Pennsylvania Violent Crimes Against Children Task Force for the investigation leading to the successful prosecution of McCray.
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.
Parkersburg Woman Sentenced to Prison for Fentanyl CrimeRead the Press Release
CHARLESTON, W.Va. – Mary Elizabeth Curran, 37, of Parkersburg, was sentenced today to four years in prison, to be followed by four years of supervised release, for possession with intent to distribute 40 or more grams of fentanyl.
According to court documents and statements made in court, on April 27, 2021, Curran obtained a quantity of fentanyl in Columbus, Ohio, which she intended to distribute in the Parkersburg area. On that date, Curran was a passenger in a vehicle stopped by law enforcement officers after it entered Wood County from Ohio. Officers suspected that Curran was hiding controlled substances on her person, and she was transported to the North Central Regional Jail for an X-ray body scan.
While awaiting the body scan, Curran clogged a bathroom toilet when she attempted to flush two plastic bags containing powder. The toilet was taken apart and the bags were recovered. The West Virginia State Police Forensic Laboratory confirmed one bag contained approximately 56 grams of fentanyl and the other bag contained approximately 28.5 grams of a separate controlled substance. The lab also found Curran’s DNA on one bag, and her fingerprint on the other.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Parkersburg Drug and Violent Crime Task Force and the West Virginia State Police.
United States District Judge Joseph R. Goodwin imposed the sentence. Assistant United States Attorney Nowles Heinrich prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-136.
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Paducah Man Sentenced to 10 Years in Federal Prison for Methamphetamine DistributionRead the Press Release
Paducah, KY – A Paducah man was sentenced yesterday to 10 years in prison followed by a 5-year term of supervised release for distributing and possessing with the intent to distribute methamphetamine. There is no parole in the federal system.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge J. Todd Scott of the DEA Louisville Field Division, Sheriff Ryan Norman of the McCracken County Sheriff’s Office, and Chief Brian Laird of the Paducah Police Department made the announcement.
According to court documents, Marcus S. Johnson, 38, distributed, or possessed with the intent to distribute, methamphetamine on multiple occasions in McCracken County in June of 2022. In total, the methamphetamine weighed over 250 grams.
“I appreciate the ongoing collaboration between our federal and local law enforcement partners as we continue to encounter methamphetamine trafficking throughout the Western District,” said U.S. Attorney Bennett. “We will continue working as a team to identify and prosecute drug dealers responsible for the destruction of lives and the related devastation brought on by drug addiction.”
The case was investigated by the DEA Paducah Post of Duty office, the McCracken County Sheriff’s Office, and the Paducah Police Department.
Assistant U.S. Attorney Seth Hancock, of the U.S. Attorney’s Paducah Branch Office, prosecuted the case.
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One More Individual Sentenced for Conspiring to Stage Automobile Accidents to Defraud Insurance and Trucking CompaniesRead the Press Release
NEW ORLEANS, LOUISIANA – TROY SMITH (“SMITH”), age 58, of Houma, Louisiana, was sentenced on March 8, 2023 for Conspiracy to Commit Mail Fraud, in violation of Title 18, United States Code, Section 371, arising out of staged automobile accidents with tractor-trailers occurring in New Orleans, announced United States Attorney Duane A. Evans.
According to court documents, on May 17, 2020, SMITH, along with participants Damian Labeaud (“Labeaud”), Bernell Gale (“Gale”), Marvel Francois (“Francois”), and another passenger, participated in a staged accident in the vicinity of Louisa Street and Chickasaw Street. Labeaud fled the scene after intentionally colliding with a tractor trailer. Francois falsely reported to the NOPD that she had been driving and that the tractor-trailer had struck her vehicle.
United States District Judge Lance M. Africk sentenced SMITH to 6 months imprisonment, upon release from imprisonment, 3 years supervised release, and payment of a $100 mandatory special assessment fee.
