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15 March 2023
Inland Empire Return Preparer Charged with Preparing False Tax Returns with Bogus Deductions for 5 YearsRead the Press Release
RIVERSIDE, California – An Inland Empire man was arrested this week after being named in a 47-count indictment alleging he prepared false tax returns for clients, the Justice Department announced today.
Salvador Gonzalez, of Corona, was arrested Monday afternoon by special agents with IRS Criminal Investigation after being charged last week by a federal grand jury. Gonzalez was arraigned on the indictment Tuesday afternoon in United States District Court, where he entered not guilty pleas. Gonzalez was ordered released on bond, and a trial in this case was scheduled for May 9.
The indictment charges Gonzalez with 47 counts of aiding and assisting in the preparation of false tax returns.
According to the indictment filed on March 8 and unsealed Tuesday, Gonzalez operated a tax preparation business called Grace’s Lighthouse Resource Center, Inc., in Corona.
For tax years 2016 through 2021, Gonzalez allegedly prepared income tax returns for individuals and corporate clients to submit to the IRS that claimed tens of thousands of dollars in bogus 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 in this case, Gonzalez would face a statutory maximum penalty of three years in prison for each count alleged in the indictment. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
IRS Criminal Investigation is investigating the case.
Assistant United States Attorney Robert S. Trisotto of the Riverside Branch Office and Trial Attorney Lauren K. Pope of the Justice Department’s Tax Division 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.
Ho Wan Kwok, A/K/A “Miles Guo,” Arrested for Orchestrating over $1 Billion Dollar Fraud ConspiracyRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of a twelve-count Indictment charging HO WAN KWOK, a/k/a “Miles Guo,” a/k/a “Miles Kwok,” a/k/a “Guo Wengui,” a/k/a “Brother Seven,” a/k/a “The Principal,” and KIN MING JE, a/k/a “William Je,” with various wire fraud, securities fraud, bank fraud, and money laundering charges. JE, who is KWOK’s financier, is also charged with obstruction of justice. The charges in the Indictment arise from an alleged sprawling and complex scheme by the defendants, and others, to solicit investments in various entities and programs through false statements and representations to hundreds of thousands of KWOK’s online followers. As alleged, KWOK and JE misappropriated hundreds of millions of dollars in fraudulently obtained funds during the course of their conspiracy. KWOK was arrested this morning in New York, New York, and will be presented this afternoon. JE is currently at large.
In addition, Mr. Williams announced that between September 2022 and March 2023, the U.S. Government seized approximately $634 million from 21 different bank accounts. The $634 million constitutes proceeds of KWOK’s alleged fraud, which the Government will seek to forfeit. Today, law enforcement also seized assets that were purchased with proceeds of KWOK’s alleged fraud, including a Lamborghini Aventador SVJ Roads.
U.S. Attorney Damian Williams said: “As alleged, Ho Wan Kwok, known to many as “Miles Guo,” led a complex conspiracy to defraud thousands of his online followers out of over $1 billion dollars. Kwok is charged with lining his pockets with the money he stole, including buying himself, and his close relatives, a 50,000 square foot mansion, a $3.5 million Ferrari, and even two $36,000 mattresses, and financing a $37 million luxury yacht.
As alleged, Kwok lied to his victims and promised them outsized returns if they invested, or provided money to, GTV, his so-called Himalaya Farm Alliance, G|CLUBS, and the Himalaya Exchange.
Kwok is further charged with laundering hundreds of millions of stolen funds to conceal the conspiracy’s illegal activities and continue the fraud’s operations. My office and our law enforcement partners will continue to do all that we can to protect the community from the devastating consequences of pernicious fraud schemes. If you believe you are a victim of Kwok and Je’s fraud, please contact [email protected] or https://forms.fbi.gov/NY_GTV. My Office and the FBI are here to help those who were harmed by this malicious fraud.”
FBI Assistant Director Michael J. Driscoll said: “The indictment today alleges the defendants were behind an elaborate scheme that defrauded thousands of individuals of over one billion dollars. Fraudulent investment scams make victims out of innocent people, ultimately harming the public’s confidence in the integrity of financial systems. The FBI continues to make investigating complex financial crimes a top priority, and anyone attempting these crimes will be made to face the consequences in the criminal justice system.”
As alleged in the Indictment unsealed in Manhattan federal court and court filings:[1]
From at least in or about 2018 through at least in or about March 2023, KWOK, JE, and others, conspired to defraud thousands of victims of more than approximately $1 billion. KWOK was the leader of this complex conspiracy.
KWOK is an exiled Chinese businessman who has resided in the United States since in or about 2015 and garnered a substantial online following. In or about 2018, KWOK founded two purported nonprofit organizations, namely, the Rule of Law Foundation and the Rule of Law Society. KWOK used the nonprofit organizations to amass followers who were aligned with his purported policy objectives in China and who were also inclined to believe KWOK’s statements regarding investment and money-making opportunities.
JE is a dual citizen of Hong Kong and the United Kingdom who principally resided in the United Kingdom. JE owned and operated numerous companies and investment vehicles central to the scheme and served as its financial architect and key money launderer.
KWOK and JE’s fraud relied on at least four interrelated parts: the GTV Media Group, Inc. (“GTV”) Private Placement, the Farm Loan Program, G Club Operations, LLC (“G|CLUBS”), and the Himalaya Exchange.
GTV Private Placement
On or about April 21, 2020, KWOK posted a video on social media announcing the unregistered offering of GTV Media Group, Inc. (“GTV”) common stock via a private placement. GTV was touted as a wide-ranging media company. In that video, KWOK described, in substance and in part, the investment terms for the GTV Private Placement, and directed people to contact him, via a mobile messaging application, with any questions about the GTV Private Placement. The video and GTV Private Placement materials included a written “Confidential Information Memorandum” (the “PPM”). The PPM stated on the cover “Everything Is Just the Beginning!,” provided information about GTV, and contained false representations regarding how the money raised from the GTV Private Placement would be used.
Between on or about April 20, 2020 and on or about June 2, 2020, approximately $452 million worth of GTV common stock was purportedly sold to more than 5,500 investors. Investors participated in the GTV Private Placement based, in part, on the belief that their money would be invested into GTV to develop and grow that business, as the PPM promised. In early June 2020, just days after the GTV Private Placement closed, KWOK and JE directed that $100 million of funds raised from the GTV Private Placement be invested in a high-risk hedge fund for the benefit of GTV’s parent company and its ultimate beneficial owner who was a close family relative of KWOK.
Farm Loan Program
KWOK, JE, and their co-conspirators fraudulently obtained more than approximately $150 million in victim funds through the “Himalaya Farm Alliance.” The Himalaya Farm Alliance, which KWOK organized and promoted, was a collective of informal groups (each known as a “Farm”) located in various cities around the world. KWOK, JE, and others working on their behalf and at their direction, obtained these funds by making further misrepresentations to the investors in the GTV Private Placement and fraudulently soliciting further investments, this time in the form of “loans” to a Farm, and promising that such loans would be convertible into GTV common stock at a conversion rate of one share per dollar loaned. On or about July 22, 2020, in a video distributed via social media, KWOK promoted the Farm Loan Program. After launching the Farm Loan Program, KWOK continued to promote GTV and to falsely represent the value of GTV. For example, on or about August 2, 2020, in a video distributed via social media, KWOK falsely stated, in substance and part, “How much is GTV? . . . a market value of 2 billion US dollars.” In truth and in fact, and as KWOK well knew, GTV’s market value was far less.
KWOK and JE misappropriated funds that were raised through the Farm Loan Program. For example: (i) approximately $2.3 million was used to cover maintenance expenses associated with an approximately 145-foot luxury yacht worth approximately $37 million, nominally owned by close family relative of KWOK and used by KWOK, which is pictured below; and (ii) approximately $10 million was transferred to personal bank accounts in the name of JE and/or JE’s spouse.
G|CLUBS
KWOK, JE and others known and unknown, fraudulently induced KWOK’s followers to transfer additional funds to a purported online membership club called G|CLUBS. From at least in or about October 2020 through at least in or about March 2023, KWOK, JE, and others fraudulently obtained more than approximately $250 million in victim funds through G|CLUBS. G|CLUBS claimed, on its website, to be “an exclusive, high-end membership program offering a full spectrum of services” and “a gateway to carefully curated world-class products, services and experiences.”
In truth and in fact, and as KWOK and JE well knew, G|CLUBS provided nothing close to “a full spectrum of services” and “experiences” to its members. Indeed, most of the money G|CLUBS members paid did not fund the business of G|CLUBS. Rather, the defendants misappropriated a substantial portion of the victim funds using, among other things, a complex web of entities and bank accounts to do so. For example, G|CLUBS funds were used by KWOK and JE: (i) toward the purchase of KWOK’s 50,000 square foot New Jersey mansion (pictured below); (ii) to purchase various furniture and decorative items including, among other items, Chinese and Persian rugs worth approximately $978,000, a $62,000 television, and a $53,000 fireplace log cradle holder; and (iii) to purchase a custom-built Bugatti sports car for approximately $4.4 million (pictured below):
Himalaya Exchange
KWOK, JE, and others known and unknown, fraudulently obtained more than approximately $262 million in victim funds through the Himalaya Exchange, a purported cryptocurrency “ecosystem” accessible on the Internet. The Himalaya Exchange included a purported stablecoin called the Himalaya Dollar (“HDO” or “H Dollar”) and a trading coin called Himalaya Coin (“HCN” or “H Coin”). In videos distributed via social media, KWOK trumpeted the prospects and valuation of the Himalaya Exchange and both HCN and HDO, which he publicly described as cryptocurrencies. For example, in a video posted on the Internet on or about October 20, 2021, KWOK falsely stated: “If the H Coin is worthless, [the issuer of H coin] can sell all 20% of the gold, exchange it to you, and become your money. Or take all the value of 20% gold and ask everyone to unify it and make it yours;” and “If anyone loses money, I can say that I will compensate 100%. I give you 100%. Whoever loses money, I will bear it.” The initial coin offering of HCN and HDO occurred on or about November 1, 2021. HCN began trading at 10 cents and, within approximately two weeks, the Himalaya Exchange website claimed that each HCN purportedly was worth approximately 27 HDO (i.e., $27), which represented a 26,900% increase in value and a total value of approximately $27 billion. JE also falsely claimed to media outlets that a €3.5 million Ferrari was purchased via the Himalaya Exchange. In truth, a Himalaya Exchange employee sent the Ferrari broker an international bank wire to cover the cost of the Ferrari, while also processing a corresponding “transaction” on the Himalaya Exchange to create the false appearance that the purchase had taken place using HDO in order to show HDO was easily tradeable and to promote the Himalaya Exchange. The buyer of the Ferrari was a close relative of KWOK.
U.S. Government Seizures
On or about September 20, 2022 and September 21, 2022, U.S. authorities served judicially-authorized seizure warrants on several domestic banks, and subsequently seized approximately $335 million of proceeds from bank accounts held in the names of Himalaya Exchange entities and other entities associated with KWOK and JE. Within approximately two days of the first judicially authorized seizures of Himalaya Exchange-related funds, on or about September 22, 2022, JE contacted the management of a domestic bank that held Himalaya Exchange bank accounts. JE sought to implement a wire transfer, which he and a Himalaya Exchange executive claimed to the domestic bank was needed to effectuate a “redemption” from HDO to U.S. dollars for an unnamed “VIP” (i.e., very important client of the Himalaya Exchange). In subsequent communications with the domestic bank, JE revealed that the VIP was, in fact, JE himself. JE provided the domestic bank with documents reflecting two purported HCN sales by JE on or about September 22, 2022—totaling 46 million HDO, which JE was attempting to “convert” into $46 million. JE twice emphasized to the domestic bank’s management, in substance and in part, that the $46 million transfer needed to happen “today or it is meaningless.”
U.S. Authorities subsequently seized additional funds from KWOK and JE-associated entities in October 2022 and March 2023. In total, U.S. Authorities seized more than approximately $634 million of fraud proceeds, including approximately $278 million from bank accounts held in the names of the Himalaya Exchange entities.
Today, pursuant to judicially-authorized warrants, U.S. Authorities are seizing additional items from KWOK-associated properties, which KWOK and JE allegedly purchased with fraud proceeds.
* * *
HO WAN KWOK, a/k/a “Miles Guo,” a/k/a “Miles Kwok,” a/k/a “Guo Wengui,” a/k/a “Brother Seven,” a/k/a “The Principal,” 52, of New York, New York, and KIN MING JE, a/k/a “William Je,” 56, of London, England, are charged in an Indictment with the following offenses:
Count
Charge
Defendant
Maximum Penalty
1
Conspiracy to Commit Wire Fraud, Bank Fraud, Securities Fraud and Money Laundering
KWOK and JE
5 years in prison
2
Wire Fraud (GTV Private Placement)
KWOK and JE
20 years in prison
3
Securities Fraud (GTV Private Placement)
KWOK and JE
20 years in prison
4
Wire Fraud (Farm Loan Program)
KWOK and JE
20 years in prison
5
Securities Fraud (Farm Loan Program)
KWOK and JE
20 years in prison
6
Wire Fraud (G|CLUBS)
KWOK and JE
20 years in prison
7
Securities Fraud (G|CLUBS)
KWOK and JE
20 years in prison
8
Wire Fraud (Himalaya Exchange)
KWOK and JE
20 years in prison
9
International Promotional Money Laundering
KWOK and JE
20 years in prison
10
International Concealment Money Laundering
KWOK and JE
20 years in prison
11
Unlawful Monetary Transactions
KWOK and JE
10 years in prison
12
Obstruction of Justice
JE
20 years in prison
The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the investigative work of the FBI. Mr. Williams further thanked the U.S. Securities and Exchange Commission, which today filed a parallel civil action against KWOK and JE, for its assistance and cooperation in this investigation. Mr. Williams also expressed appreciation for the assistance of the United States Marshals Service, the Justice Department’s Office of International Affairs, and the U.K. Metropolitan Police.
If you believe you are a victim of KWOK and JE’s fraud, please find more information here: https://www.justice.gov/usao-sdny/united-states-v-ho-wan-kwok-aka-miles-guo-and-kin-ming-je-aka-william-je
The case is being handled by the Complex Frauds and Cybercrime Unit of the Office’s Criminal Division. Assistant U.S. Attorneys Ryan B. Finkel, Juliana N. Murray, and Micah F. Fergenson are in charge of the prosecution.
