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14 March 2023
Former DOJ Paralegal Sentenced to 33 Months in Prison for Witness Retaliation and Obstruction of Justice-Related CrimesRead the Press Release
Earlier today, in federal court in Brooklyn, Tawanna Hilliard was sentenced by United State District Judge Pamela Chen to 33 months in prison. The defendant was previously convicted, following a one-week trial, of witness retaliation, conspiracy to commit witness retaliation, obstruction of justice and conspiracy to obstruct justice. The evidence at trial showed that the defendant, who was the mother of a 5-9 Brim member and had long-standing ties with other members, was responsible for uploading the post-arrest statements of witnesses suspected of cooperating against the gang to YouTube—knowing that violent consequences were likely to follow. At the time of her crimes, Hilliard was a paralegal working in the Civil Division of another United States Attorney’s Office. Her co-defendant and son, Tyquan Hilliard, pleaded guilty to witness tampering conspiracy in November 2020 and was sentenced to 63 months’ imprisonment.
Breon Peace, United States Attorney for the Eastern District of New York, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Keechant L. Sewell, Commissioner, New York City Police Department (NYPD) announced the sentence.
“The defendant, whose job it was to serve justice, instead threatened the integrity of our justice system and the safety of government witnesses,” stated United States Attorney Breon Peace. “Today’s sentence reflects the seriousness of her crimes and serves as a warning that obstructive and retaliatory conduct by anyone will not be tolerated and will be punished.”
Mr. Peace thanked Department of Justice’s Office of Inspector General for their assistance in the investigation and prosecution of the case.
In May 2018, the defendant’s son, a member of the 5-9 Brims, participated in an armed robbery of a cell phone store in Monticello, New York, with another individual (John Doe) and that individual’s girlfriend (Jane Doe). All three were arrested by local police, and John Doe and Jane Doe thereafter made video-recorded post-arrest statements to law enforcement, including to federal task force officers investigating a string of commercial robberies committed by members of the 5-9 Brims. In August 2018, the defendant received discovery in her son’s robbery case, which included the video-recorded statements of John Doe and Jane Doe. The defendant discussed the videos in detail over recorded phone calls with her son, who was incarcerated pending trial for the robbery.
On August 5, 2018, the defendant uploaded the video of John Doe’s post-arrest statement to YouTube, through an Internet Protocol address assigned to the defendant’s account at her home address in Brooklyn. The video was entitled, “NYC Brim Gang Member SNITCHING! Pt. 1.”
Also on August 5, 2018, over a recorded jail call, the defendant’s son asked the defendant to send the video of Jane Doe’s post-arrest statement to one of his gang associates. The defendant and her son also discussed “tagging” John Doe in the video, to make it clear he had also “snitched.” Later that day, the video of Jane Doe’s statement was uploaded to YouTube with the title, “NYC Brim Gang Member Girlfriend SNITCHING ([Facebook name of John Doe]).” The video of John Doe’s statement quickly garnered over 10,000 views, and a substantial amount of attention on social media, including comments that included threats of violence against Jane Doe and John Doe.
Shortly thereafter, Jane Doe began receiving numerous death threats and reported hearing gunshots outside her apartment. She was relocated by law enforcement as a result. John Doe also received numerous death threats in jail.
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 make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The government’s case is being prosecuted by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Nicholas Moscow and Lindsey Oken are in charge of the prosecution, with assistance from Paralegal Specialist Celine Laruelle.
The Defendant:
TAWANNA HILLIARD
Age: 48
Brooklyn, New YorkPreviously Sentenced Defendant
TYQUAN HILLIARD
Age: 32
Brooklyn, New YorkE.D.N.Y. Docket No. 19-CR-358 (S-1) (PKC)
Former CFO Sentenced to 3 Years and 5 Months in Prison for Embezzling over $1.9 MillionRead the Press Release
SACRAMENTO, Calif. — Christopher Firle, 53, of Fairfield, was sentenced today to three years and five months in prison for a four-year embezzlement scheme of over $1.9 million from his employer, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Firle was the Chief Financial Officer of a holding company that managed several vehicle dealerships. From January 2016 through September 2019, Firle misappropriated over $1.9 million from the company. He carried out his embezzlement scheme in multiple ways, including by using company credit cards to pay for over $750,000 in personal expenses. The unauthorized charges included tickets to sporting events and purchases at several retail stores, including Bergdorf Goodman, Chanel, Hermès, Nordstrom, and Tiffany & Co. Firle also initiated over 30 unauthorized wire transfers from the company to a family member. Those transfers totaled over $500,000. Additionally, Firle issued over 30 unauthorized company checks to himself that totaled over $165,000, and he withdrew more than $50,000 from a company account without authorization. Finally, Firle issued himself excess bonus payments totaling almost $160,000.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Matthew Thuesen prosecuted the case.
Firle was also ordered to pay $1,937,706 in restitution to his former employer and to forfeit $1,652,269 to the United States.
Fentanyl Dealer, Felon Who Possessed Firearm Sentenced to More Than 20 Years in Federal PrisonRead the Press Release
GREENSBORO, N.C. - A former resident of Alamance County was sentenced to 248 months in federal prison for fentanyl- and firearm-related charges, announced United States Attorney Sandra J. Hairston of the Middle District of North Carolina.
RAYMOND RONALD JENNINGS of Burlington, North Carolina, age 52, was sentenced to a 248-month term of imprisonment by the Honorable Thomas D. Schroeder, Chief United States District Judge in the United States District Court for the Middle District of North Carolina. In addition to prison time, JENNINGS was ordered to serve five years of supervised release and pay a special assessment of $400.00.
According to a complaint filed in the case, law enforcement recovered 27.72 grams of fentanyl and a .40-caliber Smith & Wesson pistol from the home of JENNINGS, who was a convicted felon at the time. The grand jury charged JENNINGS with possession with intent to distribute fentanyl, a violation of Title 18, United States Code, Sections 841(a)(1) and (841(b)(1)(C); maintaining a drug involved premises, in violation of Title 18, United States Code, Section 856(a)(1); possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c); and possession of a firearm by a convicted felon, in violation of Title 18, United States Code, Section 922(g)(1).
A federal jury convicted JENNINGS after a three-day trial.
“Fentanyl continues to devastate communities in the Middle District of North Carolina, and across the country,” said United States Attorney Hairston. “Cases like this show our commitment to combatting the crisis in the court of law.”
The investigation was undertaken by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”) and the Alamance County Sheriff’s Office. The case was prosecuted by Assistant United States Attorneys Tanner Kroeger and Nicole DuPré.
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Federal Jury Finds Kentucky Woman Guilty of Mailing Threatening Communications to Neighbors Because of Their RaceRead the Press Release
A federal jury convicted a local woman on Friday of mailing communications containing threats to injure others in November and December 2020.
According to court documents and evidence presented at trial, Suzanne Craft, 54, of Louisville, sent multiple threating communications via the United States Postal Service to a family that lived in her Lake Forrest neighborhood. Many of these communications contained threats of violence and racial slurs. The jury convicted Craft of five counts of mailing threatening communications.
“Holding people accountable for threats and intimidation based on race is a top priority of the Department,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “We are grateful to the U.S. Attorney’s Office for their professional and diligent pursuit of this case.”
“I commend the outstanding work of the FBI’s Louisville Public Corruption Task Force, the U.S. Postal Inspection Service (USPIS), and the assigned prosecutors during the investigation and trial of this case,” said U.S. Attorney Michael A. Bennett for the Western District of Kentucky. “This office, working together with our law enforcement partners, will continue to aggressively investigate and prosecute threats of violence and raced based intimidation throughout the Western District.”
“Receiving violent, hate-filled threats can have a devastating and lifelong impact on the victim. These senseless acts violate the law, run contrary to our values as Americans and defy the principles of tolerance that define our community,” said Special Agent in Charge Jodi Cohen of the FBI Louisville Field Office. “Through the great work of the Public Corruption/Civil Rights Task Force, and that of our federal prosecutive partners, we were able to hold Kraft accountable for her actions. Our hearts are with the victims of these crimes, we appreciate their strength to come forward, and we hope this brings some semblance of closure to this ordeal.”
“Keeping the U.S. mailstream safe for all Americans is a priority for the USPIS,” said Inspector in Charge Lesley Allison of the USPIS Pittsburgh Division. “Threats of violence in the mail, especially those which are racially motivated, will not be tolerated. We work diligently with our law enforcement partners to bring to justice anyone who mails such threats.”
The jury further found that for each of these five counts, Craft sent the threatening communications to her neighbors because of their actual or perceived race or color.
Sentencing is scheduled for June 21, before a U.S. District Judge for the Western District of Kentucky. Craft remains in federal custody pending sentencing and faces a maximum sentence of 25 years in prison. A federal district court judge will determine any sentence after considering the sentencing guidelines and other statutory factors. There is no parole in the federal system.
Assistant Attorney General Clarke, U.S. Attorney Michael A. Bennett for the Western District of Kentucky, Special Agent in Charge Jodi Cohen of the FBI Louisville Field Office and USPIS in Charge Lesley Allison of the Pittsburgh Division made the announcement.
The FBI Louisville Public Corruption Civil Rights Task Force and the USPIS are investigating the case.
Assistant U.S. Attorneys Christopher Tieke and Stephanie Zimdahl for the Western District of Kentucky are prosecuting the case, with assistance from paralegal Carissa Moss, and with assistance in the investigation from Trial Attorney Mary Hahn of the Civil Rights Division.
Federal Jury Convicts Okmulgee County Resident of Felon in Possession of A Firearm and AmmunitionRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that Kent Matthew Stapp, age 34, of Okmulgee County, Oklahoma was found guilty by a federal jury of one count of Felon in Possession of a Firearm & Ammunition. The jury trial began on Monday, March 13, 2023, and concluded on the same day with the guilty verdict.
During the trial, the United States presented evidence that on February 11, 2022, local law enforcement in Okmulgee, Oklahoma stopped Kent Matthew Stapp’s vehicle for a traffic violation and discovered that he had outstanding arrest warrants. When officers attempted to arrest Stapp, he tried to flee. Officers were able to prevent Stapp’s escape and take him into custody. The evidence included body camera footage of the arrest, wherein the defendant, a convicted felon, was shown to be in possession of a firearm and ammunition.
The guilty verdict was the result of an investigation by the Okmulgee County Sheriff’s Office, the Okmulgee Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The United States Attorney’s Office for the Eastern District of Oklahoma prosecuted the case due to the federal crime of a felon in possession of a firearm and ammunition and because the defendant in this case is a member of a federally recognized Indian tribe and the crime occurred in Okmulgee County, within the boundaries of the Muscogee (Creek) Nation Reservation and within the Eastern District of Oklahoma.
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma in Muskogee, presided over the trial and ordered the completion of a presentence report. Sentencing will be scheduled following completion of the report. Stapp was remanded to the custody of the United States Marshal pending the imposition of sentencing.
Assistant United States Attorneys Genevieve Ozark and Jarrod Leaman represented the United States.
Essex County Felon Convicted of Drug Trafficking, Firearm Possession, and Possessing a Firearm in Furtherance of Drug TraffickingRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was convicted on drug and weapon charges, U.S. Attorney Philip R. Sellinger announced today.
Ricky Hubbard, 45, of Newark, was convicted on March 13, 2023, following a four-day trial before U.S. District Judge Kevin McNulty on one count each of possession of a firearm by a convicted felon; possession with intent to distribute cocaine, heroin, and fentanyl; and possession of a firearm in furtherance of a drug trafficking crime.
According to documents in this case and evidence at trial:
On Nov. 6, 2019, law enforcement officers pulled over Hubbard’s car in Union, New Jersey. Inside a secret compartment, Hubbard possessed 369 doses of cocaine, heroin, and fentanyl packaged for distribution; drug-packaging materials; and a 9mm Taurus handgun loaded with seven rounds of ammunition, including one in the chamber.
The firearm possession charge carries a maximum potential penalty of 10 years in prison and a maximum fine of $250,000. The drug trafficking charge carries a maximum potential penalty of 20 years in prison and a maximum fine of $1 million. The possession of a firearm in furtherance of a drug trafficking crime charge carries a minimum sentence of five years in prison, a maximum potential penalty of life in prison, and a maximum fine of $250,000. Sentencing will be scheduled at a later date.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; the Union Township Police Department, under the direction of Police Director Chris Donnelly; the Union County Prosecutor’s Office under the direction of Prosecutor William A. Daniel, and the Union County Sheriff’s Office, under the direction of Union County Sheriff Peter D. Corvelli Jr., with the investigation leading to the conviction.
The government is represented by Assistant U.S. Attorneys Olta Bejleri and Emma Spiro of the Criminal Division in Newark.
Essex County Corrections Officer and Girlfriend Arrested for Conspiring to Smuggle Contraband into Essex County Correctional FacilityRead the Press Release
NEWARK, N.J. – An Essex County corrections officer and his girlfriend were arrested today for conspiring to smuggle contraband into the prison facility at which he was employed to be resold to prisoners, U.S. Attorney Philip Sellinger announced.
Efrin Wade, 34, and Yairisa Lizardo, 29, both of Jersey City, are charged by complaint with extortion under color of official right. The defendants appeared today before U.S. Magistrate Judge Michael A. Hammer in Newark federal court and were released on $100,000 each unsecured bond.