The U.S. Attorney’s Office would also like to acknowledge the assistance of the Federal Bureau of Investigation, Louisiana State Police, and the Metropolitan Crime Commission with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Chief of the Financial Crimes Unit; Assistant U.S. Attorneys Edward Rivera, Maria Carboni and Brandon Long, also of the Financial Crimes Unit.
Midland Man Sentenced to 30 Years in Prison for Meth Distribution and Firearm ChargeRead the Press Release
MIDLAND, Texas – A Midland man was sentenced last week to 360 months in prison for possessing approximately 1,000 grams of methamphetamine and possessing a handgun in furtherance to a drug activity.
According to court documents, on September 23, 2022, Midland Police officers found that Fabian Hernandez, 33, was a guest at a downtown hotel. In a search of his room, officers found over two pounds of methamphetamine and a 9mm Rock Island Armory handgun.
On December 15, 2022, Hernandez pleaded guilty to one count of conspiracy to possess with intent to distribute over 50 grams of Methamphetamine and one count of possession of a firearm in furtherance of a drug trafficking activity. Hernandez has remained in federal custody since his arrest on September 23, 2022.
“The court imposed a substantial sentence in this case. This should be a clear message to drug traffickers that dealing drugs while possessing a firearm is a serious crime that will result in serious punishment,” said U.S. Attorney Jaime Esparza of the Western District of Texas. “We are grateful for the collaboration between the Drug Enforcement Administration (DEA) and the Midland Police Department that resulted in the removal of another dealer from the streets.”
“Illicit synthetic drugs like methamphetamine and fentanyl continue to drive addiction and fatal poisonings in our country,” said Greg Millard, Special Agent in Charge of the DEA’s El Paso Division. “It is the top priority of the men and women of DEA to relentlessly pursue those manufacturing and distributing these poisons in our communities.”
The DEA’s Midland Resident Office and the Midland Police Department investigated the case.
Assistant U.S. Attorney Mary Lopez prosecuted the case.
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Mexico, Mo., Man Involved in Police Chase that Ended in Multi-Vehicle Crash, Sentenced for Illegal Firearms, Meth TraffickingRead the Press Release
JEFFERSON CITY, Mo. – A Mexico, Mo., man who was in a vehicle that led officers on a high-speed chase before crashing into several other vehicles was sentenced in federal court today for illegally possessing firearms and methamphetamine to distribute.
Myron Samare Mahaney, 23, was sentenced by U.S. District Judge Stephen R. Bough to seven years and three months in federal prison without parole.
On Nov. 1, 2022, Mahaney pleaded guilty to one count of possessing methamphetamine with the intent to distribute and one count of being a felon in possession of firearms.
A Missouri State Highway Patrol trooper attempted to stop a Nissan Rouge, in which Mahaney was a passenger, that was traveling 95 miles per hour on U.S. Highway 54 on March 14, 2022. The Nissan accelerated rapidly when the trooper turned on his lights and siren then drove onto U.S. Highway 50 in Jefferson City, traveling 107 miles per hour. The Nissan exited onto Dix Road and crashed into multiple vehicles that were stopped in traffic on southbound Dix Road.
Mahaney fled on foot from the vehicle but was taken into custody by Jefferson City police officers. Mahaney was carrying a crossbody bag that contained approximately 219 grams of methamphetamine, drug paraphernalia, a loaded Smith and Wesson 9mm semi-automatic handgun and a loaded Springfield .45-caliber semi-automatic handgun. He had $2,086 in cash in his front pocket.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Mahaney has a prior felony conviction for unlawful use of a weapon after he pulled up to a residence, got out of his vehicle, yelled for the residents to come out and fight and then started shooting toward the residence with his firearm, a Glock 19 with a 50-round drum.
The driver of the white Nissan was Malik Miller, 25, of Mokane, Mo. Miller pleaded guilty in Cole County, Mo., Circuit Court to felony charges of accessory to trafficking drugs, unlawful possession of a firearm, unlawful use of a weapon and resisting arrest. Miller was also sentenced in federal court on Feb. 10, 2023, to 15 years in federal prison without parole for being a felon in possession of a firearm in a separate and unrelated case.