The allegations in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
HO WAN KWOK, 豪万郭（音译）a/k/a，“MILES GUO”别称“迈乐斯郭”因策划超过 10 亿美元的欺诈阴谋而被捕Read the Press Release
美国纽约南区检察官 Damian Williams（达米安威廉姆斯）和联邦调查局 (“FBI”) 纽约外地办事处负责人助理主任 Michael J. Driscoll 宣布公开一份12项的起诉书，指控 HO WAN KWOK 豪万郭（音译），a/k/a “Miles Guo”别称”迈乐斯郭”， a/k/a “Miles Kwok”, a/k/a 别称“郭文贵”, a/k/a 别称“七哥”, a/k/a别称“领头人”和 KIN MING JE，吉建明（音译），又名“William Je”“威廉吉”，涉及多种电汇欺诈、证券欺诈、银行欺诈和洗钱指控。 JE吉是郭的财务设计师，他同时还被控妨碍司法公正。起诉书中的指控源于被告和其他人操纵庞大而复杂的阴谋，目的是通过向数十万 KWOK 郭的在线粉丝提供虚假陈述和陈述来招揽对各种实体和项目的投资。如指控所述，KWOK郭和JE吉在串谋过程中挪用了数亿美元的欺诈所得资金。KWOK郭今天早上在纽约市，纽约州被捕，将于今天下午出庭。JE吉目前在逃。
此外，威廉姆斯先生宣布在2022年9月至2023年3月期间，美国政府从21个不同的银行账户中扣押了约6.34亿美元。这6.34亿美元构成了郭某涉嫌欺诈的收益，政府将寻求没收这些收益。今天，执法部门还从KWOK郭的财产中扣押了以下资产，这些资产是 KWOK郭 用涉嫌欺诈的收益购买的，其中包括一辆Lamborghini Aventador SVJ Roads兰博基尼。
美国检察官Damian Williams达米安威廉姆斯说：“正如所指控的那样，HO WAN KWOK 豪万郭（音译），许多人称他为 “Miles Guo”迈乐斯郭”， 操纵一个复杂的阴谋，从他数千名在线追随者骗取了超过10亿美元的资金。郭被控用偷来的钱财中饱私囊，包括为自己和他的近亲购买一座50,000平方英尺的豪宅、一辆价值350万美元的法拉利，甚至还有两张价值 36,000 美元的床垫，以及出资获取一艘价值3700万美元的豪华游艇。
如指控所言，Kwok郭对他的受害者撒谎，并承诺如果他们投资或提供金钱给GTV、给所谓的喜马拉雅农场联盟，G|CLUBS俱乐部和喜马拉雅交易所，就会获得丰厚的回报。郭还被指控洗钱数亿被盗资金，以掩盖串谋从事非法行为并继续进行欺诈活动。我的办公室和我们的执法伙伴将继续竭尽全力保护社区免受恶性欺诈带来破坏性后果。如果您认为自己是 Kwok郭和Je吉的欺诈的受害者，请联系[email protected]或访问 http://forms.fbi.gov/NY_GTV。我的办公室和联邦调查局是来帮助那些受到这种恶意欺诈伤害的人们的。”
FBI联邦调察局助理局长Michael J. Driscoll（迈克尔 J. 吉尔斯克勒）说：“今天的起诉书指控的被告是一个精心策划的计划的幕后黑手，该阴谋骗取了数千人超过10亿美元。欺诈性投资骗局使无辜者成为受害者，最终损害公众对金融体系完整性的信心。FBI联邦调察局继续将把调查复杂的金融犯罪作为首要任务，任何企图实施这些犯罪的人都将面临刑事司法系统带来后果。 ”
正如曼哈顿联邦法院开封的起诉书和法院文件中所称：[1]
从至少在2018年左右到至少在2023年3月左右，KWOK郭、JE吉和其他人共谋诈骗了数千名受害者超过约10亿美元。郭是这个复杂阴谋的领头人。
KWOK郭是一名流亡的中国商人，自2015年左右以来一直居住在美国，并在网上拥有大量追随者。大约在2018年左右，郭成立了两个据称是非营利的组织，即法治基金会和法治协会。郭利用非营利组织招聚追随者，这些追随者与他声称的在中国的政策目标一致，并且也倾向于相信郭关于投资和赚钱机会的陈述。
JE吉为香港及英国双重公民，主要居住于英国。JE吉拥有并经营为数众多的公司和对阴谋成败悠关投资工具，并担任其金融设计师和主要洗钱者。
KWOK郭和JE吉的欺诈至少依赖于四个相互关联的部分：GTV Media Group GTV 媒体团队, Inc. (“GTV”)Private Placement(GTV)私募、The Farm Loan Program 农场贷款项目、G Club Operations, LLC (“G|CLUBS”)G俱乐部操作有限公司和Himalaya Exchange喜马拉雅交换所 。
GTV私募
2020年4月21日前后，KWOK郭在社交媒体上发布了一段视频，宣布通过私募方式未注册发行 GTV Media Group, Inc.(“GTV”) 普通股。 GTV被吹捧为一家范围广泛的媒体公司。在那段视频中，KWOK 实质上和部分地描述了 GTV 私募的投资条款，并指示人们通过移动信息的应用程序与他联系，询问有关 GTV 私募的任何问题。视频和 GTV 私募材料包括书面的“机密信息备忘录”（“PPM”）。 PPM在封面上写着“一切都只是开始！”，提供了有关 GTV 的信息，并包含有关如何使用 GTV 私募筹集的资金的虚假陈述。
在 2020 年 4 月 20 日或前后至 2020 年 6 月 2 日左右，价值约 4.52 亿美元的 GTV 普通股出售给了5，000多名的投资者。投资者参与 GTV 私募的部分原因是相信他们的资金将投资于 GTV 以发展和壮大该业务，正如 PPM 所承诺的那样。 2020 年 6 月上旬，就在GTV私募结束几天后，KWOK郭和JE吉指示从GTV私募筹集的1亿美元资金投资于高风险对冲基金，以受惠于GTV的母公司及它的最终受益拥-郭某的近亲。
农场贷款项目
KWOK郭、JE吉和他们的同谋者通过“喜马拉雅农场联盟”骗取了超过约 1.5亿美元受害人资金。由郭氏组织及推动的喜马拉雅农场联盟，是一个由分布于世界各地不同城市的（每个单元叫“农场”）的非正式团队组成。KWOK郭、JE吉和其他代表他们并在他们的指导下工作的人通过在GTV私募中进一步向投资者作出虚假陈述，并以欺诈方式招揽更多投资，这次是以向农场“贷款”的形式获得这些资金，以及承诺此类贷款可以转换为 GTV 普通股，转换率为每借出 1 美元一股。 2020 年 7 月 22 日前后，KWOK郭在通过社交媒体发布的一段视频中宣传了农场贷款项目。推出农场贷款项目后，KWOK郭继续宣传GTV并虚假陈述GTV的价值。例如，在 2020 年 8 月 2 日左右，在通过社交媒体传播的一段视频中，KWOK郭实质地和部分地虚假陈述，“GTV值多少钱？ . . .市值20亿美元。”事实上，正如 KWOK郭所了解的那样，GTV的市值要低很多。
KWOK郭和JE吉挪用了通过农场贷款项目筹集的资金。例如:(i)约230万美元用于支付与价值约3700万美元的约145英尺豪华游艇相关的维护费用,该游艇名义上由郭的近亲拥有并由郭使用，如下图所示;(ii) 约1000万美元转入JE吉和/或JE吉的配偶名下的个人银行账户。
G|俱乐部
KWOK郭、JE吉及其他已知和未知的人以欺诈手段引诱KWOK郭的追随者将额外资金转移到一个名叫G/俱乐部— 一个号称为在线会员的俱乐部。从至少在2020年10月左右到至少在2023年3月左右，KWOK郭、JE吉和其他人通过G|俱乐部，欺诈性地获得了超过约 2.5 亿美元的受害人资金。 G|俱乐部在其网站上号称是“提供全方位服务的独家高端会员项目”和“通往精心策划的世界级产品、服务和体验的门户”。
事实上，正如 KWOK郭和JE吉所熟知的那样，G|俱乐部并未为其会员提供任何接近于“全方位服务”和“体验”的东西。事实上，G|俱乐部会员支付的大部分钱并没有为 G|俱乐部的业务提供资金。相反，被告挪用了受害人的很大部分地资金，其中包括使用复杂的网络实体和银行账户来执行。例如，KWOK郭和JE吉使用 G/俱乐部的资金： ( i ) 用于购买 KWOK郭50,000平方英尺的新泽西豪宅（如下图）；(ii) 购买各种家具和装饰品，其中包括价值约978,000美元的中国和波斯地毯、价值62,000美元的电视和价值53,000美元的壁炉架； (iii) 以大约440万美元的价格购买一辆定制的布加迪跑车（如下图）：
喜马拉雅交易所
KWOK郭、JE吉和其他已知和未知的人通过 Himalaya Exchange喜马拉雅交易所欺诈性地获得了超过约2.62 亿美元的受害人资金，这是一个自称可以在互联网上使用的加密货币“生态系统”。喜马拉雅交易所包括一种名为 Himalaya Dollar喜马拉雅美元（“HDO”或“H Dollar”H美元）的稳定币和一种名为 Himalaya Coin喜马拉雅硬币（“HCN”或“H Coin”H硬币）的交易币。在通过社交媒体发布的视频中，KWOK郭大肆宣扬喜马拉雅交易所以及HCN（H硬币和HDO（H美元）的前景和估值，他公开将其描述为加密货币。例如，在 2021 年 10 月 20 日前后发布在互联网上的一段视频中，KWOK郭谎称：“如果 H硬币不值钱，[H硬币的发行人]可以卖掉20%的所有的黄金，换给你，并成为你的钱。或者把价值20%的黄金全部拿走，让大家统一起来，使之成为你的；” “如果有人赔钱，我可以说我会100%赔偿。我给你100%。谁亏了钱，我来承担。” HCN(H硬币)和 HDO（H美元） 的首次代币发行发生在2021年11月1日左右。HCN（H硬币）以10美分的价格开始交易，在大约两周内，喜马拉雅交易所网站声称每个HCN（H硬币）价值约27HDO（H美元）（即 27 美元），价值增长了 26,900%，总价值约为 270 亿美元。JE吉还向媒体谎称一辆价值 350万欧元的法拉利是通过喜马拉雅交易所购买的。事实上，喜马拉雅交易所的一名员工向法拉利经纪人发送了一封国际银行电汇，以支付法拉利的费用，同时还在喜马拉雅交易所处理了相应的“交易”，以制造购买是使用 HDO（H美元）进行的虚假表象，以便展示 HDO（H美元）易于交易并促进喜马拉雅交易所。法拉利的买家是郭某的近亲。
美国政府扣押行动
在 2022年9月20日和2022年9月21日前后，美国当局向几家国内银行发出了司法授权的扣押令，随后从以喜马拉雅交易所的实体和其他与郭和吉相关的实体持有的银行账户中扣押了约 3.35 亿美元。在 2022年9月22日左右，即首次司法授权扣押 Himalaya Exchange（喜马拉雅交易所）相关资金后的大约两天内，JE吉联系了一家持有Himalaya Exchange(喜马拉雅交易所)银行账户的国内银行的管理层。 JE吉试图实施电汇，他和喜马拉雅交易所的一位高管向国内银行声称需要电汇才能为一位未具名的“VIP”（即喜马拉雅交易所非常重要的客户）实现从HDO（H美元）“赎回” 美元 .在随后与国内银行的沟通中，JE吉透露，VIP（重要人物）其实就是JE吉本人。 JE吉向国内银行提供的文件反映了JE吉在2022年9月22日左右进行的两笔 HCN（H硬币）销售——总计 4600 万 HDO（H美元），JE吉试图将其“转换”为4600万美元。 JE吉两次实质上和部分地向国内银行的管理层强调，4600万美元的转账需要“在今天进行，否则就毫无意义”。
美国当局随后于2022年10月和2023年3月从KWOK郭和JE吉相关联的实体扣押了额外资金。美国当局总共扣押了超过约 6.34 亿美元的欺诈收益，其中包括来自以喜马拉雅交易所实体持有的银行账户的约 2.78 亿美元。
今天，根据司法授权的逮捕令，美国当局从KWOK郭和JE吉涉嫌用欺诈所得购买的与 KWOK郭相关的财产中没收了其他物品.
* * *
HO WAN KWOK, 豪万郭（音译），a/k/a “Miles Guo”别称”迈乐斯郭”, a/k/a, a/k/a “郭文贵”, a/k/a “七哥”, a/k/ a “领头人”, 52 岁，来自纽约市， 纽约州，KIN MING JE(建明吉)，又名“William Je”（威廉吉），56岁，来自英国伦敦，起诉书指控以下的犯罪行为：
项数
指控
被告
最高刑罚
一
串谋从事电汇诈骗、银行诈骗、证券诈骗和洗钱
郭与杰
5年监禁
二
电汇诈骗（GTV私募）
郭与杰
20年监禁
三
证券欺诈(GTV私募)
郭与杰
20年监禁
四
电汇欺诈（农场贷款计划）
郭与杰
20年监禁
五
证券欺诈（农业贷款计划）
郭与杰
20年监禁
六
电汇欺诈 (G|俱乐部)
郭与杰
20年监禁
七
证券欺诈(G|俱乐部)
郭与杰
20年监禁
八
电汇欺诈（喜马拉雅交易所）
郭与杰
20年监禁
九
国际促销洗钱
郭与杰
20年监禁
十
国际隐瞒洗钱
郭与杰
20年监禁
十一
非法货币交易
郭与吉
10年监禁
十二
妨碍司法公正
吉
20年监禁
法定最高刑期由国会规定，此处仅供参考，因为对被告判的的任何刑期都将由法官决定。
威廉姆斯先生赞扬了联邦调查局的调查工作。威廉姆斯先生进一步感谢美国证券交易委员会在本次调查中的协助与合作，该委员会今天对KWOK郭和JE吉提出了平行民事诉讼。威廉姆斯先生还对美国法警部，司法部国际事务办公室和英国大都会警察局的协助表示感谢。
如果您认为自己是KWOK郭和JE吉欺诈的受害者，请在此处查找更多信息：http//www.justice.gov/usao-sdny/united-states-v-ho-wan-kwok-aka-miles-guo-and-kin-ming-je-aka-william-je 。
此案由该办公室刑事部的多层面欺诈和网络安全小组负责。美国助理检察官Ryan B. Finkel、Juliana N. Murray 和 Micah F. Fergenson负责起诉。
起诉书中的指控仅仅是指控，被告被假定为无罪，除非并直到被证明有罪。
[1] 正如介绍性的短句所言，起诉书的全文本以及此处对起诉书指控的描述，构成仅仅是指控，所描述每一个实情都应作为指控来对待。
Grand Rivers Man and Woman Sentenced to Federal Prison for Methamphetamine TraffickingRead the Press Release
Paducah, KY – A Grand Rivers man and woman were sentenced today for possession with the intent to distribute methamphetamine.
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, and Sheriff Ryan Norman of the McCracken County Sheriff’s Office made the announcement.
Today, in the United States District Court for the Western District of Kentucky, Paducah Division, Edward Ibold, 38, was sentenced to 120 months in prison followed by 5 years of supervised release for possession with the intent to distribute 264 grams of methamphetamine. Ibold was also sentenced to an additional 20 months in prison for violation of the terms his supervised release from a previous federal conviction. He received a total sentence of 140 months in prison.
Nikole Console, 28, was sentenced to 36 months in prison followed by 3 years of supervised release for possession with the intent to distribute 264 grams of methamphetamine.
There is no parole in the federal system.
The case was investigated by the DEA Paducah Post of Duty Office and the McCracken County Sheriff’s Office.
Assistant U.S. Attorney Leigh Ann Dycus, of the U.S. Attorney’s Paducah Branch Office, prosecuted the case.
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Grand Jury Returns IndictmentsRead the Press Release
MADISON, WIS. - A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments today. You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Michigan Man Charged with Making Threats
Arvin Raj Mathur, 32, Grass Lake, Michigan, is charged with six counts of transmitting communications containing threats to injure other persons. The indictment alleges that on six occasions in February 2023, Mathur sent electronic communications threatening to injure a Wisconsin citizen, for the purpose of issuing threats and with knowledge that the communications would be viewed as threats.
Mathur previously was charged with transmitting communications containing threats in a sealed complaint filed in U.S. District Court for the Western District of Wisconsin on March 8, 2023. The complaint was unsealed following his arrest in Detroit, Michigan on Friday, March 10.
Mathur made an initial appearance in U.S. District Court for the Eastern District of Michigan on Saturday, March 11 and a detention hearing was held yesterday. The Court ordered that he remain in federal custody pending his arraignment in federal court in Madison, Wisconsin. The date for his arraignment in Wisconsin has not been set.
If convicted, Mathur faces a maximum penalty of five years in federal prison on each count. The charges against him are the result of an investigation by the University of Wisconsin-Madison Police Department, Federal Bureau of Investigation, and Homeland Security Investigations. Assistant U.S. Attorney Zachary Corey is handling the prosecution. Assistant U.S. Attorney Mark Bilkovic handled Mathur’s appearances in the Eastern District of Michigan.
Man Charged with Conspiring to Launder Proceeds of Fraud Scheme
Paul Williams Anti, 59, a citizen of Ghana, is charged with conspiring with unknown others to launder the proceeds of a wire fraud scheme. The indictment alleges that from October 13, 2020 to October 20, 2020, the fraud perpetrators used false pretenses to cause an employee of Organization A in the Western District of Wisconsin to wire transfer the organization’s funds to the conspirators, including Williams Anti.
The indictment alleges that the conspirators gained unauthorized access to the work email account of an employee of Organization A, and without the employee’s knowledge, obtained copies of incoming emails containing genuine invoices sent to the organization for payment and altered the invoices to increase the amounts due and change where payment was to be directed. The indictment further alleges that the fraud perpetrators sent emails containing the altered invoices to a second employee for payment, and the second employee directed the organization’s bank to wire funds to bank accounts, including two controlled by Williams Anti, who then transferred some of the fraud proceeds to other accounts he maintained under false identities.
According to the indictment, of the approximately $2.4 million fraudulently obtained from Organization A, approximately $1 million was wired to the two bank accounts controlled by Williams Anti.
Williams Anti was arrested in the Southern District of New York on Monday, March 13. A date for his initial appearance in Wisconsin has not been set.
If convicted, Williams Anti faces a maximum penalty of 20 years in federal prison. The charge against him is the result of an investigation by Homeland Security Investigations and the Federal Bureau of Investigation. Assistant U.S. Attorney Meredith Duchemin is handling the prosecution.
Two Charged with Defrauding Tribal Housing Authority
In related cases charged in separate indictments, two individuals have been charged with engaging in fraud schemes to defraud the St. Croix Chippewa Housing Authority, a tribal agency of the St. Croix Chippewa Indians of Wisconsin. The first indictment charges Karen Johnson, 55, Cumberland, Wisconsin, with three counts of wire fraud, theft from a federally funded organization, and aggravated identity theft. This indictment alleges that from November 2018 to June 2019, Johnson, while employed as a housing specialist with the St. Croix Chippewa Housing Authority, created false invoices and vouchers for work allegedly done by Individual A on behalf of the Housing Authority and then wrote checks payable to Individual A from the Housing Authority’s bank account. The indictment further alleges that Johnson endorsed each check by forging the signature of Individual A and deposited the proceeds into her personal bank account. According to the indictment, Individual A did not perform the work for the Housing Authority or create the invoices and he was unaware his identity was used in this manner. The wire fraud charges involve three Housing Authority checks totaling $12,700.
The second indictment charges Duane Emery, 64, Hertel, Wisconsin, with three counts of wire fraud and one count of theft from a federally funded program. The indictment alleges that from February 2015 to June 2019, Emery, while employed as the housing director for the Housing Authority, requested a fellow employee to write checks drawn on the Housing Authority account payable to Sears, claiming that the checks constituted reimbursement for his expenses related to his employment with the Housing Authority. The indictment alleges that Emery used the funds to make payments to his personal Sears credit card account. The wire fraud charges involved three Housing Authority checks totaling $6,600.
If convicted, Johnson and Emery face a maximum penalty of 20 years in federal prison on each wire fraud count and 10 years on the theft from a federally funded program count. The aggravated identity theft count Johnson is charged with carries a mandatory two-year penalty. The charges against Johnson and Emery are the result of an investigation by the U.S. Department of Housing and Urban Development’s Office of Inspector General with the full support and cooperation of the St. Croix Tribe. Assistant U.S. Attorney Taylor Kraus is handling the prosecutions.
La Crosse Man Charged with Possessing Methamphetamine for Distribution
Devin A. Lewis, 37, La Crosse, Wisconsin, is charged with possessing 50 grams or more of methamphetamine with intent to distribute. The indictment alleges that he possessed the methamphetamine on February 20, 2023.
If convicted, Lewis faces a mandatory minimum penalty of five years and a maximum of 40 years in federal prison. The charge against him is the result of an investigation by the La Crosse Police Department. Assistant U.S. Attorney Anita Marie Boor is handling the prosecution.
Two Charged with Illegally Reentering U.S.
In unrelated cases, two citizens of Mexico have been charged with illegally reentering the United States after having been removed. The first indictment charges Gilberto De Leon-Lopez, also known as Rolando Joel De Leon De Paz, 38, living in Rock County, Wisconsin. The indictment alleges he was found in the United States on January 13, 2023. The second indictment charges Eloy Flores-Zuniga, 38, living in Rock County. The indictment alleges that he was found in the United States on January 3, 2023.
If convicted, Gilberto De Leon-Lopez faces a maximum penalty of 20 years and Eloy Flores-Zuniga faces a maximum penalty of 10 years in federal prison. The charges against them are the result of investigations by U.S. Immigration and Customs Enforcement. Assistant U.S. Attorney Robert Anderson is handling the prosecutions.
Fugitive Wanted in Alleged Athens Armed Fentanyl Trafficking RingRead the Press Release
ATHENS, Ga. – Federal agents are searching for an Athens man charged in a 28-count, ten-defendant indictment alleging an armed fentanyl trafficking ring responsible for distributing multiple kilograms of fentanyl into the Athens-Clarke County community.
Christopher King, 34, is charged with one count of conspiracy to distribute and to possess with intent to distribute heroin and fentanyl and one count of possession with intent to distribute fentanyl. If convicted, King faces a maximum sentence of life in prison and a mandatory minimum sentence of ten years in prison and a $10,000,000 fine. Anyone with information regarding King’s whereabouts are urged to contact the U.S. Marshals Service (USMS), Macon, Georgia, office at 478-870-1017 or you can submit a tip anonymously by calling 1-877-WANTED-2.