According to documents filed in this case and statements made in court:
In January 2023, Wade, who had served as a corrections officer at Essex County Correctional Facility (ECCF) since February 2020, began communicating with an individual whom he believed was seeking to smuggle contraband to inmates at ECCF for sale to other inmates. Unbeknownst to Wade, this individual was in reality an undercover FBI agent. Wade agreed to smuggle tobacco and cell phones, both of which inmates at ECCF are forbidden to possess. On Feb. 1, 2023, Wade sent Lizardo to meet with the undercover agent in a parking lot in Bayonne, New Jersey, where she accepted $10,000 in cash and a substantial quantity of tobacco for Wade to smuggle into ECCF. Over the subsequent weeks, Wade left this tobacco in concealed locations within ECCF believing it would be retrieved by inmates. However, law enforcement recovered these items after Wade relayed the concealed locations to the undercover agent.
On Feb. 8, 2023, Wade met the undercover agent in a parking lot in Jersey City, where Wade took possession of a cell phone concealed within tobacco. After smuggling this contraband into ECCF, law enforcement recovered it in a concealed location where Wade had left it for inmates to retrieve. On Feb. 15, 2023, Wade met with the undercover agent in the same parking lot in Jersey City and accepted an additional $4,000 for his smuggling activities. Wade also explained his plans to smuggle in an additional 15 contraband cell phones, which were to be supplied to him by the undercover agent. Wade expected to be paid at least $30,000 for smuggling these cell phones into ECCF in late March. Wade expected that the cell phones would then be resold to inmates for approximately $5,000 per phone. When approached by agents during his shift at ECCF during the early morning hours of March 14, 2023, Wade was found to be in possession of multiple packs of contraband cigarettes as well as tobacco packs and cigars.
The extortion charge is punishable by a maximum potential penalty of 20 years in prison and a maximum $250,000 fine.
U.S. Attorney Sellinger credited special agents with the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, and investigators of the Internal Affairs Unit of the Essex County Department of Corrections, under the direction of Ronald Charles, with the investigation leading to today’s arrests.
The government is represented by Assistant U.S. Attorney Mark J. McCarren of the Special Prosecutions Division in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
wadelizardo.complaint.pdfElkhart Man Sentenced to PrisonRead the Press Release
SOUTH BEND – Latell Washington, 24 years old, of Elkhart, Indiana, was sentenced by United States District Court Judge Damon R. Leichty after pleading guilty to making a false statement during the purchase of a firearm, announced United States Attorney Clifford D. Johnson.
Washington was sentenced to 9 months in prison followed by 2 years of supervised release with the first 9 months being home detention.
According to documents in the case, in June 2021, a handgun was recovered at the scene of a shooting. Law enforcement learned that Washington bought this handgun from a firearms dealer 15 days previously, and that he bought at least 5 other firearms between October 2020 and June 2021. Washington admitted to lying on the ATF form in order to make the firearm purchase and said that he sold at least 4 firearms to people who could not make the firearm purchase themselves.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the South Bend Police Department. This case was prosecuted by Assistant United States Attorneys Luke N. Reilander and Frank Schaffer.
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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Drug Trafficker Sentenced to 14 Years for Conspiracy to Import CocaineRead the Press Release
SAN JUAN, Puerto Rico – Miguel Ángel Agosto-Pacheco, a.k.a. “Chino,” was sentenced by United States District Court Judge Francisco A. Besosa to 14 years in prison for conspiring to import cocaine into the United States, announced United States Attorney for the District of Puerto Rico, W. Stephen Muldrow. Agosto-Pacheco pleaded guilty on December 6, 2022.
According to admissions made in connection with his plea, between approximately February 2017 and February 2018, Agosto-Pacheco served as the manager of the Puerto Rican branch of an international drug trafficking organization. During that timeframe, the organization coordinated the shipment of hundreds of kilograms of cocaine from Colombia through Venezuela and into Puerto Rico.
As part of his plea agreement, Agosto-Pacheco admitted to conspiring to import millions of dollars’ worth of cocaine into Puerto Rico on two specific occasions. First, in November 2017, Agosto-Pacheco conspired to import approximately 417 kilograms of cocaine. Second, in December 2017, Agosto-Pacheco conspired to import approximately 285 kilograms of cocaine.
In late 2022, Agosto-Pacheco’s five co-defendants all pleaded guilty to conspiring to import cocaine and were sentenced as follows:
- Jerry Omar Hernández-Peña—120 months
- Luis A. Vázquez-Rodriguez—120 months
- Anthony Jael Abreu-Matos—120 months
- Luis Ángel Ramos-Cordero—120 months
- Juan Tapia-Soto—96 months
U.S. Attorney W. Stephen Muldrow of the District of Puerto Rico and Special Agent in Charge of the Drug Enforcement Administration (DEA) Denise Foster made the announcement.
The DEA was in charge of the investigation.
Assistant U.S. Attorneys Max Pérez-Bouret and Carlos R. Cardona, as well as former Assistant U.S. Attorney Jonathan E. Jacobson, prosecuted the case.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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Drug Smuggler Sentenced to 78 Months for Smuggling FentanylRead the Press Release
TUCSON, Ariz. – Jose Antonio Cota, 33, of Tucson, Arizona, was sentenced yesterday by United States District Judge James A. Soto to 78 months in prison, followed by three years of supervised release. Cota pleaded guilty to one count of Possession with Intent to Distribute Fentanyl in April 2022.
In August 2020, Cota was a passenger in a commercial shuttle van when it stopped for a routine immigration inspection at a Border Patrol checkpoint near Amado, Arizona. During an inspection of the vehicle and its passengers, Border Patrol agents discovered Cota was hiding several small bundles of fentanyl pills taped to his body.
United States Border Patrol conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-20-1699-TUC-JAS-JR
RELEASE NUMBER: 2023-034_Cota# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Davenport Chiropractor Charged with False Statements, Bank Fraud, and Money Laundering for PPP Loan and Mortgage Fraud SchemesRead the Press Release
DAVENPORT, IA – A Davenport man made his initial appearance today in federal court in Davenport on false statements to a financial institution, bank fraud, and money laundering charges.
Jason Rannfeldt, 51, is charged in a 14-count indictment returned on March 7, 2023. According to court documents, Rannfeldt owned and operated Rannfeldt Clinic or Rannfeldt Family Chiropractic between October 1998 and April 2021 and claimed to own and operate four additional businesses: Perfect Fit Coaching, LLC; PF Nutrition Counseling, LLC; RC Orthotics, LLC: and RC Performance Therapy, LLC. Between January 2021 and May 2021, Rannfeldt submitted eleven false and misleading Paycheck Protection Program (PPP) loan applications to various financial institutions on behalf of these businesses. Rannfeldt included supporting documents with the PPP loan applications, including tax documents, that contained false or fraudulent misrepresentations. Rannfeldt obtained or attempted to obtain approximately $1,100,000 in PPP loan funds through the submission of the false and misleading PPP loan applications and supporting documentation.
Additionally, on August 9, 2021, Rannfeldt submitted a false and misleading residential mortgage loan application to GreenState Credit Union and provided supporting documents containing false or fraudulent misrepresentations. GreenState Credit Union approved the mortgage loan in the amount of $588,750.
Rannfeldt is charged with seven counts of false statements to a financial institution, six counts of bank fraud, and one count of money laundering. If convicted, he faces maximum sentences of 30 years in prison for each of the false statements to financial institutions and bank fraud counts, and 10 years in prison for money laundering. A federal district court judge will determine any sentence after considering the United States Sentencing Guidelines and other statutory factors.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Internal Revenue Service–Criminal Investigation, Federal Bureau of Investigation, and Small Business Association–Office of Inspector General are investigating 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.
D.C. Man Pleads Guilty to Felony Charge in Child Exploitation CaseRead the Press Release
WASHINGTON – Raymond Glover, 42, of Washington, D.C., pleaded guilty today to one count of receipt of child pornography, announced United States Attorney Matthew Graves and Acting Special Agent in Charge Derek W. Gordon, of Homeland Security Investigations (HSI). A sentencing hearing is scheduled for June 21, 2023.
According to court documents, on or about September 21, 2021, HSI agents searched Glover’s home. During the search, a child pornography video was playing, in plain sight, on Glover’s laptop in the living room via an application that allowed sharing of the video screen. Agents observed adult men, on another screen, who appeared to be watching the video via the sharing application. Glover stated that some of the child pornography videos posted in the application chat groups depicted children as young as 5 or 6 years of age. Glover stated individuals also posted links to cloud storage sites which allowed him to gain access to child pornography. During the search warrant execution, agents seized 13 electronic devices, to include two phones, the laptop, and a number of others. Glover’s devices contained over 60 videos and 60 images that meet the federal definition of child pornography. These videos and images were downloaded between the dates of September 27, 2019 and September 21, 2021.
The charge of receiving child pornography carries a mandatory minimum sentence of five years in prison with a maximum possible sentence of 20 years in prison, plus mandatory restitution, a period of supervised release, and a possible fine. The court will determine the appropriate sentence after considering the relevant factors including the advisory Sentencing Guidelines.
This case is being investigated by the Washington, D.C. office of Homeland Security Investigations. It is being prosecuted by Assistant U.S. Attorneys Amy Larson and Jocelyn Bond with the U.S. Attorney’s Office for the District of Columbia with assistance provided by the paralegal Alexis Spencer-Anderson.
Convicted Felon Sent to Prison for Terrorizing Women with a FirearmRead the Press Release
EAST ST. LOUIS, Ill. – In a U.S. District courtroom on Tuesday, a Belleville man was sentenced to six years in federal prison for a gun charge stemming from a 2021 incident in East St. Louis.
Ladarius Roberts, 30, pled guilty to one count of felon in possession of a firearm. In addition to the federal prison sentence, he received three years of supervised release. Roberts will also pay a $200 fine and $100 in special assessments.
“Physically abusing and recklessly firing a weapon at women is absolutely unacceptable behavior, and I’m relieved the defendant will be sent back to prison,” said U.S. Attorney Rachelle Aud Crowe. “I appreciate the collaborative effort by the East St. Louis Police Department and the Illinois State Police Public Safety Enforcement Group to apprehend this dangerous and violent offender.”
“When we receive a call about a crime, the Public Safety Enforcement Group is ready to take action,” said Illinois State Police Director Brendan F. Kelly. “This case is an example of what law enforcement, the justice system, and community members can do by working together.”
According to court documents, Roberts and Kievonte J. Beasley met two women in East St. Louis in January 2021. When the women tried to leave, Roberts became angry, physically assaulted one of the women and threw an item shattering the woman’s car’s back windshield. He drove off in a vehicle with Beasley, and the women followed in another vehicle while on the phone with law enforcement.
Numerous gun shots were heard on the 911 call, and a woman reported Roberts was firing the gun from his car. Police located the suspected car with Roberts in the driver seat. Beasley fled from the passenger seat and discarded the firearm, but police recovered it nearby and identified it as a Glock 22, .40 caliber pistol with an extended magazine containing 11 live rounds of ammunition with one round in the chamber.
Roberts was on probation for drug charges at the time he committed crime. Beasley is facing a gun charge in state court for the incident. The charge against Beasley is only an accusation, and he’s presumed innocent unless and until proven guilty.
The East St. Louis Police Department and the ISP PSEG unit worked together to contribute to the investigation. Assistant U.S. Attorney Ali Burns led the prosecution.
Columbia Man Pleads Guilty to Second Meth Trafficking IndictmentRead the Press Release
JEFFERSON CITY, Mo. – A Columbia, Mo., man pleaded guilty in federal court today to possessing more than 5 kilograms of methamphetamine that he received in the mail while he was on bond on an earlier federal indictment that also charged him with methamphetamine trafficking.
David Lee Williams, 43, pleaded guilty before U.S. Magistrate Judge Willie J. Epps Jr. to one count of possessing methamphetamine with the intent to distribute.
In January 2022, the U.S. Postal Inspection Service intercepted two packages that each contained a total of approximately 2.7 kilograms of methamphetamine. Each of the packages was addressed to a different residence utilized by Williams. On Jan. 19, 2022, Postal Inspection agents conducted a controlled delivery at one of the residences and executed search warrants at both residences.
At the time of this offense, Williams was on bond in a separate and unrelated federal indictment; his bond in that case was revoked following his arrest on Jan. 19, 2022. Williams then pleaded guilty in that separate case to possessing methamphetamine with the intent to distribute, and was sentenced on March 3, 2022, to 17 years and six months in federal prison without parole.
Under federal statutes, Williams is subject in this case to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Special Assistant U.S. Attorney Heather D. Richenberger. It was investigated by the U.S. Postal Inspection Service, the Columbia, Mo., Police Department, and the Drug Enforcement Administration.
Columbia Man Indicted for Meth, Fentanyl, Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – A Columbia, Mo., man was indicted by a federal grand jury today after he was arrested in St. Joseph, Mo., with methamphetamine and a firearm, then again in Kansas City, Mo., with approximately 2,300 fentanyl pills.
Walter Antwine Moore, 42, was charged in a four-count indictment returned by a federal grand jury in Kansas City, Mo. Today’s indictment replaces a federal criminal complaint that was filed against Moore on Feb. 13, 2023. Moore has been detained in federal custody without bond since his arrest.
The indictment charges Moore with one count of possessing methamphetamine with the intent to distribute, one count of possessing a firearm in furtherance of a drug-trafficking crime, one count of being a felon in possession of a firearm, and one count of possessing fentanyl with the intent to distribute.