This case was prosecuted by Special Assistant U.S. Attorney Heather D. Richenberger. It was investigated by the Missouri State Highway Patrol and the Jefferson City, Mo., Police Department.
Mescalero man charged with assault on federal officerRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced that Jeremy Daniel Dennis made an initial appearance in federal court on March 14 on a criminal complaint charging him with assault on a federal officer. Dennis, 43, of Mescalero, New Mexico, and an enrolled member of the Mescalero Apache Tribe, will remain in custody pending trial, which has not been scheduled.
According to the criminal complaint, on Dec. 25, 2022, Dennis allegedly assaulted a BIA Officer conducting a welfare check on him by punching and kicking the officer and attempting to strangle them by pressing the officer’s bulletproof vest into their throat. The incident occurred in Otero County, New Mexico, within the bounds of the Mescalero Apache Tribe.
A complaint is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Dennis faces up to 8 years in prison.
The Las Cruces Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Bureau of Indian Affairs. Assistant United States Attorney Eliot Neal is prosecuting the case.
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Mescalero man charged with assault in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced that Danny Deron Morgan made an initial appearance in federal court on March 14 on a criminal complaint charging him with assault of an intimate partner by strangling in Indian Country. Morgan, 50, of Mescalero, New Mexico, and an enrolled member of the Mescalero Apache Tribe, will remain in custody pending trial, which has not been scheduled.
According to the criminal complaint, on Feb. 20, Morgan allegedly assaulted a victim, identified as Jane Doe, by attempting to strangle them in Otero County, New Mexico, within the bounds of the Mescalero Apache Tribe.
A complaint is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Morgan faces up to 10 years in prison.
The Bureau of Indian Affairs investigated this case. Assistant United States Attorney Eliot Neal is prosecuting the case.
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Merrimack Man Sentenced to 18 Months Imprisonment for Unlicensed Firearm Dealing and Making False Statements During the Acquisition of FirearmsRead the Press Release
CONCORD, N.H. - Leith Sukkar, 23, of Merrimack New Hampshire, was sentenced to 18 months in federal prison on one count of unlicensed firearm dealing and two counts of making a false statement during the acquisition of a firearm, United States Attorney Jane E. Young announced today.
According to court documents and statements made in court, Between September 2021 and May 3, 2022, Sukkar purchased 24 firearms from four federally licensed firearms dealers in New Hampshire. Sukkar falsely represented that he was the actual purchaser of the firearms when, in fact, he was purchasing the firearms for other people. On May 3, 2022, Sukkar made a false statement during the purchase of a Glock model 29, 10mm pistol and a Glock model 43, 9mm pistol from Shooter’s Outpost, a federally licensed firearms dealer, located in Hooksett, New Hampshire. Similarly on April 27, 2022, Sukkar made a false statement during the purchase of a Taurus model G2S, 9mm pistol, from Shooter’s Outpost. Other evidence obtained during the investigation showed that he was charging $900 for firearms and accepted drugs as payment for at least one firearm. Sukkar does not have a federal license to sell or deal in firearms.
After sentencing U.S. Attorney Young said, “this defendant’s deliberate actions were designed to thwart the application of firearms laws and merit the term of imprisonment he received. The defendant’s crimes facilitated crimes of violence and other crimes, including drug offenses, in New Hampshire and neighboring states.”
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Manchester Police Department Special Investigations Unit, and the New Hampshire Sate Police. The case was prosecuted by Assistant U.S. Attorneys Geoffrey Ward, Anna Krasinski, and Deb Walsh.
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Manager of Transnational Fraud Scheme Sentenced to 41 Months in PrisonRead the Press Release
Earlier today, in federal court in Central Islip, Kamal Zafar was sentenced by United States District Judge Joan M. Azrack to 41 months in prison for conspiracy to commit wire fraud in connection with a fraudulent scheme directed at thousands of individuals in the United States. As part of the sentence, Zafar was also ordered to pay restitution in the amount of $3.2 million and forfeiture of $232,362. Zafar pleaded guilty to the charge in June 2022.