King and nine co-defendants are facing federal drug and gun charges after a federal grand jury returned a 28-count indictment on Oct. 11, 2022; the indictment was unsealed on Dec. 22, 2022. According to the indictment, all of the defendants allegedly conspired to distribute more than one kilogram of heroin and more than 400 grams of fentanyl between Feb. 2021 and Sept. 2022. Additionally, defendants James Hill, Jasmine Jackson, Jose Camacho and Kristopher Ellison are charged with conspiring to distribute more than 50 grams of methamphetamine and more than 500 grams of cocaine. The indictment alleges fentanyl and other drug trafficking occurred at various locations in northeast Georgia, mostly in Athens: an apartment at 120 Chateau Terrace, the Fairfield Inn and Suites and the Howard Johnson’s Motel in Athens, and 3073 Hardman Morris Road in Colbert (Madison County), Georgia.
During the course of the investigation, agents seized more than 3.6 kilograms of fentanyl, over one kilogram of heroin, more than 500 grams of cocaine and 313 grams of methamphetamine. Additionally, 21 firearms were seized, including three machine guns, sixteen pistols, one AK-47 rifle and one shotgun. Hundreds of rounds of ammunition and $116,567 in drug proceeds were also seized.
The following eight co-defendants are charged in the indictment with King; they’ve had their initial appearances before U.S. Magistrate Judge Charles H. Weigle and were remanded to federal custody:
James Jerome Hill aka “Keith,” 40, of Athens, is charged with one count of conspiracy to distribute and to possess with intent to distribute heroin and fentanyl, one count of conspiracy to distribute and to possess with intent to distribute methamphetamine and cocaine, one count of possession with intent to distribute heroin and fentanyl, one count of possession of a firearm in furtherance of a drug trafficking crime, one count of maintaining a drug involved premises and one count of possession of a firearm by a convicted felon;
Lanel Chambers aka “LC” aka “Lanel Rankin,” 44, of Lilburn, Georgia, is charged with one count of conspiracy to distribute and to possess with intent to distribute heroin and fentanyl;
Jose Camacho, 22, of Colbert, Georgia, is charged with one count of conspiracy to distribute and to possess with intent to distribute heroin and fentanyl, one count of conspiracy to distribute and to possess with intent to distribute methamphetamine and cocaine, one count of possession with intent to distribute fentanyl, one count of possession with intent to distribute cocaine, one count of possession with intent to distribute methamphetamine, one count of possession with intent to distribute marijuana, one count of possession of a firearm in furtherance of a drug trafficking crime, one count of illegal possession of a machine gun and one count of maintaining a drug involved premises;
Michael Arnold, 50, of Athens, is charged with one count of conspiracy to distribute and to possess with intent to distribute heroin and fentanyl;
Kristopher Ellison aka “Soldier,” 32, of Athens, is charged with one count of conspiracy to distribute and to possess with intent to distribute heroin and fentanyl, one count of conspiracy to distribute and to possess with intent to distribute methamphetamine and cocaine, one count of possession with intent to distribute fentanyl, one count of possession with intent to distribute methamphetamine, one count of possession with intent to distribute marijuana and one count of possession of a firearm by a convicted felon;
Antonio Young, 38, of Athens, is charged with one count of conspiracy to distribute and to possess with intent to distribute heroin and fentanyl and one count of possession with intent to distribute fentanyl;
Hendrex Nicely aka “Hen,” 34, of Athens, is charged with one count of conspiracy to distribute and to possess with intent to distribute heroin and fentanyl, one count of possession with intent to distribute fentanyl, one count of possession of a firearm in furtherance of a drug trafficking crime and one count of possession of a firearm by a convicted felon; and
Favian Curry aka “Favo,” 41, of Athens, is charged with one count of conspiracy to distribute and to possess with intent to distribute heroin and fentanyl, two counts of possession with intent to distribute fentanyl, one count of possession of a firearm in furtherance of a drug trafficking crime and two counts of maintaining a drug involved premises.
The following defendant is charged, had her initial appearance before the Honorable Judge Weigle and was released on bond:
Jasmine Jackson, 28, of Athens, is charged with one count of conspiracy to distribute and to possess with intent to distribute heroin and fentanyl, one count of conspiracy to distribute and to possess with intent to distribute methamphetamine and cocaine, one count of possession with intent to distribute heroin and fentanyl and one count of maintaining a drug involved premises.
Each defendant faces a mandatory minimum sentence of ten years in prison up to a maximum sentence of life in prison and a $10,000,000 fine.
This effort is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The case is being investigated by the Drug Enforcement Administration (DEA), U.S. Marshal Service (USMS), FBI Athens Middle Georgia Safe Streets Gang Task Force, Northeast Georgia Regional Drug Task Force, Athens-Clarke County Police Department (ACCPD), Clarke County Sheriff’s Office, Greene County Sheriff’s Office, Gwinnett County Police Narcotics Unit the Georgia State Patrol (GSP).
Assistant U.S. Attorney Mike Morrison is 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.
Fort Wayne Pimp Sentenced to 15 Years in Federal Prison for Sex Trafficking of a Minor at Indianapolis-Area HotelsRead the Press Release
INDIANAPOLIS- Damion Alexander, 28, of Fort Wayne, Indiana, was sentenced to 15 years in federal prison after pleading guilty to sex trafficking of a minor.
According to court documents, Damion Alexander met a 17-year-old girl online sometime in 2021. After meeting the minor and her adult friend in person, Alexander convinced them both to travel with him and caused them to engage in commercial sex acts that financially benefited him. From at least May 15, 2021, to June 2, 2021, Alexander transported the minor victim back and forth from Fort Wayne to engage in commercial sex in Indianapolis-area hotels on multiple occasions.
Alexander took sexually explicit photos and videos of the minor victim and the adult and used them for online commercial sex advertisements. Cell phone videos obtained during the investigation showed Alexander berating and abusing the minor victim while she was severely impaired.
Alexander corresponded with the commercial sex buyers, set prices, and directed the minor victim as to how long to spend with them and what acts to perform. Commercial sex buyers used CashApp to make payments that were transferred to Alexander’s account. Alexander received and kept thousands of dollars obtained by trafficking the minor victim in commercial sex, assuring her that he was “holding” the money and would give it back to her if she ever needed it.
On June 2, 2021, Indianapolis Metropolitan Police Department officers recovered the minor victim at the Sheraton Hotel located at Keystone Crossing in Indianapolis. Alexander was found loitering outside of the victim’s hotel room, and he fled the scene when approached by officers.
“Trafficking vulnerable minors’ bodies for financial gain is a despicable crime that merits significant punishment,” said Zachary A. Myers, United States Attorney for the Southern District of Indiana. “Pimps like this defendant inflict lasting trauma with utter disregard for the safety or dignity of those they exploit. Our office and our law enforcement partners, including the FBI and IMPD, are fully committed to rescuing survivors from sex trafficking and putting pimps in prison. The sentence imposed today should serve as a warning to would-be traffickers: if you sell minors for sex you will spend many years in federal prison.”
The Federal Bureau of Investigation and IMPD investigated this case. The sentence was imposed by U.S. District Court Judge Jane Magnus-Stinson. Judge Stinson also ordered that Alexander be supervised by the U.S. Probation Office for 15 years following his release from federal prison and pay $13,000 in restitution to the victims. Alexander must also register as a sex offender where he lives, works, and goes to school, as required by law.
U.S. Attorney Myers thanked Assistant United States Attorneys Kristina M. Korobov and Lawrence D. Hilton, who prosecuted this 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 U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc
Former Wells Fargo Executive Agrees to Plead Guilty to Obstructing Bank Examination Involving the Opening of Millions of Accounts Without Customer AuthorizationRead the Press Release
LOS ANGELES – The former head of Wells Fargo Bank’s retail banking division has agreed to plead guilty to obstructing a government examination into the bank’s widespread sales practices misconduct, which included opening millions of unauthorized accounts and other products, federal authorities announced today.
In a plea agreement filed today in United States District Court, Carrie L. Tolstedt, 63, of Scottsdale, Arizona, agreed to plead guilty to one count of obstruction of a bank examination. Tolstedt is expected to make her initial court appearance in Los Angeles in the coming weeks, with the parties requesting the court to set a hearing for April 7.
The Office of the Comptroller of the Currency (OCC), which investigated misconduct at Wells Fargo, also has reached a resolution with Tolstedt in a regulatory proceeding. As part of the consent order resolving that matter, Tolstedt agreed to a ban from working in the banking industry and to pay a $17 million civil penalty.
“The justice system and regulators rely on corporations and their executives to fully cooperate during investigations into potential wrongdoing. But, in this case, Ms. Tolstedt took steps to cover up misconduct at Wells Fargo,” said Acting United States Attorney Joseph T. McNally. “Obstructing an investigation compromises the mission of those seeking the truth, and we will hold accountable any individual who attempts to conceal wrongdoing.”
“The plea agreement filed today sends a clear message that bank executives who commit fraud and deliberately deceive regulators will be brought to justice for their actions. I commend our agents and their federal law enforcement partners for their hard work and persistence, which ultimately led to this outcome,” said Mark Bialek, Inspector General for the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau.
“Today’s plea agreement holds the defendant accountable for her role in obstructing the examination into the unlawful sales practices at Wells Fargo, which deceived millions of clients who placed their trust in the institution,” said Acting Inspector General Tyler Smith of the Federal Deposit Insurance Corporation, Office of Inspector General. “We remain committed to working with our law enforcement partners to investigate any individuals, including bank executives, who threaten to undermine the integrity of the banking sector.”
“Obstructing lawful governmental reviews of bank operations undermines the integrity of our financial institutions,” said Robert K. Tripp, the Special Agent in Charge of the FBI’s San Francisco Field Office. “The resolution of this case is the result of diligent work by the FBI and our law enforcement partners, who spent years uncovering corporate misconduct in this case. This investigation demonstrates our unwavering commitment to rooting out white-collar crimes, regardless of their complexity, and protecting our economy.”
From approximately 2007 to September 2016, Tolstedt was Wells Fargo’s senior executive vice president of community banking and was head of the Community Bank, which operated Well Fargo’s consumer and small business retail banking business. The Community Bank managed many of the products that Wells Fargo sold to individual customers and small businesses, including checking and savings accounts, CDs, debit cards, bill pay, and other products.
Wells Fargo previously admitted that, from 2002 to 2016, excessive sales goals led Community Bank employees to open millions of accounts and other financial products that were unauthorized or fraudulent. In the process, Wells Fargo collected millions of dollars in fees and interest to which it was not entitled, harmed customers’ credit ratings, and unlawfully misused customers’ sensitive personal information.
Many of these practices were referred to within Wells Fargo as “gaming.” Gaming strategies included using existing customers’ identities – without their consent – to open accounts. Gaming practices included forging customer signatures to open accounts without authorization, creating PINs to activate unauthorized debit cards, and moving money from millions of customer accounts to unauthorized accounts in a practice known internally as “simulated funding.”
Gaming also included opening credit cards and bill pay products without authorization, altering customers’ contact information to prevent customers from learning of unauthorized accounts and to prevent Wells Fargo employees from reaching customers to conduct customer satisfaction surveys, and encouraging customers to open accounts they neither wanted nor needed.
According to the plea agreement filed today, by no later than 2004, Tolstedt was aware of sales practices misconduct within the Community Bank and the fact that employees were terminated each year for gaming. By no later than 2006, Tolstedt was learning about the gaming practices from corporate investigations and, over time, learned that terminations for gaming in the Community Bank were steadily increasing, that the misconduct was linked in part to sales goals within the Community Bank, and that termination numbers likely underestimated the scope of the problem.
Although the Community Bank eventually took steps purportedly designed to proactively identify sales misconduct, the measures used by the bank flagged only a small portion of the potentially problematic activity for investigation. As of July 2014, only the most egregious .01 to .05 percent of employees engaging in activity considered a “red flag” for sales practices misconduct were investigated – with the remaining 99.95 to 99.99 percent left unexamined under this process.
In May 2015, Tolstedt participated in the preparation of a memorandum, which she knew would be provided to the OCC in connection with its examination of sales practice issues at Wells Fargo. To minimize the scope of the sales practices misconduct within the Community Bank, Tolstedt corruptly obstructed the OCC’s examination by failing to disclose statistics on the number of employees who were terminated or resigned pending investigation for sales practices misconduct. She also failed to disclose that the Community Bank proactively investigated only a very small percentage of employees who engaged in activity flagged as potential sales practices misconduct.
“We are proud to work with our partner agencies to help bring justice to the many people who were harmed by the unscrupulous sales practices of Wells Fargo,” said Brian Tomney, Inspector General of the Federal Housing Finance Agency. “The results of this case should be a clear signal that FHFA-OIG and its partner agencies will hold accountable those who seek to put profits ahead of legal and fair banking practices.”
“This plea agreement demonstrates the determination and cooperation of Postal Inspectors and our federal law enforcement partners. Postal Inspectors are committed to investigating anyone holding a position of trust in the financial system that would engage in a fraud to deceive their customers,” said Rafael Nuñez, Inspector in Charge of the United States Postal Inspection Service, San Francisco Division.
Wells Fargo in 2020 acknowledged the widespread sales practices misconduct within the Community Bank and paid a $3 billion penalty in connection with agreements reached with the United States Attorneys’ Offices for the Central District of California and the Western District of North Carolina, the Justice Department’s Civil Division, and the Securities and Exchange Commission.
The statutory maximum sentence for obstruction of a bank examination is five years in federal prison. Tolstedt has entered into a plea agreement which calls for a prison sentence of up to 16 months in prison, which prosecutors believe is the high end of the sentencing guideline range for the obstruction offense. The plea agreement is “binding,” which means the court must accept or reject all aspects of it. Should the court reject the plea agreement, including the agreed-upon sentencing range, any party may withdraw from it.
The FBI; the Federal Deposit Insurance Corporation, Office of Inspector General; the Federal Housing Finance Agency, Office of Inspector General; the Office of Inspector General for the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau; and the United States Postal Inspection Service are investigating this matter. The OCC and the United States Securities and Exchange Commission provided substantial assistance.
This matter is being prosecuted by Assistant United States Attorneys Alexander B. Schwab and Carolyn S. Small of the Major Frauds Section, along with Special Attorney Benjamin S. Kingsley and Assistant United States Attorney Daniel S. Ryan of the Western District of North Carolina.
Former Rochester, New Hampshire Man Sentenced to 68 Months for Conspiracy to Distribute FentantylRead the Press Release
CONCORD – Craig Wiggin, 44, formerly of Rochester, New Hampshire was sentenced to 68 months in federal prison for conspiracy to distribute controlled substances, United States Attorney Jane E. Young announced today.
According to court documents and statements made in court, in July 2021, Wiggin conspired with other individuals to sell quantities of fentanyl to an individual cooperating with the Federal Bureau of Investigation (“FBI”) and to an FBI Task Force Officer, who was acting in an undercover capacity as a drug customer. The drug sales occurred at various locations in Rochester, New Hampshire and totaled approximately 225 grams of fentanyl.
“Fentanyl continues to be a major threat to the safety of New Hampshire citizens. Those individuals who choose to distribute the drug in New Hampshire will be vigorously prosecuted,” said U.S. Attorney Jane E. Young.
“Today’s sentence should put other drug traffickers who are following in Craig Wiggin’s footsteps on notice that the FBI and our law enforcement partners are working together to identify, disrupt, and remove from our communities anyone who peddles deadly fentanyl,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division.
The case is being investigated by the FBI’s New Hampshire Major Offender Task Force and the New Hampshire State Police’s Narcotics Investigations Unit. The case is being prosecuted by Assistant United States Attorney Jennifer C. Davis.
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Former Mexican governor and presidential candidate sentenced for money launderingRead the Press Release
HOUSTON – The former governor of Tamaulipas, Mexico, has been sentenced to nine years in prison for accepting over $3.5 million in illegal bribe money and using it to fraudulently purchase property in the United States, announced U.S. Attorney Alamdar S. Hamdani.
Tomas Yarrington Ruvalcaba, 66, was also a former candidate for president of Mexico. He pleaded guilty March 25, 2021.
Today, U.S. District Judge Rolando Olvera sentenced Yarrington to 108 months imprisonment. Not a U.S. citizen, Yarrington is expected to face removal proceedings following his imprisonment. In handing down the sentence, the court noted that as an elected official, Yarrington violated his oath of office, weakening the country of Mexico and promoting criminal activity. As part of his sentence, Yarrington has also forfeited a Port Isabel condominium.
“Even if you are governor of a Mexican state, we will not stand idly by when you use your position to wrongfully fill your pockets and violate the laws of the United States.” said Hamdani. “Today’s prison sentence for Yarrington concludes a multi-year, multi-agency international investigation spanning two continents concluding in bringing a corrupt politician to justice.”
“HSI relentlessly disrupts and dismantles transnational criminal organizations that pose a threat to U.S. national security, to include any corrupt public officials who use their position for criminal gain,” said Craig Larrabee, Acting Special Agent in Charge of Homeland Security Investigations (HSI) in San Antonio. “HSI is dedicated and determined to investigate those involved in criminal activity and who launder their ill-gotten gains in the United States.”
Yarrington accepted bribes from individuals and private companies in Mexico to do business with the state of Tamaulipas while he served as governor. Yarrington was in that position from 1999 to 2005. He was also an Institutional Revolutionary Party candidate for president of Mexico in 2005.
Yarrington used the bribery money he received while governor to purchase properties in the United States. He had prestanombres - nominee buyers -purchase property in the United States to hide Yarrington’s ownership of the properties and the illegal bribery money used to purchase them. Yarrington laundered his illegally obtained bribe money in the United States by purchasing beachfront condominiums, large estates, commercial developments, airplanes and luxury vehicles.
“IRS-Criminal Investigation (CI) special agents are experts in following the money in a financial crime, and we found plenty of money to follow that helped to unravel Yarrington’s criminal enterprise,” said acting Special Agent in Charge Rodrick J. Benton of IRS-CI’s Houston Field Office. “Working alongside other law enforcement agencies, the U.S. Attorney’s Office and the other U.S. and international partners helps U.S. taxpayers know that justice is a global concept and no criminal is out of reach.”
“The Drug Enforcement Administration (DEA), HSI, IRS-CI and FBI, along with our state, local and international law enforcement partners, were a force multiplier in this case who collaborated to halt the threat of corrupt money into our country,” said Special Agent in Charge Daniel C. Comeaux of the DEA – Houston Division. “There will always be zero tolerance for those who abuse their power for self-gain at our communities' expense. This sentence highlights our continued commitment to bringing those who misuse that power to justice.”
“This individual took advantage of his position to enrich himself at the expense of those who trusted him,” said Special Agent in Charge Oliver E. Rich Jr. of the FBI - San Antonio Division. “Today’s sentencing serves as a powerful reminder to any corrupt official that these activities will not be tolerated. The FBI remains committed to working alongside our law enforcement partners to hold corrupt officials accountable to the communities they were sworn to serve.”