According to an affidavit filed in support of the original criminal complaint, law enforcement officers contacted Moore when he arrived at a train station in Kansas City, Mo., on Feb. 10, 2023. Moore became confrontational with the detective who questioned him, the affidavit says, and attempted to flee on foot. He was tackled by the detective and detained with the assistance of other detectives and tactical response officers. Officers found a bundle wrapped in clear cellophane on the floor close to where Moore was detained. The bundle, according to the affidavit, contained approximately 2,300 fentanyl pills.
Moore had also been detained by law enforcement officers in St. Joseph, Mo., on Jan. 7, 2023. According to the affidavit, St. Joseph police officers were dispatched to Speedy’s Convenience Store to investigate a report of a man who reportedly stole a bag of potato chips and was trying to sell drugs. Officers searched his vehicle and found a baggy that contained numerous clear plastic baggies with a total of 284.8 grams of methamphetamine. Officers also found a loaded Glock .45-caliber semi-automatic handgun in the car.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Moore has two prior felony convictions for robbery, two prior felony convictions for forgery, and prior felony convictions for possession of a controlled substance, unlawful use of a weapon, and being a felon in possession of a firearm.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Trey Alford. It was investigated by the Drug Enforcement Administration’s Missouri Interdiction and Narcotics Task Force (MoWIN), the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Northwest Missouri Drug Task Force.
Project Safe Neighborhoods
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.
Colchester Man Sentenced for Heroin and Fentanyl OffenseRead the Press Release
Burlington, Vermont – The Office of the United States Attorney for the District of Vermont stated that on March 13, 2023, Marc Wells, 48, of Colchester, Vermont, was sentenced by U.S. District Judge Christina Reiss to 49 months’ imprisonment and a 5-year term of supervised release for possessing with intent to distribute heroin and fentanyl on June 2, 2021.
According to court records, on June 2, 2021, investigators with the Drug Enforcement Administration executed a search warrant at Wells’ Colchester residence, where investigators seized approximately 2,181 glassine baggies that contained a mixture of heroin and fentanyl. Wells, who has two prior federal drug convictions, admitted that he intended to distribute a portion of those narcotics.
United States Attorney Nikolas P. Kerest commended the efforts of the Drug Enforcement Administration, Burlington Resident Office, in the investigation and prosecution of Wells.
Assistant U.S. Attorney Andrew C. Gilman represented the government. Jordana M. Levine, Esq. represented Wells.
Cherokee, Iowa Man Sentenced to 15 Years for Meth ConspiracyRead the Press Release
Dustin Coates, 36, from Cherokee, Iowa, was convicted of conspiracy to distribute methamphetamine. He was sentenced on March 7, 2023, in federal court in Sioux City. Coates was previously convicted of distribution of a controlled substance in the United States District Court for South Dakota in 2013.
Evidence at the hearing established Coates admitted his involvement in a conspiracy that distributed at least 1.4 kilograms of methamphetamine, including 150 grams of pure methamphetamine, from March 2021, through March 8, 2022. On March 8, 2022, law enforcement conducted a traffic stop of the vehicle Coates was driving. Coates threw two baggies of methamphetamine from his person while attempting to flee the traffic stop on foot. C2oates admitted that he planned to distribute the 60+ grams of pure methamphetamine to other persons.
Coates was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand to 180 months’ imprisonment. He must also serve 10 years of supervised release after the term of imprisonment. There is no parole in the federal system.
This case was investigated by Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office and was prosecuted by Assistant United States Attorney Kraig R. Hamit.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-4027. Follow us on Twitter @USAO_NDIA.
Callahan Man Charged with Possession with Intent to Distribute Controlled SubstancesRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces that James Darrell Hickox (37, Callahan) has been charged by criminal complaint with possession with intent to distribute controlled substances. If convicted, he faces a mandatory minimum penalty of 5 years, up to 40 years, in federal prison.
According to the criminal complaint, Hickox possessed with intent to distribute cocaine, MDMA, and 40 grams or more of fentanyl. He has been employed with the Nassau County Sheriff’s Office for 17 years and formerly served as a Drug Enforcement Administration (DEA) Task Force Officer from March 2014 through September 2022.
A complaint is merely a 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 is being investigated by the Federal Bureau of Investigation and Internal Revenue Service – Criminal Investigation, with assistance from United States Customs and Border Protection. It will be prosecuted by Assistant United States Attorney William Hamilton.
The United States Attorney's Office, the Federal Bureau of Investigation, the Internal Revenue Service – Criminal Investigation, and United States Customs and Border Protection thank the Nassau County Sheriff’s Office and the Drug Enforcement Administration for their cooperation during this investigation.
California Man Indicted for Meth TraffickingRead the Press Release
KANSAS CITY, Mo. – A Compton, California man was indicted by a federal grand jury today after law enforcement officers found more than 18 kilograms of methamphetamine in a suitcase he was smuggling through Kansas City, Mo., aboard a bus bound for Atlanta, Georgia.
Diego Ruiz-Bibian, 19, was charged with possessing methamphetamine with the intent to distribute in an indictment returned by a federal grand jury in Kansas City, Mo. Today’s indictment replaces a federal criminal complaint that was filed against Ruiz-Bibian on Feb. 14, 2023.
According to an affidavit filed in support of the original criminal complaint, detectives with the Kansas City, Mo., Police Department contacted Ruiz-Bibian at a local bus station on Feb. 13, 2023, when he arrived in Kansas City traveling aboard a bus from Denver, Colorado, on his way to Atlanta. Although one of the detectives had seen Ruiz-Bibian pick up a hard-sided suitcase from the luggage area of the bus, the affidavit says, he told the detectives it did not belong to him.
A detective searched the suitcase and found eight bundles in heat-sealed “Food Saver” style bags, which contained a total of 18.33 kilograms of methamphetamine.
The charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Trey Alford. It was investigated by the Drug Enforcement Administration’s Missouri Western Interdiction Narcotics (MoWIN) Task Force.
Bryan County man convicted on federal drug charges for trafficking fentanylRead the Press Release
SAVANNAH, GA: A Bryan County man could face decades in federal prison for trafficking fentanyl.
Javarus McKinney, a/k/a “Jody,” 34, of Richmond Hill, Ga., was convicted after a four-day trial on charges of Conspiracy to Possess with Intent to Distribute, and to Distribute, Fentanyl; Possession with Intent to Distribute and Distribution of Fentanyl; and Possession with Intent to Distribute and Distribution of Fentanyl in or Near Schools, said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. The charges carry a statutory penalty of up to 60 years in prison, followed by a substantial period of supervised release.
There is no parole in the federal system.
The jury acquitted McKinney on enhanced charges related to the death of an overdose victim.
“Fentanyl is addictive, pervasive, and deadly, and drug traffickers like McKinney help fuel this national crisis,” said U.S. Attorney Steinberg. “Now convicted, he will be held accountable.”
As described in court documents and testimony, Richmond Hill Police officers initiated an investigation Aug. 12, 2020, after a male victim was found dead in a residential pool. An autopsy indicated the man had a fatal dose of fentanyl in his system at the time of death. Additional investigation identified McKinney as a Richmond Hill-area distributor of counterfeit pills containing fentanyl, in addition to marijuana and THC products.
U.S. District Court Judge R. Stan Baker will schedule sentencing following the completion of a pre-sentence investigation by U.S. Probation Services.
“The poisonous fentanyl continues to flow into communities at the expense of too many lives,” said Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Division. “This trafficker must now face the consequences of his actions.”
The case was investigated by the U.S. Drug Enforcement Administration, the Chatham-Savannah Counter Narcotics Team, and the Richmond Hill Police Department, and prosecuted for the United States by Assistant U.S. Attorneys Darron J. Hubbard and Frank M. Pennington II.
British Nationals Sentenced for Interference with Flight Crew, Assault during Flight Diverted to BGRRead the Press Release
BANGOR, Maine: Two men from Manchester, England were sentenced in U.S. District Court in Bangor today to interference with a flight crew and assault. The charges stem from an incident on a January 2, 2023 TUI Airways flight that diverted to Bangor International Airport (BGR).
U.S. District Judge Lance E. Walker sentenced Anthony Joseph James Kirby, 36, and Damien Jake Murphy, 36, to time served. They had been in custody since their arrest on January 2. They were also ordered to pay $26,589.12 in restitution. They pleaded guilty on February 2.
According to court records, Kirby and Murphy were passengers aboard a TUI Airways flight traveling from Cancun, Mexico to Manchester, England. While the flight was in U.S. airspace, the FAA received a report that two passengers had repeatedly interfered with members of the flight crew and flight attendants. After repeated warnings from the captain, the flight diverted to BGR with agents and officers from the FBI, Federal Air Marshal Service, U.S. Customs and Border Protection, and Bangor Police Department responding.
The investigation revealed that Kirby and Murphy had become upset after being told they would not be served any more alcohol. The pair then retrieved a large bottle of alcohol from their carry-on luggage and continued to drink, becoming increasingly intoxicated. Despite repeated warnings, the two men continued to be belligerent, including using racial slurs. At one point Murphy assaulted a flight attendant, and Kirby assaulted a passenger. TUI Airways LTD incurred $26,589 in costs and expenses due to the unscheduled landing at BGR.
The FBI, Federal Air Marshal Service, U.S. Customs and Border Protection, and the Bangor Police Department investigated the case.
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Edited 03/15/23 to correct Bangor International Airport IATA code to BGR
Box Elder man sentenced to 14 years in prison for sexually abusing childRead the Press Release
GREAT FALLS — A Box Elder man who admitted to sexually abusing a child for approximately four years on the Rocky Boy’s Indian Reservation was sentenced today to 14 years in prison, to be followed by five years of supervised release, U.S. Attorney Jesse Laslovich said.
Isaiah Morsette, 32, pleaded guilty to abusive sexual contact in September 2022.
Chief U.S. District Judge Brian M. Morris presided.
In court documents, the government alleged that in June 2022, Morsette informed law enforcement that he had been having sexual contact with a child beginning in about 2016 or 2017. At the time the victim was under the age of 12 years. The victim confirmed the sexual abuse and alleged that Morsette had threatened to kill him on multiple occasions when he attempted to defend himself.
Assistant U.S. Attorneys Amanda L. Myers and Timothy J. Racicot prosecuted the case, which was investigated by the FBI and Chippewa Cree Law Enforcement.
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Bangor Woman Faces up to 20 Years for Role in Penobscot and Aroostook County Drug TraffickingRead the Press Release
BANGOR, Maine: A Bangor woman pleaded guilty in U.S. District Court in Bangor today to conspiracy to distribute and possess with intent to distribute methamphetamine and fentanyl.
According to court records, between January 2018 and December 2021, Carol Gordon, 52, along with others, trafficked methamphetamine and fentanyl in Penobscot and Aroostook counties. Her participation in the conspiracy involved allowing other members of the conspiracy to deal drugs from her residence and serving as a go-between for many of the transactions.
Gordon faces up to 20 years imprisonment. She will be sentenced after the completion of a presentence investigative report by the U.S. Probation Office. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The U.S. Drug Enforcement Administration, Maine Drug Enforcement Agency, and Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Assistance was provided by the Orono, Bangor, Brewer, Caribou, Presque Isle, and Houlton police departments. U.S. Attorney Darcie N. McElwee also recognized the cooperation and coordination provided by the Maine State Attorney General’s Office and the Aroostook County District Attorney’s Office.
Organized Crime Drug Enforcement Task Forces: This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Augusta Man Sentenced to 16 Months for Assaulting Federal Officer at Muskie Federal BuildingRead the Press Release
BANGOR, Maine: An Augusta man was sentenced in U.S. District Court in Bangor today for assaulting a federal officer at the Edmund S. Muskie Federal Building in Augusta in April 2022.
U.S. District Judge Lance E. Walker sentenced Derik Broox Wight, 41, to 16 months in prison and three years of supervised release. Wight pleaded guilty on September 27, 2022.
According to court records, on April 20, 2022, Wight entered the Muskie Federal Building and approached the security screening station, which was staffed by personnel contracted by the U.S. Department of Homeland Security, Federal Protective Service (FPS). Wight pressed a security officer against a wall and put a knife to the area of his throat. A second security officer drew his service weapon and ordered Wight to drop the knife. When Wight refused to comply, the officer fired a single shot, striking him. Wight was transported to an area hospital where he was subsequently charged.
“Everyone who enters a federal building in Maine should know that the Federal Protective Service and their partners are on scene to protect visitors and tenants. It can be a difficult and dangerous job, and I commend the quick actions of the FPS officers and thank them for preventing any innocent bystanders from being injured,” U.S. Attorney Darcie N. McElwee said.
“When this senseless attack took place, FPS-contracted Protective Security Officers acted professionally and swiftly to stop the attack and ensure the safety of all involved,” said Joseph Carriuolo, Acting Regional Director, Region 1, Federal Protective Service. “We’re grateful for their bravery, as well as the close collaboration with our federal, state, and local partners to protect those who work at and visit federal facilities in Maine and who maintain overall public safety.”
“As law enforcement officers, we all take an oath to protect the public from harm. When Derik Wight assaulted a protective security officer with a knife, another brave officer took immediate action to prevent others from being harmed. We are incredibly thankful for these officers’ courageous actions that day,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “Today’s sentence ensures that Mr. Wight is held accountable for his criminal conduct and also reinforces the fact that assaults on law enforcement officers undermine the rule of law and will not be tolerated.”
