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9 March 2023
Missouri Man Sentenced to 7 Years in Prison on Child Pornography ChargesRead the Press Release
ST. LOUIS – A man from Montgomery City, Missouri was sentenced Thursday to seven years in prison for possessing child pornography.
U.S. District Judge Matthew T. Schelp ordered the sentence to run consecutive to whatever Austin E. Pearson, 23, receives on a pending state case. Judge Schelp also ordered Pearson to pay $39,500 restitution to the victims that have been identified in the child sexual abuse material he possessed. After his release from prison, Pearson will be on supervised release for life.
Pearson pleaded guilty in November to one felony count of possession of child pornography. He admitted possession of over 60 files containing child pornography in a Google account, 68 videos in his Dropbox account and more than 200 files on his iPhone and hard drives. Among the victims appearing in those files were children who appeared to be toddler-age being sexually assaulted, Pearson’s plea says.
The case was investigated by the St. Charles County Cyber Crime Task Force and the FBI. Assistant U.S. Attorney Jillian Anderson is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Mississippi Man Sentenced for Federal Hate Crime for Cross BurningRead the Press Release
A Mississippi man was sentenced today before U.S. District Judge Halil S. Ozerden to 42 months* in prison followed by three years supervised release and restitution in the amount of $7,810 for burning a cross in his front yard with the intent to intimidate a Black family.
According to court documents, in Gulfport, Mississippi, on Dec. 3, 2020, Axel Cox, 24, violated the Fair Housing Act when he used threatening and racially derogatory language toward his Black neighbors and burned a cross to intimidate them. After a dispute with the Black family victims, Cox wedged two pieces of wood together to form a cross, placed it in clear view of the victims’ residence, doused it in oil and set it alight. During this incident, Cox yelled threats and racial slurs toward the occupants of the house. Cox admitted that he lit the cross on fire because the victims were Black and that he intended to scare them into moving out of the neighborhood.
“This cross burning was an abhorrent act that used a traditional symbol of hatred and violence to stoke fear and drive a Black family out of their home,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “While one might think cross-burnings and white supremacist threats and violence are things of the past, the unfortunate reality is that these incidents continue today. This sentence demonstrates the importance of holding people accountable for threatening the safety and security of Black people in their homes because of the color of their skin or where they are from.”
“No one should endure such hatred and intimidation because of the color of his skin,” said U.S. Attorney Darren LaMarca for the Southern District of Mississippi. “This defendant has been held accountable. His sentence should permeate among his kind and declare that Mississippi and the Department of Justice will not tolerate this hateful behavior.”
“Mr. Axel Cox sought to intimidate members of the community through his intimidating threats," said FBI Special Agent in Charge Jermicha Fomby of the FBI Jackson Field Office. “The FBI prioritizes the protection of civil rights to ensure citizens remain safe without fear of any harm. We remain committed to tirelessly thwarting the nefarious actions of those, like Mr. Cox, who intended to impact fear upon citizens based on biases.”
A federal grand jury indicted Cox on Sept. 20, 2022. Cox faced a maximum penalty of up to 10 years in prison for interfering with the victims’ housing rights and a mandatory minimum of 10 years in prison, consecutive to any other sentence, for using fire to commit a federal felony. Cox also faced a fine of up to $250,000 with respect to each charge.
Assistant Attorney General Clarke, U.S. Attorney LaMarca and Special Agent in Charge Fomby made the announcement.
Assistant U.S. Attorney Andrea Cabell Jones for the Southern District of Mississippi and former Trial Attorney Noah Coakley II of the Civil Rights Division’s Criminal Section prosecuted the case.
For more information and resources on the department’s efforts to combat hate crimes, visit www.justice.gov/hatecrimes.
* This has been corrected to reflect the correct sentencing time of 42 months
Michigan Resident Indicted for Hate Crime of Threatening to Kill Jewish Government OfficialsRead the Press Release
DETROIT – A Tipton, Michigan resident was indicted by a grand jury today for using Twitter to threaten to kill Jewish government officials in Michigan, announced United States Attorney Dawn N. Ison.
Ison was joined in the announcement by James A. Tarasca, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.
According to the indictment, on February 17, 2023, Jack Eugene Carpenter, III, 41, of Tipton, Michigan, using Twitter while located in Texas, made threats against Jewish government officials in Michigan. Carpenter’s post read, in part: “I’m heading back to Michigan now threatening to carry out the punishment of death to anyone that is jewish in the Michigan govt if they don’t leave, or confess.”
The indictment also alleges that the Grand Jury found that Carpenter intentionally selected Jewish members of the Michigan government as the objects of his threat because of the actual and perceived religion of those individuals.
Carpenter is currently being held in detention pending trial in this case.
“Hate and bias-related crimes poison our communities and make people afraid simply because of who they are or what they believe,” said U.S. Attorney Ison. “We will not tolerate such actions, and we will prosecute those who engage in them to the fullest extent of the law.”
“Investigating crimes based on religious bias is one of the FBI’s highest priorities because of the devastating impact they have on individuals and communities,” said James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Field Office. “The victims in this case were specifically targeted because of their religion. The FBI is committed to working with our partners to detect and prevent violent incidents motivated by bias or hate. We also urge the public to report any suspected hate crimes to the FBI and local law enforcement.”
Based on the charges in the indictment, Carpenter faces up to 5 years in prison if convicted. Carpenter is subject to aa Hate Crime Motivation penalty enhancement under the United States Sentencing Guidelines.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by special agents of the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorneys Hank Moon and Frances Carlson.
Maryland Tax Preparer Convicted of Filing False ReturnsRead the Press Release
A federal jury in Greenbelt convicted a Maryland man today of preparing false tax returns on behalf of his clients.
According to court documents and evidence presented at trial, Ronald Eugene Watson, also known as Sabir Muhammad, owned and operated SW Accounting Associates, a tax return preparation business located in Largo. From 2015 through 2017, Watson willfully prepared and filed tax returns on behalf of his clients reporting to the IRS false information, including fictitious or overstated business expenses and sham unreimbursed employee expenses. The false deductions reduced clients’ tax liability, often resulting in large, inflated refunds to which they were not entitled. According to witness testimony, Watson varied his preparation fees depending on the amount of the refund requested, with fees typically ranging from approximately $500 up to approximately $1,500.
Watson is scheduled to be sentenced on June 13, 2023, and faces a maximum penalty of three years in prison for each false return count, as well as a period of supervised release and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Erek L. Barron for the District of Maryland made the announcement.
IRS-Criminal Investigation are investigating the case.
Trial Attorney Matthew L. Cofer of the Justice Department’s Tax Division and Assistant United States Attorney G. Michael Morgan, Jr. of the District of Maryland are prosecuting the case.
Maryland Tax Preparer Convicted After Eight-Day Trial for Preparing False Tax ReturnsRead the Press Release
Greenbelt, Maryland – A federal jury today convicted Ronald Eugene Watson, also known as Sabir Muhammad, age 59, of Brandywine, Maryland, today on 23 counts of aiding and assisting in the preparation of false tax returns.
The guilty verdict was announced by Erek L. Barron, United States Attorney for the District of Maryland; Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division; and Acting Special Agent in Charge Kareem A. Carter of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
According to the evidence presented at trial, Watson was a self-employed tax return preparer operating SW Accounting Associates (“SWAA”) in Largo, Maryland. The evidence proved that from at least 2015 to at least 2017, Watson prepared and electronically filed with the IRS fraudulent Forms 1040 and related Schedules A and C for his taxpayer-clients. Watson included inflated and fictitious tax deductions and fraudulent business profits and losses in order to obtain larger tax refunds to which the taxpayer-clients were not entitled. According to witness testimony, Watson varied his preparation fees depending on the amount of the refund requested, with fees typically ranging from approximately $500 up to approximately $1,500.
“With filing season underway, the conviction of Mr. Watson is a timely reminder of the importance of choosing an honest, trustworthy preparer. This conviction should also put unscrupulous preparers on notice about the consequences that await those who do not play by the rules,” said IRS-CI Acting Special Agent in Charge Kareem A. Carter.
Watson faces a maximum of three years in federal prison for each of the 23 counts of aiding and assisting in the preparation of false tax returns. U.S. District Judge Theodore D. Chuang has scheduled sentencing for June 13, 2023 at 2:30 p.m.
U.S. Attorney Barron and Acting Deputy Assistant Attorney General Goldberg commended the IRS-CI for their work in the investigation. Mr. Barron and Mr. Goldberg also thanked Assistant United States Attorney G. Michael Morgan, Jr. and Trial Attorney Matthew L. Cofer of the Justice Department’s Tax Division, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Martin Woman Indicted for Larceny and EmbezzlementRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced that a federal grand jury has indicted a Martin, South Dakota, woman for Larceny and Embezzlement and Theft from an Indian Tribal Organization.
Madonna Peterson, age 57, was indicted in February of 2023. She appeared before U.S. Magistrate Judge Daneta Wollman on March 8, 2023, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Between January of 2017 and July of 2021, Peterson stole more than $100,000 from her employer.
The charge is merely an accusation and Peterson is presumed innocent until and unless proven guilty.
The investigation is being conducted by the FBI. Assistant U.S. Attorney Benjamin Patterson is prosecuting the case.
Peterson was released on bond pending trial. A trial date has not been scheduled.
Man Sentenced to Life in Federal Prison for Committing Murder to Maintain and Increase Position in Chicago Street GangRead the Press Release
CHICAGO — A federal judge has sentenced a Chicago man to life in prison for committing murder to maintain and increase his position in a violent Chicago street gang.
PIERRE ROBINSON, 29, of Chicago, was found guilty of committing murder in aid of racketeering by a federal jury in August, 2022. The jury returned its verdict after a four-day trial in U.S. District Court in Chicago. On March 6, 2023, U.S. District Judge John J. Tharp, Jr., sentenced Robinson to life in prison.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Christopher C. Amon, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives; and David Brown, Superintendent of the Chicago Police Department. The government is represented by Assistant U.S. Attorneys Albert Berry III and Margaret Steindorf.
Evidence at trial revealed that Robinson murdered Glenn Houston, Jr., on Dec. 23, 2014, for the purpose of maintaining and increasing Robinson’s position in the Evans Mob street gang. Robinson shot Houston, 23, multiple times inside a store in the 400 block of East 79th Street in the Chatham neighborhood on Chicago’s South Side. The Evans Mob, also known as “GuttaGang” and “Hitz Squad,” is a criminal organization whose members and associates engaged in narcotics trafficking and committed acts of violence, including murder, attempted murder, and assault, to acquire and preserve the gang’s territory on the South Side of Chicago. Members of the Evans Mob used social media to publicly claim responsibility for their acts of violence, taunt rival gang members, and took steps to prevent law enforcement’s detection of its criminal activities.
During the sentencing hearing, U.S. District Judge Tharp determined that Robinson was also involved in the murder and attempted murder of two other individuals, Hammood Dawoudi and DeShawn Danzler, on June 18, 2015.
Man Sentenced to 60 Months for Distributing Methamphetamine in Dunn CountyRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Richard Skramstad, 60, Prescott, Wisconsin, was sentenced today by U.S. District Judge William M. Conley to 60 months in federal prison for distributing 50 grams or more of methamphetamine. This prison term will be followed by a 5-year term of supervised release. Skramstad pleaded guilty to this charge on December 1, 2022.
In March 2021, the West Central Drug Task Force began investigating Skramstad as a suspected methamphetamine dealer in the Menomonie, Wisconsin area. Officers utilized a confidential informant to purchase approximately 52 grams of pure methamphetamine from him on April 13, 2021. In an interview following his arrest on May 13, 2021, Skramstad admitted to selling methamphetamine on multiple occasions.
At sentencing, Judge Conley stated that a sentence of 60 months was warranted because of Skramstad’s lengthy criminal history, which included crimes of violence, domestic abuse, drunk driving, and the possession and distribution of controlled substances.
The charge against Skramstad was the result of an investigation conducted by the West Central Drug Task Force, Dunn County Sheriff’s Office, and Drug Enforcement Administration. Assistant U.S. Attorney Taylor L. Kraus prosecuted this case.
Man Pleads Guilty to Illegal Ginseng TraffickingRead the Press Release
A West Virginia man today pleaded guilty to multiple charges of illegally trafficking in protected plants.
According to court documents, Tony Lee Coffman, 59, of Birch River, purchased American ginseng roots that had been illegally transported in interstate commerce from Ohio to West Virginia and falsified records relating to the purchase of Ohio ginseng. American ginseng is protected in over 20 states due to heavy pressures from international trade and is listed in Appendix II of the Convention on International Trade in Endangered Species (CITES).
Coffman pleaded guilty to five Lacey Act violations. A sentencing date has not yet been set. Each of the Lacey Act violations has a statutory maximum penalty of one year in prison and a $100,000 fine. A federal district court judge will determine whether to accept the plea agreement after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division and U.S. Attorney Kenneth L. Parker for the Southern District of Ohio made the announcement.
The Ohio Department of Natural Resources and the U.S. Fish and Wildlife Service, Office of Law Enforcement investigated the case.
Senior Trial Attorney Adam Cullman of the Environment and Natural Resources Division’s Environmental Crimes Section, and Assistant U.S. Attorney Nicole Pakiz and Special Assistant U.S. Attorney Mike Marous for the Southern District of Ohio are prosecuting the case.
Maine Man Charged with Participation in A Murder-For-Hire SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the arrest of HYUNKOOK KORSIAK for participating in a plot to commit murder for hire in Midtown Manhattan. Thankfully, and unbeknownst to KORSIAK, he plotted with undercover FBI agents and the intended victim was fictitious. KORSIAK was arrested last night in Tarrytown, New York, and will be presented today before U.S. Magistrate Judge James L. Cott.
U.S. Attorney Damian Williams said: “As alleged in the complaint, Hyunkook Korsiak agreed to murder another person for the price of $50,000. Thanks to the work of our remarkable law enforcement partners, Korsiak now stands charged in federal court for his alleged role in this terrible crime.”
FBI Assistant Director Michael J. Driscoll said: "As alleged, the defendant was willing to travel over three hundred miles in order to fulfill his depraved desire to be paid for taking another human’s life. The defendant displayed callous disregard for life and planned to conduct his act of violence in the middle of Manhattan. The FBI will not tolerate such acts of violence, and any individual willing to cold heartedly kill another person will be made to face the consequences in the criminal justice system."
As alleged in the amended Complaint filed today in Manhattan federal court and in other court papers and proceedings:[1]
From in or about January 2023, through in or about March 8, 2023, KORSIAK participated in a scheme to murder a fictitious businessman in Manhattan in exchange for a payment of $50,000. The FBI began its investigation after communications KORSIAK sent expressing his desire to kill a person for money were intercepted by the Bureau of Prisons. Over the course of the last two months, KORSIAK met with an undercover FBI agent on multiple occasions in both New York and Boston and agreed to murder a fictitious businessman who was purported to be staying at a Midtown Manhattan hotel. During one of the meetings with the undercover agent, KORSIAK described how he intended to commit the murder and what weapons he planned on using, including an AR-15 rifle and a 9MM pistol that he possessed. KORSIAK asked the undercover agents to provide him with silencers for the two weapons and a latex mask so that he could defeat facial recognition technology. In another meeting, KORSIAK told agents that he would use a car to approach the victim as he walked on a Midtown Manhattan street and planned to shoot the victim from inside the car. KORSIAK’s plan also included the use of a police uniform in an effort to evade capture after he committed the murder.