In April 2017, authorities captured Yarrington in Italy while traveling under an assumed name and false passport. He was taken into custody on a provisional arrest warrant based on the indictment returned in May 2013. Although Yarrington contested extradition, Italian authorities eventually authorized his extradition to the United States. He arrived in April 2018. He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
HSI led the Organized Crime Drug Enforcement Task Forces (OCDETF) operation dubbed Operation Green Tide with the assistance of IRS – CI, DEA, FBI and Texas Attorney General’s Office. It included agents and officers in Brownsville, San Antonio, Houston, Corpus Christi and New York. The Justice Department’s Office of International Affairs handled the extradition in this matter. The U.S. government also acknowledges with gratitude the significant assistance received from the government of Mexico in the course of this investigation. Additionally, the United States acknowledges the assistance of the U.S. Marshals Service, HSI-Rome, HSI-Mexico City, the Italian Ministry of the Interior (particularly Interpol Rome and the Central Operations Service of the Italian National Police) and the Italian Ministry of Justice in Yarrington’s extradition.
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. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage.
Assistant U.S. Attorneys Jody Young, Jon Muschenheim and Karen Betancourt are prosecuting the case.
Former Leon County Corrections Officer Indicted for Distribution, Possession, and Receipt of Child PornographyRead the Press Release
TALLAHASSEE, FLORIDA – James Anthony Linton, 60, of Tallahassee, Florida, was indicted by a federal grand jury charging him with receiving, distributing, and possessing material constituting child pornography. The indictment was announced by Jason R. Coody, United States Attorney for the Northern District of Florida. Linton made his initial appearance in federal court to face the charges this afternoon.
The indictment alleges that, between November 2021, and February 2022, Linton received, distributed, and possessed material containing child pornography. The pornographic material allegedly found in Linton’s possession involved minors under the age of 12.
Trial for Linton is set for May 24, 2023, at 8:15 a.m., at the United States Courthouse in Tallahassee before the Honorable United States Chief District Judge Mark E. Walker.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.
The case was investigated by Homeland Security Investigations and the Leon County Sheriff’s Office. The case is being prosecuted by Assistant United States Attorney Meredith L. Steer.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office for the Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Florida Man Charged with Federal Hate Crimes for Racially Motivated Attack Against Group of Black MenRead the Press Release
A federal grand jury in Gainesville, Florida, returned a six-count indictment charging David Emanuel, 61, with committing hate crimes for his racially motivated attack on a group of Black men who were surveying land along a public road in Cedar Key, Florida.
The indictment returned by a federal grand jury alleges that on Sept. 6, 2022, Emanuel willfully intimidated the victim, F.D.D., and attempted to injure, intimidate and interfere with him, through the use of Emanuel’s vehicle, because of F.D.D.’s race and color.
Emanuel is further alleged to have willfully intimidated and interfered with, and attempted to intimidate and interfere with, five additional victims, through the use of his vehicle, because of the victims’ race and color. According to the indictment, all six victims were Black males who were surveying land owned by one of the victims at the time of the alleged offenses.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Jason R. Coody for the Northern District of Florida, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division and Special Agent in Charge Sherri E. Onks of the FBI Jacksonville Field Office made the announcement.
The FBI Jacksonville Field Office and Gainesville Resident Agency investigated the case, with assistance from the Levy County Sheriff’s Office.
Assistant U.S. Attorney Kaitlin Weiss for the Northern District of Florida and Trial Attorney Laura-Kate Bernstein of the Civil Rights Division’s Criminal Section are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent unless proven guilty beyond a reasonable doubt in a court of law.
Florida Man Charged with Federal Hate Crimes for Racially Motivated Attack Against Group of Black MenRead the Press Release
A federal grand jury in Gainesville, Florida, returned a six-count indictment charging David Emanuel, 61, with committing hate crimes for his racially motivated attack on a group of Black men who were surveying land along a public road in Cedar Key, Florida.
The indictment returned by a federal grand jury alleges that on Sept. 6, 2022, Emanuel willfully intimidated the victim, F.D.D., and attempted to injure, intimidate and interfere with him, through the use of Emanuel’s vehicle, because of F.D.D.’s race and color.
Emanuel is further alleged to have willfully intimidated and interfered with, and attempted to intimidate and interfere with, five additional victims, through the use of his vehicle, because of the victims’ race and color. According to the indictment, all six victims were Black males who were surveying land owned by one of the victims at the time of the alleged offenses.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Jason R. Coody for the Northern District of Florida, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division and Special Agent in Charge Sherri E. Onks of the FBI Jacksonville Field Office made the announcement.
The FBI Jacksonville Field Office and Gainesville Resident Agency investigated the case, with assistance from the Levy County Sheriff’s Office.
Assistant U.S. Attorney Kaitlin Weiss for the Northern District of Florida and Trial Attorney Laura-Kate Bernstein of the Civil Rights Division’s Criminal Section are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent unless proven guilty beyond a reasonable doubt in a court of law.
Ferguson Man Caught with Gun After Police Chase Sentenced to 19 Years in PrisonRead the Press Release
ST. LOUIS – A felon from Ferguson, Missouri who was caught with a gun after fleeing from police in St. Louis was sentenced to 19 years in prison.
On July 19, 2021, Anthony Willis, now 30, fled from St. Louis Metropolitan Police Department officers who tried to pull him over after he failed to stop at a stop sign in the Wells Goodfellow neighborhood.
Willis drove past another stop sign before other officers used spike strips to deflate his tires. He kept driving until he hit another vehicle at Goodfellow and Natural Bridge, then got out and ran. He was caught a short distance away. Willis left a loaded .40 caliber Glock handgun in the car.
As a convicted felon, Willis is barred from possessing a firearm. Willis was convicted of the 2010 robbery of a Del Taco in St. Louis and the robbery of a Popeye’s Chicken manager in St. Louis County on two occasions in 2010. He was sentenced to 10 years in prison and was on parole at the time of the police chase. Due to his prior convictions, he was considered an “armed career criminal,” which meant he faced a mandatory minimum of 15 years in prison.
Willis was found guilty by a jury November 16 of a felony charge of being a felon in possession of a firearm.
The St. Louis Metropolitan Police Department investigated the case. Assistant U.S. Attorneys Matthew Martin and Donald Boyce are prosecuting the case.
Federal jury returns verdict in two violent armed robberiesRead the Press Release
HOUSTON – A 51-year-old Houston man has been convicted of two 2019 armed robberies, announced U.S. Attorney Alamdar S. Hamdani.
The Houston jury deliberated for approximately two hours after a three-day trial before convicting Hezron Benjamin Stuart on two counts of interference with commerce by robbery and two counts of discharging a firearm during a crime of violence.
The jury found that Stuart robbed The Corner Food Mart located at 3502 Mangum and discharged his firearm May 18, 2019. On May 23, 2019, Stuart also robbed the Citgo Gas Station located at 3839 South Loop East. During the Citgo robbery, Stuart shot the store clerk when he refused to give up the cash.
This kind of violent crime has to stop,” said Hamdani. “To those trigger-pullers that want to inflict harm on our community... be aware…we are coming after you. This man put lives in danger and was found guilty. I am happy that because of this jury and the dedicated work of our prosecutors and partners, he will now face the consequences of his actions.”
At trial, the jury heard from witnesses in both cases, including the surviving shooting victim, who were able to identify Stuart as the person who robbed and shot at them. The jury also heard from a firearms examiner who testified regarding firearms evidence collected from both scenes and the similarities between the evidence. A fingerprint examiner had compared a fingerprint left at the scene of the Citgo Gas Station robbery to Stuart and determined that it was the same.
Stuart represented himself during the trial and claimed he was not the individual who committed the robberies. The jury did not believe those claims and found him guilty as charged.
U.S. District Judge Lee Rosenthal presided over trial and set sentencing for July 27. At that time, Stuart faces up to 20 years for the robbery and up to life for the firearms charges which must be served consecutively to any other prison term imposed.
Stuart has been and will remain in custody pending sentencing.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the FBI conducted the investigation as part of the ATF Houston Crime Gun Strike Force with the assistance of the Houston Police Department (HPD) and the Houston Forensic Science Center. Assistant U.S. Attorneys Carolyn Ferko and Britni Cooper prosecuted the case.
The ATF Houston Crime Gun Strike Force was created as a joint effort between the ATF And HPD to combat the growing trend in crimes involving firearms.
Federal jury convicts Heron man of kidnapping son, fleeing to Costa RicaRead the Press Release
MISSOULA — A federal jury today convicted a Heron man of kidnapping his son in violation of a parenting plan and taking him to Costa Rica, U.S. Attorney Jesse Laslovich said.
A jury found Jacob Israel Strong, aka Jacob Israel Guill, 37, guilty of international parental kidnapping. The two-day trial began on March 14. Strong faces a maximum of three years in prison, a $250,000 fine and one year of supervised release.
U.S. District Judge Dana L. Christensen presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for July 27. Strong was detained pending further proceedings.
“Maintaining the safety of Montanans, especially children, is a top priority for our office, which is why I am pleased with the jury’s verdict. This case shows the extensive efforts we will make to bring kidnappers to justice, including working with law enforcement across international borders. I am grateful to First Assistant U.S. Attorney Timothy J. Racicot and Assistant U.S. Attorney Brian C. Lowney, along with the FBI, for investigating and prosecuting this case,” U.S. Attorney Laslovich said.
The government alleged in court documents and at trial that in January 2020, Strong and his ex-wife entered into a parenting plan for their then two-year-old son as part of a divorce proceeding. Prior to a court date in August 2021, Strong failed to return their son to his mother as scheduled. The mother was unable to locate Strong and ultimately contacted the Sanders County Sheriff’s Office. Law enforcement also was unable to contact Strong. The Sanders County Attorney’s Office subsequently charged Strong with felony parental interference and a state arrest warrant was issued for Strong. Still, law enforcement was unable to find him.
The government further alleged that in September 2021, the FBI opened an investigation to assist Sanders County in the search for Strong and his son. In January 2022, the FBI discovered Strong and the child were living in Costa Rica, and learned that Strong and his son left the United States in approximately October 2021, near Midland, Texas. Strong paid a man to transport them to Costa Rica, and Strong and the child lived with the man for about six weeks. In May 2022, the FBI received specific information about Strong’s whereabouts, and Costa Rica officials arrested and deported him back to the United States. The child’s mother traveled to Costa Rica to take custody of her son and returned with him to the United States.
Assistant U.S. Attorneys Timothy J. Racicot and Brian C. Lowney are prosecuting the case, which was investigated by the FBI.
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Federal Jury Convicts Tampa Armed Felon on Drug Trafficking ChargesRead the Press Release
Tampa, FL –United States Attorney Roger B. Handberg announces that a federal jury has found Dempsey Gilmore (32, Tampa) guilty of conspiracy to distribute methamphetamine and marijuana, possession with intent to distribute methamphetamine and marijuana, carrying a firearm in furtherance of a drug trafficking crime, and possessing a firearm as a convicted felon. He faces a maximum penalty of life in federal prison. His sentencing hearing is scheduled for May 24, 2023. Gilmore had been charged in a superseding indictment on January 11, 2023.
According to evidence and testimony presented at trial, on February 9, 2022, a Tampa Police Department (TPD) officer observed a red Dodge Charger fail to stop for a stop sign and attempted a traffic stop, but the vehicle fled at speeds of over 100 miles per hour. A TPD Air Support Unit tracked and recorded the vehicle as it fled from the police, ultimately stopping near a residence, where the driver and passenger got out, scaled a fence, and ran into a house. During the flight, the air unit recorded the vehicle temporarily stopping and its occupants throwing items from the car. TPD Officers arrived at that location and, along the side of the road, found a bag containing almost 200 grams of 100% pure methamphetamine, a zip-top bag labeled “Dempsey,” and a fully loaded firearm. They also found a box with bags of marijuana and a digital scale nearby.
After obtaining a search warrant for the house which the suspects had entered, officers ordered the occupants to exit the house. Several individuals immediately complied, but Gilmore and another man initially remained inside the house, ultimately coming out. Officers found a security video from the house showing Gilmore and the other man running into the residence and located more marijuana inside the Dodge Charger that had been abandoned near the residence. A fingerprint recovered from the vehicle matched that of Gilmore.
Gilmore was previously convicted of multiple felonies, including being a felon in possession of a firearm and escape. Therefore, he is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Tampa Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Samantha Beckman.
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.
Fargo, ND, Man Pleads Guilty to Preparation of False Tax ReturnsRead the Press Release
FARGO – United States Attorney Mac Schneider, District of North Dakota, announced that on March 14, 2023, Thompson B. Tarr, age 43, from Fargo, ND, pled guilty in Federal Court, Fargo, ND, before Chief Judge Peter D. Welte, to the offenses of Aiding and Assisting in the Preparation and Presentation of a False and Fraudulent Return. Sentencing is scheduled for August 7, 2023.
Investigation revealed that while living in Fargo, ND, Tarr prepared or assisted in the preparation of hundreds of tax returns for individuals. At the plea hearing, Tarr pled guilty to one violation of aiding and abetting the preparation of a false tax return. Tarr admitted that he claimed tax exemptions on behalf of a taxpayer who was not entitled to the exemption. IRS Criminal Investigations discovered 30 other false tax returns prepared by Tarr for 13 taxpayers, which resulted in the tax loss from false deductions and credits in the amounted of $105,474.00.
“Honest taxpayers are the ones hurt by deliberate violations of federal tax laws,” Schneider said. “Protecting those taxpayers and public funds are key priorities of the United States Attorney’s Office.”
“Mr. Tarr admitted to adding false information to the tax returns of his clients. That’s why it’s imperative that taxpayers review the information they submit to the IRS even when they have someone else prepare their return,” said Acting Special Agent in Charge Thomas F. Murdock, St. Louis Field Office. “This case shows how easy it is for dishonest return preparers to take advantage of unsuspecting taxpayers.”
This case was investigated by the IRS Criminal Investigations and prosecuted by Assistant U.S. Attorney Matthew D. Greenley.
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Edwardsville Contractor Sentenced to 14 Months in Prison for False Statements in BankruptcyRead the Press Release
EAST ST. LOUIS, Ill. – In a U.S. District courtroom on Wednesday, a judge sentenced a man formerly from Edwardsville to 14 months in prison, a $50,000 fine, and two years’ supervised release after he pled guilty to making false statements in a 2018 bankruptcy case.
Kevin Kahrig, 49, a former building contractor, concealed assets from his creditors by transferring those assets to his girlfriend-turned-spouse, Catharine Kahrig, prior to filing for bankruptcy.
“Individuals who hide assets and deliberately make false statements on bankruptcy pleadings defraud their creditors and disgrace the federal court system,” said U.S. Attorney Rachelle Aud Crowe. “It’s a serious offense to abuse the bankruptcy system, and anyone seeking to discredit this process will be held accountable.”
“To avoid paying his debt, Kevin Kahrig attempted to defraud his creditors by abusing the bankruptcy process,” said FBI Springfield Field Office Special Agent in Charge David Nanz. “Because this type of fraud can threaten the integrity of a program designed to help honest individuals with legitimate financial crises, the FBI takes our responsibility to pursue bankruptcy fraud very seriously. This sentence serves as a reminder of the consequences associated with financial crime.”
“Together with U.S. Attorney Crowe and our law enforcement partners, we will continue to pursue those who commit fraud and abuse in bankruptcy cases for their own personal gain,” said Nancy J. Gargula, U.S. Trustee for Indiana and Central and Southern Illinois (Region 10).
According to court documents, Kevin Kahrig admitted to transferring $277,850 in cash and checks to Catharine Kahrig in 2016 and then closed the bank accounts the next year. Kevin Kahrig hid those cash transfers and many of the closed accounts in his later filings with the bankruptcy court. He also took his name off a lakefront home he owned with Catharine and hid the transfer from the bankruptcy court.
In addition, he sold a boat before bankruptcy and gave the $395,000 he got from the sale to Catharine Kahrig. Kevin Kahrig disclosed the boat sale to the bankruptcy court but lied about the amount he received and did not disclose that he had given the proceeds to Catharine Kahrig.
Assistant U.S. Attorney Peter T. Reed prosecuted the case.
The investigation was conducted by the FBI's Springfield Field Office in collaboration with the Southern District of Illinois Bankruptcy Fraud Working Group coordinated by the U.S. Trustee for Region 10, after referral by the U.S. Trustee. The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. Region 10 is headquartered in Indianapolis, with additional offices in Peoria, Illinois, and South Bend, Indiana.
Eastern Idaho Farmers Pay $500,000 to Resolve Allegations They Defrauded the Coronavirus Food Assistance ProgramRead the Press Release
BOISE – U.S. Attorney Josh Hurwit announced today that Merrill Hanny, Roger Burke, and Robert Sollis, three farmers in Eastern Idaho, have paid a total of $500,000 to settle allegations that they violated the False Claims Act by submitting fraudulent Coronavirus Food Assistance Program (CFAP) applications. CFAP was intended to provide direct support to farmers and ranchers to offset losses caused by the COVID-19 pandemic.
The settlement resolves allegations that Hanny, Burke, and Sollis knowingly and impermissibly included millions of pounds of potatoes on Burke’s and Sollis’ CFAP applications that were actually owned by Hanny. In this way, Burke and Hanny obtained CFAP funds that they were not eligible to receive, and Hanny was able to circumvent the $250,000 cap on CFAP funds they he could receive.
“The vast majority of Idahoans who applied for CFAP funds played by the rules,” said U.S. Attorney Hurwit. “Unfortunately, some individuals have sought to line their pockets by defrauding taxpayer-funded pandemic relief programs like USDA’s CFAP program. We will continue to use all tools at our disposal to pursue and hold such individuals accountable.”
The settlement is a result of a coordinated effort between the U.S. Department of Agriculture Office of Inspector General and the U.S. Attorney’s Office for the District of Idaho.
For more information on the Department of Justice’s response to the pandemic fraud, please visit www.justice.gov/coronavirus.
Anyone who suspects fraud or other wrongdoing related to the pandemic should report it to the COVID-19 Pandemic Fraud Hotline at www.pandemicoversight.gov/contact/about-hotline, 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: www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Idahoans are also encouraged to report COVID-19 fraud directly to the U.S. Attorney’s Office at (208) 334-1211.
The claims resolved by the settlement described above are allegations only; there has been no determination of liability.
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Drug Supplier for Gangster Disciples Sentenced in Counterfeit Prescription Pill Trafficking ConspiracyRead the Press Release
BOSTON – A Chelmsford man was sentenced today in federal court in Boston to trafficking counterfeit oxycodone and Adderall pills that contained fentanyl and methamphetamine.
Vando Gvozdarevic, 30, was sentenced by U.S. Senior District Court Judge Douglas P. Woodlock to 10 years in prison and five years of supervised release. On July 7, 2022, Gvozdarevic pleaded guilty to possession with intent to distribute 500 grams or more of methamphetamine and 40 grams or more of fentanyl.