Breon Peace, United States Attorney for the Eastern District of New York, announced the sentence.
Mr. Peace thanked the Internal Revenue Service-Criminal Investigation, Treasury Inspector General for Tax Administration and New York City Police Department for their assistance with the case.
As alleged in the indictment and other court filings and proceedings, Zafar managed the fraud scheme by recruiting individuals to open bank accounts in the names of inactive and shell corporations and also assisted in the laundering of fraud proceeds. Between January 2018 and September 2018, operating from call centers in India, the scheme targeted victims in the United States and falsely claimed to be employees of the Internal Revenue Service, the Social Security Administration or the Drug Enforcement Administration. The victims who were taxpayers were informed that they owed a sum of money to the Internal Revenue Service. The victims who were medical professionals were informed that they owed a sum of money to the DEA in connection with their licenses. Both groups of victims were told that they would be arrested the next day if the debts were not immediately paid. After the victims wired payments to bank accounts that Zafar had opened or directed to be opened to receive the fraud proceeds, the funds were either withdrawn and laundered through additional bank accounts or wired to foreign countries. The scheme netted over $2 million from victims across the United States.
Zafar’s six co-conspirators previously pleaded guilty. In January 2022, Ajay Sharma, the leader and organizer of the fraud scheme, was sentenced to 78 months in prison and five others are awaiting sentencing.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Charles P. Kelly, Charles N. Rose and Diane Leonardo are in charge of the prosecution.
The Defendant:
KAMAL ZAFAR
Age: 53
South Huntington, New YorkDefendants Who Have Previously Pleaded Guilty:
AJAY SHARMA
Age: 44
Mumbai, IndiaANKUR SHARMA
Age: 25
Bellerose, New YorkRICARDO URBINO, also known as “Ricardo Urbina”
Age: 30
Queens, New YorkHARPREET SINGH
Age: 33
Queens Village, New YorkE.D.N.Y. Docket No. 19-CR-024 (JMA)
JAMAL ZAFAR
Age: 48
Huntington, New YorkARMUGHANUL ASAR
Age: 68
College Point, New YorkE.D.N.Y. Docket No. 19-CR-385 (JMA)
Man Charged with Attempted Murder of ATF Agents, Robbery, and Carjacking After Opening Fire During A High-Speed Chase on Interstate 4Read the Press Release
Tampa, Florida–United States Attorney Roger B. Handberg announces the unsealing of an indictment charging Francisco Cabrera (28, Dover) with armed robbery, armed carjacking, and attempting to murder federal agents. If convicted on all counts, Cabrera faces a mandatory minimum sentence of 28 years, up to life, in federal prison.
According to the indictment, between January 13 and 17, 2022, Cabrera robbed two Smoke Shops and one gas station in the Tampa Bay area. During each robbery, Cabrera showed victims a loaded magazine, inserted it into his pistol, and pointed the gun at the victims. On January 19, 2022, Cabrera approached a victim at a gas station and carjacked him at gunpoint. The same day, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) agents and Lakeland Police Department officers found Cabrera and attempted to conduct a traffic stop. Cabrera fled at speeds exceeding 100 miles per hour in heavy midday traffic, including on Interstate 4. While fleeing, Cabrera fired multiple shots from his driver side window at the agents and officers pursuing him. ATF agents returned fire, striking Cabrera, which ended the pursuit. No other individuals were struck by the gunfire.
Cabrera has been charged separately by the State Attorney’s Office (10th Judicial Circuit) with attempted murder of local law enforcement officers.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Lakeland Police Department. It will be prosecuted by Assistant United States Attorney Diego F. Novaes.
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.
LaPorte Man Sentenced to 180 Months in PrisonRead the Press Release
SOUTH BEND – Anthony Sanders, 35 years old, of LaPorte, Indiana, was sentenced by United States District Court Judge Damon R. Leichty after pleading guilty to unlawful possession of a firearm by a felon, announced United States Attorney Clifford D. Johnson.