The FBI, FPS and Augusta Police Department investigated the case.
Arizona Licensed Insurance Agent Charged with Scheme to Defraud Elderly ClientsRead the Press Release
TUCSON, Ariz. –On March 2, 2023, a federal grand jury returned a six-count indictment against Victoria Totten, 71, of Green Valley, Arizona, for Mail Fraud.
The indictment alleges that Totten, while working as a licensed insurance agent, defrauded various elderly clients out of approximately $114,000. It asserts that Totten fraudulently represented and advised prospective clients to pay insurance premiums in advance and directly to her company instead of making payments to the insurance companies. Totten falsely represented the actual terms of the premium payment structure offered by the insurance companies, and claimed that payment should be made in advance to lock in a lower rate. After receiving the fraudulently obtained funds, instead of transmitting the victims’ premium payments directly to the insurance companies, Totten misused large portions of the victims’ funds for her own personal use and to pay insurance premiums for her other clients.
A conviction for Mail Fraud carries a maximum penalty of 20 years in prison, a $250,000 fine, or both. If convicted, a restitution judgment will be imposed against the defendant for any losses sustained by the victims.
An indictment is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
The Financial Crimes Auditor for the United States Attorney’s Office and the United States Secret Service conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, Tucson, is handling the prosecution.
CASE NUMBER: CR-23-00282-TUC-JGZ-LCK
RELEASE NUMBER: 2023-033_Totten# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Anchorage Man Charged with Approximately $25 Million Dollar Wire Fraud Scheme Involving over 130 VictimsRead the Press Release
ANCHORAGE, ALASKA – An information was filed yesterday charging Garrett Elder, owner of Tycoon Trading LLC, The Daily Bread Fund LLC, and other entities with executing an investment scheme that resulted in approximately $25 million in losses to over 130 victims.
According to the information, from about 2016 through October 2022, defendant Garrett Elder executed a scheme to raise between $30 and $34 million in investments from approximately 130 victims. The scheme began about early 2016 when defendant’s parents provided to defendant between $10,000 and $20,000 to invest in stocks and foreign currencies. Defendant deposited those funds into an entity he had created called Tycoon Trading, LLC (“Tycoon Trading”). Defendant lost all of those funds.
Despite the losses, defendant told his family and friends about his trading business, and some expressed an interest in investing. Defendant did not tell the potential investors that he had lost the money provided by his parents. Instead, defendant gave these victims the false impression that he was a successful trader.
Based on these omissions and false impressions, between 2016 and March 2018, investors transferred approximately $500,000 to Tycoon Trading for defendant to invest. Defendant again began losing money, but created false quarterly performance reports for his victim investors stating that the investments were earning positive returns. By March 2018, defendant had lost almost all the victims’ money while trading and only had approximately $10,000 to $15,000 left in his trading account. In March 2018, defendant disclosed to the victims that their investments had failed, but he did not disclose that he falsified the quarterly performance reports he had sent them.
Meanwhile, notwithstanding the near total losses, defendant continued to seek new investors, claiming to be a successful trader. By the end of 2018, defendant had approximately 30 new investors who were investing substantially more money than the original group of investors.
In 2019, defendant created an entity called The Daily Bread Fund, LLC.
From 2019 through 2022, defendant continued to solicit new investors through Tycoon Trading and the Daily Bread Fund by claiming to be a successful trader and paying a limited amount of distributions to select investors to provide the appearance of investment successes.
Defendant successfully solicited significant new investments; however, in reality, defendant continued to steadily lose money. Despite continued mounting losses, defendant again created and emailed to investors false reports indicating positive returns. Defendant also used some of the victims’ money on personal expenditures, including real estate investments, vehicles, a boat, a camper, bicycles, tools, and jewelry.
In total, the amount of funds transferred to defendant via Tycoon Trading, The Daily Bread Fund, and related entities is presently estimated to be approximately $30 million to $34 million from 138 victim investors.
By October 2022, although some money was distributed back to certain investors, defendant had lost the majority of investments while trading, resulting in approximately $25 million in losses to victims.
Garrett Elder agreed to the government filing an information charging him with wire fraud in violation of 18 U.S.C. § 1343. He faces a maximum penalty of 20 years in prison and a $250,000 fine. If convicted, a federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The you believe you are a victim of Garrett Elder’s investment scheme, please contact the FBI at: (907) 276-4441.
The Federal Bureau of Investigation is investigating the case.
Assistant U.S. Attorneys Michael J. Heyman and Seth Beausang of the Alaska United States Attorney’s Office are prosecuting the case.
An information is merely an allegation and defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Alabama Man Pleads Guilty to Possession of a Firearm by a Convicted FelonRead the Press Release
Jackson, Miss. – A Bellamy, Alabama man pleaded guilty to possession of a firearm by a convicted felon, announced U.S. Attorney Darren LaMarca and Special Agent in Charge Kurt Thielhorn of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
According to court documents, Willie Roger Starks, Jr., 30, was found in possession of a firearm by a Lauderdale County Sheriff’s Deputy on October 27, 2019, during a traffic stop. Starks had a .40 caliber pistol in his car. Starks has a prior felony conviction for Burglary of a Dwelling and was under the supervision of the Mississippi Department of Corrections at the time. As a convicted felon it is contrary to federal law for Starks to possess any firearm.
Starks pleaded guilty to a violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2) which criminalize the possession of firearms by convicted felons. He is scheduled to be sentenced on June 15, 2023 and faces a maximum penalty of 10 years in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Lauderdale County Sheriff’s Office and the ATF are investigating the case.
Assistant U.S. Attorneys Adam T. Stuart and Charles W. Kirkham are prosecuting the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
2 Cincinnati-area men plead guilty to illegally flying drones over professional sporting eventsRead the Press Release
CINCINNATI – Two Cincinnati-area men have pleaded guilty to illegally flying drones over professional sporting events in Cincinnati.
“It is not worth risking federal criminal charges to illegally fly a drone over events like Reds and Bengals games. Even if there is no intent to harm, this conduct poses a direct risk to the players and the individuals in the stands,” said U.S. Attorney Kenneth L. Parker. “As we kickoff FC Cincinnati and Reds seasons this month, and look to summer concert season, we ask the public to refrain from using drones illegally over events.”
“Flying a drone over a stadium full of fans is dangerous and illegal without the proper FAA training, licensing, and approved flight plan," stated FBI Cincinnati Special Agent in Charge J. William Rivers. “We will continue to work with the FAA and local police to investigate these incidents when proper FAA protocols and procedures are not followed.”
It is illegal to fly drones over stadiums that are designated as a Temporary Flight Restriction zone during sporting events. The two defendants were indicted by a federal grand jury in September 2022 for separate incidents involving Cincinnati Bengals and Cincinnati Reds events.
NFL
The Cincinnati Bengals hosted an NFL playoff game at Paul Brown Stadium on Jan. 15, 2022. During the game, Dailon Dabney, 24, of Cincinnati, illegally flew his drone into the stadium and hovered over the players and portions of the stadium crowd. Dabney recorded his drone flight and posted the video to social media sites and YouTube.
Dabney pleaded guilty today before U.S. District Judge Matthew W. McFarland.
MLB
April 12, 2022, was Opening Day for the Cincinnati Reds’ 2022 season and featured the first game of the season at Great American Ballpark. Travis Lenhoff, 38, of Northern Kentucky, flew a drone into the restricted flight area of Great American Ballpark during the Opening Day festivities.
Lenhoff pleaded guilty today before Senior U.S. District Judge Susan J. Dlott.
Both defendants pleaded guilty to one count of violating a Temporary Flight Restriction, a misdemeanor crime punishable by up to one year in prison, one year of supervised release and a $100,000 fine.
Any drone that weighs more than .55 pounds and less than 55 pounds must be registered with the Federal Aviation Administration (FAA). Dabney’s and Lenhoff’s drones were not registered with the FAA, and they do not have a remote pilot certification.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; the Federal Aviation Administration (FAA); Cincinnati Police Chief Teresa A. Theetge and Hamilton County Sheriff Charmaine McGuffey announced the guilty pleas entered today. Assistant United States Attorney Timothy S. Mangan is representing the United States in this case.
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13 March 2023
Wilkesboro Woman Sentenced to Prison for Conspiracy Drug Trafficking after Multi-State OperationRead the Press Release
GREENSBORO – A North Carolina woman was sentenced today to 15 years in prison, after pleading guilty to a one-count indictment which charged her and six codefendants with conspiracy to possess with intent to distribute quantities of methamphetamine. The case was part of a multi-state organized crime investigation, announced United States Attorney Sandra J. Hairston of the Middle District of North Carolina.
WHITNEY LEIGH ESTEP, age 32, of Wilkesboro, North Carolina, was sentenced to a 180-month term of imprisonment by the Honorable William L. Osteen, Jr., United States District Judge in the United States District Court for the Middle District of North Carolina. In addition to prison time, ESTEP was ordered to serve three years of supervised release. She pleaded guilty on August 26, 2022, to conspiracy to possess with intent to distribute methamphetamine, a violation of Title 21, United States Code, Section 846 and 841(b)(1)(C).
According to court records, ESTEP and six additional defendants were indicted in June 2022 after an investigation involving multiple law enforcement agencies revealed a multi-state organized crime conspiracy. Beginning in 2020, law enforcement agencies from several states began investigating a drug trafficking organization rooted in Mexico. During the investigation, it was revealed that ESTEP was sent by a member of the organization to obtain cocaine and deliver it to other individuals in the organization. In March of 2022, task force officers visited ESTEP’s home which was the location of multiple methamphetamine deals prosecuted in another case. ESTEP admitted to officers that she had been working with others for a year and a half, transporting money and providing marijuana in return. The money picked up and delivered by ESTEP was then sent to the Sinaloa drug cartel in Mexico, and ESTEP admitted to investigators that she knew the money was involved in the trafficking of drugs. ESTEP believed she had transferred tens of thousands of dollars, and investigators later confirmed that ESEP had wired funds to Mexico.
The case was investigated by the Federal Bureau of Investigation, the Drug Enforcement Administration, Homeland Security Investigations, the North Carolina State Highway Patrol, and multiple sheriff’s offices and police departments across North Carolina. The case was prosecuted by Assistant United States Attorney Jake D. Pryor.
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United States Settles Claims of Genetics Testing FraudRead the Press Release
WILMINGTON, Del. – U.S. Attorney David C. Weiss announced today that Dr. Kathy Cornelius, a Delaware physician who now resides in Huntsville, Alabama, has agreed to pay $500,000 to resolve allegations that she violated the False Claims Act by ordering medically unnecessary genetic testing for Medicare beneficiaries residing in Delaware.
Between October 2020 and February 2022, Dr. Cornelius referred more than 250 Delaware residents for medically unnecessary genetic tests that were paid for by Medicare. The United States alleges that Dr. Cornelius had no medical relationship with these patients and that the referrals were based on brief telemedicine consultations – often two minutes or less in duration – during which Dr. Cornelius failed to establish any legitimate medical justification for the tests. The genetic tests Dr. Cornelius ordered often cost thousands of dollars per patient.
“Doctors who refer patients for medically unnecessary services such as genetic testing drain vital funds from Medicare and other government healthcare programs,” said U.S. Attorney Weiss. “This office will continue to use all available means to identify healthcare providers who increase costs through unnecessary procedures and to hold them accountable.”
“Accurately billing for services provided to Medicare beneficiaries is required of all health care providers,” said Maureen R. Dixon, Special Agent in Charge for the U.S. Department of Health and Human Services, Office of the Inspector General, Region III. “HHS-OIG and the U.S. Attorney’s Office will continue to evaluate and pursue allegations of medically unnecessary services”.
This matter was handled by Assistant U.S. Attorney Dylan J. Steinberg and Affirmative Civil Enforcement Auditor David Cheung.
The government’s pursuit of this matter illustrates its emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800‑HHS‑TIPS (800-447-8477).
The claims resolved by the settlement are allegations only and there has been no determination of liability.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware.
United States Files Complaint Alleging that Rite Aid Dispensed Controlled Substances in Violation of the False Claims Act and the Controlled Substances ActRead the Press Release
The Justice Department announced today that the United States has filed a complaint in intervention in a whistleblower lawsuit brought under the False Claims Act (FCA) against Rite Aid Corporation and various subsidiaries (collectively Rite Aid) alleging that Rite Aid knowingly filled unlawful prescriptions for controlled substances. In addition to alleging claims under the FCA, the government’s complaint also alleges violations of the Controlled Substances Act (CSA). Rite Aid is one of the country’s largest pharmacy chains, with over 2,200 pharmacies in 17 states.
“The Justice Department is using every tool at our disposal to confront the opioid epidemic that is killing Americans and shattering communities across the country,” said Attorney General Merrick B. Garland. “That includes holding corporations, like Rite Aid, accountable for knowingly filling unlawful prescriptions for controlled substances.”
“We allege that Rite Aid filled hundreds of thousands of prescriptions that did not meet legal requirements,” said Associate Attorney General Vanita Gupta. “According to our complaint, Rite Aid’s pharmacists repeatedly filled prescriptions for controlled substances with obvious red flags, and Rite Aid intentionally deleted internal notes about suspicious prescribers. These practices opened the floodgates for millions of opioid pills and other controlled substances to flow illegally out of Rite Aid’s stores.”