On March 8, 2023, KORSIAK traveled from Maine to Tarrytown, New York, where he intended to make his final preparations for the murder. Instead, Korsiak was apprehended by FBI agents. KORSIAK was found in possession of four firearms, including two AR-15 rifles and two 9MM semi-automatic pistols. In addition to the firearms, agents seized (i) a bullet resistant vest; (ii) hundreds of rounds of various caliber ammunition; (iii) a latex mask; (iv) rifle scopes; (v) high-capacity magazines; and (vi) latex gloves, many of the same items KORSIAK told the undercover agents he intended to use during the murder. These items are pictured below:
KORSIAK has a 2017 federal felony conviction for theft from a licensed firearms dealer.
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KORSIAK, 41, of Augusta, Maine, is charged with one count of murder-for-hire, which carries a maximum potential sentence of 10 years in prison, and one count of possession of a firearm following a felony conviction, which carries a maximum sentence of 15 years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the FBI and the Special Agents of the United States Attorney’s Office for the Southern District of New York.
The prosecution if this case is being handled by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorney Dominic A. Gentile is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint constitutes only allegations, and every fact described herein should be treated as an allegation.
Local trafficker gets substantial sentence for distributing methRead the Press Release
HOUSTON – A 24-year-old Houston resident has been ordered to federal prison for his role in trafficking drugs in the metro area, announced Attorney Alamdar S. Hamdani.
Alberto Serna pleaded guilty Oct. 27, 2022, to possession with the intent to distribute meth.
Today, U.S. District Judge Kenneth Hoyt sentenced Serna to serve 168 months in federal prison to be immediately followed by five years of supervised release. At the hearing, the court heard evidence that Serna was held accountable for 7,513 grams of meth.
“Meth kills and destroys entire communities, and my office will use all means necessary to stop the proliferation of toxic drugs that inflict harm on our citizens” said Hamdani. “You can’t sell kilograms of drugs in the Southern District of Texas without paying a hefty price, and today’s sentence represents that.”
On April 15, 2022, law enforcement learned Serna would be transporting a large amount of narcotics. They conducted surveillance and observed Serna committing suspicious activity. A joint effort led to a traffic stop, at which time authorities inspected his vehicle and discovered over eight kilograms of meth.
The drugs had an estimated street value of $130,000.
At the time of his plea, Serna admitted he possessed the meth with the intent to distribute it.
Serna has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation with the assistance of Harris County Precinct 3 Constable’s office.
Assistant U.S. Attorney Stuart A. Burns prosecuted the case.
Lebanon Sex Offender Charged with Sexual Exploitation of a Child Using Hidden Cameras, Distribution and Possession of Child Sexual Abuse MaterialRead the Press Release
INDIANAPOLIS- A federal grand jury indicted Douglas Gibson, 38, of Lebanon, Indiana, on two counts of sexual exploitation of a minor, one count of sexual exploitation of minor by a registered sex offender, one count of distribution of child sexual abuse material, and one count of possession of child sexual abuse material.
According to court documents, on August 3, 2021, the Indiana Internet Crimes Against Children Task Force received a cyber tip from Kik Messenger, an instant messaging app, alerting investigators to an account that had been sharing child sexual abuse images. Investigators traced the Google email address associated with the account back to Douglas Gibson. A search of Gibson’s residence uncovered numerous files containing visual depictions of children as young as seven years old, engaging in sexually explicit conduct.
Further investigation found that Gibson allegedly secretly recorded a prepubescent child by hiding video cameras in the air vent of a bathroom, loft, and bedroom of the child’s residence. Gibson then distributed images and files of the victim in various states of undress to other individuals. As alleged in the indictment, Gibson was required to register under Indiana law at the time he secretly recorded the child and distributed the files.
If convicted on all counts, Gibson faces up to 135 years in prison. A federal district court judge will determine the actual sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, Randal Taylor, Chief of the Indianapolis Metropolitan Police Department, Herbert J. Stapleton, Special Agent in Charge of the FBI’s Indianapolis Field Office, and Boone County Sheriff Tony Harris made the announcement.
This investigation is being led by the Internet Crimes Against Children Unit of the Indianapolis Metropolitan Police Department, the FBI, and the Boone County Sheriff’s Office, as part of Indiana’s Internet Crimes Against Children (ICAC) Task Force.
Indiana’s ICAC Task Force is a partnership of federal, state, and local law enforcement agencies led by the Indiana State Police. The Task Force is dedicated to investigating and prosecuting crimes involving the technology-facilitated sexual exploitation of children and the trafficking of child sexual abuse material. Each year, Indiana ICAC investigators evaluate many thousands of tips, investigate hundreds of cases, and rescue dozens of children from ongoing sexual abuse.
In fiscal year 2019, the most recent year for which data is available, the Southern District of Indiana was second out of the 94 federal districts in the country for the number of child sexual exploitation cases prosecuted.
U.S. Attorney Myers thanked Assistant United States Attorney Lawrence D. Hilton, who is prosecuting this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Leader of International Drug Trafficking Organization Pleads Guilty to Cocaine Trafficking ConspiracyRead the Press Release
The leader of an international drug trafficking organization pleaded guilty yesterday to international cocaine trafficking conspiracy.
According to court documents, between 1998 and approximately 2012, Jaime Antonio Mandujano Eudave, 61, worked with the Sinaloa Cartel, to transport cocaine. Mandujano Eudave coordinated the transportation of cocaine by boat from Colombia to Culiacan, Los Cabos, and elsewhere in Mexico. He communicated GPS coordinates to the boat’s crew members to facilitate a meeting in the Pacific Ocean. There, the cocaine-laden boat from Colombia would meet another boat under the control of the Sinaloa Cartel and offload the cocaine. These boats transported multi-kilogram amounts of cocaine. Once the cocaine arrived in Mexico, other members of Sinaloa Cartel would transport the cocaine to the United States for sale. Mandujano Eudave knew that the cocaine subsequently would be transported into the United States for further distribution.
In August 2014, Spanish authorities arrested Mandujano Eudave at the request of the United States. He was extradited from Spain to the United States in February 2015.
Mandujano Eudave pleaded guilty to one count of conspiracy to distribute five kilograms or more of cocaine, knowing and intending that it would be imported into the United States. He is scheduled to be sentenced on June 15 and faces a maximum penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division and Special Agent in Charge Ivan J. Arvelo of the Homeland Security Investigations (HSI) New York Field Office made the announcement.
The Organized Crime and Drug Enforcement Task Force (OCDETF) supported this case.
The HSI New York Field Office is investigating the case with assistance from the DEA Phoenix Field Division.
Trial Attorneys Kirk Handrich and Melanie Alsworth of the Criminal Division’s Narcotic and Dangerous Drug Section (NDDS) are prosecuting the case. The Justice Department’s Office of International Affairs also provided significant assistance.
The NDDS thanks Spanish authorities for their assistance in securing the arrest and extradition of Mandujano Eudave.
Lawrence Man Sentenced for Fentanyl DistributionRead the Press Release
BOSTON – A Lawrence man was sentenced today for his role in distributing fentanyl.
Albert Ventura, 23, was sentenced by U.S. District Court Judge Denise J. Casper to 32 months in prison and three years of supervised release. In November 2022, Ventura pleaded guilty to two counts of distribution and possession with intent to distribute fentanyl. Ventura has been in federal custody since June 9, 2022.
On several occasions between September 2020 and March 2022, Ventura sold over 70 grams of fentanyl – including to undercover law enforcement.
United States Attorney Rachael S. Rollins and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement. Assistant U.S. Attorney Philip C. Cheng of Rollins’ Organized Crime and Gang Unit prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
KC Man Sentenced in Two Indictments for Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man was sentenced in federal court today in two separate indictments for illegally possessing firearms.
Yacub E. Williams, 38, was sentenced by U.S. Chief District Judge Beth Phillips to 14 years in federal prison without parole. The court sentenced Williams to 10 years on the indictments plus four years on the revocation of his supervised release in a prior conviction.
On Sept. 22, 2022, Williams pleaded guilty to two separate federal indictments. Williams pleaded guilty to one count of being a felon in possession of a firearm. In a second case, Williams pleaded guilty to one count of being a felon in possession of a firearm and one count of being a violent felon in possession of body armor.
Williams admitted that he was in possession of a Kel-Tec 5.56-caliber rifle on Dec. 27, 2019, while he was in a white 2015 Ford Fusion parked at his Kansas City residence.
On June 16, 2020, members of the U.S. Marshals Fugitive Task Force were conducting surveillance on a residence in Thibodaux, Louisiana, in order to serve a federal arrest warrant on Williams for violating the terms of his supervised release for a prior federal conviction. Williams left the residence and got into the driver’s seat of the same 2015 white Ford Fusion. He appeared to retrieve something from the vehicle, then got out and walked to the back yard of the residence. Officers approached the residence and found Williams, carrying a Beretta .40-caliber pistol, running from the property.
Williams barricaded himself behind a detached water heater next to a nearby shed for several hours before he surrendered. Officers found the pistol behind the water heater. Officers also searched the Ford Fusion and found the body armor.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Williams has prior felony convictions for assault, armed criminal action, being a felon in possession of a firearm, aiding and abetting a bank robbery, and use of a firearm during a violent crime.
This case was prosecuted by Assistant U.S. Attorney D. Michael Green. It was investigated by the U.S. Marshals Service and the Jackson County, Mo., Sheriff’s Department.
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.
Justice Department’s Ongoing Section 8 Enforcement Prevents More Potentially Illegal Interlocking DirectoratesRead the Press Release
The Justice Department announced today that five more directors resigned from four corporate boards and one company declined to exercise board appointment rights in response to the Antitrust Division’s enforcement efforts around Section 8 of the Clayton Act (Section 8). Section 8, which Congress made a per se violation of the antitrust laws, prohibits directors and officers from serving simultaneously on the boards of competitors, subject to limited exceptions. Today’s announcement brings the number of interlocks unwound or prevented as a result of the division’s recent efforts to at least thirteen directors from ten boards.
“Enforcement of Section 8 will continue to be a focus for the division just as Congress intended,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “We will continue to enforce the antitrust laws when necessary to address illegal board interlocks.”
The following companies and directors unwound interlocks or declined to appoint board members, without admitting liability:
- Qualys, Inc., SumoLogic, Inc., and F5, Inc. – Qualys, SumoLogic, and F5 are providers of cloud security assessments, audit and compliance services, and firewall and monitoring products and services. One director served simultaneously on the boards of all three companies. After the division expressed concerns about the alleged interlock, the director recently resigned from Qualys’s board and declined to stand for reelection to F5’s board.
- N-able, Inc., Dynatrace, Inc., and SolarWinds Corp. – N-able, Dynatrace, and SolarWinds are software companies. Representatives of the investment firm Thoma Bravo sat on all three companies’ boards. As the department previously announced in October 2022, three Thoma Bravo representatives resigned from the SolarWinds’s board in response to the division’s concerns about the alleged interlock between Dynatrace and SolarWinds. Shortly thereafter, in November 2022, two separate Thoma Bravo designees resigned from the N-able board.
- Brookfield Asset Management Inc. and American Equity Investment Life Holding Company (AEL) – AEL and a Brookfield Asset Management subsidiary’s wholly-owned company American National are both insurance companies. Brookfield and/or its subsidiary appointed the officers or directors on the American National board. Additionally, the Brookfield subsidiary has the contractual right to appoint a director to the AEL board, and in December 2022, the Brookfield subsidiary announced that it would exercise that right. After the division raised concerns regarding the potential interlock, the Brookfield subsidiary announced it had changed course and it was withdrawing its proposed nomination to the AEL board.
- Sun Country Airlines Holdings, Inc. and Atlas Air Worldwide Holdings, Inc. – Sun Country and Atlas Air both provide crew, maintenance, and insurance for domestic air freight routes. In August 2022, an investment group led by Apollo Global Management, Inc. proposed acquiring all of Atlas Air’s outstanding shares. At the time, two Apollo-affiliated individuals sat on the Sun Country board of directors. After the division raised concerns regarding a potential interlock arising from Apollo’s proposed acquisition of Atlas Air, the two Apollo-affiliated directors resigned from the Sun Country board.
Anyone with information about potential interlocking directorates or any other potential violations of the antitrust laws is encouraged to contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or [email protected].
Jury convicts former Ohio House Speaker, former chair of Ohio Republican Party of participating in racketeering conspiracyRead the Press Release
CINCINNATI – A federal jury convicted former Ohio House Speaker Larry Householder, 63, of Glenford, Ohio, and former Ohio Republican Party chair Mathew Borges, 50, of Bexley, Ohio, of participating in a racketeering conspiracy.
“As presented by the trial team, Larry Householder illegally sold the statehouse, and thus he ultimately betrayed the great people of Ohio he was elected to serve,” said U.S. Attorney Kenneth L. Parker. “Matt Borges was a willing co-conspirator, who paid bribe money for insider information to assist Householder. Through its verdict today, the jury reaffirmed that the illegal acts committed by both men will not be tolerated and that they should be held accountable.”
“The FBI’s top criminal priority is investigating public corruption to hold elected officials accountable when they commit illegal acts,” stated FBI Cincinnati Special Agent in Charge J. William Rivers. “I commend the special agents who investigated this historic case, the FBI analysts and staff who provided integral support, and the U.S. Attorney’s Office for their successful prosecution.”
The verdict was announced today following a trial that began on Jan. 23 before Senior U.S. District Judge Timothy S. Black.
The government proved beyond a reasonable doubt at trial that Householder and his enterprise conspired to violate the racketeering statute through honest services wire fraud, receipt of millions of dollars in bribes and money laundering.
The conspiracy involved nearly $61 million in bribes paid to a 501(c)(4) entity to pass and uphold a billion-dollar nuclear plant bailout.
According to court documents and trial testimony, from March 2017 to March 2020, the enterprise traded millions of dollars in bribery campaign donations in exchange for Householder’s and the enterprise’s help in passing House Bill 6. The defendants then also worked to corruptly ensure that HB 6 went into effect by defeating a ballot initiative to overturn the legislation.
In March 2017, Householder began receiving quarterly $250,000 payments from the related-energy companies into the bank account of his 501(c)(4), Generation Now. Team Householder spent millions of the company’s dollars to support Householder’s political bid to become Speaker, to support House candidates they believed would back Householder, and for their own personal benefit.
The United States detailed that Householder spent more than half a million dollars of the dark money to pay off his credit card balances, repair his Florida home and settle a business lawsuit.
Borges used approximately $366,000 for his personal benefit.
Borges was budgeted $25,000 to bribe an Ohio Republican operative to try to save House Bill 6. Borges gave the man a $15,000 check in exchange for information on the number of signatures collected on the anti-House Bill 6 ballot referendum.