Sanders was sentenced to 180 months in prison followed by 3 years of supervised release.
According to documents in the case, in February 2021, Sanders was in Michigan City with a loaded 9mm semi-automatic pistol with an extended magazine. When police officers attempted to stop him, he ran and discarded the handgun. Police recovered not only the pistol, but two extended magazines, one with 28 rounds and the other with 17 rounds of ammunition. Sanders’ had prior convictions for robbery involving a firearm, two for burglary, and two for dealing cocaine and, as a convicted felon, he was prohibited from possessing the firearm.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Michigan City Police Department. This case was prosecuted by Assistant United States Attorney Molly E. Donnelly.
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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Kanawha County Man Sentenced to Prison for Child Pornography CrimeRead the Press Release
CHARLESTON, W.Va. – Jonathan Richard Chapman, 43, of St. Albans, was sentenced today to five years in prison, to be followed by 15 years of supervised release, for attempted distribution of child pornography. Chapman must also register as a sex offender.
According to court documents and statements made in court, from about June 5, 2021, until June 30, 2022, Chapman used a peer-to-peer file sharing program to make 704 digital media files of suspected child pornography available to others. Chapman admitted that the digital media files included an image depicting a prepubescent minor female subjected to sexually explicit conduct. Chapman further admitted to possessing 91 images of child pornography on his personal electronic devices on August 11, 2022. The child pornography included several images and videos depicting infants and toddlers subjected to sexually explicit conduct.
United States Attorney Will Thompson made the announcement and commended the investigative work of the U.S. Department of Homeland Security-Homeland Security Investigations (HSI).
Senior United States District Judge John T. Copenhaver, Jr., imposed the sentence. Assistant United States Attorney Julie White prosecuted the case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s 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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-174.
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Justice Department Investigation Leads to Takedown of Darknet Cryptocurrency Mixer that Processed over $3 Billion of Unlawful TransactionsRead the Press Release
The Justice Department announced today a coordinated international takedown of ChipMixer, a darknet cryptocurrency “mixing” service responsible for laundering more than $3 billion worth of cryptocurrency, between 2017 and the present, in furtherance of, among other activities, ransomware, darknet market, fraud, cryptocurrency heists and other hacking schemes. The operation involved U.S. federal law enforcement’s court-authorized seizure of two domains that directed users to the ChipMixer service and one Github account, as well as the German Federal Criminal Police’s (the Bundeskriminalamt) seizure of the ChipMixer back-end servers and more than $46 million in cryptocurrency.
Coinciding with the ChipMixer takedown efforts, Minh Quốc Nguyễn, 49, of Hanoi, Vietnam, was charged today in Philadelphia with money laundering, operating an unlicensed money transmitting business and identity theft, connected to the operation of ChipMixer.
“This morning, working with partners at home and abroad, the Department of Justice disabled a prolific cryptocurrency mixer, which has fueled ransomware attacks, state-sponsored crypto-heists and darknet purchases across the globe,” said Deputy Attorney General Lisa Monaco. “Today’s coordinated operation reinforces our consistent message: we will use all of our authorities to protect victims and take the fight to our adversaries. Cybercrime seeks to exploit boundaries, but the Department of Justice’s network of alliances transcends borders and enables disruption of the criminal activity that jeopardizes our global cybersecurity.”
“Today's announcement demonstrates the FBI's commitment to dismantling technical infrastructure that enables cyber criminals and nation-state actors to illegally launder cryptocurrency funds,” said FBI Deputy Director Paul Abbate. “We will not allow cyber criminals to hide behind keyboards nor evade the consequences of their illegal actions. Countering cybercrime requires the ultimate level of collaboration between and among all law enforcement partners. The FBI will continue to elevate those partnerships and leverage all available tools to identify, apprehend and hold accountable these bad actors and put an end to their illicit activity.”