“The opioid crisis has exacted a heavy toll on communities across the United States,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Today’s complaint is an important reminder that the Justice Department will hold accountable any individuals or entities, including pharmacies, that fueled this terrible crisis.”
“Pharmacies, physicians, corporations, and other health care entities that have contributed to the proliferation of opioids in our communities and the tragic loss of life from overdose deaths must answer for their role in the crisis we now face,” said First Assistant U.S. Attorney Michelle M. Baeppler for the Northern District of Ohio. “This complaint is a continuation of the Justice Department’s commitment to hold accountable those entities that aggravated and profited from the opioid crisis.”
The government’s complaint alleges that, from May 2014 through June 2019, Rite Aid knowingly filled at least hundreds of thousands of unlawful prescriptions for controlled substances that lacked a legitimate medical purpose, were not for a medically accepted indication, or were not issued in the usual course of professional practice. These unlawful prescriptions included, for example, prescriptions for the dangerous and highly abused combination of drugs known as “the trinity,” prescriptions for excessive quantities of opioids, such as oxycodone and fentanyl, and prescriptions issued by prescribers whom Rite Aid pharmacists had repeatedly identified internally as writing illegitimate prescriptions. The government alleges that Rite Aid pharmacists filled these prescriptions despite clear “red flags” that were highly indicative that the prescriptions were unlawful. The government further alleges that Rite Aid not only ignored substantial evidence from multiple sources that its stores were dispensing unlawful prescriptions, including from certain pharmacists, its distributor, and its own internal data, but compounded its failure to act by intentionally deleting internal notes about suspicious prescribers written by Rite Aid pharmacists and directing district managers to tell pharmacists “to be mindful of everything that is put in writing.” By knowingly filling unlawful prescriptions for controlled substances, the government alleges that Rite Aid violated the CSA and, where Rite Aid sought reimbursement from federal healthcare programs, also violated the FCA.
Along with Rite Aid Corporation, the government’s complaint names as defendants the following Rite Aid subsidiaries: Rite Aid Hdqtrs, Corp.; Rite Aid of Connecticut, Inc.; Rite Aid of Delaware, Inc.; Rite Aid of Maryland; Rite Aid of Michigan; Rite Aid of New Hampshire; Rite Aid of New Jersey; Rite Aid of Ohio; Rite Aid of Pennsylvania; and Rite Aid of Virginia.
“The action supported today by the Drug Enforcement Administration (DEA) should serve as a warning to those in the pharmacy industry who choose to put profit over customer safety,” said Special Agent in Charge Orville O. Greene of the DEA.
“Pharmacies are required to ensure prescription drugs are only dispensed based on valid prescriptions,” said Special Agent in Charge Maureen Dixon of the Department of Health and Human Services, Office of the Inspector General (HHS-OIG). “Prescriptions which are not medically necessary, and not for a medically accepted indication, will not be paid for by Medicare and Medicaid. HHS-OIG will continue to work with our law enforcement partners and the Department of Justice’s Civil Division to recover improperly paid funds through the FCA.”
Whistleblowers Andrew White, Mark Rosenberg, and Ann Wegelin, who all previously worked for Rite Aid at various pharmacies, filed an action in October 2019 under the qui tam provisions of the FCA. Those provisions authorize private parties to sue on behalf of the United States for false claims and share in any recovery. The Act permits the United States to intervene and take over the lawsuit, as it has done here in part. Those who violate the Act are subject to treble damages and applicable penalties. The case is captioned United States ex rel. White et al. v. Rite Aid Corp., et al., No. 1:21-cv-1239 (N.D. Ohio).
The United States’ intervention in this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the FCA. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
This matter is being handled by the Civil Division’s Commercial Litigation Branch (Fraud Section) and the U.S. Attorney’s Office for the Northern District of Ohio. The DEA Cleveland Field Division, FBI Cleveland Field Office, and HHS-OIG provided substantial assistance in the investigation.
The United States is represented in this matter by Senior Trial Counsel Christopher Wilson of the Civil Division’s Fraud Section and Assistant U.S. Attorneys Patricia Fitzgerald and Elizabeth Berry for the Northern District of Ohio.
The Justice Department is committed to holding responsible those who have fueled the opioid crisis by violating the law. Last week, the Associate Attorney General announced the creation of the Opioid Epidemic Civil Litigation Task Force, which formalizes and enhances coordination of the Department’s existing work and will consider new initiatives. Because of the scope and duration of the crisis, the Task Force includes U.S. Attorneys’ Offices, the Civil Division’s Consumer Protection Branch and Commercial Litigation Branch (Fraud Section), the Drug Enforcement Administration, and other Department components. The Task Force will steer the Department’s civil litigation efforts involving actors alleged to have contributed to the opioid epidemic, including by diverting prescription opioids.
The claims asserted against defendants are allegations only and there has been no determination of liability.
USAO-KS Warns Public About Spoofing ScamsRead the Press Release
KANSAS CITY, KAN. – The U.S. Attorney’s Office – District of Kansas is warning the public about phone scams in which callers spoof or fraudulently display themselves as having numbers belonging to government agencies in attempt to defraud victims of money.
Anyone who receives a call from someone claiming to be from a government or law enforcement agency while demanding payment is encouraged to immediately hang up. Scammers will do everything they can to keep you from ending the call. Since spoofed phone numbers belong to a legitimate agency, please take the next step by directly calling the agency in question.
A legitimate caller will encourage you to take the time to verify the information.
“If the first time you hear about supposedly owing the government money that must be paid immediately is through a phone call, it’s more than likely a scam. That’s not how the government does business, so please take the time to find out if the number in your Caller ID actually belongs to the person with whom you are speaking,” said Duston Slinkard, First Assistant.
If you are a victim of a phone or an online scam, immediately contact the bank you used to try to recall the wire transfer. Then file an online complaint with the FBI’s Internet Crime Complaint Center (www.IC3.gov).
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U.S. Customs and Border Protection Officer Indicted for Using Excessive Force and Obstruction of JusticeRead the Press Release
A federal grand jury in the Western District of Texas returned a three-count indictment that was unsealed today, charging a U.S. Customs and Border Protection officer with deprivation of rights under color of law and the falsification of a document in a federal investigation.
According to the indictment, Miguel Delgado Jr. used excessive force in two separate incidents that occurred on or about June 15, 2020, and Oct. 20, 2019, while he was on duty at the Bridge of Americas Port of Entry in El Paso, Texas. As alleged in the indictment, both victims suffered bodily injury as a result of Delgado’s unlawful use of force. The indictment also charges Delgado with including false statements in a report about one of the incidents.
If convicted, Delgado faces a maximum sentence of 10 years in prison for each of the use of force incidents and a maximum of 20 years in prison for submitting a false report about one of the incidents.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney for the Western District of Texas Jaime Esparza, Special Agent in Charge Jaime Ordonez of the Department of Homeland Security Office of Inspector General and Special Agent in Charge Gilberto Carreon Jr. of the U.S. Customs and Border Protection’s Office of Professional Responsibility made the announcement.
Assistant U.S. Attorneys Patricia Aguayo for the Western District of Texas and Trial Attorney Olimpia Michel of the Civil Rights Division’s Criminal Section are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney’s Office Co-hosts Protecting Places of Worship ForumRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced that the United States Attorney’s Office is co-hosting a forum on Protecting Places of Worship on March 14, 2023, at the Gateway Center at the Gibson Health Hub from 6 until 9 pm.
The forum will provide faith-based leaders and other community members with strategies to protect places of worship from hate crimes and other threats of violence. Topics will include an overview of religious hate crimes and laws, tools and resources from federal and local law enforcement to assess the safety of places of worship, an overview of active shooter training and situations, and best practices for the prevention of and response to hate crimes against places of worship.
“Terror and fear and hatred blossom in the dark,” said U.S. Attorney Uballez, “because in the dark, we think that we are alone. Only by shining the light do we see that we are never alone but are instead standing side-by-side facing the darkness. I’m proud to help shine the light of love on New Mexico.”
The event will be facilitated by the Community Relations Service of the Department of Justice and co-hosted by the City of Albuquerque’s Office of Equity and Inclusion. DOJ’s Community Relations Service was born in the Civil Rights era and is “America’s Peacemaker,” dedicated to facilitating, mediating, training, and consulting with communities to prevent and resolve conflict arising from actual or perceived race, color, national origin, gender, gender identity, sexual orientation, religion, or disability. The City of Albuquerque’s Office of Equity and Inclusion has led the effort to bring together the Department of Justice, law enforcement agencies and community for this ground-breaking forum.
The Protecting Places of Worship forum is part of United Against Hate, a nationwide Department of Justice initiative to combat unlawful acts of hate by building trust and community. The District of New Mexico was selected to participate in the second cohort of USAO’s to rollout the United Against Hate initiative.
Speakers for the event will include representatives from the U.S. Attorney’s Office, the New Mexico Office of the Attorney General, the Federal Bureau of Investigation, the US Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency, the Albuquerque Police Department, and local Interfaith leaders.
The forum will be held at the Gateway Center at the Gibson Health Hub located on 5400 Gibson Boulevard Southeast, Room #1, Albuquerque, New Mexico 87108. Registration is open until March 14, 2023 at 12 noon and can be accessed through Eventbrite: https://www.eventbrite.com/e/protecting-places-of-worship-forum-tickets-532056143247. Food will be provided, and interpreters will be present.
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U.S. Attorney Karam Continues to Promote the United Against Hate InitiativeRead the Press Release
SCRANTON - United States Attorney Gerard M. Karam announced that the U.S. Attorney’s Office continues to promote the Department of Justice’s new initiative to better counter hate crimes and hate incidents in the Middle District of Pennsylvania.
As part of the initiative, U.S Attorney Karam hosted a meeting with Scranton High School students, the Mayor of Scranton, law enforcement agencies, and community leaders from across Northeastern Pennsylvania. This meeting was designed to educate students and community leaders on identifying, reporting, and preventing hate crimes.
At this event, subject matter experts from the United States Attorney’s Office, the Pennsylvania Attorney General’s Office; the Federal Bureau of Investigations, the Pennsylvania State Police, City of Scranton, the Lackawanna and Luzerne County District Attorney’s Offices, and other local law enforcement identified federal and state criminal hate crime statutes. The audience was made up of Scranton High School students, groups of community leaders, civil rights advocates and organizations, and religious leaders of various faiths. Presenters highlighted differences between hate crimes versus hate incidents and provided options for responding to hate incidents when situations do not constitute a federal or state crime. Presenters also distinguished unlawful conduct from protected First Amendment activity, including identifying protected speech versus speech that advocates violence or encourages people to commit hate crimes.
The Middle District of Pennsylvania was one of the first of 16 U.S. Attorney Offices to launch the United Against Hate program. U.S. Attorney Karam previously hosted a meeting on November 17, 2023, in the Harrisburg area with an audience of various law enforcement agencies and community leaders from across the mid-state. The United Against Hate initiative seeks to strengthen collaborative relationships of federal, state, and local law enforcement agencies with communities in order to build trust and encourage the reporting of hate crimes and hate incidents.
“Building upon our partnership with our community leaders and our state and local law enforcement, we are reaching out to school leaders and our future leaders, the youth of this District, to play an important role in identifying, reporting, and preventing crimes of hate, ” said U.S. Attorney Karam. “The number of hate crimes and incidents continue to rise, including in schools, and we want to take every opportunity to educate, listen, and collaborate to combat these acts that violate the fundamental principal of democracy. We will hold all those accountable who commit crimes because of someone’s skin color, the faith they practice, who they love, or because they have a disability.”
As part of its United Against Hate programming, the U.S. Attorney’s Office will continue to partner with communities across the Middle District of Pennsylvania to expand connections with those communities, further hate crimes prevention efforts, and encourage more people to report hate crimes and hate incidents.
Those who believe they are subject to hate crimes or incidents should contact local law enforcement and the FBI. Members of the public may report possible civil rights violations at https://civilrights.justice.gov/report/. Anyone in the Middle District of Pennsylvania may also report civil rights violations to the Civil Rights coordinator of the U.S. Attorney’s Office for the Middle District of Pennsylvania by calling 717-614-4911 or emailing [email protected].
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U.S. Attorney Announces Federal Charges Against 10 Additional Defendants in $250 Million Feeding Our Future Fraud SchemeRead the Press Release
MINNEAPOLIS – The U.S. Attorney’s Office for the District of Minnesota today announced federal criminal charges against 10 additional defendants for their alleged roles in the fraud scheme that exploited a federally-funded child nutrition program during the COVID-19 pandemic.
The 10 defendants are charged across four separate indictments and two criminal informations with charges of conspiracy, wire fraud, money laundering, and bribery.
As outlined in the charging documents, the defendants participated in a massive scheme to defraud the Federal Child Nutrition Program by obtaining, misappropriating, and laundering millions of dollars in program funds that were intended as reimbursements for the cost of serving meals to children. The defendants exploited changes in the program intended to ensure underserved children received adequate nutrition during the COVID-19 pandemic. Rather than feed children, the defendants enriched themselves by fraudulently misappropriating millions of dollars in Federal Child Nutrition Program funds.