“Communities across our Commonwealth and beyond are plagued by the chaos and harm caused by the opioid epidemic that manifests itself in overdose deaths, violence, and crime. Mr. Gvozdarevic trafficked this poison into our neighborhoods in the form of tens of thousands of counterfeit pills. The risk of overdose was increased for those seeking diverted pharmaceutical pills and people unfamiliar with street narcotics who thought they were illicitly getting prescription pills when in fact they had potentially deadly and addicting opioid or stimulant,” said United States Attorney Rachael S. Rollins.
“The Gangster Disciples are a ruthless gang that preyed upon our communities, and Vando Gvozdarevic was a driving force and prolific pill pusher, who supplied them with deadly narcotics disguised as prescription pills,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Today’s sentence should be a warning to other bad actors. The FBI’s North Shore Gang Task Force will stop at nothing to identify, investigate, and disrupt those who insist on bringing their harmful business to our neighborhoods.”
Gvozdarevic was charged in November 2021 along with 12 others in connection with a large drug conspiracy centering around the Gangster Disciples in Lawrence, Haverhill and Methuen. The investigation, which began in August 2020, intercepted communications between Gangster Disciples’ leaders, members and drug suppliers pertaining to their alleged distribution of fentanyl, cocaine, methamphetamine and suboxone in Massachusetts, Maine and southern New Hampshire as well as into the Essex County Jail. The investigation identified Gvozdarevic as a supplier of methamphetamine and fentanyl disguised as counterfeit Adderall and oxycodone pills. 12,556 counterfeit Adderall pills containing methamphetamine and 3,717 counterfeit oxycodone pills containing fentanyl were seized from Gvozdarevic’s apartment during the execution of a federal search warrant.
Gvozdarevic was previously sentenced to five years in state prison for drug distribution and firearm offenses.
U.S. Attorney Rollins, FBI SAC Bonavolonta and John E. Mawn Jr., Interim Colonel of the Massachusetts State Police made the announcement. Valuable assistance was provided by the Chelmsford Police Department. Assistant U.S. Attorney Philip C. Cheng of Rollins’ Organized Crime & Gang Unit prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case is also a part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Detroit-area Software Developer Sentenced to Prison for Employment Tax CrimesRead the Press Release
A Michigan business owner was sentenced today to 12 months and one day in prison for failing to collect and pay over to the IRS employment taxes withheld from his employees’ wages.
According to court documents and statements made in court, Yigal Ziv of West Bloomfield owned and operated Multinational Technologies, Inc. (MTI), a software development firm based in Walled Lake. Ziv was responsible for filing MTI’s quarterly employment tax returns and collecting and paying to the IRS payroll taxes withheld from employees’ wages. From the first quarter of 2014 through the first quarter of 2018, Ziv collected approximately $691,000 in employment taxes from MTI’s employees, but did not file employment tax returns or pay the withheld taxes to the IRS. Even after learning of the IRS’s ongoing criminal investigation in May 2018, Ziv did not file MTI’s employment tax returns from the fourth quarter of 2019 through the fourth quarter of 2020 and did not pay the IRS approximately $199,000 in payroll taxes withheld from MTI’s employees. During that same period, Ziv directed MTI to spend hundreds of thousands of dollars for his personal benefit, including home mortgage payments, luxury auto lease payments and department store purchases. In total, Ziv caused a tax loss to the IRS of $1,169,000.
In addition to the term of imprisonment, U.S. District Judge David M. Lawson for the Eastern District of Michigan ordered Ziv to serve one year of supervised release and to pay a $5,000 fine and $897,271.80 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting Special Agent-in-Charge Charles Miller of IRS-Criminal Investigation Detroit Field Office made the announcement.
IRS-Criminal Investigation investigated the case.
Trial Attorneys Kenneth C. Vert and George Meggali of the Justice Department’s Tax Division prosecuted the case.
Crime Stoppers Tip Leads to Convicted Murderer Going Back to Prison for 15 yearsRead the Press Release
DETROIT – A Detroit man, who has five prior felony convictions, including for murder, assault with a dangerous weapon, and two drug trafficking offenses, was sentenced to 15 years in federal prison today as an Armed Career Criminal for his illegal possession of a firearm, announced United States Attorney Dawn N. Ison.
Ison was joined in the announcement by Orville O. Greene, Special Agent in Charge, Drug Enforcement Administration, Detroit Division.
Eric T. Walker, 46, had previously pleaded guilty to being a felon in possession of a firearm and was sentenced today by U.S. District Court Judge Gershwin A. Drain.
According to court records, after receiving Crime Stoppers complaints that Walker was selling drugs from his home, and that one person nearly overdosed after buying his drugs, the Detroit Police Department executed a search warrant at his home. DPD recovered 136 grams of cocaine, 23.5 grams of heroin laced with fentanyl, 672 grams of marijuana, 93 oxycodone pills, 4.5 amphetamine pills, scales, drug packaging materials, and over $8,000 in cash. Officers also recovered a 9mm semiautomatic pistol loaded with 13 rounds of ammunition. Walker was arrested at his home, and the case was adopted for federal prosecution.
“Taking any and all violent offenders, including armed drug dealers, off our streets is a top priority of my office. Today’s sentence reflects my commitment to aggressively prosecute violent offenders of all kinds to make our neighborhoods safer for law abiding citizens. The citizens responsible for working to improve the quality of life in their neighborhood by reporting Walker’s conduct to Crime Stoppers should be commended,” U.S. Attorney Ison said.
“Mr. Walker continued his criminal activities despite being a convicted felon. While his lengthy sentence has removed a dangerous person from the neighborhood, it should also send a strong message to anyone who chooses to terrorize our communities with violence and illicit drugs,” said Special Agent in Charge Orville.
This case was investigated by the DEA. The case is being prosecuted by Assistant U.S. Attorney Robert Moran.
Convicted Drug Dealer Sentenced to 27.5 Years for Trafficking More Drugs and Laundering the ProceedsRead the Press Release
PITTSBURGH – Noah Landfried was sentenced to 330 months in prison for committing drug trafficking and money laundering crimes while on federal supervised release from a prior prison sentence for drug trafficking, Acting United States Attorney Troy Rivetti announced today.
Landfried, age 38 of Moon Township (Allegheny County), was sentenced by United States District Judge J. Nicholas Ranjan. Landfried was also ordered to serve ten years of supervised release following his prison sentence. Landfried’s prison sentence is a combination of 300 months for the drug trafficking and money laundering convictions and 30 months for the supervised release violation.
Landfried was convicted at the conclusion of a jury trial in December 2021. He was convicted at Count 1/conspiracy to distribute a Schedule I or II controlled substance, including at least 5 kilograms of cocaine, between 40 and 400 grams of fentanyl, and between 100 and 1,000 grams of heroin; at Count 2/conspiracy to launder drug trafficking proceeds; and at Count 8/possession with intent to distribute at least 40 grams of fentanyl. The conduct occurred in 2017 and 2018.
Landfried was early released in 2017 from his prior federal prison sentence for international marijuana trafficking. Landfried’s prior sentence was retroactively reduced by nearly 200 months as a result of an across-the-board reduction of the sentencing guidelines for convicted federal drug dealers. Following his release in 2017, he re-established a direct connection to a Mexican source of supply and received tractor-trailer shipments of kilograms of cocaine that were transported across the U.S./Mexico border. Landfried supplemented his cocaine trafficking by distributing thousands of oxycodone pills and large quantities of fentanyl and heroin, in addition to the K2/synthetic cannabinoids he was surreptitiously trafficking into prisons.
Assistant United States Attorneys Rebecca L. Silinski and Craig W. Haller prosecuted this case on behalf of the United States.
The Drug Enforcement Administration, the Internal Revenue Service – Criminal Investigation, the federal Bureau of Prisons, and the Pennsylvania Office of Attorney General led the multi-agency investigation that also included the United States Postal Inspection Service, the Beaver County District Attorney’s Office, the Department of Homeland Security/Homeland Security Investigations, the Pittsburgh Police Department, the United States Marshals Service, the Pennsylvania State Police, the Munhall Police Department, the Robinson Township Police Department, the McKees Rocks Police Department, the Stowe Township Police Department, the Etna Police Department, and the Erie County District Attorney’s Office.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Columbia Man Sentenced to 77 Months in Prison on Federal Firearm ChargeRead the Press Release
COLUMBIA, SOUTH CAROLINA —Ernest Durane Mack, a/k/a “Marcus Mack,” 35, of Cayce, was sentenced to 77 months in federal prison after pleading guilty to being a felon in possession of a firearm and ammunition.
Evidence obtained in the investigation revealed that on July 26, 2019, a trooper with the South Carolina Highway Patrol initiated a lawful traffic stop on St. Andrews Road in Columbia on a car Mack was driving after recognizing it to be a car that had fled after he attempted to stop it a week earlier. After a short chase, Mack pulled into a nearby apartment complex, where he stopped the car and fled on foot. Officers located Mack in a nearby apartment complex breezeway and saw him with a handgun, which he then threw towards an officer. Mack told officers that he fled from troopers because he had the handgun in the car. The investigation revealed that the handgun had previously been reported stolen in Spartanburg County.
Mack, who was on state probation at the time of the offense, has prior state convictions for trafficking cocaine (2 separate convictions), forgery, possession of a controlled substance, failure to stop for blue light and siren, and criminal domestic violence 1st degree (2 separate convictions). Mack is currently serving a 7-year sentence for criminal domestic violence 1st degree.
United States District Judge Mary Geiger Lewis sentenced Mack to 77 months in prison, to be followed by a 3-year term of court-ordered supervision. There is no parole in the federal system.
This investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the South Carolina Highway Patrol is part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant United States Attorney Stacey D. Haynes prosecuted the case.
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Clearwater Drug Dealer Sentenced to More Than 3 Years in Federal PrisonRead the Press Release
Tampa, Florida - U.S. District Judge Steven D. Merryday today sentenced Terrel Lewis (26, Largo) to 3 years and 10 months in federal prison for possession with intent to distribute cocaine. Lewis had pleaded guilty on December 21, 2022.
According to court documents, in 2021, the Clearwater Police Department and the Drug Enforcement Administration received information that Lewis was distributing cocaine in Clearwater. On August 24, 2021, Lewis met with a confidential source (CS) and delivered a brown paper bag containing 250.75 grams of cocaine. On March 9, 2022, Lewis met again with the CS and delivered 248.97 grams of cocaine to the CS in a plastic bag. In total, Lewis distributed 499.72 grams of cocaine in both transactions.
This case was investigated by the Clearwater Police Department and the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney Maria Guzman.
Clayton Man Sentenced to 11 Years in Prison for Soliciting Child Pornography from 11-year-oldRead the Press Release
ST. LOUIS – A man from Clayton, Missouri who sought and received nude pictures of minors, including pictures of an 11-year-old from Kentucky, was sentenced Wednesday to 11 years in federal prison followed by the remainder of his lifetime on supervised release.
U.S. District Judge Ronnie L. White also ordered Jason W. Fine, 50, to pay a $50,000 fine and special assessments of $45,000 that will go into a fund for victims and prevention programs. Judge White called Fine’s case the worst case of its type that he’d encountered.
Fine pleaded guilty in November to two felonies: soliciting child pornography and receiving child pornography.
Fine admitted as part of his plea that between July 1, 2021 and Sept. 2, 2021, while pretending to be an 11-year-old girl, he requested and received nude pictures of the 11-year-old Kentucky girl on Kik Messenger.
In an interview with law enforcement on June 14, 2022, Fine said he had communicated online with multiple minors and that a few had sent him child pornography.
In court Wednesday, the victim’s mother told Judge White what it was like to discover that Fine preyed on her daughter by posing as a girl “doing horrific things and asking our daughter to do those same things,” the mother said.
The discovery of his crime wreaked “absolute devastation” on the victim and her family, the mother said, asking for serious prison time for Fine. “Knowing he is behind bars ensures that he can’t take advantage of young girls. He can't prey upon them and use them as toys. He can't manipulate them, solicit or use them,” she wrote in a letter to Judge White.
Assistant U.S. Attorney Jillian Anderson pointed out that Fine used his undergraduate degree in psychology to manipulate children into sending him pictures and videos, and did not assist law enforcement in identifying his other victims so they could be helped. Anderson said Fine’s supporters described his crime as pornography addiction, but “It is pedophilia. It is sadistic child abuse.”
The St. Louis County Police Department the Campbell County (Kentucky) Police Department and the FBI investigated the case. Assistant U.S. Attorney Jillian Anderson prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
City Felon Sentenced to 9 Years in Prison for Possessing Stolen FirearmRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been sentenced to nine years’ imprisonment and three years of supervised release on charges of violating federal firearms laws, and a consecutive 1 year of imprisonment for committing the offense while on federal pretrial release, Acting United States Attorney Troy Rivetti announced today.
United States District Judge Cathy Bissoon imposed the sentence on Joshua Lowry, 32, formerly of the City’s Brookline neighborhood.
According to information presented to the Court, on January 15, 2021, members of the Pittsburgh Bureau of Police and the Drug Enforcement Administration executed a search warrant on at an apartment in the Brookline section of the City of Pittsburgh. During the search of the residence, investigators recovered drug evidence along with multiple stolen firearms attributable to the target of the investigation, Joshua Lowry. During an interview with investigators, Lowry admitted to possession of at least one of the recovered stolen firearms. Lowry is precluded from possessing firearms and ammunition based upon several prior felony convictions.
Assistant United States Attorneys Michael R. Ball prosecuted this case on behalf of the government.
Acting United States Attorney Rivetti commended the Pittsburgh Bureau of Police and the Drug Enforcement Administration for the investigation leading to the successful prosecution of Joshua Lowry.
Christian County Man Sentenced to 70 Months in Prison for Illegal Possession of FirearmsRead the Press Release
Paducah, KY – A Christian County, Kentucky man was sentenced today to 70 months in federal prison, followed by a 3-year term of supervised release, for possessing a firearm after having previously been convicted of felony offenses, illegal possession of a machinegun, and possession of an unregistered firearm. There is no parole in the federal system.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Acting Special Agent in Charge Robert Maynard of the ATF Louisville Field Division, and Sheriff Tyler DeArmond of the Christian County Sheriff’s Office made the announcement.
According to court documents, on February 23, 2022, agents executed a search warrant at the residence of Shaun Powers, 43 of Hopkinsville. They located a privately manufactured firearm that was designed to function as a fully automatic machinegun. Agents also located a short-barreled rifle and other firearms parts and accessories. Powers was not allowed to possess these firearms because he had previously been convicted of the following felonies. On April 15, 2015, in Christian Circuit Court, Powers was convicted of first-degree promoting contraband, third-degree assault, second-degree burglary, and third-degree burglary.
The case was investigated by the ATF Bowling Green Field Office and the Christian County Sheriff’s Office.
Assistant U.S. Attorney Leigh Ann Dycus, of the U.S. Attorney’s Paducah Branch Office, prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Chicago Man Sentenced for Mail Fraud Scheme Involving Fraudulent Tax Returns to the IRSRead the Press Release
Tampa, FL – U.S. District Judge William Jung has sentenced Elvin Marks to 41 months in federal prison for mail fraud and fraudulent claims to an agency of the United States government. As part of his sentence, the court also entered an order of forfeiture in the amount of $606,309.35, the proceeds of the charged criminal conduct. Marks had pleaded guilty on November 1, 2022.
According to court documents, beginning in January 2016, and continuing through December 2018, Marks devised a scheme to defraud the Internal Revenue Service (IRS) to obtain money using the United States Postal Service (USPS). To accomplish the fraudulent scheme, Marks prepared IRS Tax Forms 1040 and/or 1040X that included fraudulent information concerning wages, earnings, and deductions to obtain tax refunds for himself or others, which he was not entitled to, and were mailed through the USPS to the IRS. These fraudulent tax forms caused the IRS to issue refunds that Marks received in the Middle District of Florida.
For instance, on December 20, 2016, Marks knowingly made and sent to the IRS a falsified IRS Tax Form 1040X for calendar year 2015, claiming a tax refund for $99,960 in the name of another person, which the IRS rejected. In addition, Marks knowingly made and sent to the IRS a falsified IRS Tax Form 1040 for calendar year 2017 in his own name requesting a refund of $4,606,144. The IRS subsequently mailed Marks’ tax refund to a residence in the Middle District of Florida, which he later obtained. The IRS recovered $3,994,611.85 from the Marks, resulting in a loss of $606,309.35.
“With filing season underway, the financial penalties and significant prison term handed down against Mr. Marks is a timely reminder of the importance of ensuring your tax return is an honest account of your income and tax obligations. This sentencing should also put unscrupulous preparers on notice about the consequences that await those who do not play by the rules,” said IRS-CI Acting Special Agent in Charge Ronald A. Loecker.
This case was investigated by the Internal Revenue Service – Criminal Investigation. It was prosecuted by Assistant United States Attorneys Greg Pizzo and Maria Guzman.
Box Elder woman sentenced to five years in prison for shooting woman in the face over drug dealRead the Press Release
GREAT FALLS — A Box Elder woman who admitted to shooting a woman in the face over a drug deal on the Rocky Boy’s Indian Reservation was sentenced today to five years in prison, to be followed by three years of supervised release, U.S. Attorney Jesse Laslovich said today.
Tricia Friede Gardipee, 51, pleaded guilty in September 2022 to assault resulting in serious bodily injury.
Chief U.S. District Judge Brian M. Morris presided.
The government alleged in court document that on Aug. 13, 2021, Gardipee shot the victim, identified as Jane Doe, in the face with a .22-caliber rifle over a drug deal on the Rocky Boy’s Indian Reservation. Gardipee confronted Doe and some of her friends earlier that day in Havre. Doe picked up a brick and said she didn’t want any problems. The confrontation was because another woman ripped off Gardipee by selling her anxiety medication instead of fentanyl, and Gardipee was trying to get her money back. The government further alleged that Doe later drove with friends to a Box Elder residence. As Doe pulled into the driveway, Gardipee, along with others, pulled in behind them, blocking the car. Gardipee and her son, both armed, walked up to Doe’s car. Gardipee then shot Doe in the face. Doe was treated for injuries.
Assistant U.S. Attorney Amanda L. Myers prosecuted the case, which was investigated by the FBI and Rocky Boy’s Police Department.
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Ashland man sentenced to 37 months in prison for sexually abusing minor girl on Northern Cheyenne Indian ReservationRead the Press Release
BILLINGS — An Ashland man was sentenced today to 37 months in prison, to be followed by five years of supervised release, for sexually abusing a minor girl on the Northern Cheyenne Indian Reservation, U.S. Attorney Jesse Laslovich said.
Jordan Cody Washee, 30, pleaded guilty in October 2022 to abusive sexual contact.
U.S. District Judge Susan P. Watters presided.