Householder’s longtime campaign and political strategist, Jeffrey Longstreth, and lobbyist Juan Cespedes, both of Columbus, Ohio, previously pleaded guilty to their roles in the racketeering conspiracy. FirstEnergy Corp. signed a deferred prosecution settlement in July 2021, agreeing to pay a $230 million penalty for conspiring to bribe public officials and others.
The racketeering conspiracy as charged in this case is punishable by up to 20 years in prison. Congress sets the maximum statutory sentence. Sentencing of the defendants will be determined by the Court based on the advisory sentencing guidelines and other statutory factors.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, and J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced today’s verdict. Deputy Criminal Chief Emily N. Glatfelter and Assistant United States Attorneys Matthew C. Singer, Megan Gaffney Painter and Timothy S. Mangan represented the United States in this case.
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Iranian National Charged with Illegally Exporting Electrical Equipment to IranRead the Press Release
WASHINGTON – A federal grand jury in the District of Columbia returned an indictment today charging an Iranian national with the unlawful export of electrical cables and connectors from the United States to Iran, through Hong Kong. According to court documents, Mehdi Khoshghadam, a.k.a. “David Lei,” and “Pouyan,” an Iranian national residing in Tehran, Iran, was indicted by a grand jury in the U.S. District Court for the District of Columbia on one count of conspiracy, one count of violation of the International Emergency Economic Powers Act (IEEPA), and one count of conspiracy to commit money laundering. The indictment also includes a forfeiture allegation seeking all proceeds of the alleged crimes. A warrant has been issued for Khoshghadam’s arrest and he remains a fugitive.
The charges were announced by United States Attorney Matthew M. Graves, Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, Special Agent in Charge Sean Fitzgerald of the Homeland Security Investigations Chicago Field Office, and Special Agent in Charge Aaron Tambrini of the Department of Commerce’s Chicago Field Office, Office of Export Enforcement.
According to the indictment, Khoshghadam is the Managing Director of Pardazan Systems Namad Arman, an Iranian importer of electronics and other goods. In 2016, Khoshghadam began purchasing electrical connectors and cables from a U.S. Company, which were shipped to a freight forwarding company located in Hong Kong and then shipped to Iran. Khoshghadam used an alias of “David Lei” when communicating with the U.S. Company and a front company called Merlin International Trading Company, purported to be located in Singapore, to order the goods from the U.S. company. During one of the initial purchases of goods from the U.S. Company, Khoshghadam attempted to pay for the goods using a different name, but the U.S. Company informed him that its bank had rejected the payment because the payor name needed to be the same as the company submitting the order. Khoshghadam then contacted a co-conspirator located in China and had that person inform the U.S. Company that the co-conspirator was Khoshghadam’s agent and would handle payment for the goods.
As alleged in the indictment, between January of 2016 and May of 2018, Khoshghadam, posed as a representative of the Singapore front company and submitted orders for the cables and connectors on at least three occasions to the U.S. Company. Khoshghadam and a co-conspirator used front companies located in China and Malaysia to make payments to the U.S. Company for the goods in order to conceal the true identity of the purchaser as Khoshghadam and that that the goods were destined for Iran. At the direction of Khoshghadam, the U.S. Company shipped the goods to a freight forwarding company located in Hong Kong, at which time the goods were repacked with falsified shipping records that listed a non-U.S. company as the shipper and the end destination as Iran. As further alleged in the indictment, on at least one occasion, Khoshghadam falsified a Department of Commerce, Bureau of Industry and Security form BIS-711, which requires the purchaser of U.S. goods to specify the identity and location of the true end user of the purchased goods. Khoshghadam falsely listed a China based company as the end user of the goods instead of listing that the true end user was located in Iran.
“Those who damage our national security by doing end-runs around sanctions and illegally exporting U.S. goods will find themselves facing serious charges,” said U.S. Attorney Graves. “The U.S. Attorney’s Office for the District of Columbia and our federal law enforcement partners will zealously pursue those who break these vital national security laws, regardless of where in the world they operate."
"It is important that the public understands the seriousness of these types of crimes,” said Special Agent in Charge Fitzgerald. “This isn’t a case of small illegal purchases of harmless products, but instead an attempt to conceal much larger criminal activities; activities that could funnel funds to other organized criminal networks.”
"The diversion of U.S.-origin goods to Iran, including through front companies in third countries, and falsifying end-user information enabling shipments to prohibited end users, will be vigorously investigated,” said Special Agent in Charge Tambrini. “The Office of Export Enforcement, working with our interagency law enforcement partners, is committed to investigating violations of BIS export control rules and prosecuting the individuals involved, as appropriate, whether in the U.S. or abroad.”
The cables and connectors purchased by Khoshghadam required a license from the Department of the Treasury, Office of Foreign Assets Control (“OFAC”) to be exported from the United States to Iran. No license authorizing the export of the cables and connectors was ever issued by OFAC to Khoshghadam or any other person or entity associated with these transactions. Khoshghadam also made, or caused to be made, three separate money transfers from bank accounts located in China, Malaysia, and elsewhere to bank accounts in the United States or by using U.S. correspondent banks with the intent to promote the unlawful exports to Iran described above.
Charges of conspiracy carry a statutory maximum of five years in prison. Violations of the IEEPA and the money laundering conspiracy charge carry a statutory maximum of 20 years in prison. The charges also carry potential financial penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This case is being investigated by Homeland Security Investigations (HSI) Chicago Field Office and the Chicago Field Office of the Department of Commerce’s Office of Export Enforcement. Assistant U.S. Attorney Steven B. Wasserman for the U.S. Attorney’s Office in the District of Columbia and Trial Attorney Beau Barnes of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case, with substantial assistance provided by Assistant U.S. Attorney Thomas Gillice.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Ipswich Man Sentenced for Child Pornography OffensesRead the Press Release
BOSTON – An Ipswich man was sentenced yesterday in federal court in Boston for distributing and possessing child sexual abuse material photo (CSAM).
Julien Toulotte, 24, was sentenced by U.S. Senior District Court Judge William G. Young to 104 months in prison and five years of supervised release, as well as restitution to multiple minor victims. In November 2022, Toulotte pleaded guilty to one count of distribution of child pornography and one count of possession of child pornography.
In mid-January 2021, Toulotte began communicating with an undercover agent purporting to be a 15-year-old girl through social media applications. Toulotte sent multiple nude photos of himself and encouraged the purported teenager to send photos of herself in return and asked to meet.In late-January 2021, Toulotte began communicating over the internet with the undercover agent, purporting to be an adult female with whom Toulotte had previously been communicating with on-line and to whom he had previously sent photo depicting CSAM. In February 2021, Toulotte sent two videos depicting CSAM to the undercover agent purporting to be the adult female. On March 11, 2021, a search of Toulotte’s residences in Ipswich and Boston resulted in the recovery of his electronic devices. One of the electronic devices contained approximately 385 videos and approximately 320 images depicting CSAM – including child pornography videos and images depicting infants and toddlers. CSAM was also found on other electronic devices seized on that date and on another date in this case.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Ipswich Police Chief Paul Nikas; Boston Police Commissioner Michael Cox; and Lincoln Police Chief A. Kevin Kennedy made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Rollins’ Major Crimes Unit prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.Honduran National Who Had Been Previously Deported Four Times Sentenced to Time Served for Illegal Re-Entry After DeportationRead the Press Release
NEW ORLEANS – SANTOS RAMOS-CASTILLO, a/k/a “Santos Ramos-Espinoza”, age 36, was sentenced on March 8, 2023 for illegal reentry of a removed alien in violation of Title 8, United States Code, Section 1326(a) on March 8, 2023, announced U.S. Attorney Duane A. Evans.
According to court documents, SANTOS RAMOS-CASTILLO (“RAMOS-CASTILLO”) admitted reentering the United States after being previously deported on November 16, 2015. He had been deported three times prior to the fourth removal. RAMOS-CASTILLO was sentenced by the Honorable Ivan L. R. Lemelle, U.S. District Judge, Eastern District of Louisiana, to time served, which was over 6 months.
U.S. Attorney Evans praised the work of the United States Immigration and Customs Enforcement in investigating this matter. Assistant U.S. Attorney Carter K. D. Guice, Jr. of the General Crimes Unit is in charge of the prosecution.
Grand Junction Man Sentenced to Life in Federal Prison for Sexually Abusing Two ChildrenRead the Press Release
Grand Junction – The United States Attorney’s Office for the District of Colorado announces a federal judge today sentenced Michael Tracy McFadden, age 51, of Grand Junction, to life in federal prison after being convicted of crossing state lines with intent to engage in a sexual act with a minor under the age of 12, and transportation of a minor with intent to engage in sexual activity.
According to facts presented at trial, McFadden was a long-haul truck driver who took at least two children on multiple trips out of state. Over a span of at least six years, McFadden repeatedly sexually assaulted the children, both in his home in Grand Junction and in his semi truck in other states. Two of his victims bravely testified at trial, relating to the jury the countless times McFadden abused them.
Judge Christine M. Arguello sentenced the defendant on March 6, 2023. Judge Arguello presided over the five-day trial. The jury returned its guilty verdict on November 14, 2022.
McFadden was previously charged and convicted in state court with sexual assault of six separate children. However, his convictions were overturned on appeal due to a speedy trial violation, preventing any further state court prosecution. Upon learning this, the Federal Bureau of Investigation (FBI) Denver Division immediately launched an investigation into potential federal violations. McFadden was indicted by a federal grand jury in 2019, and rearrested on federal charges.
"As U.S. Attorney, my office is committed to ensuring that those who prey on innocent children are held accountable for their heinous crimes. Today's sentencing of Michael McFadden is a testament to our unwavering dedication to justice for victims of child sexual abuse,” said United States Attorney Cole Finegan. “Of course, no punishment will make the victims and their families whole or give them back what the defendant stole from them. But a sentence that ensures the defendant will never be free in any community ever again will at least send the right message—that perpetrators of this kind of horrendous, unforgivable crime will die in prison.”
“This predator took advantage of the trusting nature inherent in children and committed unspeakable assaults against his young victims," said FBI Denver Special Agent in Charge Mark Michalek. “The FBI prioritizes the safety of society's most vulnerable citizens and will continue to relentlessly pursue criminals who target children.”
The investigation in this case was conducted by the FBI Denver Division with substantial assistance from the Grand Junction Police Department and the 21st Judicial District Attorney’s Office. The prosecution was handled by Assistant United States Attorney Andrea Surratt and former Assistant United States Attorney Jeremy Chaffin.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
CASE NUMBER: 19-CR-243
Gladstone Couple Pleads Guilty to Producing, Distributing Child PornographyRead the Press Release
KANSAS CITY, Mo. – A Gladstone, Mo., husband and wife pleaded guilty in federal court today to producing and distributing pornographic images of two child victims.
Joshua Paul Goodspeed, 47, and Jennifer Goodspeed, 38, pleaded guilty in separate appearances before U.S. District Judge Brian C. Wimes. Joshua Goodspeed pleaded guilty to one count of conspiracy to produce child pornography, one count of attempting to distribute child pornography over the internet, and one count of receiving child pornography over the internet. Jennifer Goodspeed pleaded guilty to one count of attempting to distribute child pornography over the internet.
By pleading guilty today, Joshua Goodspeed admitted he used two child victims to produce child pornography from Jan. 1, 2011, to March 12, 2012. Goodspeed also admitted that he attempted to distribute child pornography on Nov. 17, 2020, and that he received child pornography over the internet on Feb. 29, 2012.
Jennifer Goodspeed admitted that she attempted to distribute an image of child pornography over the internet on Feb. 29, 2012.
Joshua Goodspeed pleaded guilty without a plea agreement.
According to Jennifer Goodspeed’s plea agreement, an FBI undercover investigation identified a social media file-sharing platform, which was knowingly accessing, importing, and maintaining video files that depicted the sadistic sexual exploitation, torture, and abuse of a toddler. Joshua Goodspeed was linked to an account on this social media site.
On June 16, 2012, the FBI executed a search warrant at the Goodspeeds’ residence. Federal agents seized Joshua Goodspeed’s iPhone, laptop and one computer hard drive, and interviewed both defendants. According to the plea agreement, Joshua and Jennifer Goodspeed admitted they took nude photos of two child victims.
Jennifer Goodspeed told investigators she sometimes sent some of the photos to her husband via cell phone or email while he was traveling.
Forensic examiners found hundreds of images of child pornography on the devices seized by agents, including photos of the two child victims that were produced by the Goodspeeds.
Under federal statutes, Joshua Goodspeed is subject a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of 70 years in federal prison without parole. Jennifer Goodspeed is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
Under the terms of her plea agreements, Jennifer Goodspeed must pay $5,000 in restitution to each of 12 victims, or $3,000 to each victim if paid within 30 days of the sentencing hearing.
This case is being prosecuted by Assistant U.S. Attorney Catherine A. Connelly. It was investigated by the FBI and the Kansas City, Mo, Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Fort Wayne Man Sentenced to 120 Months in PrisonRead the Press Release
FORT WAYNE – Calvin Brantley, age 25, of Fort Wayne, was sentenced before United States District Court Judge Holly A. Brady after pleading guilty to possession with intent to distribute fentanyl and heroin along with possession of a firearm in furtherance of a drug trafficking crime, announced United States Attorney Clifford D. Johnson.
Brantley was sentenced to 120 months in prison followed by 4 years of supervised release.
According to documents in this case, from September to October 2020, Brantley sold fentanyl and heroin to law enforcement on multiple occasions. A search warrant executed on his residence resulted in the recovery of approximately 200 grams of heroin,180 grams of fentanyl, over 1000 grams of marijuana and $1,600 in U.S. currency. Two firearms were also located in the residence; a loaded Glock, extended magazine and drum magazine were found in Brantley’s bedroom by his drug stash. The estimated street value of the drugs located in the residence was approximately $48,000.
The case was investigated by the Drug Enforcement Administration with the assistance of the Fort Wayne Police Department. This case was prosecuted by Assistant United States Attorney Brent A. Ecenbarger.
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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Former Wall Street Precious Metal Traders Sentenced for Wire FraudRead the Press Release
Two former Wall Street traders were each sentenced today to one year and one day in prison for engaging in a multi-year fraud scheme to manipulate U.S. commodities markets for publicly traded precious metals futures contracts.
According to court documents, Edward Bases, 61, of New Canaan, Connecticut, a former senior trader employed at Deutsche Bank and Bank of America in New York, and John Pacilio, 59, of New York, a former senior trader employed at Bank of America and Morgan Stanley in New York, fraudulently pushed market prices up or down by placing large “spoof” orders in the precious metals futures markets that they did not intend to fill. Bases and Pacilio did so to manipulate prices for their own gain and the banks’ gain, and to defraud other traders on the Commodity Exchange Inc. and the New York Mercantile Exchange Inc., both of which are exchanges run by the CME Group Inc.
Bases and Pacilio also taught other traders how to engage in the practice of spoofing. As a result of Bases and Pacilio’s scheme, other market participants were induced to trade at prices, quantities, and times that they otherwise would not have traded.