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The following defendants are named in the four indictments:
- Kawsar Jama, 41, of Eagan, was the principal of Gedo Community Services and Ahlan Childcare Center, Inc., both of which Jama enrolled in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future and Sponsor A. As alleged, between September 2020 through February 2022, Jama falsely claimed to have served approximately 1.46 million meals to needy children at sites in Pelican Rapids, Burnsville, and Minneapolis. In total, Jama submitted $3.7 million in fraudulent claims for Federal Child Nutrition Program funds, some of which she spent on living expenses, real estate, and vehicles, including a Tesla Model X and an Infiniti QX56 SUV. Jama is charged with five counts of wire fraud and four counts of money laundering. 22-CR-226 (NEB/TNL)
- Abdikadir Kadiye, 51, of Minneapolis, was the president of Hobyo Health Care Foundation, which he enrolled in the Federal Child Nutrition Program under the sponsorship of Sponsor A. As alleged, throughout 2021, Kadiye falsely claimed to have served at least 445,000 meals to needy children at his sites in Minnetonka, Eden Prairie, and Minneapolis. In total, Kadiye submitted more than $1.1 million in fraudulent claims for Federal Child Nutrition Program funds, some of which he spent on vehicles (including a $105,000 2022 BMW sport utility vehicle), airline tickets, real estate, and $20,000 towards the purchase of a laundromat. Kadiye is charged with conspiracy to commit money laundering and three counts of wire fraud. 22-CR-226 (NEB/TNL)
- Abdulkadir Awale, 50, of Bloomington, was the principal of Karmel Coffee, LLC and Sambusa King, Inc., and the CEO of Nawal Restaurant. All three of Awale’s businesses were enrolled in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future and Sponsor A. As alleged, between April 2020 through January 2022, Awale falsely claimed that through his businesses he provided food for more than 3.6 million meals to various sites in Minnesota, totaling approximately $11.8 million in fraudulent Federal Child Nutrition Program funds. As part of the scheme, Awale also paid at least $83,000 in kickbacks to a Feeding Our Future employee. Awale used some of funds to make mortgage payments, cash withdrawals, and purchase vehicles, including a Freightliner Cascadia truck. Awale is charged with conspiracy to commit money laundering, five counts of money laundering, three counts of wire fraud, and four counts of federal programs bribery. 22-CR-226 (NEB/TNL)
- Khadra Abdi, 41, of Minneapolis, was the principal of Shafi’I Tutoring & Homework Help Center, which she enrolled in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future. As alleged, between April 2020 through December 2021, Abdi falsely claimed to serve 1.1 million meals to needy children at her site in Hopkins. In total, Abdi submitted more than $3.4 million in fraudulent claims for Federal Child Nutrition Program funds. As part of the scheme, Abdi also paid at least $17,000 in kickbacks to a Feeding Our Future employee. Abdi used some of funds to make credit card payments, cash withdrawals, and purchase clothing. Abdi is charged with two counts of wire fraud and three counts of federal programs bribery. 22-CR-226 (NEB/TNL)
- Ayan Farah Abukar, 41, of Savage, was the founder and executive director of Action for East African People, a non-profit which she enrolled in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future and Sponsor A. As alleged, between October 2020 through 2022, Abukar falsely claimed to be serving as many as 5,000 children a day at her various sites in Bloomington, Minneapolis, Savage, and St. Paul. In total, Abukar fraudulently received approximately $5.7 million in fraudulent Federal Child Nutrition Program funds. As part of the scheme, Abukar also paid more than $330,000 in kickbacks to a Feeding Our Future employee. Abukar spent millions on real estate, including a 37-acre commercial property in Lakeville and spent hundreds of thousands of dollars towards the purchase of an aircraft to be delivered to Nairobi, Kenya. Abukar is charged with conspiracy to commit wire fraud, conspiracy to commit federal programs bribery, three counts of federal programs bribery, and three counts of money laundering. 23-CR-80
- Sade Osman Hashi, 45, of Minneapolis, was the principal of Great Lakes Inc. and Safari Express, entities which he enrolled in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future and Sponsor A. As alleged, between September 2020 through 2022, Hashi falsely claimed to be serving as many as 2,500 meals each day to needy children at his site in the Midtown Global Market in Minneapolis. In total, Hashi fraudulently received approximately $5.7 million in fraudulent Federal Child Nutrition Program funds. As part of the scheme, Hashi also paid more than $150,000 in kickbacks to a Feeding Our Future employee. Hashi used some of the funds to make cash withdrawals and converted approximately $133,000 to cryptocurrency. Hashi is charged with four counts of wire fraud, conspiracy to commit federal programs bribery, three counts of federal programs bribery, and one count of money laundering. 23-CR-81
- Sharon Denise Ross, 52, of Big Lake, was the executive director of House of Refuge Twin Cities, a non-profit which she enrolled in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future and Sponsor A. As alleged, between October 2021 and January 2022, Ross falsely claimed to be serving thousands of children each day at her House of Refuge sites. In total, Ross fraudulently received approximately $2.8 million in fraudulent Federal Child Nutrition Program funds, some of which she spent on real estate, vehicles, and payments to family members. Ross is charged with ten counts of wire fraud and two counts of money laundering. 23-CR-82
Criminal informations:
- Mohamed Ali Hussein, 53, and Lul Bashir Ali, 57, both of Faribault, enrolled their entities Somali American Faribault Education (SAFE) and Lido Restaurant in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future. As alleged, Hussein falsely claimed that the SAFE site in Faribault was serving as many as 2,500 children a day, seven days a week. Lul Ali falsely claimed that the Lido Restaurant site in Faribault was serving as many as 1,600 children a day, seven days a week. In total, Hussein and Lul Ali received more than $5 million in fraudulent Federal Child Nutrition Program funds. As part of the scheme, Hussein also paid more than $100,000 in kickbacks to a Feeding Our Future employee. Hussein and Lul Ali are charged with conspiracy to commit wire fraud. 23-CR-91
- Mulata Yusuf Ali, 38, of Minneapolis, is charged with theft of government funds involving the Federal Child Nutrition Program from December 2020 through January 2022. 23-CR-92
United States Attorney Andrew Luger thanks the FBI, IRS – Criminal Investigations, and the U.S. Postal Inspection Service for their collaboration and skilled investigative work in bringing these indictments.
Assistant U.S. Attorneys for the District of Minnesota Matthew S. Ebert, Harry M. Jacobs, Chelsea A. Walcker, and Joseph H. Thompson are prosecuting the cases. Assistant U.S. Attorney Craig Baune is handling the seizure and forfeiture of assets.
An indictment is merely an allegation and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney Alison J. Ramsdell Joins DOJ Delegation to Alabama to Commemorate “Bloody Sunday” and Passage of Voting Rights Act of 1965Read the Press Release
SIOUX FALLS - Earlier this week, Alison J. Ramsdell, U.S. Attorney for the District of South Dakota, joined more than two dozen other U.S. Attorneys from across the country as a delegation to commemorate the 58th Anniversary of “Bloody Sunday,” the March over Selma’s Edmund Pettus Bridge and the passage of the Voting Rights Act of 1965. Ramsdell has served as a member of the Attorney General Advisory Committee’s (AGAC) Civil Rights Subcommittee since her appointment in April 2022.
“It was an honor to join colleagues from across the United States to commemorate a turning point in the civil rights movement that gave rise to the passage of the Voting Rights Act of 1965,” said U.S. Attorney Ramsdell. “The Department of Justice was founded to ensure the protection of civil rights, including the right to vote, and that objective remains one of our sacred missions here in the District of South Dakota and across the country.”
In addition to participating in the March over the Edmund Pettus Bridge on Sunday, March 5th, the delegation met with Assistant Attorney General Kristen Clarke of DOJ’s Civil Rights Division and held other meetings with community and civil rights leaders.
- The group met with distinguished jurist Myron Thompson. As former Chief Judge in the Middle District of Alabama, Judge Thompson was instrumental in preserving the Montgomery bus station where the Freedom Riders were attacked in 1961.
- The group met with Bryan Stevenson, Founder and Executive Director of the Equal Justice Initiative, a nonprofit that provides legal representation to people who have been wrongly convicted, unfairly sentenced, or abused in state jails and prisons.
- The attorneys heard from The Johnson Institute in the federal courthouse where many key civil rights cases were decided. Through its programming, The Johnson Institute demonstrates the importance of the U.S. Constitution and an independent judiciary.
- The U.S. Attorneys visited The Legacy Museum and the Memorial for Peace and Justice, which provide a comprehensive history of racial injustice.
The U.S. Attorneys from the following districts also attended the Selma and Montgomery events: Massachusetts, Connecticut, New Jersey, South Carolina, Colorado, Nevada, Idaho, Montana, Western and Middle Districts of Louisiana, Eastern District of Wisconsin, Eastern and Western Districts of Michigan, Middle District of Florida, Northern and Eastern Districts of California, Eastern District of Pennsylvania, Western District of Virginia, Western District of North Carolina, Southern District of Ohio, Eastern District of New York, and Southern District of West Virginia. The delegation was hosted by the U.S. Attorney for the Middle District of Alabama, and organized by U.S. Attorneys Nick Brown and Rachael Rollins.
The Attorney General’s Advisory Committee was established nearly 50 years ago by Attorney General Elliott Richardson. The Committee’s purpose is to give U.S. Attorneys a voice in Department policies and to advise the Attorney General of the United States.
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Troy Resident Sentenced to Prison for Role in Nationwide “Felony Lane Gang” ConspiracyRead the Press Release
ALBANY, NEW YORK – Terrell McDonald, age 32, of Troy, New York, was sentenced today to 65 months in prison after previously pleading guilty to conspiracy to commit bank fraud and aggravated identity theft. United States Attorney Carla B. Freedman; Michael J. Driscoll, Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (FBI); and Putnam County Sheriff Kevin J. McConville made the announcement.
In previously pleading guilty, McDonald admitted that he was involved in a fraud scheme known as “Felony Lane Gang” between 2018 and 2020. McDonald and his co-conspirators traveled across the country breaking into cars, often targeting those parked by women at locations such as health and fitness centers, daycares, outdoor recreational parks, and dog parks. McDonald and other members of the conspiracy stole debit cards, credit cards, checkbooks, and photo identifications in these “smash-and-grab” vehicle thefts, and they used these stolen items to commit bank fraud by recruiting women to impersonate the smash-and-grab victims and cash checks in drive-through bank lanes. The recruited check cashers were almost always suffering from an addiction to controlled substances and were provided payment at least partially in narcotics.
As part of his sentence, McDonald was ordered to pay restitution in the amount of $133,190, and to pay a forfeiture money judgment of $17,648.28. McDonald will serve a 3-year term of supervised release after completing his term of imprisonment.
McDonald was one of nine men charged in a 13-count indictment for their roles in the scheme. Tyrone Parker, age 41, of Fort Lauderdale, Florida, previously pled guilty to his role in the indictment and was sentenced to 57 months in prison. Keyshawn Arnold, age 25, of Schenectady, New York; Gary Grier, age 37, of Fort Lauderdale; and Joshua Mallory, age 37, of Fort Lauderdale, previously pled guilty for their roles in the indictment and are awaiting sentencing. The remaining co-defendants are:
- TYRONE PARKER, JR. a/k/a “Ty,” a/k/a “Cheese,” a/k/a “Little Thigh,” age 22, of Fort Lauderdale, Florida;
- CEDRIC LYNCH, a/k/a “City,” a/k/a “C,” age 37, of Orlando, Florida;
- ROBERT NATSON, a/k/a “Big Rob,” age 36, of Fort Lauderdale; and
- RANDALL TAYLOR , a/k/a “Gucci,” a/k/a “Guwop,” age 37, of Fort Lauderdale.
Each of the remaining defendants is charged with conspiracy to commit bank fraud and/or aggravated identity theft, and they are scheduled for trial in federal court in Albany on July 10, 2023. The charges in the indictment are merely accusations, and the defendants whose cases remain pending are presumed innocent unless and until proven guilty.
This case is being investigated by the FBI Westchester Resident Agency of the New York Field Office and the Putnam County Sheriff’s Department, with assistance from the FBI Field Offices in Albany, Miami, and Salt Lake City, and Resident Agencies in Savannah, Georgia, and Portland, Maine, and from the U.S. Attorney’s Office for the District of Maine, the Saratoga County District Attorney’s Office, and the Ulster County District Attorney’s Office. Additional assistance was provided by numerous law enforcement agencies, including, within New York, the New York State Police; Columbia County Sheriff's Office; Genesee County Sheriff’s Office; Monroe County Sheriff’s Office; Saratoga County Sheriff’s Office; Warren County Sheriff’s Office; and the police departments of the Town of Bethlehem; Glens Falls; Gloversville; Greenburgh; Greece; and Watervliet; and elsewhere, Connecticut State Police; Florida Department of Law Enforcement; Georgia State Patrol; Illinois State Police; Massachusetts State Police; Broward County, FL Sheriff’s Office; Northern York County, PA Regional Police; Southern Chester County, PA Regional Police; Utah County, UT Sheriff's Office; and the police departments of Auburn, MA; Bath, ME; Biddeford, ME; Bozeman, MT; Brunswick, ME; Caernarvon Township, PA; Chester Township, PA; Cinnaminson, NJ; Darien, CT; East Norriton Township, PA; Easthampton, MA; Greenwich, CT; Lower Moreland Township, PA; Manheim Township, PA; Portland, ME; Portsmouth, NH; Saco, ME; Salisbury, MA; Sanford, ME; Scarborough, ME; Somersworth, NH; South Portland, ME; St. George, UT; Syracuse, UT; Tinicum, PA; Towamencin, PA; Tewksbury, MA; Wakefield, MA; Yarmouth, ME; and York, ME.