The government alleged in court documents that the victim, identified as Jane Doe, reported that starting in 2011 and continuing through 2012, Washee sexually assaulted her on multiple occasions at her house. The victim was between the ages of 11 and 13 at the time.
The U.S. Attorney’s Office prosecuted the case, which was investigated by the FBI and Big Horn County Sheriff’s Office.
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Armed Leader of Fentanyl and Cocaine Distribution Conspiracy Sentenced to 40 Years in Federal PrisonRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton Jr. has sentenced Carlos Roman (57, Orlando) to 40 years in federal prison for possession of cocaine and possession of a firearm equipped with a silencer in furtherance of drug trafficking. Judge Dalton also sentenced three individuals who conspired with Roman to distribute fentanyl and cocaine: James Richard Howell (37, Silver Springs) to 57 months; Kenneth Angel Vera (31, Orlando) to 27 months; and Joely Manuel Burgos (39, Orlando) to 51 months. Roman and Vera had pleaded guilty on December 6, 2022. Howell and Burgos had pleaded guilty on December 5, 2022, and December 28, 2022, respectively.
According to court documents, Roman supplied cocaine and fentanyl to Howell, Burgos, and Vera for resale and regularly communicated with each of them on a cellular telephone that was monitored by law enforcement pursuant to court-ordered authorization. On August 9, 2022, Roman was arrested at his home with 19 firearms, 6 silencers, 3 flash-bang grenades, and thousands of rounds of ammunition. See related press release: https://www.justice.gov/usao-mdfl/pr/members-drug-trafficking-conspiracy-plead-guilty-drug-and-gun-charges-operation-titan
“Illicit fentanyl is highly addictive and incredibly destructive. The individuals who bring this poison into our communities must be held accountable for their actions,” said DEA Special Agent in Charge Deanne L. Reuter. “The success of this investigation is a direct result of the hard work and dedication of these investigators as well as the cooperation and collaboration between DEA and our local, state, and federal law enforcement partners. DEA remains committed to these partnerships to continue to keep our communities safe and healthy.”
This case was investigated by the Drug Enforcement Administration, with assistance from Homeland Security Investigations (HSI), the U.S. Postal Inspection Service, the U.S. Secret Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Florida Highway Patrol, the Winter Garden Police Department, the Orange County Sheriff’s Office, the Kissimmee Police Department, the Winter Park Police Department, the Clermont Police Department, the Orlando Police Department, the Apopka Police Department, the Ocoee Police Department, the Osceola County Sheriff’s Office, and the Seminole County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Dana E. Hill.
Operation Titan Fall is a multi-agency Organized Crime Drug Enforcement Task Force (OCEDTF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Area man who claimed to be African prince sentenced to 20 years in prison for several fraud crimesRead the Press Release
DAYTON, Ohio – A Dayton man, who as part of his fraud scheme purported he was a Ghanaian prince, was sentenced in U.S. District Court today to the statutory maximum of 240 months in prison.
Daryl Robert Harrison, also known as Prince Daryl R. Attipoe and Prophet Daryl R. Attipoe, 44, was found guilty of 10 counts of various federal fraud crimes following a jury trial in September 2022. Harrison defrauded at least 14 victims of more than $800,000. He was convicted of mail and wire fraud, conspiracy to commit mail and wire fraud, and witness tampering.
According to court documents and trial testimony, from January 2014 until September 2020, Harrison defrauded victims who thought they were investing in African trucking and mining companies.
Harrison – falsely holding himself out to be a royal prince from the African national of Ghana – told investors he had direct connections with these companies, and that they could expect an investment return of 28 to 33 percent.
Harrison solicited prospective investors at local Starbucks coffee shops, IHOP restaurants, Kroger grocery stores, carwashes and fitness centers.
Harrison and his stepfather claimed to be ministers with Power House of Prayer Ministries, which sponsored religious services in various church facilities and private residences throughout the Greater Dayton area, Southwestern Ohio area and Parker, Colorado. Many investor victims were members of the congregation.
Harrison routinely withdrew thousands of dollars in cash from the Ministries bank accounts shortly after receiving investments. Harrison and his stepfather used the investment funds to rent a house in Colorado, purchase luxury vehicles, airplane tickets, hotel accommodations and rental cars.
The defendant was indicted by a federal grand jury in September 2020.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, and Jaime Carazo, Special Agent in Charge, U.S. Secret Service, announced the sentence imposed today by U.S. District Judge Michael J. Newman. Assistant United States Attorneys Dwight K. Keller and Ryan A. Saunders are representing the United States in this case.
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14 March 2023
Vancouver Man Sentenced to Federal Prison for Planning Armed Robbery that Resulted in a Shoot-OutRead the Press Release
PORTLAND, Ore.—A Vancouver, Washington man was sentenced to federal prison today for orchestrating an armed robbery of a drug dealer that ended in an exchange of gunfire outside an apartment complex on Hayden Island in Portland.
Seth Kamaile Teig, 38, was sentenced to 92 months in federal prison and five years’ supervised release.
According to court documents, in the early morning hours of September 30, 2021, Teig and an accomplice, Anthony James Pastorino, 43, also of Vancouver, traveled from Vancouver to an apartment complex on Hayden Island in Portland. At Teig’s direction, Pastorino waited outside the apartment complex in anticipation of robbing a known drug dealer. When the drug dealer arrived, Pastorino discharged his firearm and stole the drug dealer’s backpack. Pastorino and the drug dealer exchanged gunfire and both sustained serious injuries. Soon after, Pastorino and Teig fled the scene and traveled back to Washington.
Officers from the Portland Police Bureau responded to the scene and found 18 shell casings, a trail of blood, and Pastorino’s wallet. Later that day, a resident of the apartment complex found a handgun in some nearby bushes. Further investigation revealed that it was the gun used by Pastorino during the robbery. A later search of Pastorino’s phone revealed text messages wherein Teig directed Pastorino during the robbery and provided information about their target.
On November 17, 2021, special agents from Homeland Security Investigations (HSI) located and arrested Teig at a hotel in Gresham, Oregon. During a search of Teig’s person, the agents located and seized a handgun. A second firearm was found in Teig’s hotel room and body armor, ammunition, and drug paraphernalia were found inside his vehicle.
On December 15, 2021, Teig was charged by criminal information with one count each of interfering with commerce by robbery, using and carrying a firearm during and in relation to a crime of violence, and possessing an unregistered firearm. On October 19, 2022, Teig pleaded guilty to using and carrying a firearm during and in relation to a crime of violence.
On November 22, 2021, Pastorino was charged by criminal information with one count each of interfering with commerce by robbery and discharging a firearm during and in relation to a crime of violence. On February 2, 2023, Pastorino pleaded guilty to the latter charge. He will be sentenced on May 3, 2023.
This case was investigated by HSI and the Portland Police Bureau with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). It was prosecuted by Cassady A. Adams, Assistant U.S. Attorney for the District of Oregon.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney’s Office Directed to Withdraw Death Penalty Notice in Rodriguez CaseRead the Press Release
FARGO – United States Attorney Mac Schneider, District of North Dakota, announced today that the United States Attorney General has directed him to withdraw the notice of intent to seek a sentence of death in the case of the United States of America v Alfonso Rodriguez, Jr. This morning, the United States Attorney’s Office for the District of North Dakota followed that directive by filing a withdrawal notice indicating that the United States will no longer seek the death penalty in that case.
“My thoughts today are with Dru Sjodin’s family, particularly her parents, Linda Walker and Allan Sjodin,” said Mac Schneider. “They are genuinely good people and loving parents who in the wake of an unimaginable loss have worked closely with our office for nearly twenty years. We continue to wish them the greatest measure of peace possible.”
“I also want to commend the trial team, including former United States Attorney Drew Wrigley, as well as our office’s appellate attorneys and support staff. Over the last two decades, they have continuously upheld the high standards of the Department of Justice through their work on this tragic case. As a result of their efforts, Mr. Rodriguez is – and will remain – a convicted murderer.”
“The directive to withdraw the death notice has changed how the United States Attorney’s Office will proceed with this case. What will not change is that Mr. Rodriguez will draw his last breath in a federal prison.”
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U.S. Attorney’s Office Charges 9 Defendants with Child Exploitation Offenses in Ongoing Program to Prevent Victimization of ChildrenRead the Press Release
LOS ANGELES – Federal authorities today announced a series of child sexual exploitation cases alleging the victimization of minors – sometimes by convicted sex offenders – and charging a range of crimes that include sex trafficking, enticing a minor to engage in criminal sexual activity and producing child pornography.
United States Attorney Martin Estrada, FBI Assistant Director in Charge Donald Alway, and Homeland Security Investigations (HSI) Acting Special Agent in Charge Eddy Wang made the announcement.
In eight new cases filed in recent weeks – five resulting from FBI-led investigations, and three from investigations led by Homeland Security Investigations – nine defendants are accused of exploiting children in person and on the internet. There have been significant recent developments in other child exploitation cases being prosecuted by the United States Attorney’s Office, including a life sentence imposed on an offender who filmed his sexual assaults of disabled children.
The cases announced today are part of Project Safe Childhood, which is the Justice Department’s longstanding initiative to combat the ongoing epidemic of child exploitation crimes.
“Protecting our children from sexual exploitation is some of the most important work my office does,” said United States Attorney Estrada. “For years, we have vigorously prosecuted child sexual predators, and we have only increased those efforts in recent times. To those who would seek to victimize our youth, let me be clear: We will use every tool in our arsenal to bring you to justice and thereby stop you from causing further irreparable harm to others.”
“The various cases being announced today are a reminder of the constant threat of sexual extortion minors face, as well as the persistent demand for child pornography,” said FBI Assistant Director Alway, who runs the FBI’s Los Angeles Field Office. “Whether an offender sexually abuses a child in person or online, or continues to exploit children by producing or sharing images of sexual abuse, the FBI and our partners will continue to seek justice for innocent victims by holding offenders accountable.”
“HSI Los Angeles is committed to removing sexual predators from our streets and working aggressively to hold them accountable for their heinous actions,” said HSI Acting Special Agent in Charge Wang.
The new cases announced today are:
United States v. Griffin
Dakota R. Griffin, 33, of Benton, Illinois, was arrested on March 8 for allegedly coercing a 16-year-old girl he encountered online to produce child sexual abuse material (CSAM) by making her believe he was holding one of her online friends captive and that he was associated with the Ku Klux Klan. The complaint alleges that Griffin further demanded that the victim travel to Illinois to have sex with him. During their communications, Griffin allegedly threatened to kill her and her family. After learning that the victim suffered from seizures, Griffin told her that he had always wanted to sexually abuse “a girl while she had a seizure,” according to court documents. During his initial appearance in a federal court in Illinois, Griffin was ordered detained pending trial. The FBI is investigating this case. Assistant United States Attorney Jeremiah Levine from the Violent and Organized Crime Section is prosecuting this matter.
United States v. Lozano
A criminal complaint filed Friday charges Ivan Lozano, a 36-year-old resident of Long Beach, with enticing a minor victim to commit sexual acts and possession of child pornography. Over the course of nearly two years, starting when the victim was 14, Lozano allegedly encouraged and enticed a girl a residing in Tanzania to repeatedly send him videos and photos of a sexual nature using the WhatsApp social media application. In October 2021, according to the complaint affidavit, Lozano traveled to Tanzania for the purpose of having sex with the girl, which he recorded on video. Lozano is currently a fugitive being sought by the FBI, which conducted the investigation in this matter together with the Los Angeles County Sheriff’s Department. Assistant United States Attorney Bruce Riordan from the Violent and Organized Crime Section is prosecuting case.
United States v. Sheehan
Dustan David Sheehan, 45, of Hollywood, surrendered on Friday after being named in a criminal complaint that accuses him of distributing child pornography and possession of and access with intent to view child pornography. In an August 2020 conversation with an undercover agent on the Kik internet messaging platform, Sheehan discussed his desire to meet and sexually abuse the undercover’s fictitious 9-year-old daughter, according to the complaint affidavit. Sheehan allegedly also shared sexually explicit images with the undercover agent. During a subsequent search of Sheehan’s residence, investigators FBI identified approximately 2,919 CSAM images and 21 CSAM videos on Sheehan’s digital devices, the affidavit states. During his initial appearance Friday afternoon, Sheehan was released on a $100,000 bond and was ordered to reside at a residential rehabilitation center. The FBI is investigating this matter. Assistant United States Attorneys Jeffrey Chemerinsky and Hava Mirell from the Violent and Organized Crime Section are prosecuting this case.
United States v. Kicyla
A federal grand jury on March 8 returned a three-count indictment charging Nathan Kicyla with coercing a 10-year-old girl he encountered online to engage in sexually explicit conduct. The indictment charges Kicyla with sexual exploitation of a child for the purpose of producing a sexually explicit visual depiction, enticement of a minor to engage in criminal sexual activity, and commission of a felony offense involving a minor while required to register as a sex offender. If convicted, Kicyla would face a mandatory minimum sentence of 35 years in federal prison.
Kicyla, 39, of Van Nuys, whose screen name was “Nathan-Bert-2,” is currently in federal custody on a supervised release violation stemming from a 2007 conviction of sexually exploitation of minors in the Eastern District of California.
The FBI field offices in Los Angeles and Washington, D.C. are investigating this matter. Assistant United States Attorney Kevin Butler from the Violent and Organized Crimes Section is prosecuting this case.
United States v. Johnson
Ian Nathanial Johnson, 36, of Santa Clarita, was arrested Friday after prosecutors filed a criminal complaint charging him with distribution and possession of child pornography. The investigation into Johnson was launched after the National Center for Missing and Exploited Children received information that Johnson had uploaded CSAM to a Dropbox account, according to the complaint affidavit. Pursuant to a search warrant, agents seized Johnson’s digital devices and discovered over 200 images of child pornography and chats on Telegram, several of which included images of prepubescent children and children in bondage, the affidavit states. Johnson is scheduled to make his initial appearance on Wednesday in United States District Court. Homeland Security Investigations is conducting the investigation into Johnson. Assistant United States Attorney Catharine Richmond from the Violent and Organized Crime Section is prosecuting this case.
United States v. Anderson and Thomas
Norrell Alan Anderson, 24, of San Francisco, and Raeonnah Raina Thomas, 20, of Santa Rosa, were named in a criminal complaint filed on March 3, alleging they conspired to transport minors across state lines for the purpose of prostituting them. Anderson and Thomas are currently in state custody on charges that have been brought by the Orange County District Attorney’s Office. Homeland Security Investigations and the Orange County Human Trafficking Task Force – which includes the Irvine, Anaheim and Santa Ana police departments, as well as the California Highway Patrol – are investigating this case. Assistant United States Attorneys Lyndsi Allsop from the Violent and Organized Crime Section and Kristin Spencer from the Santa Ana Branch Office are prosecuting this matter.
United States v. Gissell
Thomas Gissell, 27, of Moorpark, was arrested on March 6 on charges of attempted enticement of a minor to engage in criminal sexual activity for allegedly soliciting sexually explicit photos from two individuals he thought were 14-year-old girls, but who were actually undercover agents. Gissell is scheduled to be arraigned on April 11. The newly formed, FBI-led Ventura County Child Exploitation and Human Trafficking Task Force is investigating this case. Assistant United States Attorney Kellye Ng from the Violent and Organized Crime Section is prosecuting this matter. AUSA Ng is the office’s Project Safe Childhood coordinator.
United States v. White
Parker William White, 22, of Johnsonville, New York, a former Army private based at Fort Irwin, was indicted by a federal grand jury on Friday on charges of possession of child pornography. White was arrested on February 24 pursuant to a criminal complaint that alleges White used Instagram and other social media platforms to find minor “girlfriends” as young as 14. White would groom these minor girls by telling them that he would treat them like “queens,” according to the complaint’s affidavit. Homeland Security Investigations and the U.S. Army Criminal Investigation Division investigated this case. Assistant United States Attorney Lyndsi Allsop from the Violent and Organized Crime Section is prosecuting this matter.
There have been developments recently in other child exploitation cases being prosecuted by the United States Attorney’s Office. Those cases are:
United States v. Dorame
Francisco Anthony Dorame, 41, of Echo Park, was sentenced on March 8 to 20 years in federal prison for using an online messenger app last year to attempt to sexually traffic two children – ages 7 and 9 – and for distributing sexually explicit images of children. Dorame was also sentenced to a lifetime period of supervised release and ordered to pay $33,000 in restitution to 11 victims. Dorame pleaded guilty in October 2022 to one count of attempted sex trafficking of a child under 14 years old and one count of distribution of child pornography.
During a conversation on the Kik platform, Dorame made two payments totaling $100 to a person who had access to the victims. Among other things, Dorame requested photographs of the victims, expressed his desire to “play with them right away” upon meeting up, and set a specific date, time and location for the meeting. In April 2022, Dorame used Kik to distribute sexually explicit images of children between 4 and 6.
“[Dorame’s] lifelong and dangerous obsession with girls has manifested in an extensive collection of child sex abuse material, several attempts to procure girls for sex acts, and inappropriate relationships with then-minors,” prosecutors argued in a sentencing memorandum. “[Dorame’s] possession and dissemination of child sex abuse material are not victimless crimes, either. Here, the real victims portrayed in the child sex abuse material defendant possessed and distributed provide heartbreaking accounts of the harm they have suffered, and continue to suffer.”
The FBI investigated this matter. Assistant United States Attorney Kathy Yu from the Violent and Organized Crime Section prosecuted this case.
United States v. Rodriguez, Bocardo and Banguguilan
Two men who were found guilty by a jury last year of receiving and possessing videos of sexual assaults of severely disabled children were sentenced on February 24 to lengthy prison terms. Miguel Bocardo, 23, of Baldwin Park, was sentenced by United States District Judge John W. Holcomb to 18 years in federal prison. Cyr Dino Banguguilan, 36, of Azusa, was sentenced to 12 years in prison.
Their co-defendant – Steve Rodriguez, 38, of Pomona – systematically raped at least three disabled children for years while working as a certified nursing assistant at a group home facility in San Bernardino County. Rodriguez filmed these repeated attacks and sent some of these child pornography films to others, including Bocardo and Banguguilan.
Rodriguez pleaded guilty to eight child exploitation offenses and in January 2023 was sentenced to life in federal prison.
Homeland Security Investigations investigated this matter as part of the Los Angeles Internet Crimes Against Children Task Force. The United States Postal Inspection Service, the FBI, the Baldwin Park Police Department, the Los Angeles County Sheriff’s Department, the Los Angeles Police Department, the Pomona Police Department, and the Burbank Police Department provided assistance. Assistant United States Attorneys Catharine Richmond and Scott Lara from the Violent and Organized Crime Section prosecuted this case.