On Aug. 4, 2021, Bases and Pacilio were convicted at trial of conspiracy to commit wire fraud affecting a financial institution and multiple counts of wire fraud affecting a financial institution. Pacilio also was convicted of commodities fraud.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division and Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division made the announcement.
The FBI New York Field Office investigated the case.
Deputy Chief Avi Perry, Assistant Chief Scott Armstrong, and Trial Attorney John J. Liolos of the Criminal Division’s Fraud Section prosecuted the case.
Former Tax Return Preparer Pleads Guilty to Making False Statement on a Tax ReturnRead the Press Release
Hattiesburg, Miss. – A former Laurel, Mississippi, tax return preparer pled guilty to knowingly making a false statement on an income tax return, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge James Dorsey of IRS Criminal Investigation, Atlanta Field Office.
Kakeia Latiece Williams, 38, pled guilty in U.S. District Court in Hattiesburg.
According to documents and information provided to the court, Williams owned and operated a tax return preparation business with activity in the Laurel and Stringer, Mississippi, area known as Massive Tax or Massive Tax Corporation. The business also had various other names that included KBG Enterprises or KBG Enterprises, LLC. Between at least 2014 and 2015, KBG Enterprises, doing business as Massive Tax, prepared and filed client tax returns.
Williams personally prepared client tax returns as well as her own personal tax returns. An Internal Revenue Service (IRS) Criminal Investigation review revealed that Williams knowingly and intentionally made false material statements in her own personal tax returns for 2014 and 2015, which were filed by Williams with the IRS under penalty of perjury. In her personal federal income tax returns, Williams willfully failed to report substantial income that she had earned as a tax return preparer for her business.
Williams will be sentenced on June 14, 2023 and faces a maximum sentence of three years in federal prison and a $250,000. Williams also could be ordered to pay restitution to the federal government for unpaid taxes. In her publicly filed plea agreement, Williams agreed to pay restitution to the IRS in the amount of $98,000. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case was investigated by IRS Criminal Investigation.
The case was prosecuted by Assistant U.S. Attorney Stan Harris.
Former President of International Aircraft Parts Distributor Sentenced to 84 Months in Prison for Role in Multi-Million-Dollar Fraud SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that STEFAN GILLIER, a/k/a “Stephan Gillier,” a/k/a “Stefan R.R. Gillier,” a/k/a “Roland Gillier,” a/k/a “Roland Van Gorp,” was sentenced today in Manhattan federal court by United States District Judge Paul A. Engelmayer to 84 months in prison for engaging in a conspiracy to fraudulently obtain over six million dollars’ worth of aircraft parts. GILLIER was convicted in September 2022 following a one-week jury trial.
U.S. Attorney Damian Williams said: “With today’s sentence, Stefan Gillier’s aircraft parts fraud scheme has been grounded. As the sentence for this extradited defendant shows, those who flee justice will be held accountable for their crimes, no matter how long it takes.”
According to the Indictment, documents previously filed in the case, and evidence introduced at trial:
GILLIER was the president and ran the day-to-day business activities of RTF International Inc. (“RTF”), a broker of aircraft parts. RTF began obtaining aircraft parts from Honeywell International, Inc. (“Honeywell”) in June 2004. Starting in 2005, RTF began increasing the number of parts it ordered from Honeywell, paying for them by check. RTF paid with checks written in foreign currency and for amounts well above the cost of the parts, which created an apparent credit balance in RTF’s favor in Honeywell’s accounting system. RTF wrote approximately $17 million worth of checks to Honeywell but stopped payment on approximately $15 million worth of checks.
In particular, GILLIER signed checks to Honeywell on behalf of RTF but repeatedly caused stop payment orders to be placed after Honeywell shipped the parts to RTF. When questioned by Honeywell’s employees about these stop payment orders, GILLIER, using the alias “Roland Van Gorp,” falsely represented that the stop payment orders were the result of a misunderstanding with the bank and that he would check with RTF’s finance department. In fact, as GILLIER knew, he had issued the stop payment orders, and RTF did not have a finance department.
In total, GILLIER was able to obtain over $6 million worth of aircraft parts from Honeywell without paying for the parts.
In June 2006, Honeywell executed a civil attachment order and recovered some of the aircraft parts stolen by GILLIER. Following the execution of the civil attachment order by Honeywell, GILLIER caused various large transfers of fraud proceeds into bank accounts controlled by him, his relatives, and a co-conspirator (“CC-1”). The day after making those transfers, on June 15, 2006, GILLIER left the United States for Canada.
After Honeywell discovered that it was being victimized by RTF, GILLIER and CC-1 continued their fraud scheme through a new corporate entity, “UN Air Services, Inc.” (“UAS”) (which had no relation to the United Nations). In 2006, UAS began obtaining aircraft parts from Pratt & Whitney Component Solutions, Inc. (“Pratt & Whitney”). Like RTF, UAS began stopping payment on checks it had written to Pratt & Whitney for the aircraft parts after Pratt & Whitney delivered the aircraft parts to UAS.
GILLIER was arrested and extradited from Italy in 2019.
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In addition to the prison sentence, GILLIER, 49, a citizen of Belgium, was sentenced to three years of supervised release.
Mr. Williams praised the outstanding investigative work of Homeland Security Investigations and the U.S. Department of Defense, Defense Criminal Investigative Service.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Dina McLeod, Micah F. Fergenson, and Michael Neff are in charge of the prosecution.
Former Major League Baseball Player and Co-Conspirator Convicted of Drug ConspiracyRead the Press Release
Memphis, TN – Paul Seib, age 46 and a Canadian citizen, was convicted of conspiracy to possess with the intent to distribute 5 kilograms of cocaine after a four-day federal jury trial. In the same case, former professional baseball player Luther Hackman, 48, pled guilty to money laundering and conspiring to distribute cocaine.
According to U.S. Attorney Ritz, the charges, and information presented in court, in October 2021 investigators with Homeland Security Investigations received information that “Pablo” was in search of multi-kilogram quantities of cocaine for his clients. After a series of communications, investigators identified Seib as “Pablo” and arranged a meeting to transfer 10 kilograms of cocaine. Both Seib and Hackman were present during this meeting; however, the transfer did not occur because the individual responsible for paying for the narcotics did not arrive.
In January 2022, Hackman provided a confidential source with $96,800 in cash and told the source about a shipment of multiple kilograms of cocaine and methamphetamine coming from California. Investigators intercepted the 20 pounds of methamphetamine and 4 kilograms of cocaine and detained Hackman as he arrived to pick up the shipment.
The sentencing hearing for Hackman is set for June 7, 2023, and Seib on July 12, 2023, both before United States District Judge Mark S. Norris.
This prosecution is part of an extensive investigation by the Organized Crime and Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking organizations and organized criminal enterprises, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
This case was investigated by Homeland Security Investigations and the Drug Enforcement Administration (DEA).
U.S. Attorney Kevin Ritz thanked Assistant United States Attorneys Jennifer Musselwhite and Joe Murphy, who prosecuted this case, as well as law enforcement partners who investigated the case.
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For more information, please contact Public Information Officer Cherri Green at 901-544-4231 or [email protected]. Follow @WDTNNews on Twitter for office news and updates.
Former Goldman Sachs Managing Director Sentenced to 10 Years in Prison for His Role in Massive Bribery and Money Laundering SchemeRead the Press Release
BROOKLYN, NY – Earlier today, Ng Chong Hwa, also known as “Roger Ng,” a citizen of Malaysia and a former Managing Director of The Goldman Sachs Group, Inc. (Goldman Sachs), was sentenced by United States District Judge Margo K. Brodie to 10 years’ imprisonment for conspiring to launder billions of dollars embezzled from 1Malaysia Development Berhad (1MDB), conspiring to violate the Foreign Corrupt Practices Act (FCPA) by paying more than $1.6 billion in bribes to a dozen government officials in Malaysia and Abu Dhabi, and conspiring to violate the FCPA by circumventing the internal accounting controls of Goldman Sachs. The forfeiture amount will be determined at a later date. In April 2022, Ng was convicted by a federal jury on all counts following a nine-week trial.
Breon Peace, United States Attorney for the Eastern District of New York; Kenneth A. Polite, Jr., Assistant Attorney General of the Justice Department’s Criminal Division; Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); and Tyler Hatcher, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, Los Angeles Field Office (IRS-CI), announced the sentence.
“Roger Ng was a central player in a brazen and audacious scheme that not only victimized the people of Malaysia, but also risked undermining the public’s confidence in governments, markets, businesses and other institutions on a global scale,” stated United States Attorney Peace. “Today’s sentence serves as a just punishment for the defendant’s crimes and a warning that there is a significant price to pay for corporate corruption.”
“Today, Roger Ng was sentenced for his role in a massive and egregious bribery and money laundering scheme involving the bribery of high-level foreign officials in Malaysia and the United Arab Emirates and theft of billions of dollars meant to benefit the Malaysian people,” stated Assistant Attorney General Polite. “The Justice Department remains firmly committed to holding accountable individuals who engage in corruption, undermine the rule of law, and abuse our financial system to launder their illicit funds. This sentence sends a strong message to criminals around the world: if you violate our laws, we will bring you to justice.”
“Roger Ng, a former Managing Director of Goldman Sachs, played a significant role in a corrupt financial scheme to launder billions of dollars embezzled from 1MDB that ultimately victimized the people of Malaysia. Today’s sentence serves as both punishment for Ng’s crimes and a stark reminder to those who endeavor to engage in similar conduct – the FBI and our partners remain vigilant in combatting corruption in all its forms,” stated FBI Assistant Director-in-Charge Driscoll.
“The 1MDB case and the sentencing of Mr. Ng, highlight IRS Criminal Investigation’s enforcement efforts to abolish international bribery schemes. U.S. Financial Institutions have safeguards in place to combat these frauds and Mr. Ng intentionally circumvented these safeguards. This sentence is a testament to what happens when you break US laws to bribe international government officials,” stated IRS-CI Special Agent-in-Charge Hatcher. “This case represents a model for domestic and international cooperation in significant cross-border money laundering investigations and we are proud of our domestic and international law enforcement partners in this complex financial investigation.”
1MDB is a Malaysian state-owned and controlled fund created to pursue investment and development projects for the economic benefit of Malaysia and its people.
Ng was employed as a Managing Director by various subsidiaries of Goldman Sachs and acted as an agent and employee of Goldman Sachs from approximately 2005 to May 2014.
Between approximately 2009 and 2014, Ng conspired with others to launder billions of dollars misappropriated and fraudulently diverted from 1MDB, including funds 1MDB raised in 2012 and 2013 through three bond transactions it executed with Goldman Sachs, known as “Project Magnolia,” “Project Maximus,” and “Project Catalyze.” As part of the scheme, Ng and others, including Tim Leissner, the former Southeast Asia Chairman and participating managing director of Goldman Sachs, and co-defendant Low Taek Jho, a wealthy Malaysian socialite also known as “Jho Low,” conspired to pay more than a billion dollars in bribes to a dozen government officials in Malaysia and Abu Dhabi to obtain and retain lucrative business for Goldman Sachs, including the 2012 and 2013 bond deals. They also conspired to launder the proceeds of their criminal conduct through the U.S. financial system by funding major Hollywood films such as “The Wolf of Wall Street,” and purchasing, among other things, artwork from New York-based Christie’s auction house including a $51 million Jean-Michael Basquiat painting, a $23 million diamond necklace, millions of dollars in Hermes handbags from a dealer based on Long Island, and luxury real estate in Manhattan.
Ng, Leissner, Low and their co-conspirators used Low’s close relationships with high-ranking government officials in Malaysia and Abu Dhabi to obtain and retain business for Goldman Sachs through the promise and payment of hundreds of millions of dollars in bribes. In the course of executing the scheme, Ng conspired with others at Goldman Sachs to circumvent the investment bank’s internal accounting controls. Through its work for 1MDB during that time, Goldman Sachs received approximately $600 million in fees and revenues, while Ng received more than $35 million for his role in the bribery and money laundering scheme. In total, Ng and the other co-conspirators misappropriated more than $2.7 billion from 1MDB.
As proven at trial, Ng spent years cultivating a relationship with Low in order to get him to bring business to Goldman Sachs. In the process of doing so, Ng attempted to onboard Low as a private wealth management client for Goldman Sachs and, when confronted with questions from Goldman Sachs compliance personnel about Low’s government connections and source of wealth, lied about the extent of his relationship with Low; Ng communicated with Low about business opportunities using personal email accounts to avoid detection by Goldman Sachs compliance personnel; and Ng and Leissner attempted to work with Low on a series of side deals that were not disclosed to Goldman Sachs, and in one such potential deal, Ng, Leissner and Low discussed paying a bribe to get a deal completed. With respect to the charged conduct, the trial evidence shows that Ng was instrumental in creating the structure of the bond deals, which enabled the theft of billions of dollars, and in lying to Goldman Sachs about Low’s involvement in the deals and the payment of bribes and kickbacks in order to get the deals approved. To receive his $35 million in kickbacks, Ng set up a shell company in the name of his mother-in-law, and he and his wife used a bank account in the name of that company, in addition to a number of other bank accounts in the names of family members, to conceal and further launder his ill-gotten gains. And when news about the 1MDB scheme started to become public, Ng deleted the contents of four email accounts that had been used in furtherance of the crimes, and lied to law enforcement authorities in Malaysia and Singapore investigating the scheme.
Low remains a fugitive. In August 2018, Leissner pleaded guilty to a two-count criminal information charging him with conspiring to launder money and conspiring to violate the FCPA by both paying bribes to various Malaysian and Abu Dhabi officials and circumventing the internal accounting controls of Goldman Sachs. Leissner has been ordered to forfeit $43 million and shares of stock valued at more than $200 million. Leissner is awaiting sentencing.
In October 2020, Goldman Sachs and Goldman Sachs (Malaysia) Sdn. Bhd. (GS Malaysia), its Malaysian subsidiary, admitted to conspiring to violate the anti-bribery provisions of the FCPA in connection with the scheme. Goldman Sachs entered into a deferred prosecution agreement with the United States Attorney’s Office for the Eastern District of New York and the Department of Justice’s Criminal Division, Fraud Section and Money Laundering and Asset Forfeiture Section (MLARS), and GS Malaysia pleaded guilty in the U.S. District Court for the Eastern District of New York to a one-count criminal information. Goldman Sachs also paid more than $2.9 billion as part of a coordinated resolution with criminal and civil authorities in the United States, the United Kingdom, Singapore, and elsewhere.
The investigation was jointly conducted by the FBI’s International Corruption Unit and IRS-Criminal Investigation. The government’s criminal case is being handled by the Business and Securities Fraud Section of the United States Attorney’s Office for the Eastern District of New York, MLARS and the Fraud Section. Assistant United States Attorneys Alixandra E. Smith, Drew G. Rolle and Dylan Stern, and MLARS Chief Brent Wible and FCPA Chief David Last are prosecuting the case; Jennifer Ambuehl, former Chief of MLARS’ Bank Integrity Unit, also prosecuted the case. Assistant United States Attorneys Tanisha Payne and Brian Morris of the Office’s Asset Recovery Section are handling forfeiture matters. The Criminal Division’s Office of International Affairs provided critical assistance in this case.