According to court documents, ChipMixer – one of the most widely used mixers to launder criminally-derived funds – allowed customers to deposit bitcoin, which ChipMixer then mixed with other ChipMixer users’ bitcoin, commingling the funds in a way that made it difficult for law enforcement or regulators to trace the transactions. As detailed in the complaint, ChipMixer offered numerous features to enhance its criminal customers’ anonymity. ChipMixer had a clearnet web domain but operated primarily as a Tor hidden service, concealing the operating location of its servers to prevent seizure by law enforcement. ChipMixer serviced many customers in the United States, but did not register with the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) and did not collect identifying information about its customers.
As alleged in the complaint, ChipMixer attracted a significant criminal clientele and became indispensable in obfuscating and laundering funds from multiple criminal schemes. Between August 2017 and March 2023, ChipMixer processed:
- $17 million in bitcoin for criminals connected to approximately 37 ransomware strains, including Sodinokibi, Mamba and Suncrypt;
- Over $700 million in bitcoin associated with wallets designated as stolen funds, including those related to heists by North Korean cyber actors from Axie Infinity’s Ronin Bridge and Harmony’s Horizon Bridge in 2022 and 2020, respectively;
- More than $200 million in bitcoin associated either directly or through intermediaries with darknet markets, including more than $60 million in bitcoin processed on behalf of customers of Hydra Market, the largest and longest running darknet market in the world until its April 2022 shutdown by U.S. and German law enforcement;
- More than $35 million in bitcoin associated either directly or through intermediaries with “fraud shops,” which are used by criminals to buy and sell stolen credit cards, hacked account credentials and data stolen through network intrusions; and
- Bitcoin used by the Russian General Staff Main Intelligence Directorate (GRU), 85th Main Special Service Center, military unit 26165 (aka APT 28) to purchase infrastructure for the Drovorub malware, which was first disclosed in a joint cybersecurity advisory released by the FBI and National Security Agency in August 2020.
Beginning in and around August 2017, as alleged in the complaint, Nguyễn created and operated the online infrastructure used by ChipMixer and promoted ChipMixer’s services online. Nguyễn registered domain names, procured hosting services and paid for the services used to run ChipMixer through the use of identity theft, pseudonyms, and anonymous email providers. In online posts, Nguyễn publicly derided efforts to curtail money laundering, posting in reference to anti-money laundering (AML) and know-your-customer (KYC) legal requirements that “AML/KYC is a sellout to the banks and governments,” advising customers “please do not use AML/KYC exchanges” and instructing them how to use ChipMixer to evade reporting requirements.
“ChipMixer facilitated the laundering of cryptocurrency, specifically Bitcoin, on a vast international scale, abetting nefarious actors and criminals of all kinds in evading detection,” said U.S. Attorney Jacqueline C. Romero for the Eastern District of Pennsylvania. “Platforms like ChipMixer, which are designed to conceal the sources and destinations of staggering amounts of criminal proceeds, undermine the public’s confidence in cryptocurrencies and blockchain technology. We thank all our partners at home and abroad for their hard work in this case. Together, we cannot and will not allow criminals’ exploitation of technology to threaten our national and economic security.”
“Criminals have long sought to launder the proceeds of their illegal activity through various means,” said Special Agent in Charge Jacqueline Maguire of the FBI Philadelphia Field Office. “Technology has changed the game, though, with a site like ChipMixer and facilitator like Nguyen enabling bad actors to do so on a grand scale with ease. In response, the FBI continues to evolve in the ways we ‘follow the money’ of illegal enterprise, employing all the tools and techniques at our disposal and drawing on our strong partnerships at home and around the globe. As a result, there’s now one less option for criminals worldwide to launder their dirty money.”
“Together, with our international partners at HSI The Hague, we are firmly committed to identifying and investigating cyber criminals who pose a serious threat to our economic security by laundering billions of dollars’ worth of cryptocurrency under the misguided anonymity of the darknet,” said Special Agent in Charge Scott Brown of Homeland Securities Investigations (HSI) Arizona. “HSI Arizona could not be more proud to work alongside every agent involved in this complex international case. We thank all our domestic and international partners for their support.”