Assistant United States Attorneys Matthew J. McCrobie, Michael F. Perry, and Paul Tuck are prosecuting the case.
Suburban Chicago Man Indicted for COVID-19 Testing Fraud SchemeRead the Press Release
CHICAGO — A suburban Chicago man has been indicted by a federal grand jury on ten counts of wire fraud and one count of theft of government funds for purportedly submitting fraudulent claims for reimbursement on tests which were never performed, were performed improperly, or were already paid for by the client.
ZISHAN ALVI, 44, of Inverness co-owned and operated Laboratory A, a laboratory located in Chicago, Illinois. Laboratory A purported to perform testing to detect for SARS-CoV-2 and offered two types of COVID-19 testing: PCR tests and antigen tests that delivered results within approximately 15 minutes (“rapid tests”). Laboratory A also offered a service where individuals and companies could pay a fee to receive COVID-19 PCR test results in an expedited fashion.
The Health Resources and Services Administration (“HRSA”) was an agency of the U.S. Department of Health and Human Services that oversaw and administered the funds appropriated through federal legislation to cover the costs of COVID-19 testing for individuals without health insurance coverage (“the HRSA Uninsured Program”). As indicated in the indictment, Laboratory A enrolled in the HRSA Uninsured Program in or around December 2020.
From approximately February 2021 through February 2022, Alvi along with others, are alleged to have knowingly devised, intended to devise, and participated in a scheme to defraud the government by causing Laboratory A to submit fraudulent claims and delivering inaccurate and unreliable test results to the public. The fraudulent claims sought reimbursement for purported tests when Alvi knew that (a) Laboratory A had not performed a test for COVID-19; (b) Laboratory A had modified a test for COVID-19 such that the results were unreliable; and (c) Laboratory A already had collected payment from the individuals who purportedly had been tested.
The indictment further alleges that Alvi caused Laboratory A to provide negative test results to be released to individuals who had provided a specimen for testing, but for whom a COVID-19 test had not been performed. It is alleged that Alvi directed Laboratory A employees to falsely indicate in Laboratory A’s records that COVID-19 tests had been performed for these individuals, when Alvi knew that the test specimens had been discarded at his own direction and had not been tested. It is further part of the scheme that, in order to conceal the fact that tests were not performed, Laboratory A did not release positive COVID-19 results on specimens where tests were eventually performed, because a purported negative result had already been released.
It was further part of the scheme that, to reduce costs and increase Laboratory A’s profits, Alvi directed Laboratory A employees to alter Laboratory A’s PCR testing method by using less of the materials necessary to process the PCR test, including the reagents, knowing that this made the test results unreliable.
During its operation, Laboratory A obtained over $83 million from the HRSA Uninsured Program as payment for COVID-19 tests purportedly performed by Laboratory A. Alvi is alleged to have transferred some of the fraudulently obtained HRSA funds from Laboratory A’s accounts to a personal account, and to have used the funds for personal expenditures, including for vehicle purchases and investments in stocks and cryptocurrency. The indictment seeks forfeiture from the defendant of at least $6.8 million in alleged ill-gotten gains, in addition to five luxury vehicles and funds from other trade and investment accounts.
The indictment is announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois; Robert W. Wheeler, Jr., Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; Mario Pinto, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General; and Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. Substantial assistance was provided by the Illinois Attorney General’s Office. The government is represented by Assistant U.S. Attorneys Jared Hasten, Misty Wright, and Trial Attorney Claire Sobczak from the Department of Justice’s Health Care Fraud Unit.
“The charges in this case allege that the defendant disregarded public health concerns in favor of personal financial gain. Doing so by compromising taxpayer-funded programs intended to fight the spread of coronavirus was particularly reprehensible” said Acting U.S. Attorney Pasqual. “I commend the work of our law enforcement partners who investigated this complex fraud scheme. Our office will relentlessly continue to bring to justice those who defrauded the government’s pandemic relief initiatives.”
"The defendant defrauded the American people at a time when we were most vulnerable, in the midst of a global pandemic. This indictment shows that the FBI along with our law enforcement partners is continually working to keep Americans safe and uphold the Constitution as our mission demands of us," said Special Agent in Charge Wheeler.
“The defendant’s alleged conduct resulted in money unjustly obtained from Federal programs established during the COVID-19 pandemic to keep Americans safe, and also placed patients at risk through his role in the release of false COVID-19 test results,” said Special Agent-in-Charge Pinto. “Our agency is committed to working with our law enforcement partners to ensure that those who defraud our federal health care programs and place patients at risk of harm are held accountable.”
“It is absolutely reprehensible that the defendant would use a public health crisis to allegedly defraud taxpayers and further put public health at risk by providing fraudulent COVID-19 test results,” Attorney General Kwame Raoul said. “I want to thank the United States Attorney for the Northern District of Illinois, the Chicago Office of the Federal Bureau of Investigation, the U.S. Department of Health and Human Services Office of the Inspector General, and all of the law enforcement partners working to hold those who perpetrated this scheme accountable.”
The public is reminded that an indictment contains only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Each count of wire fraud is punishable by up to 20 years in federal prison, and the count of theft of government funds is punishable by up to 10 years in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Statement of U.S. Attorney Damian Williams on the Conviction of Former Congressman Stephen Buyer for Insider TradingRead the Press Release
Former Congressman Stephen Buyer leveraged his privileged position as a corporate advisor to twice use his clients’ material nonpublic information to commit insider trading. Buyer’s conviction underscores this Office’s commitment to detect and hold accountable those who break our insider trading laws just to make a buck.
St. Louis Man Admits Assaulting Deputy U.S. Marshals, Selling MethamphetamineRead the Press Release
ST. LOUIS – A man from St. Louis, Missouri on Monday admitted assaulting two deputy U.S. marshals in 2021 and selling methamphetamine.
Emilio Justin Sandoval, 34, pleaded guilty in front of U.S. District Judge Matthew T. Schelp to one count of possession with the intent to distribute methamphetamine and two counts of assaulting an officer of the United States.
The Drug Enforcement Administration began investigating Sandoval’s drug sales in December 2019 and learned that he was storing and selling methamphetamine by the ounce out of his home in the 4400 block of Dewey Avenue in St. Louis. Sandoval sold two ounces of methamphetamine on Oct. 20, 2020 for $1,000, which led to a consensual search of his home and the discovery of five baggies containing a total of 545 grams of methamphetamine as well as three guns and $11,234 in a safe.
After Sandoval was indicted in U.S. District Court in St. Louis on Aug. 25, 2021, the U.S. Marshals were tasked with arresting him. On Nov. 10, 2021, they found him at his home. While the marshals were watching, Sandoval and his significant other ran to a vehicle and tried to escape, ramming marshals’ vehicles multiple times and injuring two of the deputy marshals. One suffered serious injuries to his left knee, left elbow and left hand. The other was struck by the open passenger door, knocked down and dragged by Sandoval’s vehicle. She suffered serious, permanent and life-threatening injuries to her head, neck and spine.
As part of the plea, both sides have agreed to recommend a sentence of 27 years in federal prison. Sandoval is scheduled to be sentenced June 27.
The Drug Enforcement Administration and the U.S. Marshals Service investigated this case.
St. Cloud, MN, Woman Pleads Guilty to Leading a Major Dangerous Drug Distribution Enterprise from MexicoRead the Press Release
FARGO – United States Attorney Mac Schneider, District of North Dakota, announced that on March 13, 2023, Macalla Lee Knott a/k/a Kayla, age 30, from St. Cloud, MN, pled guilty in Federal Court in Fargo, ND, before Chief Judge Peter W. Welte, to the offenses of Conspiracy to Distribute Controlled Substances, Money Laundering Conspiracy and Continuing Criminal Enterprise (CCE). Sentencing is scheduled for August 7, 2023.
At the plea hearing, Knott admitted to supervising, managing, and leading more than five people in the enterprise. Knott, who had been living in Mexico since March of 2020, directed shipments of methamphetamine, cocaine, and fentanyl to various distributors across the upper Midwest and arranged payments to sources of supply in Mexico.
This case is part of an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation into the international trafficking of methamphetamine, cocaine, and fentanyl and was aided by coordination with the U.S. Attorney’s Office, District of Minnesota.
This investigation has led to eighteen (18) defendants charged in North Dakota. The investigation has been tied to seizures of over 100 pounds of methamphetamine, 9 pounds of fentanyl powder and 120,000 fentanyl pills. The investigation remains very active.
Sentenced in this case so far are:
Mary Thompson, 29, Moorhead, Minnesota – 100 months (8.3 years) imprisonment and 3 years supervised release.
Melanie Quick, 28, St. Cloud, Minnesota – 108 months (9 years) imprisonment and 3 years supervised release.
This case is being investigated by the Central Minnesota Violent Offenders Task Force (CMVOTF), Federal Bureau of Investigation, St. Cloud Police Department, Stearns County Sheriff’s Office, Sartell Police Department, Benton County Sheriff’s Office, Sherburne County Sheriff’s Office, Morrison County Sheriff’s Office, Internal Revenue Service – CID, Fargo Police Department, West Fargo Police Department, Minnesota Bureau of Criminal Apprehension and the Drug Enforcement Administration.
The cases are being prosecuted by Assistant U.S. Attorneys Christopher C. Myers and Alex Stock, District of North Dakota, with the assistance from the U.S. Attorney’s Office for the District of Minnesota and the Stearns County Attorney’s Office.
# # #Seven Charged in Sophisticated Stolen Identity Tax Refund Fraud Scheme that Sought over $100 Million from the IRSRead the Press Release
On March 7, a federal grand jury in Austin returned an indictment, unsealed today, charging seven individuals with conspiracy to commit mail and wire fraud and other crimes arising out of their scheme to defraud the IRS using stolen identities.
According to the indictment, from 2018 through 2021, Abraham Yusuff, of Round Rock, Meghan Inyang, of San Antonio, Christopher Eduardo, of Round Rock, Christian Mathurin, of Nashville, Tennessee, Dillon Anozie, of San Antonio, Babajide Ogunbanjo, of Austin, and Aydin Mammadov, of Houston, engaged in a conspiracy to claim fraudulent tax refunds using the stolen identities of accountants and taxpayers by filing at least 371 false tax returns claiming over $111 million in refunds from the IRS.
Yusuff allegedly recruited and directed Eduardo, Mathurin, Anozie, Ogunbanjo and Mammadov to provide addresses to him that could be used in the scheme. Yusuff and others then allegedly registered with the IRS, posing as authorized agents of multiple taxpayers using stolen information relating to the taxpayers and their real tax preparers. The conspirators then allegedly directed the IRS to change the addresses on file for the taxpayers and to send their tax information, including account transcripts and wage records, to the addresses controlled by the conspirators. The conspirators then allegedly used this information to electronically file tax returns claiming fraudulent refunds and directed the refunds the IRS to split the refunds among several prepaid debit cards. Prior to issuing tax refunds to some taxpayers, the IRS allegedly sent verification letters to the addresses controlled by the defendants, and the defendants and others, pretending to be the taxpayers, instructed the IRS to release the refunds.
The indictment also charges that Yusuff, Inyang, Eduardo, Anozie, Ogunbanjo and Mammadov obtained the prepaid debit cards that were to be used to receive the fraudulent refunds and that once the refunds were deposited onto the prepaid debit cards, they laundered the funds by purchasing, among other things, money orders from local stores in amounts low enough to avoid reporting thresholds. Yusuff and others also allegedly used the prepaid debit cards and money orders to purchase designer clothing, home renovation materials and used cars at auction. The indictment alleges that all defendants kept or received money orders purchased with the fraudulent refunds as their share of the illegal proceeds.
The indictment charges each defendant with varying crimes, including mail and wire fraud, conspiracy to commit mail and wire fraud, aggravated identity theft, money laundering and access device fraud. If convicted, they face a maximum sentence of 20 years in prison for the mail and wire fraud and the conspiracy of said fraud, 20 years for money laundering, 10 years for access device fraud, and a mandatory sentence of two years for aggravated identity theft. In addition to any term of imprisonment, each of the defendants also faces a period of supervised release, monetary penalties, restitution and forfeiture. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart Goldberg of the Justice Department’s Tax Division and U.S. Attorney Jaime Esparza for the Western District of Texas made the announcement.
The IRS–Criminal Investigation and the Treasury Inspector General for Tax Administration are investigating the case.
Assistant Chief Michael Boteler and Trial Attorneys Mitchell T. Galloway and Mary Frances Richardson of the Justice Department’s Tax Division are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Sayfullo Saipov to Be Sentenced to Life in Prison for 2017 Truck Attack for ISISRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that a jury was unable to reach a unanimous decision as to whether to authorize the death penalty for SAYFULLO SAIPOV. U.S. District Judge Vernon S. Broderick will sentence SAIPOV to the statutorily mandated sentence of life in prison for carrying out a terrorist attack on October 31, 2017, in the name of the Islamic State of Iraq and al-Sham (“ISIS”), in which SAIPOV used a truck to murder eight victims and injure many more on a bike path in lower Manhattan.