The Department also appreciates the significant cooperation and assistance provided by the U.S. Securities and Exchange Commission, and the Board of Governors of the Federal Reserve System along with the Federal Reserve Bank of New York. The Department also appreciates the significant assistance provided by the government of Malaysia, including the Attorney General’s Chambers of Malaysia, the Royal Malaysia Police and NCB Interpol Malaysia. The Department also appreciates the significant assistance provided by the Attorney General’s Chambers of Singapore, the Singapore Police Force-Commercial Affairs Division, the Office of the Attorney General of Switzerland, the Judicial Investigating Authority of the Grand Duchy of Luxembourg and the Criminal Investigation Department of the Grand-Ducal Police of Luxembourg.
The Defendant:
NG CHONG HWA (also known as “Roger Ng”)
Age: 50
Kuala Lumpur, MalaysiaE.D.N.Y. Docket No. 18-CR-538 (MKB)
Former Goldman Sachs Investment Banker Sentenced in $2.7B Bribery and Money Laundering SchemeRead the Press Release
A former managing director of The Goldman Sachs Group Inc. (Goldman Sachs) was sentenced today to 10 years in prison for his role in a multibillion-dollar bribery and money laundering scheme involving Malaysia’s state-owned investment and development fund, 1Malaysia Development Berhad (1MDB).
“Today, Roger Ng was sentenced for his role in a massive and egregious bribery and money laundering scheme involving the bribery of high-level foreign officials in Malaysia and the United Arab Emirates and theft of billions of dollars meant to benefit the Malaysian people,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “The Justice Department remains firmly committed to holding accountable individuals who engage in corruption, undermine the rule of law, and abuse our financial system to launder their illicit funds. This sentence sends a strong message to criminals around the world: if you violate our laws, we will bring you to justice.”
According to court documents, between approximately 2009 and 2014, Ng Chong Hwa, aka Roger Ng, of Malaysia, and his co-conspirators laundered billions of dollars misappropriated and fraudulently diverted from 1MDB, including funds 1MDB raised in 2012 and 2013 through three bond transactions it executed with Goldman Sachs. As part of the scheme, Ng and his co-conspirators, including Tim Leissner, the former Southeast Asia Chairman and participating managing director of Goldman Sachs, conspired to and did pay more than $1 billion in bribes to 12 government officials in Malaysia and the United Arab Emirates to obtain and retain lucrative business for Goldman Sachs, including the 2012 and 2013 bond deals. They also conspired to and did launder the proceeds of their criminal conduct through the U.S. financial system, including funding major Hollywood films such as “The Wolf of Wall Street,” and purchasing, among other things, a $51 million Jean-Michel Basquiat painting from New York-based Christie’s auction house, a $23 million diamond necklace from a New York jeweler, millions of dollars in Hermès handbags from a dealer based on Long Island, and luxury real estate in Manhattan.
“Roger Ng was a central player in a brazen and audacious scheme that not only victimized the people of Malaysia, but also undermined the public’s confidence in governments, markets, businesses and other institutions on a global scale,” said U.S. Attorney Breon Peace for the Eastern District of New York. “Today’s sentence serves as a just punishment for the defendant’s crimes and a stern warning that there is a significant price to pay for corporate corruption.”
Ng and his co-conspirators, including Low Taek Jho, aka Jho Low, a wealthy Malaysian socialite, used Low’s close relationships with high-ranking government officials in Malaysia and the United Arab Emirates to obtain and retain business for Goldman Sachs through the promise and payment of more than a billion dollars in bribes. In the course of executing the scheme, Ng, with others at Goldman Sachs, conspired to and did circumvent the investment bank’s internal accounting controls. Through its work for 1MDB during that time, Goldman Sachs received approximately $600 million in fees and revenue, while Ng received $35 million for his role in the bribery and money laundering scheme. In total, Ng and his co-conspirators misappropriated more than $2.7 billion from 1MDB.
“This sentencing sends a strong message that those who abuse the U.S. financial system for their own gain will be held accountable,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “The FBI and our domestic and international partners remain committed to combating international corruption and will continue to investigate and pursue those who perpetrate complex criminal schemes for profit.”
“The 1MDB case and the sentencing of Mr. Ng highlight IRS Criminal Investigation’s enforcement efforts to abolish international bribery schemes,” said Special Agent in Charge Tyler Hatcher for the IRS Criminal Investigation (IRS-CI). “U.S. financial institutions have safeguards in place to combat these frauds and Mr. Ng intentionally circumvented these safeguards. This sentence is a testament to what happens when you break U.S. laws to bribe international government officials. This case represents a model for domestic and international cooperation in significant cross-border money laundering investigations and we are proud of our domestic and international law enforcement partners in this complex financial investigation.”
In August 2018, Leissner pleaded guilty to conspiring to launder money and conspiring to violate the FCPA. Leissner agreed to forfeit $43 million and shares of stock valued at more than $200 million and is awaiting sentencing. Low was indicted in November 2018 and remains a fugitive.
In October 2020, Goldman Sachs and Goldman Sachs (Malaysia) Sdn. Bhd. (GS Malaysia), its Malaysian subsidiary, admitted to conspiring to violate the anti-bribery provisions of the FCPA in connection with the scheme. Goldman Sachs entered into a deferred prosecution agreement with the Criminal Division’s Fraud Section and Money Laundering and Asset Recovery Section (MLARS), and the U.S. Attorney’s Office for the Eastern District of New York. GS Malaysia pleaded guilty in the U.S. District Court for the Eastern District of New York. Goldman Sachs paid more than $2.9 billion as part of a coordinated resolution with criminal and civil authorities in the United States, the United Kingdom, Singapore, and elsewhere.
In April 2022, Ng was found guilty by a jury of conspiring to violate the FCPA and conspiring to launder billions of dollars.
The FBI’s International Corruption Unit and IRS-CI investigated the case.
Chief Brent Wible of the Criminal Division’s MLARS, Chief David Last of the Fraud Section’s FCPA Unit, and Assistant U.S. Attorneys Alixandra E. Smith, Drew G. Rolle, and Dylan Stern for the Eastern District of New York prosecuted the case. Former Chief of MLARS’ Bank Integrity Unit Jennifer Ambuehl also prosecuted the case. The Justice Department’s Office of International Affairs provided critical assistance.
The department also appreciates the significant cooperation and assistance provided by the U.S. Securities and Exchange Commission, and the Board of Governors of the Federal Reserve System along with the Federal Reserve Bank of New York. The department also appreciates the significant assistance provided by the government of Malaysia, including the Attorney General’s Chambers of Malaysia, the Royal Malaysia Police, NCB Interpol Malaysia, and the Malaysian Anti-Corruption Commission. The department also appreciates the significant assistance provided by the Attorney General’s Chambers of Singapore, the Singapore Police Force-Commercial Affairs Division, the Office of the Attorney General of Switzerland, the Judicial Investigating Authority of the Grand Duchy of Luxembourg, the Criminal Investigation Department of the Grand-Ducal Police of Luxembourg, the United Kingdom National Crime Agency, the United Kingdom Financial Conduct Authority, the United Kingdom Prudential Regulation Authority, the Attorney General's Chambers of the Territory of the British Virgin Islands, and the Attorney General’s Office of the Bailiwick of Guernsey and the Guernsey Economic Crime Division.
The Criminal Division’s Fraud Section is responsible for investigating and prosecuting FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
The Bank Integrity Unit in MLARS investigates and prosecutes complex, multi-district, and international criminal cases involving financial institutions. The unit’s prosecutions focus on banks and other financial institutions, including their officers, managers, and employees, whose actions threaten the integrity of the individual institution or the wider financial system.
Former Employee Sentenced to 3+ Years in Prison for Embezzling $339,000 from St. Louis County CompanyRead the Press Release
ST. LOUIS – U.S. District Judge Stephen R. Clark on Thursday sentenced a man from Waterloo, Illinois who embezzled $339,844 from his employer to three years and five months in prison and ordered him to repay the money.
Ronald Scott Miller, who was the warehouse and labor supervisor for a small floor covering business in St. Louis County, worked for the company for 25 years. Beginning March 27, 2014, he used several schemes over the next six and one-half years to steal, “again and again and again,” Assistant U.S. Attorney Derek Wiseman said in court Thursday.
Miller submitted false timesheets for his partner, who did not work for the company. He then collected his partner’s paycheck and forged his partner’s signature to deposit the money in his own account, his plea agreement says.
Miller falsely inflated the hours worked by his son without his son’s knowledge and did the same for himself by falsely claiming he was working on installation projects.
Miller also submitted fraudulent invoices claiming he’d made purchases at two fake companies and paid himself with company credit cards or caused the company to issue checks to pay the fake invoices.
Finally, Miller altered and inflated receipts for legitimate purchases that he made and then sought reimbursement from his company.
Miller, then 54, pleaded guilty in September to one count of wire fraud.
The FBI and the Maryland Heights Police Department investigated this case. Assistant U.S. Attorney Derek Wiseman is prosecuting the case.
Former CEO of Medical Device Company Indicted for Creating and Selling A Fake Medical Component That Was Implanted into PatientsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Michael J. Driscoll, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Fernando P. McMillan, the Special Agent in Charge of the New York Field Office of the U.S. Food and Drug Administration – Office of Criminal Investigations (“FDA-OIC”), announced today the filing of a two-count Indictment (the “Indictment”) charging Laura PERRYMAN, the former Chief Executive Officer (“CEO”) of STIMWAVE LLC, a Florida-based medical device company, in connection with a scheme to create and sell a non-functioning dummy medical device for implantation into patients suffering from chronic pain, resulting in millions of dollars in losses to federal healthcare programs. PERRYMAN was arrested this morning in Delray Beach, Florida, and will be presented later today in the United States District Court for the Southern District of Florida.
In addition, Mr. Williams announced the unsealing of a non-prosecution agreement (the “Agreement”) with STIMWAVE LLC ("STIMWAVE"), which filed for bankruptcy on June 15, 2022. The Agreement was entered into on October 29, 2022, and was sealed by the United States Bankruptcy Court for the District of Delaware, pending the Government’s ongoing investigation. Under the terms of the Agreement, STIMWAVE has accepted responsibility for its conduct by, among other things: (i) making admissions and stipulating to the accuracy of an extensive Statement of Facts; (ii) paying a $10,000,000 monetary penalty; and (iii) maintaining an adequate compliance program, to include employing a Chief Compliance Officer and holding regular compliance committee meetings. STIMWAVE is also required to cooperate fully with the Government. STIMWAVE’s obligations under the Agreement will continue for a period of three years from the date of execution of the Agreement.
The U.S. Attorney’s Office also unsealed a civil fraud lawsuit filed against STIMWAVE under the False Claims Act (“FCA”), and the parties’ settlement of that suit (the “FCA Settlement”). The settlement has been submitted to United States District Judge George B. Daniels for approval. In connection with the FCA Settlement, STIMWAVE admitted and accepted responsibility for conduct alleged in the Government’s civil complaint and agreed to pay $8,600,000 to the United States. This payment will be credited towards the $10,000,000 monetary penalty discussed above. The civil complaint also brings claims against PERRYMAN under the FCA, which are pending.
U.S. Attorney Damian Williams said: “As alleged, at the direction of its founder and CEO Laura Perryman, Stimwave created a dummy medical device component — made entirely of plastic — designed to be implanted in patients for the sole purpose of causing doctors to unwittingly bill Medicare and private insurance companies more than $16,000 for each implantation of the piece of plastic. The defendant and Stimwave did this so that they could charge medical providers many thousands of dollars for purchasing their medical device. Our Office will continue to do everything in its power to bring to justice anyone responsible for perpetuating health care fraud, which in this case led to patients being used as nothing more than tools for financial enrichment.”
FBI Assistant Director Michael J. Driscoll said: “Ms. Perryman, as the Chief Executive Officer of Stimwave, allegedly led a scheme to sell medical devices that contained a non-functioning component that doctors unwittingly implanted into patients suffering from chronic pain. As a result of her illegal actions, not only did patients undergo unnecessary implanting procedures, but Medicare was defrauded of millions of dollars. Today’s action demonstrates the FBI’s continuing commitment to protect Medicare and other government programs from financial fraud and abuse.”
FDA-OIC Special Agent in Charge Fernando P. McMillan said: “Individuals and companies that manufacture and distribute medical devices with non-functional components put the health of patients at significant risk. We will continue to pursue and bring to justice those who jeopardize the health of their patients and of the public.”
According to the documents unsealed today in Manhattan federal court and the United States Bankruptcy Court for the District of Delaware:[1]
STIMWAVE was a medical device company that manufactured and distributed implantable neurostimulation devices designed to treat intractable, chronic pain. Founded in 2010 by PERRYMAN and others, STIMWAVE was headquartered in Pompano Beach, Florida.
STIMWAVE was founded on the premise that its products would provide non-opioid alternatives to chronic pain management. As the founder and CEO of STIMWAVE, PERRYMAN oversaw the design of the StimQ PNS System (the “Device”), a neurostimulator medical device that treated chronic pain by producing electrical currents to target peripheral nerves outside the spinal cord. From at least in or about 2017 up to and including her termination in or about 2019, PERRYMAN, as STIMWAVE’s CEO, engaged in a multi-year scheme (the “Scheme”) to design, create, manufacture, and market an inert, non-functioning component of the Device — called the “White Stylet” — that served no medical purpose but was included with the Device through in or about 2020 in order to make the product financially viable for doctors to purchase.
When STIMWAVE originally brought the Device to market in or about 2017, it contained three primary components: (i) an implantable electrode array (the “Lead”) that stimulated the nerve; (ii) an externally worn battery that sat outside the body and wirelessly provided power to the Lead through the patient’s skin (the “Battery”); and (iii) a separate implantable receiver measuring approximately 23 centimeters in length with a distinctive pink handle — called the “Pink Stylet.” The Pink Stylet contained copper and, unlike the White Stylet, functioned as a receiver to transmit energy from the Battery to the Lead.
STIMWAVE sold the Device to doctors and medical providers for over approximately $16,000. Medical insurance providers, including Medicare, would reimburse medical practitioners for implanting the Device into patients through two separate reimbursement codes, one for implantation of the Lead and a second for implantation of the Pink Stylet. The billing code for implanting the Lead provided for reimbursement at a rate of between approximately $4,000 and $6,000, while the billing code for implanting a receiver, like the Pink Stylet, provided for reimbursement at a rate of between approximately $16,000 and $18,000.
Soon after the Device was released, physicians informed STIMWAVE that they were having trouble implanting the Pink Stylet in certain patients because the Pink Stylet was too long. STIMWAVE and PERRYMAN knew that the Pink Stylet could not be cut or trimmed to shorten it without interfering with the functionality of the Pink Stylet as a receiver, and without a receiver component for doctors to implant and seek reimbursement for, doctors would incur a substantial financial loss with every purchase of the Device, thereby making it more difficult for STIMWAVE to sell the Device to doctors and medical providers at the approximately $16,000 price.