United States v. Schmitt
Matthew Timothy Schmitt, 36, of Fontana, was sentenced on March 6 to 135 months in federal prison for attempted enticement of a minor for sexual purposes. Schmitt was arrested after communicating with an undercover agent, whom Schmitt believed was a 13-year-old girl, and travelling to Riverside for sex with the minor. The court also ordered that Schmitt serve a lifetime period of supervised release. The Riverside County District Attorney’s Office investigated this matter with assistance from the Fontana Police Department. Special Assistant United States Attorney Kaitlyn Lasater from the Riverside Branch Office prosecuted this case.
United States v. Bradford
Donavin Dwayne Bradford, 31, of South Los Angeles, was charged in a superseding indictment filed on February 24 with sex trafficking four victims, including three minors (ages 15 to 17), and an adult victim, whom Bradford allegedly trafficked using threats of force, fraud and coercion. Bradford is also charged with producing and possessing child pornography featuring his trafficking victims. Bradford allegedly advertised his victims on the internet and instructed them to walk “blades,” areas commonly known for prostitution, to make money for him. He also allegedly used violence and threats of violence to control his victims. Bradford is detained pending a trial scheduled to begin on April 11.
The FBI’s Los Angeles Child Exploitation and Human Trafficking Task Force investigated this matter in coordination with the Los Angeles Police Department, the Inglewood Police Department, the Pomona Police Department, the Los Angeles County Sheriff’s Department, the Ventura County Sheriff’s Office, the Santa Maria Police Department, and the Los Angeles County Department of Children and Family Services. Assistant United States Attorneys Chelsea Norell and Kathy Yu from the Violent and Organized Crime Section are prosecuting this case.
Indictments and criminal complaints contain allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
The charges of enticing a minor victim to commit sexual acts and producing child pornography carries a mandatory minimum sentence of 15 years in federal prison and a statutory maximum penalty of 30 years in prison.
The charges of distributing and receiving child pornography carry a five-year mandatory minimum sentence and a statutory maximum penalty of 20 years in prison.
Possession of child pornography does not carry a mandatory minimum sentence, but a conviction on this charge can bring a sentence of up to 20 years in federal prison.
The charge of conspiracy to transport minors across state lines for the purpose of prostitution carries a mandatory minimum sentence of 10 years in federal prison and a statutory maximum penalty of life imprisonment.
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These cases are being prosecuted as part of the Department of Justice’s Project Safe Childhood program, which combats the sexual exploitation of children through impactful federal criminal investigations and prosecutions. The goal of the program is to provide children with a childhood safe from sexual exploitation and with resources if they become victims.
In addition to the efforts of prosecutors and investigators in bringing child exploitation offenders to justice, authorities are engaging in public outreach efforts designed to prevent children from being victimized in the first place. Educational efforts aimed at teens encourage them to reject online solicitations, warning young people that you don’t really know someone online, especially if you have not engaged in video chats with them. Those warnings include typical “red flags” that include requests for “nudes,” to talk about sex, to meet in real life, or for money.
When any problems arise, teens are encouraged to get help from a trusted adult, to block the other person from contacting them, and to get help removing any unwanted images from the internet. If you believe you or someone you know are the victim of child sexual exploitation, please visit our website, which contains information about reporting, education, services and how to submit a request to remove child exploitation images posted online.
Two charged with stealing $650,000 from Morgantown medical practiceRead the Press Release
CLARKSBURG, WEST VIRGINIA – The former chief operating officer of a Morgantown medical practice and one of its physicians have been charged with stealing more than $650,000 from their employer.
Francisco Ortiz, age 48, of Vacaville, California, and James Brooks Mersing, 35, of Morgantown, have been indicted on charges of defrauding Wedgewood Physicians, Inc. According to the indictment, Ortiz used his position as COO to divert funds over a three-year period for his personal benefit and for the benefit of Mersing, a physician formerly employed by Wedgewood.
Ortiz is alleged to have used the funds to pay for personal travel, home improvements, and various items from Amazon, among other things. Ortiz is also alleged to have caused unauthorized bonuses to be paid to Mersing, who then returned a portion of the money to Ortiz as a kickback.
“White-collar crime costs the United States hundreds of billions of dollars each year,” said United States Attorney William Ihlenfeld. “The Department of Justice will continue to pursue white-collar wrongdoers and hold them accountable for their misconduct.”
Ortiz faces thirty-one counts of bank fraud and Mersing faces eleven counts. Each count carries a penalty of up to thirty years in prison.
Assistant U.S. Attorney Sarah Wagner is prosecuting the case on behalf of the government. The Federal Bureau of Investigation investigated.
An indictment is merely an allegation, and each defendant is presumed innocent until and unless proven guilty in a court of law.
Two Men Plead Guilty to Federal Drug CrimesRead the Press Release
HUNTINGTON, W.Va. – Two out-of-state men pleaded guilty today to charges arising from the January 5, 2022, raid on a Huntington storage unit.
Phillip Antoine Rucker, also known as “Chocolate,” 43, of Proctorville, Ohio, pleaded guilty to possession with intent to distribute 40 grams or more of fentanyl and a quantity of a mixture and substance containing a detectable amount of methamphetamine.
Marshall Luther Williams, also known as “Chuck” and “Chubs,” 41, of Chicago, Illinois, pleaded guilty to aiding and abetting the possession with intent to distribute 40 grams or more of fentanyl and a quantity of a mixture and substance containing a detectable amount of methamphetamine.
According to court documents and statements made in court, on January 5, 2022, law enforcement officers arrested Rucker on an active warrant at a Riverside Drive storage facility in Huntington. Officers found approximately $5,080 and a Taurus, Model Spectrum, .380-caliber pistol in Rucker’s vehicle and seized a key for a unit at the storage facility from Rucker.
Officers obtained a search warrant for the unit, where they found approximately 42.24 grams of a substance containing fentanyl, 27.92 grams of methamphetamine, 929 grams of a purple powder, a Glock 9mm pistol, and $8,591.
Rucker and Williams each admitted to renting the storage unit and keeping controlled substance there for distribution. Rucker and Williams further admitted that the purple powder found during the search was intended to cut or be mixed with the fentanyl prior to distribution.
Rucker and Williams are scheduled to be sentenced on July 10, 2023, and face a mandatory minimum of five years and up to 40 years in prison, four years of supervised release, and a $5 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Huntington Police Department.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Joseph F. Adams is prosecuting 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. 3:22-cr-34.
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Two Men Plead Guilty to $1.3 Million Penny-Stock SchemeRead the Press Release
ALEXANDRIA, Va. – Two men pleaded guilty yesterday to conspiracy to commit securities and wire fraud in connection with a penny-stock manipulation scheme.
According to court documents, from at least November 2016 through October 2018, Phillip W. Offill, Jr., 64, of Dallas, Texas; Justin Wallace Herman, 52, of Canonsburg, Pennsylvania; and others conspired to misappropriate millions of shares of a publicly traded company that held mining claims in Arizona and Idaho. The defendants then fraudulently marketed the shares for sale through third parties, including call centers, who made materially false statements to potential investors, while manipulating the market so that the stock falsely appeared to be trading more actively than it actually was. As a result of the scheme, victim investors lost approximately $1.3 million.
Over a decade ago, in January 2010, Offill, a former attorney with the U.S. Securities and Exchange Commission, was convicted during a jury trial in the Eastern District of Virginia for participating in multimillion-dollar pump-and-dump stock manipulation schemes. Offill was sentenced on April 23, 2010 to eight years in prison in connection with that case. Offill was serving a three-year term of supervised release when he committed the new offense to which he pleaded guilty yesterday.
Offill and Herman are scheduled to be sentenced on June 21, 2023. They each face a maximum penalty of 25 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; Kenneth A. Polite, Jr., Assistant Attorney General of the Justice Department’s Criminal Division; and Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division, made the announcement after U.S. District Judge Rossie D. Alston, Jr. accepted the guilty pleas.
Assistant U.S. Attorney Kimberly Pedersen of the Eastern District of Virginia, and Trial Attorneys Andrew Tyler and Amanda Fretto Lingwood of the Criminal Division’s Fraud Section at the Justice Department, 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. 1:22-cr-152.
Two Men Charged for Breaching Federal Law Enforcement Database and Posing as Police Officers to Defraud Social Media CompaniesRead the Press Release
A criminal complaint was unsealed today in federal court in Brooklyn charging Sagar Steven Singh and Nicholas Ceraolo with wire fraud and conspiracy to commit computer intrusions. The charges stem from Singh’s and Ceraolo’s efforts to extort victims by threatening to release their personal information online. Singh was arrested this morning in Pawtucket, Rhode Island, and will make his initial appearance this afternoon in federal court in Providence, Rhode Island. Ceraolo remains at large.
In pursuit of victims’ personal information, Singh and Ceraolo unlawfully used a police officer’s stolen password to access a restricted database maintained by a federal law enforcement agency that contains (among other data) detailed, nonpublic records of narcotics and currency seizures, as well as law enforcement intelligence reports. Ceraolo (with Singh’s knowledge) also accessed without authorization the email account of a foreign law enforcement officer, and used it to defraud social media companies by making purported emergency requests for information about the companies’ users.
Breon Peace, United States Attorney for the Eastern District of New York, and Ivan J. Arvelo, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), announced the charges.
“Singh and Ceraolo aptly belonged to a group called, as their crime was, ‘Vile.’ That conduct ends today,” stated United States Attorney Peace. “As alleged, the defendants shamed, intimidated and extorted others online. This Office will not tolerate those who impersonate law enforcement officers and misuse the public safety infrastructure that exists to protect our citizens.”
“As these charges make clear, the alleged unauthorized access of a US federal law enforcement system and impersonation of law enforcement officials are serious offenses, and the criminals who perpetrate these schemes will be held accountable for their crimes.” stated HSI New York Special Agent-in-Charge Arvelo. “HSI and its law enforcement partners are committed to safeguarding public safety infrastructure from cyber criminals and ensuring that those seeking to compromise these systems face the fullest extent of the law.”
As alleged in the criminal complaint, Singh and Ceraolo belonged to a group called “ViLE,” whose logo is the body of a hanging girl, as depicted below in the group’s official roster:
Members of ViLE sought to collect victims’ personal information, such as names, physical addresses, telephone numbers, social security numbers and email addresses. ViLE then posted that information (or threatened to post it) on a public website administered by a ViLE member – an action known as “doxxing.” Victims could pay to have their information removed from or kept off the website.
ViLE members acquired victims’ information by various means, including by impersonating law enforcement officers and sending forged requests or orders purporting to be from law enforcement to social media companies, often demanding victim information on the pretense that loss of life was imminent.
As alleged in the complaint, in pursuit of victims’ personal information. Singh and Ceraolo used a police officer’s credentials to access without authorization a nonpublic, password-protected web portal (the “Portal”) maintained by a U.S. federal law enforcement agency, whose purpose is to share intelligence from government databases with state and local law enforcement agencies. After both Singh and Ceraolo accessed the Portal, Ceraolo wrote to Singh: “were all gonna get raided one of these days i swear.” Later that day, Singh wrote to a contact that the “portal [] i accessed i was not supposed to be there not one bit.” Singh said he had “jacked into a police officer’s account” and “that portal had some fucking potent tools.” Singh continued: “it gave me access to gov databases,” followed by the names of five search tools accessible through the Portal.
Within one day of this unauthorized access, Singh was using his access to the Portal to extort victims. Singh wrote to a victim (Victim-1) that he would “harm” Victim-1’s family unless Victim-1 gave Singh the credentials for Victim-1’s Instagram accounts – and appended Victim-1’s social security number, driver’s license number, home address, and other personal details. During the conversation, Singh told Victim-1 that he had “access to [] databases, which are federal, through [the] portal, i can request information on anyone in the US doesn’t matter who, nobody is safe.” Singh added: “you’re gonna comply to me if you don’t want anything negative to happen to your parents.” Singh ultimately directed Victim-1 to sell Victim-1’s accounts and give the proceeds to Singh.
In addition to accessing the Portal without authorization, Ceraolo posed as a police officer to obtain subscriber information from various online service providers. For example, between February 2022 and May 2022, Ceraolo accessed without authorization an official email account belonging to a Bangladeshi police official. Ceraolo used the account to pose as a Bangladeshi police officer in communication with U.S.-based social media platforms. In one instance, Ceraolo induced a social media platform (Platform-1) to provide information about one of its subscribers, including the subscriber’s address, email address and telephone number, by asserting that the subscriber had participated in “child extortion” and blackmail and had threatened officials of the Bangladeshi government. Ceraolo shared the information with another ViLE member, who sent the information to Singh. Ceraolo also used the Bangladeshi police account to attempt to purchase a license from a facial recognition company whose services are not available to the general public.
Similarly, between March 2022 and May 2022, Ceraolo targeted a company (Platform-2) that operates an online gaming platform. Ceraolo used the Bangladeshi police account to request data about one of Platform-2’s users. Employees of Platform-2 detected Ceraolo’s fraud and publicly discussed the attempted fraud. Ceraolo told an associate that he would “hack” Platform-2 in retaliation for “acting like their [sic] untouchable,” that he would “handle dumping and defacing everything for trying to snitch to homeland security” and that he could “easily get 6 figs” for selling Platform-2’s information “on one of the dark web markets.” At Ceraolo’s behest, an associate posed as a U.S. local police officer and sent a forged subpoena to one of Platform-2’s vendors, seeking registration details about Platform-2’s administrators. The vendor did not provide the information.
If convicted, Ceraolo faces up to 20 years’ imprisonment for conspiracy to commit wire fraud, and both Ceraolo and Singh face five years’ imprisonment for conspiracy to commit computer intrusions. The charges in the complaint are allegations, and the defendants are presumed innocent unless and until proven guilty.
The Office extends its appreciation the New York City Police Department and the Federal Bureau of Investigation for their assistance on this case.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Alexander Mindlin, Ellen Sise and Adam Amir are in charge of the prosecution.
The Defendants:
NICHOLAS CERAOLO (also known as “Convict,” “Anon” and “Ominous”)
Age: 25
Queens, New YorkSAGAR STEVEN SINGH (also known as “Weep”)
Age: 19
Pawtucket, Rhode IslandE.D.N.Y. Docket No. 23-MJ-213
Two Individuals Charged in Federal Criminal Complaint for Violent CarjackingRead the Press Release
MINNEAPOLIS – Two individuals have been charged in a federal criminal complaint for carjacking involving a robbery and holding a victim at gunpoint, announced U.S. Attorney Andrew M. Luger.
According to court documents, on February 14, 2023, in Anoka County, Jamel Timothy Funchess, 18, and T’Shawn Teon Palton, 21, took a motor vehicle from the vehicle’s owner, by force, violence, and intimidation, with the intent to cause death and serious bodily harm.
According to a law enforcement affidavit, the victim had made arrangements over Facebook Marketplace to buy a cell phone. The victim and the purported seller arranged to meet at a location in Columbia Heights. When the victim arrived at the location and was still in the car, two men approached and one pointed a firearm at the victim. The men ordered the victim to the backseat of the car. The men then got into the victim’s car, drove a few blocks, and picked up a third male. The three individuals held the victim at gunpoint for the next several hours. During this time, the men demanded that the victim surrender their cell phone, wallet, and credit cards, and provide banking information. They drove to several gas stations around the Twin Cities in an attempt to use the victim’s cards to withdraw money. Each of the three men held the firearm during this time and pointed it at the victim. At one point, one of the men struck the victim in the face with the firearm. Toward the end of the ordeal, the three men discussed what to do with the victim and openly talked about murdering the victim. Eventually, they dropped the victim on a road in St. Paul and drove away in the victim’s car. The victim ran to a nearby gas station and borrowed an employee’s cell phone to call 911.
Officers were able to use the victim’s cell phone location to find Palton, Funchess, and the third kidnapper, along with the victim’s stolen car and items.
Both defendants are charged with one count of carjacking. They made their initial appearances today in U.S. District Court before Magistrate Judge John F. Docherty.
This case is the result of an investigation conducted by the FBI, the Bloomington Police Department, and the Anoka County Sheriff’s Office.
Assistant U.S. Attorneys Thomas Calhoun-Lopez and Sarah Hudleston are prosecuting the case.
A complaint is merely an allegation and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Two Business Owners Plead Guilty to Illegally Tampering with Emissions ControlsRead the Press Release
SPRINGFIELD, Mo. – The owner of a Kirbyville, Mo., towing company, and the owner of a Springfield, Mo., business have pleaded guilty in federal court to their roles in a conspiracy to illegally tamper with the emissions controls of the company’s diesel towing vehicles.
Dennis Cleveland, 73, of Kirbyville, waived his right to a grand jury and pleaded guilty before U.S. Chief Magistrate Judge David P. Rush on Thursday, March 9, to a federal information that charges him with one count of conspiracy to violate the Clean Air Act and one count of tampering with a Clean Air Act monitoring device.
Robert Dyche, 67, of Springfield, waived his right to a grand jury and pleaded guilty on Monday, March 13, to a federal information that charges him with one count of conspiracy to violate the Clean Air Act.
Cleveland is the owner of Affordable Towing, a roadside, recovery, hauling, and mobile repair provider for commercial and private automobiles and vehicles throughout southwest Missouri. Affordable Towing utilized heavy-duty, commercial diesel trucks to tow and haul away vehicles to repair facilities.
By pleading guilty, Cleveland admitted that, since 2011, he has directed his employees to physically disable emissions control components on multiple heavy-duty diesel tow trucks.
Cleveland conspired with Dyche, the owner and operator of Full Flash Tuning, which specializes in illegally tampering with the on-board diagnostic systems on these vehicles. Cleveland caused the Affordable Towing trucks to be tampered with to save money by avoiding maintenance expenses on emissions control systems and by spending less money on fuel.
This tampering is frequently referred to as “tuning” or “flashing” an on-board diagnostic system. One purpose for “tuning” is to allow the vehicles to continue to seemingly operate normally while the emissions control system is disabled, rather than forcing the vehicle’s engine into a state known as “limp mode,” which greatly limits the maximum speed of the vehicle, incentivizing the driver or owner to repair the malfunction. The use of “tuning” thereby serves to reduce the high costs associated with maintaining or repairing components of the emissions control systems on heavy-duty diesel trucks.
As a consequence of “tuning,” tampered vehicles spew substantially more deleterious pollutants such as nitrogen oxides (Nox), carbon monoxide (CO), non-methane hydrocarbons (NMHC), and particulate matter (PM) into the air, presenting a risk to the environment and public health.
Cleveland, through Affordable Towing, contracted with Dyche on multiple occasions to “tune” or “flash” the emissions control systems of Affordable Towing vehicles, thereby causing multiple fleet vehicles to be altered in such a way that the vehicles released pollutants into the air that far exceeded the legally allowable amounts under the Clean Air Act. Each diesel truck would continue to operate normally, as if the vehicle were operating in accord with existing Clean Air Act restrictions, rather than go into limp mode.