On January 26, 2023, the same jury convicted SAIPOV of all 28 counts in the Indictment, which charged SAIPOV with murder for the purpose of gaining entrance to a racketeering enterprise (ISIS); assault with a dangerous weapon and attempted murder for the purpose of gaining entrance to a racketeering enterprise (ISIS); providing material support to a designated foreign terrorist organization (ISIS) resulting in death; and damage and destruction to a motor vehicle resulting in death.
U.S. Attorney Damian Williams said: “On October 31, 2017, Sayfullo Saipov stole eight innocent lives – and devastated the lives of many more – in a horrendous terrorist attack. This evil act was fueled by Saipov’s allegiance to ISIS, an allegiance which Saipov proudly maintained after the attack and up through his trial. Today a jury has declined to authorize the death penalty for Saipov, and accordingly the defendant will be subject to a mandatory sentence of life imprisonment without the possibility of parole.”
Saipov’s crimes were predicated on ISIS’s commitment to murder innocent civilians and its disdain for rule of law. But, in the end, Saipov’s actions have highlighted one of the pillars of the rule of law in this country: the right to a full and fair public trial before a jury drawn from the community. We thank the jurors for their careful consideration of the evidence and the law during this long trial, and for their willingness to serve. We also thank the families of the murdered victims, and the surviving victims, for their patience and understanding as the legal process played out. Even though the trial has ended, we know that their pain and grief endures. We stand with them in honoring the lives of their loved ones, and all who were affected by this senseless attack.”
As set forth in public documents in the case and statements made during court proceedings:
On Halloween afternoon in 2017, SAYFULLO SAIPOV used a 6,000-pound truck to strike more than 20 innocent people on the Hudson River Bike Path in lower Manhattan. SAIPOV killed eight of his victims and critically injured many others, including a 14-year-old child. SAIPOV’s surviving victims suffered amputations, serious brain injuries, life-altering physical injuries, and significant psychological trauma. SAIPOV committed his attack after years of devotion to the brutal terrorist organization ISIS and after months of careful planning. In the weeks before his attack, for example, SAIPOV rented a truck to practice maneuvering it so that he could hit as many people as possible. SAIPOV brought a note to the attack with the ISIS flag and rallying cry written on it. After his attack, while in custody at a hospital, SAIPOV told the FBI that he committed the attack in response to calls from the leader of ISIS and that he was proud of what he had done. SAIPOV smiled when describing his attack and sought to hang the ISIS flag in his hospital room. After the attack, ISIS praised SAIPOV as an Islamic State soldier and called his attack one of the most prominent attacks in the United States. In the years since his attack, SAIPOV continued to demonstrate his devotion to ISIS, including though statements in court, recorded telephone calls, and writings seized from his prison cell. In prison, SAIPOV also made statements confirming his continued belief that enemies of ISIS should be eliminated and threatening to cut the heads off of corrections officers. At the liability and sentencing phases of trial, many of SAIPOV’s victims and their family members bravely described the terror he caused and the pain and suffering they continue to endure.
* * *
SAIPOV, 34, of Uzbekistan, will be sentenced to life in prison on all nine capital counts in the Indictment.
Mr. Williams praised the outstanding investigative efforts of the FBI’s New York Joint Terrorism Task Force, which consists of investigators and analysts from the FBI, the NYPD, and over 50 other federal, state, and local agencies. Mr. Williams also thanked the FBI Legal Attaché Office for Central Asia and the FBI’s Counterterrorism Division, Laboratory Division, Victim Services Division, and Language Services Section, Homeland Security Investigations, New York, and the Department of Justice’s National Security Division, Capital Case Section, Organized Crime and Gang Section, Office of Enforcement Operations, and Office of International Affairs for their assistance.
The case is being handled by the Office’s National Security and International Narcotics Unit. Assistant U.S. Attorneys Amanda L. Houle, Jason A. Richman, Alexander Li, and Andrew Dember, with the assistance of Paralegal Specialist Daniel Sitko, are in charge of the prosecution, with assistance from Trial Attorney John Cella of the National Security Division’s Counterterrorism Section and Trial Attorney Michael Warbel of the Capital Case Section. Mr. Williams also thanked Wendy Olsen and the Office’s Victim and Witness Section for their outstanding efforts in assisting the victims of this crime and their families.
Rowan County Man Sentenced to 45 Years for Production and Distribution of Child Sexual Abuse MaterialRead the Press Release
ASHLAND, Ky.— A Morehead, Ky., man, Johnathan Clay Davenport, 31, was sentenced to 540 months in federal prison on Wednesday, by U.S. District David Bunning, for production of child pornography and distribution of child pornography.
According to his plea agreement, law enforcement received information that a subject had distributed child abuse material on Kik Messenger, along with messages that indicated that he had been sexually abusing three minor children. Law enforcement located Davenport, and Davenport admitted he was responsible for distributing the image of child sexual abuse material and he also admitted that he was part of a group related to the sexual exploitation of children. Upon search, law enforcement found that Davenport had produced additional sexually explicit images of three minor children and attempted to produce images of a fourth minor victim, and he admitted to taking the explicit images in his home.
Davenport pleaded guilty in November 2022.
Under federal law, Davenport must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for 15 years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Jerry Templet, Special Agent in Charge of Homeland Security Investigations (HSI); and Col. Phillip Burnett, Commissioner, Kentucky State Police, jointly announced the sentence.
The investigation was conducted by the DHS-HSI and KSP. The United States was represented by Assistant U.S. Attorney Erin Roth.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Rochester Man Arrested, Charged with Multiple Child Pornography ChargesRead the Press Release
ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Leonard Ortiz, Jr., 20, of Rochester, NY, was arrested and charged by criminal complaint with receipt, distribution, and possession of child pornography. The charges carry a minimum penalty of five years in prison, a maximum of 20 years and a $250,000 fine.
Assistant U.S. Attorney Kyle P. Rossi, who is handling the case, stated that according to the complaint, the New York State Police executed a search warrant at Ortiz’s residence after receiving a report from the National Center for Missing and Exploited Children that Ortiz traded child pornography on a social media application with other users. Multiple digital devices were seized and turned over to Homeland Security Investigations for forensic analysis. The review uncovered at least 625 images and 117 videos of child pornography on Ortiz’s cell phone, some of which depicted the rape of prepubescent children. Investigators also executed search warrants on Ortiz’s social media accounts and discovered additional child pornography that he distributed to and received from others. In addition, investigators found multiple message threads during which Ortiz and other users openly discussed child pornography and the sexual abuse of children.
Ortiz made an initial appearance before U.S. Magistrate Judge Marian W. Payson and was released on conditions, including no contact with minors, unsupervised use of computers and GPS location monitoring.
The criminal complaint is the result of an investigation by the New York State Police, under the direction of major Brian Ratajczak and Homeland Security Investigations, under the direction of Special Agent-in-Charge Matthew Scarpino.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
# # # #
Ring-Leader of Conspiracy that Used Stolen Identities to Purchase Vehicles Pleads GuiltyRead the Press Release
BOSTON – A Haverhill man pleaded guilty today to orchestrating schemes to use the stolen identities of United States citizens from Puerto Rico to fraudulently purchase vehicles and other merchandise and apply for and utilize bank accounts and credit cards.
Alvin Rivera, 39, pleaded guilty to conspiracy to commit wire fraud, wire fraud, aggravated identity theft and false representation of a Social Security number. Rivera pleaded guilty to similar schemes in two cases, one originating in the District of Massachusetts and another originating in the District of New Jersey that was transferred to the District of Massachusetts for resolution. U.S. District Court Judge Patti B. Saris scheduled sentencing in both cases for June 15, 2023.
Rivera and multiple co-defendants were charged by criminal complaint in September 2020 and subsequently indicted by a federal grand jury in October 2020 in the District of Massachusetts. In a coordinated multi-jurisdictional effort, the defendant was also charged in the District of New Jersey, and others involved in the scheme were also charged there, in the state of New Jersey, the Northern District of Ohio and the Eastern District of Pennsylvania.According to charging documents, between October 2017 and September 2020, Rivera was the leader of a conspiracy in Massachusetts that used stolen identity information of United States citizens to obtain credit and goods. Under Rivera’s direction, and with stolen identity information that he provided, co-conspirators visited Massachusetts car dealerships to purchase late-model vehicles and applied for 100% financing. In support of the applications, the co-conspirators provided stolen biographical information from real United States citizens, fraudulent Puerto Rico driver’s licenses and Social Security cards in those identities, as proof of identification. The co-conspirators used the stolen identities to illegally open bank accounts and credit cards and purchase vehicles, many of which were exported out of the United States.
According to charging documents, between October 2017 and February 2018, Rivera also personally used stolen identity information of United States citizens to apply for credit and fraudulently purchase vehicles in a similar scheme in New Jersey.
The charges of wire fraud and conspiracy to commit wire fraud provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss from the offense. The charge of aggravated identity theft carries a mandatory two-year sentence that must run consecutively to any other sentence imposed, up to one year of supervised release and a fine of up to $250,000. The charge of false representation of a Social Security number provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Matthew B. Millhollin, Acting Special Agent in Charge of Homeland Security Investigations in New England; John E. Mawn Jr., Interim Colonel of the Massachusetts State Police; and Brockton Police Chief Brenda Perez made the announcement today. Assistance was provided by the Lowell, Lawrence, Methuen, Haverhill, Woburn and Dartmouth Police Departments. Assistant U.S. Attorneys Elianna J. Nuzum and Adam W. Deitch of Rollins’ Criminal Division are prosecuting the case.
The District of Massachusetts investigation was conducted by Homeland Security Investigation’s Document and Benefit Fraud Task Force (DBFTF), a specialized investigative group comprising personnel from various state, local, and federal agencies with expertise in detecting, deterring, and disrupting organizations and individuals involved in various types of document, identity, and benefit fraud schemes.
The District of New Jersey investigation was conducted by the Social Security Administration, Office of Inspector General, Office of InvestigationsThe details contained in the indictment are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
President of Oklahoma Steel Pole Manufacturer Pleads Guilty to Tax EvasionRead the Press Release
An Oklahoma man pleaded guilty, on Friday, March 10, to evading over $1 million in income taxes.
According to court documents, from 2014 to 2019, Phillip Barry Albert of Tulsa was President of Pelco Structural LLC and directed its outside payroll service company to pay him over $2.6 million. Albert instructed that the payments be classified as reimbursements rather than income, so that federal income taxes would not be withheld, and the payments would not be reported on his Forms W-2 as wages.
Albert filed individual income tax returns for 2014 through 2019 that did not report the payments, totaling $2,615,750, thus causing a tax loss to the IRS of $1,000,232.
Albert faces a maximum penalty of 5 years in prison. He also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine the sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Clinton J. Johnson for the Northern District of Oklahoma made the announcement.
IRS-Criminal Investigation and the FBI are investigating the case.
Trial Attorney Meredith Havekost of the Justice Department’s Tax Division and Assistant U.S. Attorneys Richard Cella and Thomas Duncombe of the Northern District of Oklahoma are prosecuting the case.
President of Oklahoma Steel Pole Manufacturer Pleads Guilty to Tax EvasionRead the Press Release
An Oklahoma man pleaded guilty, on Friday, March 10, to evading over $1 million in income taxes.
According to court documents, from 2014 to 2019, Phillip Barry Albert of Tulsa was President of Pelco Structural LLC and directed its outside payroll service company to pay him over $2.6 million. Albert instructed that the payments be classified as reimbursements rather than income, so that federal income taxes would not be withheld, and the payments would not be reported on his Forms W-2 as wages.
Albert filed individual income tax returns for 2014 through 2019 that did not report the payments, totaling $2,615,750, thus causing a tax loss to the IRS of $1,000,232.
Albert faces a maximum penalty of 5 years in prison. He also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine the sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Clinton J. Johnson for the Northern District of Oklahoma made the announcement.
IRS-Criminal Investigation and the FBI are investigating the case.
Trial Attorney Meredith Havekost of the Justice Department’s Tax Division and Assistant U.S. Attorneys Richard Cella and Thomas Duncombe of the Northern District of Oklahoma are prosecuting the case.
Pennsylvania Owners of Landscape and Excavation Firm Charged with Conspiring to Defraud the IRS and Employment Tax CrimesRead the Press Release
A federal grand jury in Philadelphia returned an indictment charging a Pennsylvania man and woman with conspiring to defraud the IRS and other tax crimes, including failing to pay employment taxes to the IRS.
According to the indictment, which was unsealed today, from approximately October 2013 through December 2021, Theodore Shearba and Jennifer Cemini, both of Perkiomenville, owned and operated a landscaping and excavation business and attempted to defraud the IRS by (1) not reporting the income they received from the business, (2) using business funds to pay for personal expenditures, (3) not paying employment taxes, including the income tax withheld from employees’ paychecks and Social Security and Medicare taxes and (4) changing business names and concealing business income to thwart IRS efforts to collect the unpaid employment taxes. It is also alleged that Shearba did not file individual income tax returns for years 2019 through 2021.
If convicted, Shearba and Cemini each face a maximum penalty of five years in prison for the conspiracy count and each employment tax count. Shearba also faces a maximum penalty of one year in prison for each count of failing to file a tax return. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS-Criminal Investigation is investigating the case.
Assistant Chief Thomas F. Koelbl and Trial Attorney George Meggali 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.