However, STIMWAVE — at the direction of PERRYMAN — did not lower the price of the Device so that its cost to doctors and medical providers could be covered by reimbursement for the implantation of only the Lead, nor did PERRYMAN recommend that doctors not implant the Device or its receiver component in cases where the Pink Stylet could not fit comfortably. Instead, PERRYMAN directed that STIMWAVE create the White Stylet — a dummy component made entirely of plastic that served no medical purpose but which STIMWAVE misrepresented to doctors as a customizable receiver alternative to the Pink Stylet. The White Stylet could be cut to size by the doctor for use in smaller anatomical spaces and was created solely so that doctors and medical providers would continue to purchase the Device for use in those scenarios and continue to bill for the implantation of a receiver component. To perpetuate the lie that the White Stylet was functional, PERRYMAN oversaw training that suggested to doctors that the White Stylet was a “receiver,” when, in fact, it was made entirely of plastic, contained no copper, and therefore had no conductivity. In addition, PERRYMAN directed other STIMWAVE employees to vouch for the efficacy of the White Stylet, when she knew that the White Stylet was actually non-functional.
As a result of these misrepresentations regarding the functionality of the White Stylet, PERRYMAN caused doctors and medical providers to unwittingly implant the non-functional White Stylet into patients and submit fraudulent reimbursement claims for implantation of the White Stylet to Medicare, resulting in millions of dollars in losses to the federal government.
On June 15, 2022, STIMWAVE filed for bankruptcy in Delaware under Chapter 11 of the Bankruptcy Code, through which it sold substantially all of its assets to a third-party through an auction.
* * *
PERRYMAN, 54, of Delray Beach, Florida, has been charged with one count of conspiracy to commit wire fraud and health care fraud, which carries a maximum potential sentence of 20 years in prison, and one count of health care fraud, which carries a maximum potential sentence of 10 years in prison.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the investigative work of the FBI and thanked the FDA for its assistance.
The criminal case is being handled by the Complex Frauds and Cybercrime Unit of the Office’s Criminal Division. Assistant U.S. Attorneys Louis A. Pellegrino, Jacob M. Bergman, and Mónica P. Folch are in charge of the prosecution. The civil case against STIMWAVE and PERRYMAN is being handled by the Civil Frauds Unit of the Office’s Civil Division. Assistant U.S. Attorneys Jacob M. Bergman and Mónica P. Folch are in charge of the civil case.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment constitutes only allegations, and every fact described herein should be treated as an allegation.
Former Bureau of Prisons Nurse Pleads Guilty to Contraband Smuggling and Bribery ConspiracyRead the Press Release
MIAMI – Miami-Dade resident Ruben Montanez-Mirabal, 33, has pled guilty in federal district court to conspiring to commit bribery, conspiring to provide contraband in a federal prison, and providing contraband in a federal prison.
According to the two-count information and facts admitted at the change of plea hearing, from around November 2021 through late August 2022, Ruben Montanez-Mirabal, who was a registered nurse working for the Federal Bureau of Prisons (“BOP”) at the Federal Detention Center – Miami (“FDC-Miami”) in downtown Miami, solicited and obtained illegal payments from FDC-Miami inmates in exchange for bringing in and delivering to them prohibited objects, including controlled substances that had been soaked into sheets of paper. In exchange for violating his official duties by providing these drug-soaked papers and other prohibited items, Montanez-Mirabal accepted thousands of dollars in bribes from these inmates and their associates. Along with these payments, Montanez-Mirabal also solicited and received other things of value from inmates, including the free use of a Lamborghini and a Rolls-Royce.
Montanez-Mirabal would bring these prohibited items into FDC-Miami and then either deliver them directly to the inmates or hide them in places where the inmate paying him would be able to recover the contraband. Those inmates would then re-sell the pages to other inmates at a rate of $1,500 per page. As admitted at the change of plea, Montanez-Mirabal made a number of these deliveries for inmates, including one delivery where he was observed hiding thirty-seven drug-soaked pages underneath a shelving unit in a mop closet accessible to the inmate paying him. Investigators were able to recover these pages from the closet and laboratory testing revealed that the pages were laced with a synthetic cannabinoid-controlled substance and had the defendant’s fingerprints on them.
Montanez-Mirabal also admitted that during the charged conduct, he was aware that inmates were reselling the pages for $1,500 each, and that he delivered between 100 and 140 such pages to inmates inside FDC-Miami in exchange for the bribes he received.
United States District Judge Jose E. Martinez will sentence Montanez-Mirabal in Miami on May 16, at 11:30 a.m. Montanez-Mirabal faces up to 15 years in prison.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, acting Special Agent in Charge Maged Behnam of the FBI Miami Field Office, and Special Agent in Charge James Boyersmith, Department of Justice Office of Inspector General, Miami Field Office, announced the guilty plea.
FBI Miami and DOJ-OIG Miami investigated the case. Assistant U.S. Attorney Edward N. Stamm is prosecuting it.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-cr-20051.
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Former 21st Century Fox Executive and Argentina-Based Sports Marketing Company Full Play Group S.A., Convicted of Bribing Soccer Officials in FIFA CaseRead the Press Release
Former 21st-Century Fox Executive Hernan Lopez and Argentine sports marketing company Full Play Group S.A., were convicted today by a federal jury in Brooklyn on all counts of a superseding indictment charging them with wire fraud and money laundering conspiracies for their participation in schemes to bribe executives of soccer’s highest governing bodies—FIFA, CONMEBOL, and, in Full Play’s case, CONCACAF—for the media and broadcasting rights to lucrative soccer tournaments. The verdict followed a seven-week trial before United States District Judge Pamela K. Chen. When sentenced, Lopez faces up to 40 years in prison and millions of dollars in penalties to be determined by Judge Chen. Full Play faces millions of dollars in financial penalties. Co-defendant Carlos Martinez was acquitted on both counts.
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 Tyler Hatcher, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, Los Angeles Field Office (IRS-CI), announced the verdict.
“Today’s verdict is a resounding victory for justice and for soccer fans around the world. The defendants cheated by bribing soccer officials to act in their own greedy interests rather than in the best interests of the sport,” stated United States Attorney Peace. “The verdict today reflects this Office’s ongoing commitment to rooting out corruption at the highest levels. Companies and individuals alike should understand that, regardless of their wealth or power, they will be brought to justice if they use the U.S. financial system to further corrupt ends.”
Mr. Peace extended his thanks to the agents and other investigative personnel at the FBI New York Eurasian Joint Organized Crime Squad, the FBI’s Integrity in Sport and Gaming Initiative and the IRS-CI Los Angeles Field Office, as well as their colleagues and law enforcement partners in the United States and abroad.
“The many bribery schemes that the beautiful game has endured are brought one step closer to justice by the convictions of Mr. Lopez and Full Play Group S.A.. Soccer fans around the world had a front row seat to these schemes as we watched tournaments by FIFA, CONMEBOL, and, in Full Play’s case, CONCACAF, through the media and broadcasting rights procured by fraud,” stated IRS-CI Special Agent-in-Charge Hatcher. “The defendants hid their corrupt acts behind middlemen, offshore bank accounts, and a facade of respectability, but they could not hide from justice. The IRS and our partners at the FBI and the Department of Justice work tirelessly to expose these corrupt acts, and today these defendants were held accountable for their actions.”
The international soccer federation known as FIFA is comprised of six continental confederations, including the Confederation of North, Central American and Caribbean Association Football (CONCACAF), headquartered in the United States, and the Confederación Sudamericana de Fútbol (CONMEBOL).
As proven at trial, the defendants used their positions in the world of international soccer to engage in schemes involving the solicitation, offer, acceptance, payment and receipt of bribes and kickbacks, principally to obtain lucrative broadcast rights to various international soccer tournaments and events.
Full Play, a sports marketing company incorporated in Uruguay, based in Buenos Aires, Argentina, and owned by father-and-son defendants Hugo Jinkis and Mariano Jinkis, participated in numerous schemes to pay bribes to officials of CONMEBOL and CONCACAF in exchange for media and marketing rights to various soccer events, including World Cup qualifier and friendly matches, the Copa Libertadores, and multiple editions of the Copa América, a national team tournament administered by CONMEBOL. Hugo and Mariano Jinkis, charged in the first indictment in the case unsealed on May 27, 2015, remain fugitives.
Lopez, a formerly high-ranking executive of Fox subsidiaries responsible for developing and carrying out Fox’s sports broadcasting businesses in Latin America, joined Full Play and other co-conspirators in a scheme involving the annual payment of millions of dollars in bribes to officials of CONMEBOL in exchange for the lucrative broadcasting rights to the Copa Libertadores, the region’s most popular club tournament, among other events. Lopez also relied on loyalty secured through the payment of bribes to certain CONMEBOL officials to advance the business interests of Fox, including to obtain confidential bidding information for the rights to broadcast the 2018 and 2022 World Cup tournaments in the United States, rights that Fox successfully obtained.
Today’s conviction is the latest accomplishment in the investigation of corruption in international soccer being led by the U.S. Attorney’s Office of the Eastern District of New York, the FBI’ s New York Field Office and the IRS-CI Los Angeles Field Office. Criminal charges have been brought against more than 50 defendants from more than 20 countries, resulting to date in guilty pleas by more than 30 individual and corporate defendants and trial convictions of 3 individuals and 1 corporation. In addition, 2 corporations have resolved via deferred prosecution agreements and 3 corporations have resolved via non-prosecution agreements. Each has agreed to pay substantial financial penalties.
The government’s case was prosecuted by Assistant United States Attorneys Kaitlin T. Farrell, Robert T. Polemeni, Victor Zapana and Eric Silverberg, with key assistance provided by Assistant United States Attorneys Kristin Mace and Brian D. Morris, paralegals Matthew Flink, Jordi Martinez and Kavya Kannan, and the Justice Department’s Office of International Affairs and Organized Crime and Gang Section.
The Defendants:
HERNAN LOPEZ
Age: 52
Los Angeles, CaliforniaFULL PLAY GROUP S.A.
Buenos Aires, ArgentinaE.D.N.Y. Docket No. 15-CR-252 (S-3) (PKC)
Fifteen Years in Federal Prison for Sisseton Man Convicted of Abusive Sexual ContactRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Charles B. Kornmann has sentenced a Sisseton, South Dakota, man, convicted of Abusive Sexual Contact. The sentencing took place on March 3, 2023 in Aberdeen, South Dakota.
Conrad Brown, age 44, was sentenced to 15 years in federal prison, followed by 10 years of supervised release. He was ordered to pay $300 as a statutorily required special assessment to the Federal Crime Victims Fund.
Brown was indicted for Aggravated Sexual Abuse of a Child and Abusive Sexual Contact by a federal grand jury in July of 2022. He pleaded guilty to Abusive Sexual Contact on October 25, 2022.
According to court documents, between approximately 2019 through 2021, Brown engaged in abusive sexual contacts with minor victims. The victims were threatened or placed in fear in order for Brown to perpetrate the abusive sexual contacts. The abuse took place in Northeastern South Dakota and within the tribal lands of the Sisseton-Wahpeton Oyate Sioux Tribe.
This case was investigated by the Sisseton-Wahpeton Oyate Tribe’s Law Enforcement and the FBI. Assistant U.S. Attorney Jeremy R. Jehangiri prosecuted the case.
Brown was remanded to the custody of the U.S. Marshals Service to continue serving his sentence.
Felon with Two Prior Robbery Convictions Sentenced to 15 Years in Federal Prison for Armed Robbery of Evansville Circle KRead the Press Release
EVANSVILLE- Darion Cartwright, 33, of Vanderburgh County, Indiana, was sentenced to 15 years in federal prison after pleading guilty to armed robbery and illegally possessing a firearm as a convicted felon.
According to court documents, on July 8, 2019, Cartwright entered the Circle K Kangaroo Express located on South Kentucky Avenue in Evansville, Indiana and robbed an employee at gunpoint. After brandishing a .22 caliber revolver and threatening the employee, Cartwright walked away with approximately $365. Evansville Police Department (EPD) Officers were alerted to the robbery and quickly asked for assistance from the public by providing security camera images of Cartwright’s unique arm tattoos.
Later that same evening, EPD officers were dispatched to the Arbors at Eastland Apartment Complex on a report of intimidation. The victim told officers that Cartwright forced her to drive him to an Enterprise Car Rental and rent a vehicle for him. Cartwright threatened the victim, telling her that “bad things were going to happen” if she did not comply with his demands. The victim used her information to pay for a rental Dodge Journey for Cartwright to use.
Officers obtained a search warrant for the vehicle and for Cartwright’s apartment unit. After a short stand-off with a SWAT team, Cartwright exited the apartment and was taken into custody. During a search of the Dodge Journey, officers recovered a black duffle bag that contained synthetic marijuana, 54.1 grams of methamphetamine, the same .22 caliber revolver used in the Circle K robbery, and $431 in cash.
Prior to his arrest, Cartwright was convicted of felony Armed Robbery and felony Robbery in Vanderburgh County. These previous felony convictions prohibit Cartwright from lawfully possessing a firearm.
United States Attorney for the Southern District of Indiana, Zachary A Myers and Herbert J. Stapleton, Special Agent in Charge of the FBI’s Indianapolis Field Office made the announcement.
“This repeat, armed robber has been a menace to the people of Vanderburgh County,” said U.S. Attorney Myers. “His violent crimes have no place in our communities, and we are safer with him behind federal prison bars. I commend the bravery of the victim who sought assistance from law enforcement officers, and the work of the FBI and Evansville Police Department to ensure he is held responsible for his actions.”
“The success of this case highlights the hard work of our agents and law enforcement partners to identify and remove a violent individual such as this from our streets and ensure residents feel safe in their community,” said FBI Indianapolis Special Agent in Charge Herbert J. Stapleton. “We remain committed to holding those who engage in criminal activity accountable for their crimes.”
The FBI investigated this case with valuable assistance provided by the Evansville Police Department. The sentence was imposed by U.S. District Court Judge Richard L. Young. Judge Young also ordered that Cartwright be supervised by the U.S. Probation Office for 5 years following his release from federal prison. Cartwright must also pay $365 in restitution to Circle K.
U.S. Attorney Myers thanked Assistant United States Attorney Matthew B. Miller, who prosecuted this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Federal Grand Jury Indicts Urbana, Illinois, Women for Wire Fraud Related to COVID Relief FundsRead the Press Release
URBANA, Ill. – A grand jury returned an indictment on March 8, 2023, against two Urbana, Illinois, women, Tasheena White, 32, of the 2400 block of Goodfield Drive, and Uniqua Whitaker, 26, of the 1200 block of Clifford Drive, charging each with one count of wire fraud related to Paycheck Protection Program (PPP) loans.
The indictment alleges that both White and Whitaker, United States Postal Service employees, engaged in a scheme to submit falsified loan applications and supporting documentation to acquire PPP loans in Spring 2021. White and Whitaker each obtained approximately $20,000 in PPP loans funds. Both have been issued a summons to appear in federal court in Urbana.