Nguyễn is charged with operating an unlicensed money transmitting business, money laundering and identity theft. If convicted, he faces a maximum penalty of 40 years in prison.
The FBI, HSI Phoenix and HSI The Hague investigated the case.
The U.S. Attorney’s Office for the Eastern District of Pennsylvania is prosecuting the case.
German law enforcement authorities took separate actions today under its authorities. The FBI’s Legal Attaché in Germany, the HSI office in The Hague, the HSI Cyber Crimes Center, the Justice Department’s Office of International Affairs and National Cryptocurrency Enforcement Team, EUROPOL, the Polish Cyber Police (Centralnego Biura Zwalczania Cyberprzestępczości) and Zurich State Police (Kantonspolizei Zürich) provided assistance in this case.
To report information about ChipMixer and its operators visit rfj.tips/Duhsup.
A criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Justice Department Investigation Leads to Takedown of Darknet Cryptocurrency Mixer that Processed over $3 Billion of Unlawful TransactionsRead the Press Release
Philadelphia – The Justice Department announced today a coordinated international takedown of ChipMixer, a darknet cryptocurrency “mixing” service responsible for laundering more than $3 billion worth of cryptocurrency, between 2017 and the present, in furtherance of among other activities, ransomware, darknet market, fraud, cryptocurrency heists and other hacking schemes. The operation involved U.S. federal law enforcement’s court-authorized seizure of two domains that directed users to the ChipMixer service and one Github account, as well as the German Federal Criminal Police’s (the Bundeskriminalamt) seizure of the ChipMixer back-end servers and more than $46 million in cryptocurrency
Coinciding with the ChipMixer takedown efforts, Minh Quốc Nguyễn, 49, of Hanoi, Vietnam, was charged today in Philadelphia with money laundering, operating an unlicensed money transmitting business and identity theft, connected to the operation of ChipMixer.
“This morning, working with partners at home and abroad, the Department of Justice disabled a prolific cryptocurrency mixers, which has fueled ransomware attacks, state-sponsored crypto-heists and darknet purchases across the globe,” said Deputy Attorney General Lisa O. Monaco. “Today’s coordinated operation reinforces our consistent message: we will use all of our authorities to protect victims and take the fight to our adversaries. Cybercrime seeks to exploit boundaries, but the Department of Justice’s network of alliances transcends borders and enables disruption of the criminal activity that jeopardizes our global cybersecurity.”
“Today's announcement demonstrates the FBI's commitment to dismantling technical infrastructure that enables cyber criminals and nation-state actors to illegally launder cryptocurrency funds,” said FBI Deputy Director Paul Abbate. “We will not allow cyber criminals to hide behind keyboards nor evade the consequences of their illegal actions. Countering cyber crime requires the ultimate level of collaboration between and among all law enforcement partners. The FBI will continue to elevate those partnerships and leverage all available tools to identify, apprehend, and hold accountable these bad actors and put an end to their illicit activity.”
According to court documents, ChipMixer – one of the most widely used mixers to launder criminally derived funds – allowed customers to deposit bitcoin, which ChipMixer then mixed with other ChipMixer users’ bitcoin, commingling the funds in a way that made it difficult for law enforcement or regulators to trace the transactions. As detailed in the complaint, ChipMixer offered numerous features to enhance its criminal customers’ anonymity. ChipMixer had a clearnet web domain but operated primarily as a Tor hidden service, concealing the operating location of its servers to prevent seizure by law enforcement. ChipMixer serviced many customers in the United States, but did not register with the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) and did not collect identifying information about its customers.