In addition to personally tuning Affordable Towing vehicles, Dyche, on multiple occasions, would take the vehicles to an unidentified entity in Rogersville, Mo., to “tune” the vehicles, for which he was compensated by Affordable Towing.
Under federal statutes, Cleveland is subject to a sentence of up to seven years in federal prison without parole Dyche is subject to a sentence of up to five years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
These cases are being prosecuted by Assistant U.S. Attorney Patrick Carney. They were investigated by the Environmental Protection Agency.
Two Arrested for Trying to Send over 90 Firearms to Drug Cartel Members in MexicoRead the Press Release
Tampa, FL –United States Attorney Roger B. Handberg announces the arrests of Yuendry Rodriguez Hilario (28, Cleveland, OH) and Saleh Yusuf Saleh (24, Cleveland, OH) on a criminal complaint charging conspiracy to transfer firearms to commit a felony and/or drug trafficking crime; possession of firearms in furtherance of drug trafficking, illegal transfer of firearms, unlicensed firearm dealing, and conspiracy to violate federal gun laws. If convicted on all counts, each defendant faces a maximum sentence of life imprisonment. The defendants were arrested in Cleveland, Ohio on March 2, 2023, and both were recently ordered detained pending the outcomes of their cases.
According to the complaint, since 2021 undercover agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), posing as Mexican cartel members, were introduced to Rodriguez Hilario as a trafficker of firearms that could be smuggled into Mexico. Undercover communications with Rodriguez Hilario and others discussed the purchase of AR-15s and rocket-propelled grenade launchers. One of the coconspirators described that he sold AR-15s and AK-47s to El Salvadorans and had cocaine available for distribution. Rodriguez Hilario further offered fentanyl to one of the agents to make pills.
Beginning in late-2021, members of the conspiracy sold or arranged for the sale of at least 90 rifles and one Mac-10-type machine gun with a silencer to undercover agents in the Middle District of Florida and Cleveland. In November 2022, an undercover agent told Rodriguez Hilario that his associates in Mexico were “battling and losing” and needed to purchase more firearms. On March 2, 2023, Rodriguez Hilario arranged to deliver 40 AM-15 multi-caliber firearms to the agents. Saleh, who acquired and assembled the parts to make the firearms, arrived at the meeting with Rodriguez Hilario and the agents. After an undercover agent inspected one of the boxes of firearms, both Rodriguez Hilario and Saleh were arrested. In post-arrest interviews with agents, both admitted to trafficking firearms.
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 Bureau of Alcohol, Tobacco, Firearms and Explosives in collaboration with the Panama Express Strike Force, an Organized Crime Drug Enforcement Task Force (OCDETF) comprised of agents and analysts from the United States Coast Guard Investigative Service, Drug Enforcement Administration, the Federal Bureau of Investigation, Homeland Security Investigations (HSI), the Naval Criminal Investigative Service, and U.S. Southern Command's Joint Interagency Task Force South. The Cleveland Division of Police, the Ohio State Highway Patrol, the Ohio Adult Parole Authority, and the Great Lakes Air and Marine Branch of U.S. Customs and Border Protection also provided assistance. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF. It is being prosecuted by Dan Baeza.
Twelve indicted on federal charges for crimes including drugs and illegal firearms possessionRead the Press Release
SAVANNAH, GA: Twelve defendants are among those facing federal charges including illegal possession of firearms and drug charges after separate indictments by a grand jury in the Southern District of Georgia, while recent actions in U.S. District Court include guilty pleas and criminal sentences related to illegal gun possession.
The indicted cases are being investigated as part of Project Safe Neighborhoods in collaboration with federal, state and local law enforcement agencies, including the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the FBI, to reduce violent crime with measures that include targeting convicted felons who illegally carry guns.
“Getting guns out of the hands of criminals is an essential element of the fight against violent crime and the disruption of our neighborhoods,” said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. “We commend the hard work of our law enforcement officers as they continue to identify and apprehend those who illegally possess firearms.”
In the past four years, more than 800 defendants have been federally charged in the Southern District of Georgia for illegal firearms offenses – most often for possessing a firearm after conviction for a previous felony. Federal law increased the maximum penalty for illegal possession of a firearm by a convicted felon to 15 years, up from 10, for those found in possession after June 25, 2022.
Defendants named in federal indictments from the March 2023 term of the U.S. District Court grand jury include:
- Jovonn Courtney Stokes, 26, of Springfield, Ga., charged with three counts of Interference with Commerce by Robbery and three counts of Possession of a Firearm During a Crime of Violence for a string of armed robberies of Chatham County convenience stores in November and December 2022.
- Stacey Vincent, 45, and Felicia Sherrod, 54, both of Douglas, Ga., each charged with Conspiracy to Possess with Intent to Distribute, and to Distribute, 50 Grams or More of Methamphetamine, and Possession with Intent to Distribute Methamphetamine. Vincent also is charged with Possession of a Firearm by a Convicted Felon.
- Tavarres L. Freeman Jr., 22, of Augusta, charged with Possession of a Firearm by a Convicted Felon.
- Todd Joseph Harbuck, 47, of Augusta, charged with Possession of a Firearm by a Convicted Felon, and Possession of a Stolen Firearm.
- Daquan Minor, 32, of Savannah, charged with Possession of a Firearm by a Convicted Felon.
- Calvin Polite, 35, of Savannah, charged with Possession of a Firearm by a Convicted Felon.
- Arthur Singleton, 46, of Savannah, charged with Possession of a Firearm by a Convicted Felon, and Possession of Ammunition by a Convicted Felon.
- Desirae Heinsler, 37, of Eastman, Ga., charged with six counts of making false statements during the purchase of firearms.
- Stephan DeWaine Jackson, 27, of Brunswick, Ga., charged with Possession with Intent to Distribute Crack; Possession of a Firearm in Furtherance of a Drug Trafficking Crime; and Possession of a Firearm by a Convicted Felon.
- Alvin York, 47, of Swainsboro, Ga., charged with Possession of a Firearm by a Convicted Felon.
- Kenneth Oliver Riley, 60, of Savannah, charged with Possession of a Firearm by a Convicted Felon.
Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.
Additional defendants recently have been adjudicated on federal charges that include illegal firearms possession:
- Seth Patrick Anderson, a/k/a “Shane Anderson,” a/k/a “AB,” 37, of Hinesville, Ga., was sentenced to 63 months in prison after pleading guilty to Possession of a Firearm by a Convicted Felon. Long County sheriff’s deputies arrested Anderson in October 2021 at a license checkpoint after finding a pistol in the vehicle he was driving. Anderson is a member of the Aryan Brotherhood white supremacist street gang.
- Reginald DeMarco Smith, a/k/a “Gunslinger,” 49, of Augusta, was sentenced to 60 months in prison and fined $2,500 after pleading guilty to Possession of a Firearm in Furtherance of a Drug Trafficking Crime. Smith sped away from an attempted traffic stop in February 2021 by a Richmond County Sheriff’s deputy, then abandoned his vehicle and ran into the woods. Investigators found a loaded pistol, a significant amount of drugs, and more than $18,000 in cash at the scene, and Smith was located and arrested nine months later. Smith has multiple prior felony convictions for drug trafficking offenses and was on federal supervised release at the time of his arrest.
- Diallow Akpan Johnson, a/k/a “Kevin Williams,” 50, of Savannah, was sentenced to 60 months in prison after pleading guilty to Possession of a Firearm in Furtherance of a Drug Trafficking Crime. Savannah Police officers were called to Johnson’s apartment in January 2021 to investigate a report of domestic violence and found a pistol and drugs in the residence.
- Tareem Burgess, 39, of Hephzibah, Ga., was sentenced to 60 months in prison and fined $1,500 after pleading guilty to Possession of a Firearm by a Convicted Felon. Richmond County Sheriff’s deputies arrested Burgess after a traffic stop in August 2020 when they found a pistol in his vehicle. Burgess has prior convictions for robbery and family violence.
- Dwight Eady, 40, of Milan, Ga., was sentenced to 54 months in prison after pleading guilty to Possession of Ammunition by a Convicted Felon. Eady was arrested in September 2020 after running from a Georgia State Patrol traffic stop in Telfair County. Telfair County Sheriff’s deputies and a Georgia Department of Natural Resources warden later found Eady in a wooded area, along with drugs, ammunition and a semi-automatic pistol. Eady has prior federal and state felony convictions for drug trafficking.
- Rondell Smith, a/k/a “Rondal Smith,” 27, of Hephzibah, was sentenced to 42 months in prison and fined $1,500 after pleading guilty to Possession of a Firearm by a Convicted Felon. Richmond County Sheriff’s deputies arrested Smith in February 2022 after finding a pistol in his vehicle during a traffic stop. At the time of his arrest, Smith was on supervised release from a 2017 federal conviction for Possession of a Stolen Firearm.
- Joshua Jerome Russell, 27, of Swainsboro, Ga., was sentenced to 13 months in prison after pleading guilty to Discharging a Firearm in a School Zone. A Johnson County Sheriff’s office investigator arrested Russell in August 2022 after seeing Russell exit his vehicle at a Johnson County High School football game, point a pistol in the air and fire multiple times, causing a panic at the stadium.
- Amir Dontell Foreman, 27, of Augusta, awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Richmond County Sheriff’s deputies arrested Foreman in August 2022 after finding a pistol in his vehicle during a traffic stop as part of Operation Grace.
- Kevon Quantae Davis, 23, of Augusta, awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Richmond County Sheriff’s deputies arrested Davis in January 2022 as part of Operation Grace, a gang-focused investigation in coordination with the FBI. A member of the Bolt Alley Drive Boyz street gang, Davis dropped a pistol while running on foot from deputies.
- Reco Casey, a/k/a “Rico,” 33, of Augusta, awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. In September 2021, Richmond County Sheriff’s deputies found a pistol in the vehicle where Casey was a passenger. Casey was on state felony probation at the time of his arrest.
- Nicholas Robinson, 22, of Savannah, awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Savannah Police officers arrested Robinson in March 2022 after finding two pistols in Robinson’s pockets while investigating a domestic disturbance at a motel.
- Ricky Maurice Johnson, 35, of Swainsboro, Ga., awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Johnson was arrested in June 2022 after a car and foot chase by Georgia State Patrol troopers and Savannah Police officers.
- Kenneth Sallen, 42, of Savannah, awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Sallen was arrested in July 2022 when Pooler Police officers found a pistol in Sallen’s waistband during a traffic stop. Sallen previously was convicted of armed robbery and was on probation for a firearms charge at the time of his arrest.
- Taipai La’Don Brewer, 43, of Augusta, awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Richmond County Sheriff’s deputies arrested Brewer in July 2022 after finding a pistol and drugs in his car during a traffic stop as part of the Operation Grace investigation of gang-related crimes in the Augusta area.
- Terrance Webster Dunn, 32, of Augusta, awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. A previously convicted felon, Dunn was arrested in October 2022 when Richmond County Sheriff’s deputies found him riding a bike in a shopping center parking lot, taking photos of himself with a pistol in his waistband.
Agencies investigating these cases include the ATF, the FBI, the Georgia Bureau of Investigation, the Savannah Police Department, the Richmond County Sheriff’s Office, and the Georgia State Patrol.
The cases are being prosecuted for the United States by the Southern District of Georgia U.S. Attorney’s Office.
Under federal law, it is illegal for an individual to possess a firearm if he or she falls into one of nine prohibited categories including being a felon; illegal alien; or unlawful user of a controlled substance. Further, it is unlawful to possess a firearm in furtherance of a drug trafficking offense or violent crime. It is also illegal to purchase – or even to attempt to purchase – firearms if the buyer is a prohibited person or illegally purchasing a firearm on behalf of others. Lying on ATF Form 4473, which is used to lawfully purchase a firearm, also is a federal offense.
For more information from the ATF on the lawful purchasing of firearms, please see: https://www.atf.gov/qa-category/atfw-form-4473
Triangle CEO Sentenced for Filing False Tax ReturnsRead the Press Release
NEW BERN, N.C. – Raleigh business owner Alton Perkins, was sentenced today to 24 months in prison for failing to account for approximately $3 million diverted from his companies for his own personal use between 2015 and 2018. Perkins was also ordered to make restitution to the Internal Revenue Service in the amount of $520,344 for taxes owed from 2015-2018.
“We are holding accountable tax cheats who avoid paying their fair share,” said U.S. Attorney Michael Easley. “This CEO diverted company money to fund vacations, expensive jewelry and private school tuition. His attempts to defraud the government have led to time in federal prison.”
According to evidence summarized in court, Perkins moved large amounts of money from his business accounts into his personal bank accounts. These funds were then used for personal expenditures, including the purchase of a Wake Forest home, Rolex watches, vacations, and private school tuition. None of the approximately three million dollars spent by Perkins on these personal items was accounted for in his taxes filed with the Internal Revenue Service.
Perkins is the chairman and CEO of AmericaTowne, a company, according to its website, focused on increasing exports of American products to China. AmericaTowne, which was funded by investor dollars, included a plan to build an American-style community in China that would include hotels, small businesses, and a theme park. Perkins is currently involved in a civil lawsuit with the U.S. Securities and Exchange Commission (Case No. 5:19-CV-00243-FL) over the unregistered private placement offerings and the sale of securities for AmericaTowne and other business entities controlled by Perkins.
Perkins pled guilty on December 12, 2022 to a felony charge of Making and Subscribing a False Tax Return Under Penalty of Perjury, for his failure to account for his personal expenditures on his 2016 personal income tax return. According to evidence presented in court, for tax year 2016, Perkins stated that his total income was $21,933. However, banking records show that Perkins spent $1,208,394 that year on personal items including, a golf cart, a family trip to Hawaii, private high school tuition, and a Rolex – all with funds taken from his corporate bank accounts.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina, made the announcement after United States District Judge Louise W. Flanagan pronounced the sentence. The Internal Revenue Service investigated the case and Assistant U.S. Attorneys William M. Gilmore and Karen Haughton prosecuted the case.
Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No 5:22-CR-00265-FL.
Todd County Man Sentenced for Sexual Abuse of a MinorRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange, U.S. District Court, has sentenced a Todd County, South Dakota, man convicted of Sexual Abuse of a Minor. The sentencing took place on March 13, 2023.
Fremont Menard, a/k/a Fremont Menard, Jr., age 20, was sentenced to four years in federal prison, followed by five years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Menard was indicted by a federal grand jury in August of 2022. He pleaded guilty on December 8, 2022.
The conviction stems from conduct that occurred in September of 2021 in Todd County, wherein Menard engaged in a sexual act with a minor who had attained the age of 12 years but had not attained the age of 16 years.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson 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.
Menard was immediately remanded to the custody of the U.S. Marshals Service.
Thibodaux Man Pleads Guilty to Failing to Account for and Pay TaxesRead the Press Release
NEW ORLEANS – United States Attorney Duane A. Evans announced that CORNEL MARTIN, SR. (“MARTIN”), age 63, of Thibodaux, Louisiana, pled guilty today to failing to account for and pay over federal income taxes and Federal Insurance Contributions Act (“FICA”) taxes, in violation of Title 26, United States Code, Section 7202.
According to court documents, MARTIN operated several businesses in Terrebonne Parish that provided temporary labor to shipyards and offshore oil rigs. MARTIN was the sole owner of each of the companies and controlled the companies’ finances. From 2012 to 2021, MARTIN’s various businesses withheld taxes from its employees’ paychecks, but MARTIN failed to pay over the withheld taxes to the Internal Revenue Service (“IRS”) as required. All told, MARTIN’s willful failure to account for and pay trust fund and other taxes associated with his businesses between 2012 and 2021 resulted in a loss amount to the IRS between $1,500,000 and $3,500,000.
MARTIN faces a maximum prison sentence of five (5) years. Upon release from prison, MARTIN faces a term of supervised release up to (3) three years, and/or a fine of $250,000 or the greater of twice the gross gain to the defendant or twice the gross loss to any person under Title 18, United States Code, Section 371. MARTIN also faces payment of a mandatory $100 special assessment fee. U.S. District Judge Susie Morgan set his sentencing for June 15, 2023.
The U.S. Attorney’s Office would also like to acknowledge the work of the IRS on this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brandon Long of the Financial Crimes Unit.
Texas Man Indicted in Western Pennsylvania on Money Laundering ChargeRead the Press Release
PITTSBURGH, PA - A resident of Houston, Texas, has been indicted by a federal grand jury in Pittsburgh for money laundering, Acting United States Attorney Troy Rivetti announced today.
The one-count Indictment, returned on Feb. 28, 2023, and unsealed today, named Oluseyi Jeremiah Olagoke Adebayo, 48, as the sole defendant. The defendant was arrested today in Houston. The government will be seeking his detention pending trial.
According to the Indictment, from June 2022 through October 2022, Adebayo conspired to launder over $400,000 of fraudulent proceeds of a business email compromise scam that victimized a Pittsburgh-based company. Adebayo utilized aliases to register shell companies and open bank accounts for those shell companies. He then transferred portions of the fraudulent proceeds into those bank accounts to conceal their true nature, location, source, ownership, and control.
The law provides for a maximum total sentence of not more than 20 years in prison, a fine of not more than $500,000.00 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Mark V. Gurzo is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and Homeland Security Investigations conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.Tampa Felon Sentenced to More Than 6 Years in Federal Prison for Possessing A Loaded Firearm Months After Release from PrisonRead the Press Release
Tampa, Florida – U.S. District Judge William F. Jung has sentenced Dallas Robinson, Jr. (22, Tampa) to six years and six months in federal prison for possessing a firearm as a convicted felon. Robinson had pleaded guilty on December 14, 2022.
According to court documents, on December 26, 2021, in the Rivergrove neighborhood of Tampa, near the intersection of East Sligh Avenue and Rowlett Park Drive, Robinson was traveling as a passenger in a stolen vehicle being driven by another convicted felon. Both men were armed with fully loaded, semi-automatic pistols. Police officers followed the stolen vehicle until Robinson and the driver exited the vehicle. When ordered to stop, both men fled the stolen vehicle on foot, leaving behind their fully loaded pistols. During a search of the vehicle, officers recovered a loaded black SCCY CPX-1 9mm pistol on the driver’s seat, and a loaded black Springfield XDS (HS Produkt) .45 caliber pistol in the passenger side footwell. Latent fingerprints were lifted from the .45 caliber pistol and analyzed by a fingerprint examiner. One latent fingerprint was a match for Robinson. Additionally, officers recovered Robinson’s wallet and Florida identification card that had been left on the passenger seat near the pistol bearing Robinson’s latent print. Robinson and the driver were subsequently arrested.
At the time of the incident, Robinson had recently served 30 months in federal prison for convictions under the National Firearms Act in a prior federal criminal case and had been released 4 months prior to his arrest in this case.
This case was investigated by the Tampa Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney David W.A. Chee.
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.