If convicted, the statutory penalties for wire fraud are a maximum of 30 years’ imprisonment, up to a three-year term of supervised release, up to a $1,000,000 fine, and restitution.
Agencies participating in the investigation include the Federal Bureau of Investigation, Springfield Field Office; the United States Postal Inspection Service; the Small Business Administration Office of Inspector General; the Department of Labor Office of Inspector General; and the United States Postal Service Office of Inspector General. Assistant U.S. Attorney Nathan Bertrand is representing the government in the prosecution.
COVID-19 disaster relief benefits are intended to help people and businesses suffering as a result of the pandemic. If members of the public suspect that anyone fraudulently obtained or misused benefits, they should contact the National Center for Disaster Fraud (NDCF) Hotline at 1-866-720-5721 or submit the NCDF Web Complaint Form. The NCDF is a national coordinating agency within the Department of Justice’s Criminal Division dedicated to improving the detection, prevention, investigation, and prosecution of criminal conduct related to natural and man-made disasters and other emergencies, such as the coronavirus (COVID-19). Hotline staff will obtain information regarding complaints, which will then be reviewed by law enforcement officials. More information is available at https://www.justice.gov/disaster-fraud.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Federal Grand Jury Indicts Hardin County Man for Possession of Destructive DevicesRead the Press Release
Louisville, KY – A federal grand jury in Louisville, Kentucky returned an indictment yesterday charging a Hardin County man with illegal possession of destructive devices.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky and Acting Special Agent in Charge Robert Maynard of the ATF Louisville Field Division made the announcement.
According to the indictment, Frank Taylor, 61, of Cecilia, Kentucky, was charged with one count of possessing four destructive devices not registered to him in the National Firearms Registration and Transfer Record.
Taylor will make his initial court appearance before a U.S. Magistrate Judge in the Western District on a later date. If convicted, Taylor faces a maximum sentence of 10 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.
This case is being investigated by the ATF Louisville Division Office with assistance from the Kentucky State Police.
Assistant U.S. Attorney Robert Bonar is prosecuting this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Federal Authorities Seize Internet Domain Selling Malware Used to Illegally Control and Steal Data from Victims’ ComputersRead the Press Release
LOS ANGELES – As part of an international law enforcement effort, federal authorities in Los Angeles this week seized an internet domain that was used to sell computer malware used by cybercriminals to take control of infected computers and steal a wide array of information.
A seizure warrant approved by a United States Magistrate Judge on March 3 and executed on Tuesday led to the seizure of www.worldwiredlabs.com, which offered the NetWire remote access trojan (RAT), a sophisticated program capable of targeting and infecting every major computer operating system. “A RAT is a type of malware that allows for covert surveillance, allowing a ‘backdoor’ for administrative control and unfettered and unauthorized remote access to a victim’s computer, without the victim’s knowledge or permission,” according to court documents filed in Los Angeles.
As part of this week’s law enforcement action, authorities in Croatia on Tuesday arrested a Croatian national who allegedly was the administrator of the website. This defendant will be prosecuted by Croatian authorities. Additionally, law enforcement in Switzerland on Tuesday seized the computer server hosting the NetWire RAT infrastructure.
The FBI in Los Angeles in 2020 opened an investigation into worldwidelabs, the only known online distributor of NetWire. Undercover investigators with the FBI created an account on the website, paid for a subscription plan, and “constructed a customized instance of the NetWire RAT using the product’s Builder Tool,” according to the affidavit in support of the seizure warrant.
While the website marketed NetWire as a legitimate business tool to maintain computer infrastructure, the affidavit states that NetWire is a malware used for malicious purposes, the software was advertised on hacking forums, and numerous cyber security companies and government agencies have documented instances of the NetWire RAT being used in criminal activity.
“Today’s action is a testament to the innovation and flexibility necessary to fighting cybercriminals who operate without borders,” said United States Attorney Martin Estrada. “Our office will continue to forge international alliances to protect our communities from cyber threats. Criminals used NetWire on a global scale, and we have responded by dismantling the infrastructure that has caused untold harm to victims around the world.”
“By removing the Netwire RAT, the FBI has impacted the criminal cyber ecosystem,” said Donald Alway, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “The global partnership that led to the arrest in Croatia also removed a popular tool used to hijack computers in order to perpetuate global fraud, data breaches and network intrusions by threat groups and cyber criminals.”
The referenced media source is missing and needs to be re-embedded.This matter is the result of the United States’ strong law enforcement cooperation with Croatia and other global partners. The FBI’s Los Angeles Field Office; the Croatia Ministry of the Interior, Criminal Police Directorate; Zurich Cantonal Police in Switzerland; the Europol European Cybercrime Center; and the Australian Federal Police conducted the investigation in this matter.
Assistant United States Attorneys Lisa Feldman of the Cyber and Intellectual Property Crimes Section and Maxwell Coll of the Asset Forfeiture and Recovery Section obtained the seizure warrant for the internet domain. The Office of International Affairs in the Justice Department’s Criminal Division provided substantial assistance during the investigation.
Detroit Gang Member Sent to Prison for Two Murders as Part of Racketeering ConspiracyRead the Press Release
DETROIT – A former Detroit resident was sentenced to 25 years in prison for murdering a rival gang member and an innocent 13-year-old bystander as part of a racketeering conspiracy, United States Attorney Dawn N. Ison announced today.
Ison was joined in the announcement by Special Agent in Charge James A. Tarasca, Federal Bureau of Investigation, Detroit Division. Carlo Wilson, aka “Los,” age 29, received the sentence from the United States District Judge Mark A. Goldsmith.
At his guilty plea, Wilson admitted to being a member of the “6 Mile Chedda Grove” gang, which is a street gang that operated on the eastside of Detroit. 6 Mile Chedda Grove was a violent organization responsible for murders, assaults, robberies, and narcotics trafficking in the Detroit metropolitan area and in other states. The gang used violence to retaliate against rivals and to advance members’ positions within the gang.
As a part of his plea, Wilson admitted to participating in the 2015 murder of a rival gang member and an innocent bystander. According to plea documents, Wilson was with another gang member, Edwin Mills, when they saw the rival in a car outside of a market on the eastside of Detroit. Wilson and Mills killed the rival gang member and an innocent bystander when they fired multiple shots at the vehicle. Wilson and Mills also seriously injured two children who had been sitting on the hood of the car driven by the rival gang member. Mills also pled guilty and is currently awaiting sentencing in the case.
“Today’s sentence is a stark reminder of how gun violence devastates our community and is robbing innocent children of their future. It also serves as a warning to those who use guns to commit violence: I will use every resource of the federal government to seek justice for all of the people in this district,” U.S. Attorney Ison said.
“We are extremely proud of the outstanding work done by our Violent Gang Task Force, which is committed to countering violent crime, illegal drugs, and organized criminal activity in our communities by investigating gang members like Mr. Wilson, ”said James A. Tarasca, Special Agent in Charge of the FBI's Detroit Field Office. "The continued success and impact of this Task Force is persuasive evidence of how interagency collaboration results in tangible public safety benefits to the citizens who live in the Detroit metropolitan area."
The case was investigated by special agents of the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorneys Robert Moran and Andrew R. Picek.
Department of Justice Fiscal Year 2024 Funding RequestRead the Press Release
Note: Read the Department of Justice FY2024 Budget Fact Sheets here.
Today, the President submitted to Congress his Budget for Fiscal Year 2024 (FY24), which requests a total of $39.7 billion in discretionary resources, an increase of $2.3 billion, or 6 percent, over the Fiscal Year 2023 enacted level, and $9.7 billion in mandatory funding for the Department of Justice.
“The Justice Department’s mission is to uphold the rule of law, keep our country safe, and protect civil rights,” said Attorney General Merrick B. Garland. “This increase in resources to our law enforcement agencies, U.S. Attorney’s Offices, and litigating and grantmaking components will enable us to build on our efforts to fulfill that mission. The Department will put these resources to work in communities across the country -- including to combat violent crime and gun violence, address the deadly fentanyl crisis, counter threats to our national security, investigate and prosecute hate crimes, safeguard voting rights, address environmental harm, advance economic fairness, and uphold the rule of law.”
Key investments to keep our country safe include:
- More than $21 billion in investments to expand the capacity of the Department’s law enforcement and U.S. Attorneys’ Offices to keep our country safe from a wide range of complex and evolving threats, including $11.3 billion for the FBI and $2.9 billion for the U.S. Attorneys’ Offices to carry out their complex mission sets, including keeping our country safe from violent crime, cybercrime, hate crimes, terrorism, espionage, and the proliferation and potential use of weapons of mass destruction. The budget also includes:
- $11.4 billion to tackle violent crime.
- $2.7 billion for the Drug Enforcement Administration (DEA) to continue the fight against dangerous drug trafficking gangs and cartels and to prevent the flow of deadly drugs into our communities. This includes $19 million in enhancements for the DEA and $696 million in grants for the Office of Justice Programs (OJP), and the Office of Community Oriented Policing Services (COPS) to continue the fight against dangerous drug trafficking organizations, and doubles grant programs, including two new programs aimed at protecting America’s youth and identifying the next generation of psychoactive substances.
- $1.9 billion for the U.S. Marshals Service (USMS) to assist local law enforcement in apprehending violent fugitives from our neighborhoods and to protect our nation’s judges and courts.
- $1.9 billion for the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) for reducing gun violence and violent crime.
- Almost $7.7 billion for national security programs, including $32.7 million in program increases to expand the Department’s ability to counter terrorism and keep pace with rising national security threats, while protecting civil rights and civil liberties, and $179.7 million in program enhancements to support the Department’s efforts to respond to cybersecurity and cyber threats.
- $939.3 million to protect the most vulnerable by enforcing human smuggling laws, combating child exploitation, combatting gender-based discrimination and harassment, and protecting victims of violence and abuse.
- $300 million in mandatory funding over three years for COVID fraud enforcement.
- $1.5 billion in critical investments to support the Justice Department’s mission of protecting civil rights, including:
- $261 million to preserve, protect, and defend civil rights. The request prioritizes advancing racial justice, promoting equity for underserved communities, and enforcing civil rights across the Nation. This funding will support police reform, provide for the prosecution of hate crimes across the nation, defend voting rights, and other important civil rights activities.
- $89 million to support the department’s Body Worn Camera Initiative.
- $300 million for the Office of Justice Programs Accelerating Justice System Reform initiative to provide states the tools and incentives to address existing drivers of correctional rates, racial disparities, and adverse outcomes for civilians.
- $446 million for Office on Violence Against Women programs to combat domestic/dating violence, sexual assault, and stalking and support survivors.
- $84 million in critical investments to uphold the Rule of Law, including:
- $8 million to enforce federal law related to voting. This funding would expand the Civil Rights Division’s ability to address language access obligations, rebuild enforcement capacity, and address violations of the National Voter Registration Act. The division will also expand its ability to review and resolve potential violations of the National Voting Rights Act.
- $21 million for Judicial Security and Protective Operations for the United States Marshals Service to enhance protective operations by funding two full-time protective services details to support high-threat mitigation throughout the Judicial and Executive Branches.
- More than $21 billion in investments to expand the capacity of the Department’s law enforcement and U.S. Attorneys’ Offices to keep our country safe from a wide range of complex and evolving threats, including $11.3 billion for the FBI and $2.9 billion for the U.S. Attorneys’ Offices to carry out their complex mission sets, including keeping our country safe from violent crime, cybercrime, hate crimes, terrorism, espionage, and the proliferation and potential use of weapons of mass destruction. The budget also includes:
Columbia County Man Charged with Fraud, Theft, and Identity Theft for Obtaining Driver License and Food Stamps Using the Identity of A Deceased PersonRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging Luis Alberto Villazon (63, Fort White) with wire fraud, theft of government property, making false statements to a federal agency, fraudulent use of a Social Security number, and aggravated identity theft. If convicted, the wire fraud charges each carry a maximum penalty of 20 years in federal prison, theft of government property carries a maximum penalty of 10 years’ imprisonment, the false statements and fraudulent use of a Social Security number charges each carry a maximum penalty of 5 years, and the aggravated identity theft charges each carry a mandatory 2-year sentence, at least one of which must run consecutively to any other sentence. The indictment also notifies Villazon that the United States intends to seek forfeiture of approximately $50,000, the estimated amount of proceeds obtained as a result of the offenses.
According to the indictment and other court documents, in 1998, Villazon, who had previously lived in New York, applied for and obtained a Florida driver license using the name, date of birth, and Social Security number of a person who was born in New York in July 1959, and died in New York in 1976. Villazon was born in August 1959. Villazon renewed the license several times, on one occasion presenting a New York birth certificate and a Social Security document under the false identity. During the same time-period, Villazon obtained and renewed a license in his real name. Both licenses were still valid at the end of 2022.
Beginning in 2011, Villazon applied for and obtained Supplemental Nutrition Assistance Program (SNAP) benefits, formerly called food stamps, under both the false identity and his true identity. The program required Villazon to submit renewal applications about every six months and each time he applied under the false identity, he provided the name, date of birth, and Social Security number of the person who died in 1976. Villazon received benefits totaling $25,388 under the false identity through December 2022 and received benefits under his real name totaling $22,902 through November 2021.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by Homeland Security Investigations (HSI), the Department of Agriculture – Office of Inspector General, the Social Security Administration – Office of the Inspector General, and the Columbia County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Arnold B. Corsmeier.
Download IndictmentChicago Felon Sentenced to 70 Months in Federal Prison for Illegal Possession of a FirearmRead the Press Release
MINNEAPOLIS – A Chicago man has been sentenced to 70 months in prison followed by two years of supervised release for illegal possession of a firearm, announced United States Attorney Andrew M. Luger.
According to the defendant’s guilty plea and court documents, on June 21, 2022, a St. Paul police officer responded to an apartment after receiving a 911 call reporting a domestic incident. The officer encountered Allen Denzel Oliver-Hall, 28, who attempted to get the officer to turn his back to him so that he could hide a gun, a stolen American Tactical 92 9mm pistol with an extended magazine. The officer saw the gun and tried to remove it from Oliver-Hall’s possession. During the struggle, the firearm was pointed towards the officer. Eventually, the officer was able to disarm Oliver-Hall.
Because Oliver-Hall has multiple prior felony convictions in Cook County, Illinois, he is prohibited under federal law from possessing firearms or ammunition at any time.
On October 25, 2022, Oliver-Hall pleaded guilty to one count of possessing a firearm as a felon. Oliver-Hall was sentenced today in U.S. District Court before Chief Judge Patrick J. Schiltz.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the St. Paul Police Department.
Assistant U.S. Attorney Laura M. Provinzino prosecuted the case.
California Woman Pleads Guilty to Embezzling More Than $1 Million from Her EmployerRead the Press Release
MINNEAPOLIS – A California woman has pleaded guilty to wire fraud, aggravated identity theft, and filing a false tax return after embezzling more than $1 million from her employer, announced U.S. Attorney Andrew M. Luger.