As alleged in the complaint, ChipMixer attracted a significant criminal clientele and became indispensable in obfuscating and laundering funds from multiple criminal schemes. Between August 2017 and March 2023, ChipMixer processed:
- $17 million in bitcoin for criminals connected to approximately 37 ransomware strains, including Sodinokibi, Mamba and Suncrypt;
- Over $700 million in bitcoin associated with wallets designated as stolen funds, including those related to heists by North Korean cyber actors from Axie Infinity’s Ronin Bridge and Harmony’s Horizon Bridge in 2022 and 2020, respectively;
- More than $200 million in bitcoin associated either directly or through intermediaries with darknet markets, including more than $60 million in bitcoin processed on behalf of customers of Hydra Market, the largest and longest running darknet market in the world until its April 2022 shutdown by U.S. and German law enforcement;
- More than $35 million in bitcoin associated either directly or through intermediaries with “fraud shops,” which are used by criminals to buy and sell stolen credit cards, hacked account credentials and data stolen through network intrusions; and
- Bitcoin used by the Russian General Staff Main Intelligence Directorate (GRU), 85th Main Special Service Center, military unit 26165 (aka APT 28) to purchase infrastructure for the Drovorub malware, which was first disclosed in a joint cybersecurity advisory released by the FBI and National Security Agency in August 2020.
Beginning in and around August 2017, as alleged in the complaint, Nguyễn created and operated the online infrastructure used by ChipMixer and promoted ChipMixer’s services online. Nguyễn registered domain names, procured hosting services and paid for the services used to run ChipMixer through the use of identity theft, pseudonyms, and anonymous email providers. In online posts, Nguyễn publicly derided efforts to curtail money laundering, posting in reference to anti-money laundering (AML) and know-your-customer (KYC) legal requirements that “AML/KYC is a sellout to the banks and governments,” advising customers “please do not use AML/KYC exchanges” and instructing them how to use ChipMixer to evade reporting requirements.
“ChipMixer facilitated the laundering of cryptocurrency, specifically Bitcoin, on a vast international scale, abetting nefarious actors and criminals of all kinds in evading detection,” said U.S. Attorney Jacqueline C. Romero for the Eastern District of Pennsylvania. “Platforms like ChipMixer, which are designed to conceal the sources and destinations of staggering amounts of criminal proceeds, undermine the public’s confidence in cryptocurrencies and blockchain technology. We thank all our partners at home and abroad for their hard work in this case. Together, we cannot and will not allow criminals’ exploitation of technology to threaten our national and economic security.”
“Criminals have long sought to launder the proceeds of their illegal activity through various means,” said Special Agent in Charge Jacqueline Maguire of the FBI’s Philadelphia Field Office. “Technology has changed the game, though, with a site like ChipMixer and facilitator like Nguyen enabling bad actors to do so on a grand scale with ease. In response, the FBI continues to evolve in the ways we ‘follow the money’ of illegal enterprise, employing all the tools and techniques at our disposal and drawing on our strong partnerships at home and around the globe. As a result, there’s now one less option for criminals worldwide to launder their dirty money.”
“Together, with our international partners at HSI The Hague, we are firmly committed to identifying and investigating cyber criminals who pose a serious threat to our economic security by laundering billions of dollars’ worth of cryptocurrency under the misguided anonymity of the darknet,” said Special Agent in Charge Scott Brown of Homeland Securities Investigations (HSI) Arizona. “HSI Arizona could not be more proud to work alongside every agent involved in this complex international case. We thank all our domestic and international partners for their support.”
Nguyễn is charged with operating an unlicensed money transmitting business, money laundering and identity theft. If convicted, he faces a maximum penalty of 40 years in prison.
FBI, HSI Phoenix and HSI The Hague investigated the case.
The U.S. Attorney’s Office for the Eastern District of Pennsylvania is prosecuting the case.
German law enforcement authorities took separate actions today under its authorities. The FBI’s Legal Attaché in Germany, the HSI office in The Hague, the HSI Cyber Crimes Center, the Justice Department’s Office of International Affairs, National Cryptocurrency Enforcement Team, EUROPOL, the Polish Cyber Police (Centralnego Biura Zwalczania Cyberprzestępczości) and Zurich State Police (Kantonspolizei Zürich) provided assistance in this case.
To report information about ChipMixer and its operators visit rfj.tips/Duhsup.
A criminal complaint is merely an allegation. All defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.