According to the guilty plea and court documents, Mai Houa Xiong, 47, of Fresno, California, was employed as a financial manager for a Minneapolis-based property management company that provided financial services to homeowners’ associations (HOAs) throughout the Twin Cities metro area. Xiong’s duties included bookkeeping, and as a manager she had access to the victim associations’ financials, bank accounts, vendor and contractor payments, and bookkeeping systems. Between February 2015 and February 2022, Xiong devised and executed a fraud scheme to embezzle funds directly from the accounts to which she had access. These funds were HOA fees collected from residents intended to pay for maintenance, construction, and other costs incurred by the victim associations.
As part of the scheme, Xiong repeatedly accessed bank accounts and conducted electronic transfers of funds directly into her personal bank accounts. Xiong disguised these transfers by mislabeling them to make it appear as if they were legitimate homeowner association expenses. Xiong also used her authority as a signatory to make cash withdrawals directly from the HOAs’ accounts, including making withdrawals after she was fired from her position in July 2021. After her termination, Xiong began collecting Unemployment Insurance (UI) funds. However, even after Xiong found new employment, she continued to wrongfully obtain public UI benefits.
Xiong pleaded guilty today in U.S. District Court before Chief Judge Patrick J. Schiltz to one count of wire fraud, one count of aggravated identity theft and one count of making and subscribing a false tax return. A sentencing hearing will be scheduled at a later time.
This case is the result of an investigation conducted by the IRS – Criminal Investigations, the Minnesota Bureau of Criminal Apprehension, and the Minneapolis Police Department.
Assistant U.S. Attorney Allison K. Ethen is prosecuting the case.
CEO of Major Defense Contractor Charged with BriberyRead the Press Release
UPDATE
This press release has been updated to reflect the current charges against Rafaraci.
The chief executive officer (CEO) of Company 1, a multi-national corporation headquartered in Malta and with operations in the United Kingdom, United Arab Emirates, Singapore, and the United States was charged with bribery in an indictment returned on September 30, 2019.
According to the indictment, between 2013 and 2021, Rafaraci gave, offered, and promised money to Public Official 1, a Marine Liaison Officer for the U.S. Navy’s Fifth Fleet in Manama, Bahrain, in exchange for Public Official 1 using his official position to take action benefitting Company 1 as opportunities arose.
“Frank Rafaraci allegedly bribed a Navy official for years,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “The Criminal Division remains committed to combating corruption in defense contracting around the world.”
“This defendant is alleged to have engaged in a long-running scheme to bribe a public official for his own gain,” said Acting U.S. Attorney Channing D. Phillips of the District of Columbia. “The U.S. Attorney’s Office will continue to pursue and hold accountable those that seek to take advantage of our military through corruption.”
“The criminal case against Rafaraci is the result of painstaking investigative efforts by the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS) agents, and our partner agencies,” said Special Agent in Charge Stanley A. Newell of the DCIS Transnational Operations Field Office. “Let today’s action serve as a sobering reminder to those who seek to enrich themselves at the expense of the U.S. military and American taxpayers. DCIS is resolutely committed to ensuring the integrity of the DoD’s global procurement operations.”
“Rafaraci’s alleged long-running criminal scheme cheated the U.S. taxpayer and wasted tremendously valuable resources,” said Special Agent in Charge Eric Maddox of the Naval Criminal Investigative Service (NCIS) Economic Crimes Field Office. “NCIS and our law enforcement partners remain steadfast in our commitment to root out bribery and corruption that threaten to diminish the operational readiness and warfighter superiority of the Navy and Marine Corps.”
If convicted of bribery, Rafaraci faces a maximum penalty of 15 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Rafaraci was provisionally arrested in Malta on Sept. 27, 2021, at the request of the United States. Proceedings in Malta concluded upon his voluntary return to the United States on Oct. 18.
DCIS, NCIS, IRS-CI, and Army Criminal Investigative Division are investigating the case. Valuable assistance was provided by the FBI, U.S. Department of State’s Diplomatic Security Service, the Malta Police Force, Malta Office of the Attorney General, Essex Police, and U.K. International Crime Cooperation Center.
Principal Assistant Chief Justin Weitz, Trial Attorney Michael P. McCarthy of the Criminal Division’s Fraud Section, and Assistant U.S. Attorney Amanda R. Vaughn are prosecuting the case. Former Deputy Chief Brian R. Young of the Fraud Section participated in the investigation. The Justice Department’s Office of International Affairs provided significant assistance.
Anyone with information relating to fraud or corruption should contact the NCIS anonymous tip line at www.ncis.navy.mil or the DoD hotline at www.dodig.mil/hotline, or call (800) 424-9098.
An indictment is merely an allegation, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Rafaraci Indictment Rafaraci AffidavitBuffalo Man Going to Prison on Multiple Drug, Gun and Covid-19 Fraud CrimesRead the Press Release
BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Joseph Bella, 50, of Buffalo, NY, who was convicted of possession with intent to distribute cocaine, being a drug user in possession of a firearm, and wire fraud, was sentenced to serve 42 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorneys David J. Rudroff and Nicholas T. Cooper, who handled the case, stated that on April 23, 2020, investigators executed a search warrant at Bella’s residence and recovered drug paraphernalia and quantities of cocaine, MDMA, and marijuana. Investigators also recovered a 12-gauge shotgun and ammunition. At that time, Bella was an unlawful user of controlled substances, including marijuana and cocaine.
In addition, Bella defrauded a Salt Lake City, Utah, corporation (Victim) that developed and manufactured COVID-19 test kits, by falsely representing that his company, Medcor Staffing, Inc., was laboratory certified to perform high-complexity molecular testing, that Medcor Staffing was an “end-user” of the tests, and that Medcor Staffing would not attempt to resell them. As a result, the Victim sold Bella 5,000 COVID-19 tests that he could not safely and accurately process, could not provide end-user support for, and, in fact, intended to re-sell at a substantial mark-up.
In March 2020, Bella advertised on his personal Facebook account that he was selling “FDA approved COVID-19 Test Kits.” In April 2020, Bella communicated with an undercover federal agent by telephone, text message, and email, falsely telling the agent that he had 50,000 COVID-19 tests for sale; that the COVID-19 tests were being stored in a warehouse in San Diego, California at -20 degrees Celsius; that Medcor Staffing was an “exclusive licensed reseller” of the tests; and that Medcor Staffing employed doctors and scientists to answer customers' questions. Bella attempted to sell the tests to the agent for $30 per test, or more, after fraudulently obtaining the tests for only $8 apiece.
Bella also fraudulently obtained a loan from the Small Business Association under the Economic Injury Disaster Loan (EIDL) Program, which is designed to provide low-interest loans to qualifying small businesses to help them meet financial obligations and operating expenses in the event of a disaster. At Bella’s direction, a subordinate submitted a falsified application for a loan under the EIDL Program for another business Bella owns called BuyMyCard, a purchaser and re-seller of gift cards. The application grossly inflated BuyMyCard’s annual revenue, grossly underreported BuyMyCard’s annual expenses, and falsely stated that Bella was not subject to formal criminal charges at the time of the application. As a result of the falsified application, the SBA approved and funded a $149,900 loan to BuyMyCard under the EIDL Program.
The sentencing is the result of an investigation by the Homeland Security Investigations, under the direction of Special Agent-in-Charge Matthew Scarpino; Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy; U.S. Customs and Border Protection, Air and Marine Operations, under the direction of Brian Manaher; U.S. Border Patrol, under the direction of Patrol Agent in Charge Jeffrey T. Wilson; the United States Postal Inspection Service, under the direction of Inspector-in-Charge Ketty Larco-Ward of the Boston Division; the Bureau of Alcohol Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. DeVito, New York Field Division; and Buffalo Police Department, under the direction of Commissioner Joseph Gramaglia.
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Browning man sentenced for assaulting teenage girlRead the Press Release
GREAT FALLS — A Browning man who admitted to assaulting and kicking a teenage girl in the face during an argument on the Blackfeet Indian Reservation was sentenced on March 8 to five months in prison, to be followed by two years of supervised release, U.S. Attorney Jesse Laslovich said today.
Jasper Ryan Rattler, 20, pleaded guilty in October 2022 to assault resulting in substantial bodily injury.
Chief U.S. District Judge Brian M. Morris presided.
The government alleged in court documents that on Feb. 12, 2021, Rattler was consuming alcohol with the then 16-year-old victim, identified as Jane Doe. After getting into an argument, Rattler assaulted the victim, including kicking her in the face. The assault caused the victim substantial injuries.
Assistant U.S. Attorney Amanda L. Myers and Ryan G. Weldon prosecuted the case, which was investigated by the Bureau of Indian Affairs, FBI, Blackfeet Law Enforcement Services and Spokane Law Enforcement Services.
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Brooklyn High School Paraprofessional Sentenced to 15 Years for Production of Child Pornography and Sextortion SchemeRead the Press Release
Earlier today, in federal court in Brooklyn, Brian Quinones was sentenced by United States District Judge Hector Gonzalez to 15 years in prison for sexually exploiting a child. As part of his sentence, Quinones will be required to register as a sex offender upon his release from prison. Quinones pleaded guilty to the charge in September 2022.
Breon Peace, United States Attorney for the Eastern District of New York, announced the sentence.
“The defendant’s sextortion of a minor is unconscionable, cruel, and deserving of the punishment he received today in order to protect our communities for the lifetime of harm he has inflicted on his victims,” stated United States Attorney Peace. “I urge parents and caregivers to have frank conversations with their children about the dangers of communicating online with strangers who can pretend to be anyone or anything while making inappropriate requests for photos and videos.”
Mr. Peace thanked the Federal Bureau of Investigation, New York Field Office, and the New York City Police Department for their investigative work on the case.
Between September 2019 and January 2020, Quinones, who worked as a paraprofessional (a teaching assistant) at Midwood High School, used an instant messaging mobile application to trade dozens of videos and images depicting child pornography with another individual who has since been charged with child pornography-related offenses. Following a court-authorized search of Quinones’s residence and the seizure of his electronic devices, FBI special agents discovered a series of sexually explicit messages between Quinones, who was impersonating a woman, and a minor male victim, who Quinones lured into creating and sending sexually explicit videos. Quinones then threatened to post the victim’s material on the Internet unless the victim agreed to make additional sexually explicit content. For example, Quinones discussed an extortion scheme in a series of direct messages with another user on his Twitter account, urging the other user: “Threaten him to do more . . . I like making boys into slaves[.]”
This prosecution is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Department of Justice Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The government’s case is being handled by the Office’s General Crimes section. Assistant United States Attorney Eric Silverberg is in charge of the prosecution.
The Defendant:
BRIAN QUINONES
Age: 30
Brooklyn, New YorkE.D.N.Y. Docket No. 22-CR-218
Anchorage Man Sentenced for 2022 Robbery of Wells Fargo BankRead the Press Release
ANCHORAGE – Robert Marley Chapas was sentenced on March 8, 2023, to 60 months in prison for bank robbery.
According to court documents, on April 27, 2022, Chapas entered an Anchorage Wells Fargo branch. Chapas approached a teller window and passed a note to the teller that stated: “This is a robbery, I have a gun. Empty your drawer & let me leave like a normal transaction. I am not alone, there are other people with me. Do not try to be a hero & get someone hurt. Do not call police or alert anyone! Until I leave the building or I will shoot, This can be easy your choice.” Chapas then obtained $2,450 from the teller.
In sentencing Chapas to a term of 60 months, followed by 3 years of supervised release, Judge Timothy M. Burgess noted the terrifying nature of the crime and Chapas’ history of committing other serious crimes, including a 2018 assault conviction from the State of Alaska that involved Chapas pointing a gun at a fellow motorist. The Court also ordered Chapas to pay $2,450 in restitution for the loss to Wells Fargo.
Chapas was indicted along with co-defendant, Isiah Ishom Perry. In January 2023, Perry pleaded guilty to his part in the Wells Fargo bank robbery. Perry is set to be sentenced in April 2023.
U.S. Attorney S. Lane Tucker of the District of Alaska made the announcement.
The Federal Bureau of Investigation (FBI) and the Anchorage Police Department (APD) investigated the case.
Assistant U.S. Attorney Seth Brickey prosecuted the case.
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usao/ak/23-016
Akron Man Charged with Conspiracy to Defraud the United StatesRead the Press Release
AKRON - Romeo Travis, 39, of Akron, Ohio, was charged by way of information on one count of conspiracy to defraud the United States and one count of wire fraud. The information alleges that Travis impeded, impaired, and obstructed the lawful government functions of the Internal Revenue Service of the Department of the Treasury in computing, assessing, and collecting his individual income taxes. The information further alleges that, with Travis’ knowledge and consent, his professional sports agent altered Travis’ basketball contracts with overseas teams by understating his income, prior to sending those contracts to Travis’ tax preparer. As a result, Travis reduced his tax liability. The wire fraud count alleges that the false tax returns from the above scheme, that falsely under-reported Travis’ income, were used to reduce Travis’ child support payments to an unidentified individual as managed by the Stark County Child Support Enforcement Agency.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the information was conducted by the Internal Revenue Service, Criminal Investigation Division. The case is being prosecuted by Senior Litigation Counsel for Tax, Robert J. Patton.
A information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial during which it will be the government’s burden to prove guilt beyond a reasonable doubt.
6 traffickers convicted for smuggling meth for Michoacan cartelRead the Press Release
LAREDO, Texas – Five U.S. citizens and one Mexican national have been convicted of conspiring to possess with the intent to distribute a total of approximately 75 kilograms of meth associated with an independent drug cartel located in Michoacan, Mexico, announced U.S. Attorney Alamdar S. Hamdani.
Gerardo Martinez, 63, Laredo, pleaded guilty to leading a conspiracy to bring meth into the United States from Mexico and on to San Antonio, Dallas and beyond. Maria Valdez, 30, Rodrigo Sandoval, 31, and Karina Garcia, 26, all also of Laredo, previously pleaded guilty to their roles in the conspiracy as did Mexican national Jose Alfredo Cruz-Salas, 37, and Ernesto Diaz-Velazquez, 40, Dallas.
The investigation revealed a complex conspiracy which began Feb. 1, 2017, and continued through Sept. 29, 2018. Martinez assisted drug traffickers in Mexico by finding and recruiting drivers willing to transport large quantities of high-purity meth through Laredo and further into the United States.
As part of his plea today, Martinez admitted to coordinating five drug trafficking events involving the illegal distribution of meth through Laredo.
Sandoval, Cruz-Salas, Valdez, Diaz-Velazquez and Garcia each previously pleaded guilty to conspiring to deliver and transport meth through Laredo while working for Martinez. Martinez maintained a front as an independent taxi driver while working on behalf of the Michoacan cartel.
U.S. District Judge Marina Garcia Marmolejo will impose sentencing at a later date. At that time, each faces up to life in prison and a possible $10 million maximum fine.
All six have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the Organized Crime Drug Enforcement Task Forces (OCDETF) Operation Codigo Siete with the assistance of the Texas Department of Public Safety, Laredo Police Department and Webb County Sheriff’s Office. 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, mutlti-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage.
Assistant U.S. Attorney Francisco J. Rodriguez is prosecuting the case.